Tuesday, September 28, 2010

World War 1 Ends This Week... October 3, 2010

That's right. When I first read this story from the Telegraph, I was surprised to say the least. I had no idea the German government was still being asked to pay reparations which were agreed upon in the Treaty of Versailles from the first World War. A final payment of $80.8 million will be paid on October 3rd, completing the debt owed by the country since 1919. During the Paris Peace Conference the allied powers demanded a steep charge of the German government for entering them into a large scale and bloody war. Originally the demand was for 226 billion Reichsmarks, however it was later reduced to 132 billion. In U.S. dollars that is the 2010 equivalent of $400 billion, a little excessive to say the least. The initial payments after the war crippled the economy, which caused high unemployment and low morale. These circumstances gave rise to Adolf Hitler taking power. According to the report the majority of the money goes to individuals, pension funds, and corporations holding onto debenture bonds given out as a result of the treaty.

 http://www.telegraph.co.uk/news/worldnews/europe/germany/8029948/First-World-War-officially-ends.html

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