The Myth of "Schachtian Austerity"
More at Hjalmar Schacht
myth: austerity leads to fascism/ war efforts
"Schacht's efforts to "bootstrap" Nazi Germany out of the depression brought the economy to the brink of monetary collapse again at about the mid-1930' s. Lacking the foreign sources of primitive accumulation available to the U.S.A. and other World War I victors, Germany was impelled by the nature and situation of its "independent" capitalist economy to embark on successive conquests of its neighbors, in pursuit of the loot with which to meet payments overdue on the account of an inflated mass of Nazi capital. "
From FASCISM: FINAL STAGE OF CAPITALISM
"Schacht's role was to impose an even more brutal austerity on a German population whose standard of living had already been destroyed by the hyperinflation which resulted from the savage reparations imposed on the nation after World War I."
From "Brutish Empire Calls for A New Hjalmar Schacht" by John Hoefle - November 28, 2008 issue of Executive Intelligence Review.
Reality: fascism/ war efforts lead to austerity
Hjalmar Schacht (1877–1970), president of the Reichsbank from 1923 until 1929, when he resigned in protest AGAINST what he regarded as the excessively compliant attitude of the government toward reparations! (i.e. austerity!)
On 11 October 1931 right-wing forces under the leadership of the industrialist andmedia tycoon Alfred Hugenberg (1865–1951) assembled in Bad Harzburg, a town inc entral Germany, to form a common front against the government of HeinrichBrüning (1885–1970) and the Weimar parliamentary system. Appointed Chancellor in March 1930 at the onset of the Great Depression, but unable to put together amajority coalition, Brüning called a special election in September 1930. The Nazis made huge gains and became the second-largest party in the Reichstag. Thereafter Brüning was forced to rely on the emergency powers granted to the President (Hindenburg) under Article 48 of the constitution (Doc. 2.5) in order to enact his program of unpopular austerity measures. Brüning provoked the wrath of nationalists and Nazis by refusing to work with them to establish a nationalist dictatorship, relying instead on the goodwill of the Social Democrats (SPD) to override no-confidence motions in the Reichstag. Although Brüning worked hard to lower Germany’s reparations obligations and claimed to have favored an eventual restoration of the monarchy, nationalists viewed him as too loyal to the Weimar constitution and too weak to stand up to the West.
His market-oriented policies,however,eventually brought him into conflict with the Nazis’ “Four-YearPlan”to prepare Germany for war and led to his resignation from both posts(see Doc. 4.3).
The Führer’s speech to the Commanders-in-Chief of the Wehrmacht,22 August 1939:
"We have nothing to lose; we can only gain. Our economic situation is such, because of our austerity measures, that we can only hold out for afew more years. Goering can confirm this. We have no other choice, we must act. [...] The English Empire did not emerge from the last war strengthened. [...] A beginning has been made for the destruction of England’s hegemony. The way is open for the soldiers, after I have made the political preparations. Today’s announcement of the non-aggression pact with Russia struck like a bombshell."
(http://www.scribd.com/doc/59363783/29/Letters-from-Hjalmar-Schacht-to-Hitler-1932) p 242
Source: Office of the US Counsel for Prosecution of Axis Criminality, Nazi Conspiracy and Aggression, Vol. III(Washington DC: US Government Printing Office, 1946), pp. 581–6 [Doc. 798-PS]
In February 1922, Congress established the World War Foreign Debt Commission to negotiate repayment plans with the debtor nations. The Commission eventually concluded 15 agreements that contained terms based upon the debtors’ abilities to pay. In aggregate, a final principal amount of $11.5 billion was accepted, to be paid off over 62 years with interest rates averaging slightly above two percent. If paid in full, this would have yielded more than $22 billion.
So the problem was the war reparations imposed on Germany by the Allied, especially France (not "Manhattan")!
What Actually Is Fascism?
and "The Hitler regime and World War II were the lawful final outcome of the war reparations."
