The Real Cause of 1923 German Hyperinflation

Описание: In 1923, the most advanced industrial power in Europe didn’t just collapse; it committed economic suicide through a single, deliberate policy decision. While history blames war reparations, the true mathematical cause of the hyperinflation was a government strategy to pay workers not to produce. Here is the forensic timeline of how a nation killed its own currency.

*THE SYNOPSIS*
The standard narrative of the Weimar Republic cites the Treaty of Versailles as the sole architect of the 1923 disaster. This analysis goes deeper to expose the true mechanism of the collapse: the Ruhr Occupation. When French forces seized Germany's industrial heartland, Berlin retaliated with "passive resistance"—ordering factories to shut down while printing money to pay the striking workers.

This created the ultimate economic paradox: a massive explosion in the money supply colliding with a deliberate, state-sponsored collapse in the supply of goods. We track the mechanics of this decision, moving from the political standoff in the coal mines to the moment the Reichsbank became the engine of national bankruptcy. This is a case study on "Fiscal Dominance"—what happens when a government values political symbolism over solvency, and why the velocity of money matters more than the quantity.

* WHAT YOU WILL LEARN*
• The Fatal Mistake - How the policy of "Passive Resistance" in the Ruhr region turned a difficult recession into a hyperinflationary death spiral.
• Fiscal Dominance - The specific economic condition where a central bank ceases to be independent and becomes the financing arm of the state.
• The Velocity of Money - Why prices rose faster than the printing presses ran, and how the loss of public trust accelerates currency destruction.
• The Rentenmark Miracle - How the crisis was eventually halted not by gold, but by a psychological reset of the nation’s credit.

*DISCLAIMER*
This video is for educational purposes only. It does not constitute financial advice. Macroeconomic analysis involves probabilities, not certainties. Viewers should consult with a qualified financial advisor before making investment decisions.

*ABOUT THE CHANNEL*
THE UNTOLD ECONOMY explores the hidden mechanics of power, money, and crisis. We deconstruct the crashes, wars, and policy mistakes that shaped the modern world, strictly focusing on the period from the 1850s to today. This is not news; this is a forensic analysis of why systems fail.


#TheUntoldEconomy #Hyperinflation #WeimarRepublic
Economics, Geopolitics, Financial Crisis, History Documentary, Money, Economic Collapse, 1923 Hyperinflation, Ruhr Occupation, Passive Resistance, Reichsbank, German Economy History, Gustav Stresemann, Rentenmark, Fiat Currency, Inflation vs Hyperinflation, Macroeconomics, Monetary Policy Errors, Treaty of Versailles.