The Rise of the Third Reich

If you look at the historical picture of the European situation in June 1941, anyone will feel that Adolf Hitler did something extraordinary. Except for the European parts of Britain, Switzerland, Sweden, Portugal, the Soviet Union and Turkey, the entire Europe has become the sphere of influence of the Axis alliance headed by Germany, either under the direct rule of Germany or Italy, or by subordinates to Germany or Ruled by very pro-German political forces.

This is the world of the 1940s, not the 21st century when most European countries have deindustrialized. The combined industrial strength of these countries that obeyed Adolf Hitler is probably even stronger than that of the United States, which is known as the Arsenal of Democracy. Moreover, the combined population of these European countries is certainly far greater than that of the United States. In other words, at this moment Adolf Hitler has a larger production capacity (at least comparable) and a larger population than the United States. However, these production capabilities and population did not exert their due strength in World War II.

There are of course many reasons for this situation, but one thing is certain, that is, when the Hitler regime formulated its plan to conquer the world, it did not regard maximizing Europe's productivity and manpower as the key to final victory!

In Hersman's view, the key factors for Germany to win are two. In addition to handling the relationship with the Soviet Union, it is to maximize the combat effectiveness of a Europe under the leadership of Germany - because this is not Germany. It is not a war for world hegemony, but a struggle between Europe and the United States led by Germany for world hegemony.

Therefore, integrating and exerting the combat effectiveness of the entire Europe should be something that Germany needs to devote great efforts to research and layout.

In order to successfully integrate Europe in 1941 and 1942, preparations and layout had to begin in 1931.

This time Hersmann and Hitler went to Geneva to participate in the International Disarmament Conference, which was to prepare for 1941 and 1942.

"Prime Minister, the current Great Depression, the great inflation in the early 1920s, and the possible world war in 10 years' time all have only one purpose..."

When the train entered Switzerland, Hessmann was instilling the concept of currency war into Adolf Hitler. "It is to compete for the right to issue the world currency. Whoever obtains the right to issue the world currency will rule the world!"

Participating in international disarmament conferences is nothing more than an attitude issue for Germany today. Even if any agreement is reached, it will be a piece of paper in the current economic situation. Unemployment and low demand are the biggest problems that all countries, including Germany, need to face. Disarmament will only expand the ranks of the unemployed and reduce the demand for weapons and equipment, thus making the economic situation more severe.

"So at this Geneva Conference, we should link disarmament issues with economic issues and currency issues." Hessmann walked back and forth in the gently shaking train car to stretch his muscles while discussing Germany's participation in the Geneva Conference with Hitler. strategy.

The international disarmament conference to be held in Geneva is not the result of Hessmann's butterfly effect, but it exists in the original history. It was the policy of the "Holy Mother Labor Government" in the UK. Prime Minister Macdonald and most of his cabinet believed that cutting military spending to maintain fiscal balance was the prescription for easing the Great Depression - in fact during the years of the Great Depression , Most governments in the world think so. Cutting expenditures instead of creating demand has become the first choice of governments.

The behavior of Hitler's government in Germany in issuing "job creation bills" can definitely be described as deviant. Therefore, the mark has become a currency that is generally shorted by the market. If it were not for the Nazi Party coming to power, Germany's Jewish financial elites would have suffered a disaster - they accounted for about 40% to 50% of Germany's banking industry - The mark exchange rate must have fallen terribly by now.

But Hitler's government has ways to control domestic finance, but it cannot control outside Germany, especially Britain and France. They are adopting policies to attack the German economy - the British violated the Keynesian Plan because Germany revised the "Banking Law" Regulations froze Germany's 180 million pounds of foreign reserves. France stopped receiving coal (compensation items) from Germany, and at the same time made a request to Britain to use Germany's foreign exchange reserves to offset part of Germany's compensation payable.

It is obvious that there is now a force within Britain and France that wants to create a second collapse of the Mark. It is only because the Nazi Party-Junker Group has established quite powerful rule in Germany that this force's plan has not succeeded for the time being.

"We should blame the economic problems on lack of demand," Hersman said, "so creating demand is the solution to the Great Depression... This is what we have been emphasizing in the past. We should get Britain and France to participate in creating demand, Come to save Europe.”