In 1930 the parliamentary coalition that governed Germany fell apart, and new elections were held. The biggest winner in these elections was Adolf Hitler's National Socialist Party. From twelve seats in parliament they increased their seats to 107, becoming Germany's second largest political party. The largest party was still the Social Democrats, and this party won 143 seats and 24.5 percent of the vote. Communist Party candidates won 13.1 percent of the vote, and together the Social Democrats and the Communists were large enough to claim the right to make a government.
German presidential election, 1932:
In the presidential election held on March 13, 1932, there were four candidates: the incumbent, Field Marshall Paul von Hindenburg, Hitler, and two minor candidates, Ernst Thaelmann and Theodore Duesterberg. Joseph Goebbels waged a furious propaganda campaign on behalf of Hitler, outdoing the previous election effort of 1930. Nazi posters were plastered everywhere. The results were:
Hindenburg 49.6 percent
Since Hindenberg had not received a majority of the vote, however, a runoff election had to be held among the top three vote-getters. On April 19, 1932, the runoff results were:
Hindenburg 53.0 percent
The July 31, 1932, election produced a major victory for Hitler’s National Socialist Party. The party won 230 seats in the Reichstag, making it Germany’s largest political party, but it still fell short of a majority in the 608-member body.
On the basis of that victory, Hitler demanded that President Hindenburg appoint him chancellor and place him in complete control of the state. Hindenburg refused.
Attempting to remedy the chaos and the deadlocks, Hindenburg fired Papen and appointed an army general named Kurt von Schleicher as the new German chancellor. Unable to secure a majority coalition in the Reichstag, however, Schleicher finally tendered his resignation to Hindenburg, 57 days after he had been appointed.
German federal election, November 1932
They saw a significant drop for the Nazi Party and increases for the Communists and the national conservative DNVP. The results were a great disappointment for the Nazis, who once more emerged as the largest party by far but failed to form a government coalition in the Reichstag parliament.
National Socialist German Workers Party 11,737,021 33.09% 196 Seats (-34)
On January 30, 1933, President Hindenburg appointed Adolf Hitler chancellor of Germany. Faced with hyperinflation in 1923 and soaring unemployment, people sought refuge in a movement that promoted national pride, and signed up to Hitler's Nazi party - which used the reparations as a propaganda tool.
Larouche: fascism is imposed by bankers to get their money back through austerity... hence Larouche's latest campaign agaisnt Obama as "Hitler"!
FACT: Hitler was elected on the basis he was AGAINST the Versailles Treaty and the reparation/ guilt clause!
Article 231, the "war guilt clause"
Creation of an international reparations commission to determine the amount of damages.
At the end of the prescribed period, Germany was in no position to resume payments and defaulted. In January 1923, an impatient France, accompanied by a token Belgian force, marched into the Ruhr Valley and set up a military occupation, figuring that control of the valuable industrial area could help force the resumption of payments.
The United States, of course, had not signed the peace treaty with Germany and had no claim to any reparations. However, hoping to avert a deepening of the international crisis, the Coolidge and Hoover administrations sponsored international plans to deal with the reparations issue:(http://www.u-s-history.com/pages/h1369.html)
The Reparations Commission bickered throughout 1920 over the total sum to be demanded of Germany and its distribution among the Allies. At the Spa Conference (July 1920), France won 52 percent of German payments, Britain 22 percent, Italy 10, and Belgium 8. At the conferences of Hythe, Boulogne, and Brussels, France presented a total bill of 230,000,000,000 gold marks although the British warned that this was far beyond Germany’s capacity to pay. But when German foreign minister Walter Simons offered a mere 30,000,000,000 (Paris Conference, February 1921), French Premier Aristide Briand and Lloyd George made a show of force, seizing in March the Ruhr river ports of Düsseldorf, Duisburg, and Ruhrort, taking over the Rhenish customs offices, and declaring a 50 percent levy on German exports. [...] Nevertheless, Chancellor Konstantin Fehrenbach resigned rather than accept this new Diktat, and his successor, Joseph Wirth, acquiesced only under threat of occupation of the Ruhr.
Hitler repudiates the versailles treaty and reparations - Loans and Debt Resolution (in a speech to the Reichstag on 17 May 1933) ... so much for a "bankers asset"!