About German reparations and hyperinflation

Jul 2015
439
Midwest
Why did the Belgians and French occupy the Ruhr and extract steel? Wasn't the French and Belgian steel producing region destroyed by 1914-1918? Did they need the steel to rebuild or was this mostly done to appease public opinion which cried "the Germans will pay?"

As for the Germans printing money to pay reparations was this necessary and/or wise? What would have been the consequences of paying the steel workers to extract for the French and Belgians? How badly would this have affected the German economy and political situation?

I'm just mainly interested in what would have happened if the Germans complied with the reparations. Would it have been as bad as what the hyperinflation did?
 
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Chlodio

Forum Staff
Aug 2016
4,599
Dispargum
The Allies were aware that extracting reparations payments in paper money could lead to hyperinflation and the money becoming worthless. So they extracted reparations payments in kind - steel and anything else that had tangible value.
 

Pendennis

Ad Honorem
Mar 2013
3,386
Kirkcaldy, Scotland
Question what is the connection between Versailles reparations repayments and British pop star Cliff Richard?-this is NOT a trick question.
 

Pendennis

Ad Honorem
Mar 2013
3,386
Kirkcaldy, Scotland
I thought so .Everyone stumped ?.Well,l American Charles Dawes whose Dawes Plan in 1925 sought to mitigate the burden of reparations on Germany -Dawes wrote the lyrics of the pop love song ''IT'S ALL IN THE GAME' made hits in 1958 by Tommy Edwards and later by Brit Cliff Richard.