Today Germany wakes up to the most horrific news from America.
We have already heard a few rumours trough the wireless but today we learn the details from the newspapers.
It seems that yesterday (oct 24th) at 11 O’clock the stockmarket in America crashed, it was evening here in Berlin so most people didn’t learn about it till they woke up the next day… today.
Will this be bad or good for our Republic?
Nobody really knows, it may be good because America will borrow and invest a lot here in Europe to try and balance their stocks, like they did last year.
But if they fail…. we may be in big trouble.
And we all know that if the country is not doing well the people look at extremist parties to come and change things.
Big financial trouble may be just what the Nazi’s or communists need to start their revolutions here in Germany.
So what does this news mean for 1929 Berlin?
You can choose to be optimistic or panic, both or alternate both states of mind, because we simply don’t know where this will take us.
Germany has huge debts, is paying back reparation for the war and has been given huge loans by the US to help us survive the hyperinflation problem of a few years back.
Will the US want their money back?
We just don’t know yet how this will all affect our fragile young country.
This chaos will last a few days but soon enough we will learn that the Weimar Republic will be the country to suffer the most (after the US) from this crash that will begin the global Depression.
The US will demand that we pay back the loans almost right away, this will destroy our industry and many employers will close their factories.
After Herr Stresemann’s death and the may riots this depression will be the last blow to our republic.
By the end of the year the republic will effectively be bankrupt.
Unemployment will affect nearly every German family.
Poverty, uncertainty and loss of faith in the future will be exactly what the Nazi party needs to gain more support and in 1933 they will take over the country.
So in the next couple of days we will become more and more depressed, frightened and insecure about our future.
Some of us may lose their jobs, optimism will die and all of us will become very uncertain about the future.
The golden era has ended, dark days ahead once more.
A great (German language) documentary on the subject;