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The Impact Of The Germany On The Recovery Of Germany

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By 1929, Germany had re-developed a large proportion of its industry, had advanced in transport and had rebuilt homes for its people. This development also came with an increase in economic stabilization as new currencies such as the Rentenmark - backed with the value of gold - stabilized the economy along with US loans put in place through the Dawes and the decreased reparations as of the Young plan.
A point of evidence that would suggest that Germany had truly recovered by 1929 was that Hindenburg, a popular WW1 leader, had been elected to the role of Chancellor. This will have helped the Reichstag to regain control over the government as previously, the Reichstag would be unable to decisively pass laws as too many parties had split
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Although, the German economic stabilisation was over-dependent on US loans, which allowed for short-term development but will lead to long term issues when facing the repayment of loans; this was considered a major issue by the leadership of Germany at the time, primarily Gustav Stresemann, who can be quoted as saying that "The economic position is only flourishing on the surface. Germany is in fact dancing on a volcano. If the short-term credits are called in, a large section of our economy would collapse.” which suggests that the German development was simply a façade put in place by the development given by the US loans to cover the imminent threat of repaying loans and the growing threat of unemployment as the population increases. Also, due to the end of hyperinflation, the farming industry suffered dramatically as prices of food experienced a depression with the fall in prices. Along with this, the German industry began to slow down in 1927 as the Great Depression began is the US, forcing the end of the loans that they depended on so heavily – crippling the German
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