The Economy

"The foundation of Hitler's success in the first years rested not only on his triumphs in foreign affairs, which brought so many bloodless conquests, but on Germany's economic recovery, which in party circles and even among some economists abroad was hailed as a miracle."

"Unemployment, the curse of the Twenties and early Thirties, was reduced, as we have seen, from six million in 1932 to less that a million four years later."

"All of Schacht's admitted wizardry in finance was put to work to pay for getting the Third Reich ready for war. Printing banknotes was mearly one of his devices. He manipulated the currency with such legerdemain that at one time it was estimated by foreign economists to have 237 different values. He negotiated amazingly profitable(for Germany) barter deals with dozens of countries and to the astonishment of orthodox economists successfully demonstrated that the more you owed a country the more business you did with it. His creation of credit in a country that had little liquid capital and almost no financial reserves was the work of genius, or--as some said--of a master manipulator. His invention of the so-called "Mefo" bills was a good example. These were simply bills created by the Reichsbank and guaranteed by the state and used to pay armament manufacturers. The bills were accepted by all German banks and ultimately discounted by the Reichsbank. Since they appeared neither in the published statements of the national bank nor in the government's budget they helped maintain secrecy as to the extent of Germany's rearmament. From 1935 to 1938 they were used exclusively to finance rearmament and amounted to a total of twelve billion marks. In explaining them once to Hitler, Count Schwerin von Krosigk, the harassed Minister of Finance, remarked that they were mearly a way of "printing money.""

"In September of 1936, with the inauguration of the Four-Year Plan under the iron control of Goering, who replaced Schacht as economic dictator though he was almost as ignorant of business as was Hitler, Germany went over to a total war economy. The purpose of the plan was to make Germany self-sufficient in four years, so that a wartime blockade would not stifle it. Imports were reduced to the bare minimum, severe price and wage controls were introduced, dividends restricted to 6 per cent, great factories set up to make synthetic rubber, textiles, fuel and other products from Germany's own sources of raw materials, and a giant Hermann Goering Works established to make steel out of the local low-grade ore."

"Buried under mountains of red tape, directed by the State as to what they could produce, how much and at what price, burdened by increasing taxation and milked by steep and never ending "special contributions" to the party, the businessmen, who had welcomed Hitler's regime so enthusiastically because they expected it to destroy organized labor and allow an entrepreneur to practice untrammeled free enterprise, became greatly disillusioned."

"Laws decreed in Oct. 1937 simply dissolved all corporations with a capital under $40,000 and forbade the establishment of new ones with a capital less than $200,000."


The purpose for this post is to point out that Germany had a booming economy based on a wartime philosophy. The money made and the employment gained at this time made it very easy for the Nazi government to gain total economic control over the people. Those who had been struggling now had jobs and those who were running the big business received large amounts of profit from all of the new business. When people make money, they do not complain. Money cannot buy happiness? Well...true....but it sure can make the days and nights easier to deal with and a lot more comfortable.

We here in America do not realize that our economy is a war based system. The entire structure of our country is based on war time efforts and when not at war...getting ready for the next war. The nations largest companies realized this in the early years of the 20th century. Look at our war history since then:

WWI 1914-1918
WWII 1939-1945
Korea 1950-1953
Vietnam 1960-1975
Bay of Pigs 1961
Grenada 1983
Panama 1989
Perisan Gulf 1990-1991
Bosnia 1995-1996
Afghanistan 2001-Present
TERROR 2001-Present
Iraq 2003-Present

That is twelve military involvements in 94 years, consisting of 50 years of actual war. That leaves only 44 years of peace.
Anyone still believe that America does not run off of a wartime economy? The most lucrative time in American business was at the height of WWII. Look at the largest companies in America today.


1. Wal-Mart Stores
2. Exxon Mobil
3. Chevron
4. General Motors
5. ConocoPhillips
6. General Electric
7. Ford Motor
8. Citigroup
9. Bank of America
10. AT&T

Now do a little research into what companies are subsidiaries of these large corporations. You will find mostly all of the large military defence contractors listed here.

Just think of what we could achieve if half of the Iraqi war budget had gone to alternative fuel research? Or cancer research?

Anyone?

