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Germany lost a lot of its land due to the Treaty of Versailles and the League of Nations taking control of their colonies and administered them until they could be set out as independent nations. Germany had lost parts of eastern Germany to Poland, western Germany to Rhineland, and Alsace-Lorraine. A few of the islands they had lost were to Japan over near Australia as Japan and Britain had made an alliance making it obvious for Japan to take them from Germany.

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Germany was forced to pay $33 billion in reparations to other countries at the end of World War 1 for being labeled as the main aggressor of the war. Even before this large bill, they had already invested $45 billion into their military, only to lose the war! Causing them to fall into bankruptcy. The payments put them into a 14 year economic depression.

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A 3 minute video showing how the German Economy had it even worse than we do now, after WWI.

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Horror Stories of Hyperinflation: Germany in 1920s

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At the end of WWI, Germany had been labeled as the aggressor nation. This led to hatred building within Germany and hate being thrown at Germany from other countries. Their rage would cause them to find anyone or anything to put blame upon, foreshadowing Hitler's reign in WWII.

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In 1919 Germany developed a new government, the Weimar Republic. The Weimar Republic was formed because of the previous Kaiser abdicating from office and the cities of Germany were left in chaos. Rioting between political parties, even a few street fights. Elections were still held despite the violence, and the Democratic Party had won. With all the violence, the first assembly of the representatives was arranged in Weimar, giving the republic its name. With a new government, everyone was confused with how it was going to work and had mixed opinions about it, usually bad ones. Not to mention on top of this, the Versailles Treaty limited the size of their army and navy to approximately 100,000 men.