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Value Of Mark, January
1 Loaf of Bread: 700 Marks
1 dozen eggs: 500 Marks
1 US dollar: 48,000 Marks -
Period: to
German Hyperinflation 1923
Due to defaulting twice on the debt owed to the allies after WWI, French and Belgium troops invaded the key German industrial area of Ruhr. The German workers participated in a government-funded strike to oppose this occupation. To fund this strike however the German government produced a large amount more bank notes. Doing this decreased the value of the German Mark so significantly that the Hyperinflation crisis of 1923 started. -
Occupation of the Ruhr
The key area of the Ruhr was occupied by French and Belgium as a forceful last measure to claim the industrial goods they were promised in the Treaty of Versailles. It lasted until 1925 and was met with 'passive resistance' from Germans, including strikes, sabotage of equipment and protests. -
Price of Bread
The Price of bread to 1200 Marks in May, up from 700 in January. A huge increase and an obvious example of the Hyperinflation crisis. -
Exchange Rate in June
By June 1923, 1 US dollar could buy 192,000 Marks. Some claim the worthlessness of the Mark was the reasong for France taking its payments in rescources from the Ruhr rather than taking its payments of now almost completely worthless Marks. -
Price of Eggs, September
the price of a dozen eggs skyrocketed to 30 million Marks in Septmember. -
Price of Bread, October
The price of bread in October was 670 million Marks. However, the price of bread and other basic goods could double in price from the morning to the afternoon. -
Price of Eggs, October
The price of a dozen Eggs in october reached 4 billion Marks. -
Exchange Rate, October
1 US dollar now bought 4 trillion Marks. A 3,999,999,999,500 Mark increase since January. Absolute MADNESS! -
Price of Bread, November
The price of bread in November 1923 had reached an outrageous 80 billion Marks. Over 100,000,000 times more than it was in January of the same year. The average salary could not afford this so the government gave grants, which they could only afford by printing more money, which just increased inflation. -
The Creation of the Rentenmark
Through the creation of the Rentenmark in November stabilized the economy and wiped 12 zeros off the price of most items. The Rentenmark was directly connected to the US dollar and the price of gold. Also the demands of the Treaty of Versailles were lessened in an deal organised between some of the major allied nations (Britain and America). -
Rentemark Amount
There are now 500 million Rentenmarks in circulation. -
Rentenmark Circulation
Now over 1000 million Rentenmarks are in circulation and the German economy is steadily stabilizing. The damage, however, was already done, with most of damage done to the middle class. They lost all their savings could barely have payed for their basic needs so had very little money left. Many people were starving and suffering.