Dan

Next Last Post

Okay, so the last one wasn't the last one. Maybe this one will be. There is a lot of stuff that I wanted to write about, although I haven't really made examples of similar instances in today's world. I am hoping that you will make comments as to what you think the link is.

Pg 248

"To such a mindless man (Bernhard Rust)was now entrusted dictatorial control over German science, the public schools, the institutions of higher learning and the youth organizations. For education in the Third Reich, as Hitler envisaged it, was not to be confined to stuffy classrooms but to be furthered by a Spartan, political and martial training in the successive youth groups and to reach its climax not so much in the universities and engineering colleges, which absorbed but a small minority, but first, at the age of eighteen, in compulsory labor service and then in service, as conscripts, in the armed forces."

""The whole education by a national state," he had written, "must aim primarily not are the stuffing with mere knowledge but at building bodies which are physically healthy to the core." But, even more important, he had stressed in his book the importance of winning over and then training the youth in the service "of a new national state"--a subject he returned to often after he became the German dictator. "When an opponent declares, 'I will not come over to your side,' " he said in a speech on November 6, 1933, "I calmly say, 'Your child belongs to us already..What are you? You will pass on. Your descendants, however, now stand in the new camp. In a short time they will know nothing else but this new community.' ""

Pg. 252

"The cost of such failure was great. After six years of Nazification the number of university students dropped by more that one half--from 127,920 to 58,325. The decline in enrollment at the institutes of technology, from which Germany got its scientists and engineers, was even greater--from 20,474 to 9,554."

That is all I have on that. Next maybe will be on the Economy, Labor, and Justice.

Till then.

Dan

Last post

Today I am deciding to post my last post on this book. I haven't read it for a while and there are so many other things I am trying to do, not to mention the total lack of readers other than the two faithful.

Life in the Reich:

Pg. 231

"The overwhelming majority of Germans did not seem to mind that their personal freedom had been taken away, taht so much of their culture had been destroyed and replaced with a mindless barbarism, or that their life and work had become regimented to a degree never before experienced even by a people accustomed for generations to a great deal of regimentation."

"The Blood Purge of June 30, 1934, was a warning of how ruthless the new leaders could be. Yet the Nazi terror in the early years affected the lives of relatively few Germans and a newly arrived observer was somewhat surprised to see that the people of this country did not seem to feel that they were being cowed and held down by an unscrupulous and brutal dictatorship. On the contrary, they supported it with genuine enthusiasm."

Pg. 232

"The Germans heard vaguely in their censored press and broadcasts of the revulsion abroad but they noticed that it did not prevent foreigners from flocking to the Third Reich and seemingly enjoying its hospitality. For Nazi Germany, much more than Soviet Russia, was open for all the world to see. The tourist business thrived and brought in vast sums of badly needed foreign currency."

Pg. 241

"On the evening of May 10, 1933, some four and a half months after Hitler became Chancellor, there occured in Belin a scene which had not been witnessed in the Western world since the late Middle Ages. At about midnight a torchlit parade of thousands of students ended at a square on Unter den Linden opposite the University of Berlin. Torches were put to a huge pile of books that had been gathered there, and as the flames enveloped them more books were thrown on the fire until some twenty thousand had been consumed. Similar scenes took place in several other cities. The book burning had begun."

Pg 244

"Every morning the editors of the Berlin daily newspapers and the correspondents of those published elsewhere in the Reich gathered at the Propaganda Ministry to be told by Dr. Goebbles or by one of his aides what news to print and surpress, how to write the news and headline it, what campaigns to call off or institute and what editorials were desired for the day."

Pg 247

"The radio and the motion pictures were also quickly harnessed to serve the propaganda of the Nazi State. Goebbles had always seen the radio (television had not yet come in) the chief instrument of propoganda in modern society and through the Radio Department of his ministry and the Chamber of Radio he gained complete control of broadcasting and shaped it to his own ends."

Pg. 248

"No one who had not lived for years in a totalitarian land can possibly conceive how difficult it is to escape the dread concequences of a regime's calculated and incessant propaganda."

Maybe I will follow up with more later.

Dan

Post your thought on how this is like our current situation.

Death of the Republic

It has been a while I know, but here on page 226 President Hinddenburg has finnally passed. This is the key moment in which Hitler gains total power.

