19:23 economic crisis in germany and also the resulting Beer Hall Putsch which was an example of right-wing political extremism but we're gonna start with the economic crisis so if we look over here by January 1923 Germany had failed to deliver on some of the reparation payments so as we looked at in earlier video part of the Treaty of Versailles of the Treaty of Versailles one of the clauses was a clause that suggested what that Alright implied that the jerk it was Germany who was responsible for the war and as a result Germany had to pay a huge amount of reparations and these were to be paid over a period of a few years however by January 923 they had failed to do this so as a result the French and Belgium troops went and occupied the raw which is a very at the time was an industrial and industrial area so an industrial industrial area it was seen as a way for the Allied forces to get there hit their money from Germany if they weren't gonna get money directly from the German government they were just gonna take it by taking resources out of the raw and the German government decided to support a policy of passive resistance and therefore stop paying reparations okay so this started to this starts have really set the scene for the economic crisis that was going to happen in the next few months and years so the economic impact was that the government began to issue paper banknotes thus causing the value of those paper banknotes to collapse if you think about it when you have a huge amount of money that is owed to somebody else from you you've really only got two options you've only got two options okay to pay that money back if you don't have it one as a government you raise you raise taxes to pay for it or a two you print more money you print more money and you use that money to pay for it now there's a problem with both of them if you raise taxes this what this will then do is lower public support for you because nobody really wants to pay more taxes so therefore the the the society and the people who are living in that country won't support the government that are raising more taxes so lower support so after all the political and social discourse that was going on at the early early part of the 1920s in Germany the mime our government decided that it would probably be better if they were to print the money instead but the printing of the money causes inflation causes inflation and now inflation is simply where the value of the value of a certain currency goes down as a result of more of that currency being in the being in circulation effectively in layman's terms okay so by November 1923 the exchange rate stood at four point two billion marks per dollar okay so for every one dollar that you could have every one US dollar that you could have that is the same as four point two million German marks sorry four point two billion German marks so as you can see the value of the mark have gone down significantly excuse me and this caused a sort of chain reaction where the production of money just kept increasing to the point where we have 200 factories working full-time to produce banknotes that's all their job is just to produce plant mode banknotes throw that money into the economy and let that and that currency get less and less value so as a result in 1919 this is the just the the four year change so we have in 1919 a loaf of bread in Germany cost just one mark but by 1923 the loaf of bread had cost 1 billion marks now the value of the bread hasn't changed the value of the bread was still one mark however the value of the currency had gone lower and lower and lower to the point where it would you'd have to add up more of that money together to be able to account for the cost of that loaf of bread as you can see this was an inhospitable economic environment to live in and which is why we call it a crisis and when we have inflation at such a high rate in this kind of example you call we say they have a hyperinflation crisis hyperinflation hyperinflation crisis now what was the impact of the hyperinflation crisis well there were actually some parts of society where the hyperinflation actually made a big difference and a positive difference to their lives so people who so people who were eight who had debts mortgages loans to pay off would have easily been able to pay it off since the value of the money had gone down so what I mean here is if in 1919 someone owes thirty thousand marks okay by 1923 that value the amount that is owed as still is still thirty thousand marks okay however the value of the mark has come down to a point where people are being paid in billions of marks billions of marks so people were all too happy to pay off their thirty thousand marks and therefore just get rid of all their debts straight away because the value of that debt have no it had no value at this point anymore because people had no value in thirty thousand marks anything the value really comes out when we have billions and billions of marks so they were people who would you would say were winners of the hyperinflation crisis people who lost out in the hyperinflation crisis or 4/1 those who had money saved if you had a huge savings account and the value of those savings just dropped to an insignificant amount then your entire the value of all of your savings has just been wiped out you haven't it has no value anymore the same amount of money is still in those savings but the value is irrelevant and it's useless so everyone who had savings could just forget about those because they have no value and also those who lived with fixed income so if you were getting like if you were getting fifty thousand marks a year per year okay and this was in 1919 and then we go to 1923 some people would still be earning the same amount of money per year but this this amount this the value of fifty thousand marks has changed so significantly than it is is worthless and your and you basically own no money at all so that is an example of people who definitely definitely definitely lost out when it came to the hyperinflation crisis moving on now to the political issues around this time we have the Beer Hall Putsch so in September 1923 in September of 1923 Adolf Hitler who was the leader of the NSDAP which was the Nazi Party in Germany he attempted to seize control of the government okay he formed what was called a battle League a battle League of right-wing groups in porphyria okay and this was also supported by general Ludendorff who was a World War one veteran World War one general so World War one at general unkeyed okay so as we know about there's the people who were sort of the imperialist they wanted to see a restoration of the monarchy the sort of aristocracy in Germany they were in support of a collapse of Lima and this is where this comes in okay so there was also hints of the leaders car the Bavarian state leader car who was hinted support however never really fully endorsed this proposal on November the 8th 1923 car addressed a group of trying to get this on the line properly there we go car addressed a group a large group at the burger ball Keller in Munich and and around 600 houses then surrounded the building at and Hillier entered so we see in on November the 8th to 1923 car addressing a large group at the burger bow Keller in Munich and around 600 Nazis surrounded the building so this is 600 members of the NSDAP NS d AP and also members of the SA which was Hitler's private army effectively his his thugs for hire and Hitler entered declaring that the revolution had begun so this is really at the point where the munich pushed had peaked it was at its highest point here however it all went downhill from here so the Vimal government when hearing about these events ordered bavarian authorities to quash the revolution so they called in the army and they called in the army there was some fighting around around the ram munich so there was some fighting some fighting around Munich however the revolution was was quashed very very quickly okay and Hitler was arrested after he marched some three thousand people into Munich he was also fun fact he was a shot in the shoulder at this time as well in the shoulder he was shot in the shoulder okay or he dislocated his shoulder he dislocated his shoulder something something something happened with his shoulder sources sources suggest that he might just dislocated it or have just damaged his shoulder but he definitely made out that he was a war hero who shot he was shot in the shoulder and who is now a veteran of some sort so effectively Hillier was then put on trial and sentenced to prison now it's a for five years five years in prison however he only really served a few of those years and this is where he wrote his famous book which is mine camp which is a spell like that I believe and mine camp really outlined his ideas it was almost like the fascist manifesto the Nazi manifesto and outlined what he wanted to do so overall 1923 was an eventful year in Germany we see at the Beer Hall Putsch and we see huge hyperinflation a huge hyperinflation crisis in the next video we are going to have a look at the the ways in which democracy how democracy managed to survive these early early attacks on with extremism and economic crisis and we're going to start them to look at the Golden Age of Lima between 1924 and 1928