It was the decade where the foundation had been laid down by the economists to start the new developmental era in their country, It was the beginning of end for the crying of the people who has been defeated in the war, It was the decade where the changes in the financial world took place and also it was the decade where the foundation had been laid down for another World War.
It was 1930-40. America was trying to regain its financial strength. European countries were recovering from World War I. It was hard times for Germany; because they were suppose to clear their international debts (war compensations). Out of 161 banks in Berlin, more than 150 were owned by Jews. Meanwhile the value of the German currency, Reich mark which was tied into international exchange was De-valuated to earth by bankers. Within a month Reich mark was worthless. Inflation was everywhere. The value of 1$ was equal to Trillions of Reich mark. Jews purchased German business for very low price. It was the time where Germans were using Reich mark notes as fuel to cook foods. Burning currency notes as fuel was much cheaper than purchasing wood for burning. Prices of goods and services skyrocketed. It was the time for them to prove their strength by reconstructing there economy. There was a need for strong leader in Germany who is capable of leading the economy. At the time Germany was in the need of the person who is economic mastermind.
In 1930, as an economic mastermind of Germany, Hjalmar Horace Greeley Schacht invented a new bank which was the central bank for all European central banks (including Bank of England). The new bank was called as Bank for International Settlements (BIS). The main objective of establishing BIS was to settle the huge volume of transactions and to settle the huge debts between national governments through the exchange of gold and credit transfers. To avail this facility every government was suppose to open a bank account with BIS. But actually, together with European central banks, Bank of Japan opened an account with BIS. By this BIS was not standing as the bank for European central banks, it became the bank for the Governments involved in World War I.
This was only first step in economic development of Germany. In 1933 Hitler became the chancellor for Germany. As a chancellor, Hitler appointed Schacht as the head of Reich bank (central bank of Germany). As head of Reich bank, Schacht was the German representative in BIS. He was not only the representative, As a German his duty was to bring foreign investments for Germany through BIS. Indirectly he was having influence with the members of BIS (especially Montague Neumann, a friend of Schacht and representative of Bank of England). He was having so much influence where other bankers were not attending BIS monthly meetings if Schacht was not attending. Till 1933, Schacht used BIS to channelize investments from the world to Germany.
After 1933, there were no new investments. Existing investments were renewed annually. By the end of 1939, there was 294 million gold Swiss Francs worth of foreign investments was channelled through BIS.
The next step of Hitler was, when he invaded Austria in 1938, he demanded for gold held in BIS in the name of Austria. BIS transferred 22 tons of gold from Austria’s account to Reich bank account. In March 1939, Hitler occupied Czechoslovakia and demanded for Czechoslovakia’s gold. But, most of the Czechoslovakia’s gold was with the Bank f England (the safest haven). This time Hitler demanded Czechoslovakia’s gold in Bank of England through the officials of the central bank of Czechoslovakia. The officials informed BIS and BIS demanded to Bank of England. Bank of England easily transferred gold to BIS because of Montague Neumann. BIS transferred 6 Million pound worth of gold to Reich bank account. This was just the beginning. After the invasion of Czechoslovakia, Hitler occupied Holland and Belgium and looted nations through BIS. The looted gold was used to pay the dividends for pre-war investments done by England. Remaining gold was used to supply weapons for World War II. When Hitler invaded Poland, the war in Europe broke out. In June 1940 Hitler invaded France. America was seriously watching this. In 1941 America entered war.
Not only BIS, as enemy country, private bankers like Chase bank of America helped Hitler by funding for wars. When the war was over, America retained BIS to help post war reconstructions. The bankers who helped Hitler were trialled and punished.
This is only one of the way how banks can be used for funding wars. Economic scientists are more important than Political leaders. Financial institutions are more dangerous than Political institutions. Without Schacht it was impossible for Germany to reconstruct there economy. In war arms and ammunitions are important. But money is more important for continues supply of arms and ammunitions.
Why I am writing this? Is, Back rout to develop the economy is as dangerous as swallowing poison pill. Germany tried to manipulate the payment of dividends to England for her pre-war (World War I) investments in Germany. But Germany occupied neighbour countries and looted there gold and paid dividends for England.
Another point is when America entered war, huge amount of dollars was spent on wars by manipulating financial system of America.
I appreciate reader comments