All through the summer the seemingly indestructable Hindenburg had been sinking and on August 2, at nine in the morning, he died in his eighty-seventh year. At noon, three hours later, it was announced that according to a law enacted by the cabinet on the preceding day the offices of Chancellor and President had been combined and that Adolf Hitler had taken over the powers of the head of state and Commander in Chief of the Armed Forces. The title of President was abolished; Hitler would be known as Fuehrer and Reich Commander. His dictatorship had become complete. To leave no loopholes Hitler exacted from all officers and men of the armed forces an oath of allegiance--not to Germany, not to the constitution, which he had violated by not calling for the election of Hindenburg's successor, but to himself. It read:

I swear by God this sacred oath, that I will render unconditional obedience to Adolf Hitler, the Fuehrer of the German Reich and people, Supreme Commander of the Armed Forces, and will be ready as a brave soldier to risk my life at any time for theis oath.

This is the end of democracy, or what was left of it in Germany. From here on, we will be talking of life in a Nazi Germany and how it resembles, however slight, life in the US now.

Hopefully, something like the death of democracy will not happen here in the US, but with the unpublicised documentation pertaining to the continuity of government in the event of a national emergency, one must wonder.

Thanks. Keep watching, I will post again pretty soon.

Dan

Reichstag Fire

On page 191, I started to read about the Reichstag fire and the power that Hitler was able to fenagal after it. I am now on page 200 so this is a tidbit of what I have read so far:

That it was a crime, a Communist crime, they proclaimed at once on arrival at the fire. Goering, sweating and puffing and quite beside himself with excitement, was already there ahead of them declaiming to heaven, as Papen later recalled, that “this is a Communist crime against the new government.” To the Gestapo chief, Rudolf Diels, Goering shouted, “This is the beginning of the Communist revolution! We must not wait a minute. We will show no mercy. Every Communist official must be shot, where he is found. Every Communist deputy must this very night be strung up.”



At the same time a half witted Dutch Communist with a passion for arson, Marinus Van Der Lubbe, had made his way into the huge, darkened and to him unfamiliar building and set some small fires of his own. This feeble minded pyromaniac was a godsend for the Nazis. He had been picked up by the S.A. a few days before after having been overheard in a bar boasting that he had attempted to set fire to several buildings and that he was going to try the Reichstag next.



Van der Lubbe, it seems clear, was a dupe of the Nazis. He was encouraged to try to set the Reichstag on fire. But the main job was to be done- without his knowledge, of course-by the storm troopers. Indeed, it was established at the subsequent trial at Leipzig that the Dutch half-wit did not possess the means to set so vast a building on fire so quickly. Two and a half minutes after he entered, the great central hall was fiercely burning. He had only his shirt for tinder. The main fires, according to the testimonies of experts at the trial, had been set with considerable quantities of chemicals and gasoline. It was obvious that one man could not have carried them into the building, nor would it have been possible for him to start so many fires in so many scattered places in so short a time.

Van der Lubbe was found guilty and decapitated.



On the day following the fire, Feb. 28th, Hitler prevailed on President Hindenburg to sign a decree “for the Protection of the People and the State” suspending the seven sections of the constitution which guaranteed individual and civil liberties. Described as a “defensive measure against Communist acts of violence endangering the state,” the decree laid down that:
“Restrictions on personal liberty, on the right of free expression of opinion, including freedom of the press; on the rights of assembly and association; and violations of the privacy of postal, telegraphic and telephonic communications; and warrants for house searches, orders for confiscations as well as restrictions on property, are also permissible beyond the legal limits otherwise prescribed.”
In addition, the decree authorized the Reich government to take over complete power in the federal states when necessary and imposed the death sentence for a number of crimes, including “serious disturbances of the peace” by armed persons.

To me, in my opinion, this sounds a lot like what happened on 9-11 and the following days in which the Patriot Act I was passed with intimidation tactics. It is very easy to see, if you believe that this is possable, that if GW Bush (A stout historian) has studied this topic, he could use the same tactics on the American people. The amount of power he has attained since 9-11 is unprecidented in American history and I am sure will not likely bee seen again. Well...Hopefully at least.

Lets hear what you think.

Dan

Middle Class

Here we are on page 185. We are discussing how Hitler came to be granted the vice chancellorship without having a majority of the population behind him.

