Comment by klipklop
11 hours ago
Correct me if I am wrong, but historically hyperinflation only happens when domestic production is destroyed due to a war or large scale civil unrest.
In Germany’s case much of their industrial capacity was destroyed or seized as reparations for WW1.
Trying to make parallels to the current situation in the US borders on the absurd.
You're absolutely correct.
Hyperinflation can also be caused by massive fiscal mismanagement. Venezuela and Argentina are currently undergoing this. It doesn't have to be violent, though violence is certainly a risk.
This is false. Germany was not invaded during WW1, their capital stock was untouched, infect they had heavily invested in capital during the war.
And unlike after WW2 Germany didn't unconditional surrender, Germany was not invaded and its factories were not transported away as the Soviets did after WW2.
So both your points are wrong, German industrial capacity was neither destroyed nor seized. No idea what you are basing these claims on.
German eventually was required to pay reparations. But the also received massive foreign investment at the same time. In fact, the received more foreign investment then they paid in reparations.
And the reparations payment were far from something that Germany couldn't actually handle at the time. They simply didn't want to.
Well I mean destroy and seized in a generic sense. I am wording it poorly, but Germany lost a massive amount of industrial capacity post WW1. In the treaty of Versailles, Germany had to make massive concessions.
"The treaty stripped Germany of 65,000 km2 (25,000 sq mi) of territory and 7 million people."[1]
They also specifically lost coal and iron rich areas to pay back France for destroying theirs.
[1]https://en.wikipedia.org/wiki/Treaty_of_Versailles