The representatives of the victorious allies met in the Paris suburb of Versailles in order to coordinate their further action towards the war-loser Germany, Austria-Hungary and the Ottoman Empire.
Right at the beginning, Britain, France and Italy called for the debt relief of their war debts.
US politics and MoneyMonarchy declined. They wanted to replace Britain as a world power, and Wallstreet wanted to replace the City of London as a global financial centre.
The solution: Germany was declared to be the sole culprit of the war. The following repayments have been made:
- Field assignments
- Loss of all the colonies
- Reparation payments to the United Kingdom
- Reparation payments to France
- Reparation payments to Italy
- 1919 – 1921: 20 Billion Gold Marks
- 1920: conflict of Bologne: another 269 billion gold mark
- 1921: Londen conference: the amount was reduced to 132 billion and the duration extended to 57 years.
No reparation payments to the USA were agreed.
The reparation payments from Germany would anyway go directly to the USA, in order to repay the debt of Great Britain, France, and Italy.
The Problem: because of the high war debts of Germany and the economy on the ground, Germany was never able to make larger payments over a longer period of time.
The primary goal of all parties involved was now to make Germany solvent again, to free of other debth and to rebuild it. The following plan was devised:
- Set up an inflation that has never been seen in Germany.
- Float Germany with US loans.
Inflation is not a natural event. Inflation, as in the Weimar Republic, is triggered by politics in cooperation with the financial sector.