The Americans have an economic boom. The Americans loan money to Germany, The Dawes Plan. The Germans catch back on their cycle, and can now pay reparations to France. So France pays back the US. Everyone is back on track and happy. All of this is going well until the Great Depression. Banks and all went bankrupt. Germany has to pay back the US and France and Britain.All economies eventually slow down. No one can trade anymore as they don’t have the money to do so. French and Belgians went into the RhineLand They went to this area, put guns to the Germans heads and made them dig coal Passive Resistance-Germans did this, Germany decided to print more money-It only takes the push of a button The German currency (mark) became devalued Germany entered a period of hyperinflation. The prices increase hourly instead of daily. In 1919 one german mark valued $1 USD By 1923 one german mark valued $0.000,000,000,000 Thus people started having to trade things Water for Sandwich. People got paid in wheelbarrows. But it was only worth approx. $0.25 DAWES PLAN From the war Britain and France owe USA a lot of money Germany owes Britain and France money At this time, the US economy is booming So the US loaned billions and billions of dollars to Germany By 1923, the World Economy is doing well. This does really well until, the stock market crashed. Hundreds of banks went bankrupt All of a sudden USA asks Germany for their money back, so they aren’t providing it to Britain and France, so the money isn’t going to USA. Everyone’s economy went bad
The Steps to War 1931~Japan conquers Manchuria The Japanese go into China (it was a weak country) and invade Manchuria China went to the league of nations and tells them to stop Japan The League of nations didn’t do anything At this time USA isn’t in the league of nations Thus Britain and France who were in depression and they had to worry about the strong powerful asians, didn’t do anything Facing severe economic problems and overcrowding on it’s islands, Japan invades Manchuria , just north of Korea. The league of Nations didn’t do anything ● Manchuria has a variety of natural resources- coal ● According to China, World War One started in 1937, when Japan began to conquer the rest of China, for the rest of the world, it started in 1939 1933- Germany Rearms Hitler becomes Chancellor of Germany and immediately beings expanding the German army and air force beyond the limits set out in the Treaty of Versailles. The german military slogan is “Today German, Tomorrow World” ● Hitler doesn’t like the Treaty of Versailles- he wanted to “rip it up” 1935 ~ Mussolini Invades Ethiopia Italy invades Ethiopia in Africa to expand its territory and to obtain the regions rich oil resources Again the League of Nations takes no decisive action ● Preoccupied with Great Depression ● Isolationist: had to deal with their own problems 1936 ~ Hitler Occupies the Rhineland
German troops march into the Rhineland By the Treaty of Versailles German troops were forbidden from moving within 50km of the Rhine River. No one stops the German advance March 1938 ~ Germany Annexes Austria Nazi soldiers occupy Austria without a single shot being fired
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