No class or group or party in Germany could escape its share of responsibility for the abandonment of the democratic Republic and the advent of Adolf Hitler. The cardinal error of the Germans who opposed Nazism was their failure to unite against it. At the crest of their popular strength, in July 1932, the National Socialists had attained but 37 percent of the vote. But the 63 percent of the German people who expressed their opposition to Hitler were much to divided and shortsighted to combine against a common danger which they must have known would overwhelm them unless they united, however temporarily, to stamp it out. The Communists, at the behest of Moscow, were committed to the last to the silly idea of first destroying the Social Democrats, the Socialist trade unions and what middle class democratic forces they were, on the dubious theory that although this would lead to a Nazi regime it would be only temporary and would bring inevitably the collapse of capitalism, after which the Communists would take over and establish the dictatorship of the proletariat.

It might be true, as some of the Socialists said, that fortune had not smiled upon them: the Communists, unscrupulous and undemocratic, had split the working class; the depression had further hurt the Social Democrats, weakening the trade unions and losing the party the support of millions of unemployed, who in their desperation turned either to the Communists or the Nazis.

Between the Left and the Right, Germany lacked a politically powerful middle class, which in other countries--in France, in England, in the United States--Had proved to be the backbone of democracy. In the first year of the Republic the middle-class parties, the Democrats, the People's Party, the Center, had polled a total of twelve million votes, only two million less then the two Socialist groups. But thereafter their strength had waned as their supporters gravitated toward Hitler and the Nationalists. In 1919, the Democrats had elected 74 members tot he Reichstag; by 1932 they held just 2 seats. The strength of the Peoples Party fell from 62 seats in 1920 to 11 in 1932. Only the Catholic Center retained its voting strength to the end. In the first republican elections in 1919 the Center had 71 deputies in the Reichstag; in 1932 it had 70. But even more than the Social Democrats, the Center Party since Bismark's time had been largely opportunist, supporting whatever government made concessions to its special interests.

To me this paints a very similar picture to what is happening in our beloved country here. Our middle class is being systematically dissected and destroyed. What used to count as middle class is now upper level poor. In today's society, you either make a ton of money or none at all. Here where I live, if your household doesn't make over 90-100 thousand a year, it is hard times at home. The inflation rate does not match our increase in salaries and therefore the families are falling behind. those who make the money don't care because they have the money to survive.

Also, re-read the part about the parties and the middle class's importance to keep them in check. I see allot of similarities to current political happenings. What about you?

Dan

Presidential Powers

I am reading again!!!

Here we are on page 173. There have been many events relating to the political structure of the German nation recently. There have been 4 elections held in one year, and the Nazi party has gained a majority in the Reichstag by numbers, although not an overall majority. The President is still Hindenburg and the Chancellor is now a man named Papen.

Papen had been blandly unaware of the intrigue which Schleicher was weaving behind his back. At the beginning of the meeting with the President on Dec. 1 he had confidently outlined his plans for the future. He should continue as Chancellor, rule by decree and let the Reichstag go hang for a while until he could "amend the constitution." In effect, Papen wanted "amendments" which would take the country back to the days of the empire and re-establish the rule of the conservative classes. At his Nuremberg trial and in his memoirs he admitted, as indeed he did to the Field Marshall, that his proposals involved "a breach of the present constitution by the President," but he assured Hindenburg that "he might be justified in placing the welfare of the nation above his oath to the constitution," as, he added, Bismark once had done "for the sake of the country."

This is a very interesting piece of history that I think we could be reliving again. President Bush has, at numerous occasions, acted outside of his authority granted by the US Constitution. Now, some may argue that he was doing it for the betterment of our country. To me that is a moot point, because he does not have those powers. The Patriot Act I was written in the days following 9-11 and an electronic copy was sent to Congress for approval. The Congress did not have a hard copy to review before the vote. They had to base a decision on what the White House told them was in the document. Also, they were pressured into a vote in a very short time. It was days, not weeks, that they had to decide, so a hard copy wouldn't work much anyway.

Now we see that the Patriot act is being used for non-terrorist type surveillance. Most recently is the Gov. of NY. He was caught using prostitutes by use of the Patriot act.

The bottom line is that the President of Germany was being tempted to go outside of his bounds for the "betterment of Germany". Luckily for them, at the time, He held to his oath. I fear that Bush has not fared so well with his integrity.

Dan