Inflation in Germany in 1923

• Inflation in Germany in 1923.

Have a lot of money does not mean to be rich. This simple truth is well known to anyone who has experienced inflation. After the collapse of the Soviet Union feel like a millionaire could practically everyone: because of the monstrous inflation devalued money every day. Such processes at different times experienced by many countries in the world. In this review - photos taken in Germany in 1923. They can see how the children were making kites out of banknotes and hostess used the money bundles for lighting the oven.

Inflation in Germany in 1923 Inflation in Germany in 1923

Children playing with banknotes, which have become a piece of paper because of inflation.

In the 1920s, the financial situation in Germany has deteriorated. Then, in the pocket of the average German would lay several million marks, but buy nothing was impossible for them. The price of a loaf of bread was 200 million, a cup of coffee cost, as the whole pension. The rate of national currency fell every minute. In restaurants, even occasionally stopped serving food, as long as the dish is ready, its price has increased significantly.

Inflation in Germany in 1923

The banknote denominations of 100 trillion.

Still preserves the stories of how people survive in this difficult situation. There were cases when the first cup of coffee in the cafe could drink for 5000 marks, and the second - already twice as expensive. Or, for example, leaving your home people expected to buy two loaves of bread, but pausing on the way to the bakery, showed that the new price is significantly increased, and it can only afford one. It also happens that people bought a bus ticket to Berlin to buy a pair of shoes, and, having arrived, found their savings barely enough for a return ticket home.

Inflation in Germany in 1923

The banker in Berlin said wads of money.

The economic collapse of Germany started in the middle of the First World War. The Government funded the conduct of hostilities is not taxpayers' money, and taking international loans. Planned after the victory to get rich territory with a large industrial resource and pay off foreign debts. However, the war ended with a loss in Germany, and according to the provisions of the Treaty of Versailles, the country had to pay 132 million marks (31, US $ 4 million), the countries-allies for damages. The German government has decided to go on obviously false step: to print a lot of bills to buy for these "money" of foreign currency, and from these funds to pay reparations. Of course, these actions have led to hyperinflation, the economic processes could no longer be controlled.

Inflation in Germany in 1923

Children fashioned kite from discounted bills.

The course is the official currency was terrifying: before the war, one US dollar was worth 4, 2 grade, after the signing of a peace treaty - 48 marks. However, this was only the beginning. In the first half of 1922 prices fell to 320 marks per dollar by the end of the year - up to 7,400 marks, the record mark was 4, 2 trillion marks to the dollar.

Inflation in Germany in 1923

Barter: many shops in Germany to exchange goods for food.

In the days when pay wages, workers came with their suitcases and backpacks, and immediately ran headlong to the stores to stock up on at least some food before heading again to change. Banknotes issued by all higher ratings each week. In October 1923, hyperinflation reached its peak - has been released banknote 100 trillion marks. From now on, the exchange rate is no longer made sense.

Inflation in Germany in 1923

Money for children - toys.

People began to abandon the money, began the exchange of goods and services. Physicians were asked for their treatment of sausage, eggs, coal and so on. The market can be exchanged for a pair of shoes on a T-shirt, and utensils - coffee. Among the Germans started to panic and panic. People began to live as if tomorrow would never come. There was a demand for night clubs, strip bars and points of sale of cocaine.

Inflation in Germany in 1923

The extremely high prices during inflation.

The country was the strongest shortage of goods, the price remained only diamonds, gold and works of art, everything else is fully depreciated. Germany faced a wave of petty theft, stealing everything - soap, hairpins, pipes, gasoline.

Inflation in Germany in 1923

The collection of notes to be burned.

It became obvious that the country needs to implement economic reforms immediately. At the end of 1923 in an appeal launched a new currency - the rental brand, the rate of which is fixed on the familiar mark of 4, 2 rental brands for 1 US dollar. The situation gradually returned to normal, but lost savings has never been and is not reimbursed by the country's inhabitants.

Inflation in Germany in 1923

bundle of money instead of cubes.

Inflation in Germany in 1923

The hostess intends to start a fire using banknotes.