"But do we need to worry about the economy of Britain and France?" Hitler said in a gloating tone, "I would be happy to see them collapse!"

"Me too!" said Hersman. "It's certainly a good thing for us, but the way to save them might be a better thing!"

He paused, then smiled and said to Hitler, "A European basic investment bank that creates demand. Our net deposits of 180 million pounds in the Bank of England will become part of the capital of the bank. The United Kingdom, France, Italy, Switzerland, the Netherlands , Austria, Belgium, Poland and other European countries can participate and subscribe for a certain proportion of equity... You can use gold foreign exchange or local currency to subscribe.

After becoming shareholders, these countries can borrow money from this bank to build their own infrastructure, such as roads, railways, airports, terminals, etc. This is definitely a good way to create demand, and I believe most countries will not refuse.

In order to facilitate management, the European Basic Investment Bank will create a virtual banknote called the European Drawing Rights. All contributions, regardless of currency, will be converted into ‘European Drawing Rights’ at a certain exchange rate. All loans will also be recorded in "European Drawing Rights". After the lender obtains "European Drawing Rights", it will be converted into the currencies of various countries according to circumstances and needs, but it cannot be converted into precious metals such as gold and silver.

When repaying loans, countries can use either the European Drawing Rights or their own currencies..."

The "European Drawing Rights" proposed by Hirschmann is actually creating the euro. This is not easy, but it is not impossible to do. The key at this stage is whether the "European Drawing Rights" can be successfully converted into steel, cement and machinery and equipment needed for infrastructure construction.

In this regard, Germany happens to have strong idle production capacity - to put it simply, countries that need to borrow money from the European Basic Investment Bank for infrastructure construction must "depend on the situation" after obtaining the European drawing rights. , that is, to find a country that is willing to exchange its own currency for European drawing rights. Then purchase the materials needed for infrastructure construction from this country. The country that is willing to cover the European Drawing Rights is Germany, and Germany also wants to become the country that pays the most equity to the European Basic Investment Bank.

"All 180 million pounds will be invested in the European Basic Investment Bank... Philip, what do you think?"

British Prime Minister McDonald asked Chancellor of the Exchequer Philip Snowden at the weekly cabinet meeting, "Is this a good idea?"

Yesterday was the opening day of the International Disarmament Conference in Geneva. However, British Foreign Secretary Arthur Henderson, who presided over the conference, sent London the news that the Germans planned to establish the European Basic Investment Bank to save the European economy...

"Yes, for Germany, it can avoid losing 180 million pounds." Philip Snowden is a very conservative finance minister. He really should join the "Conservative Party" instead of the Labor Party. "For us, it's actually a good thing, second only to us confiscating all the money."

It would be good for the British government to monopolize 180 million pounds, but this is impossible. Because the United Kingdom is not the only country seeking reparations from Germany, the money should be distributed according to the proportion of each country's share of the reparations. Most of it will be transferred to France and Belgium, and France and Belgium are likely to exchange it for gold and withdraw it from the UK in US dollars.

"Then can we borrow money from the European Basic Investment Bank to create jobs?" Oswald Maudsley, who serves as the Vice Minister of the Seal and Employment and has a relatively radical view on fiscal issues, asked at this time, "Germany The unemployment situation has improved, can we imitate them to a certain extent?”

"This won't work!" Macdonald shook his head. "Currently, most economists in the UK believe that public expenditures should be drastically reduced, and the Conservative Party also holds the same view... and Sir George May (a confused financial expert, was criticized by the government The committee commissioned to review the state of public finances also believes spending should be cut."

"Why don't the Germans have such committee members?" Oswald Motzli asked in a sour tone.

"So their mark will collapse again!" Ramsay MacDonald said seriously. "Irresponsible fiscal policy can only make the economic data look better in the short term, but the cost is catastrophic!" He smiled confidently, as if he really understood economics. "I think we can agree with the Germans' suggestion to establish the European Basic Investment Bank, but the headquarters of this bank cannot be placed in Germany. It is best to be placed in London. If not, it can be placed in Geneva. Moreover, the Bank of England must be The largest shareholder of the European Basic Investment Bank, because this bank cannot be controlled by the Germans, the Bank of England has to invest 200 million pounds!”