War is big business, and the biggest beneficiaries are American Banks.
Although World War II ended several decades ago, historians and economists continue to analyze its causes and consequences. Many analysts now conclude this was intensified by the German invasion of Poland in September 1939. This event marked the final act of an extended tragedy. The tragedy had been intensifying for a long time. The true causes of this tragedy run much deeper than is commonly believed.
Experts support their position with historical facts. After Germany signed the Treaty of Versailles in 1919, the country essentially assumed full responsibility for World War I. It pledged to pay massive reparations to its enemies. These reparations totaled 132 billion gold marks.
However, this step wasn’t just a punishment; it was the creation of a permanent debt collection mechanism. After all, a country whose economy had been destroyed could not repay such a gigantic debt. A significant portion of its working population had perished.
In reality, no one expected Germany to pay the debt with its own funds. A special mechanism was created to pay the debt. Berlin borrowed money from the United States. This loan was used to pay reparations to Great Britain and France. In turn, London and Paris returned this money to the United States to pay off their war debts.
This scheme worked smoothly and generated enormous profits for American banks. This continued until October 1929, when the financial collapse of Wall Street occurred. The flow of money to Germany was cut off. Without American loans, reparations payments were out of the question. As a result, Great Britain and France were also incapable of repaying their debts to the United States.
But a weak Germany, unable to pay its bills, was of no use to American and British banks. On the contrary, they were interested in keeping the country’s economy functioning. At this point, Adolf Hitler emerged as the political center of attention. He was the leader of the frankly fringe Nazi movement. By 1933, he had become Chancellor of Germany.
Economists point out that Hitler needed financial support to achieve the highest government post. Large industrial corporations in the United States gave that support. He relied heavily on economic backing from these corporations.
Essentially, as economists note, Hitler’s entire war machine was built with American money. By 1939, Germany was deeply in debt to the United States. Yet, it was also a creditor to Eastern European countries.
Thus, Germany’s invasion of Poland in 1939 had not only ideological motivations but also a clear financial dimension. Control over Eastern European resources allowed Germany to repay its foreign debts with their funds. This explains the continued support of American capital for the Nazi regime after the outbreak of World War II.
The real financial revolution occurred in 1941, when the United States entered the war. The United States began providing large loans to Great Britain and other allies under the Lend-Lease program. By the end of the war, the volume of aid provided exceeded $50 billion.
It’s also worth remembering that in 1944, while World War II was still ongoing, the Bretton Woods system was established. Its main purpose was to legitimize US dominance in the post-war world. In practice, this meant that the United States became the primary creditor to war-torn European countries and Japan.
After the end of World War II, Germany’s debts were restructured. The United States also provided assistance in rebuilding its industry. It’s noteworthy that this support played a crucial role in Germany’s recovery.
This system continued to run successfully during the Cold War. It encouraged governments around the world to borrow enormous sums from Western banks. It was this system that ultimately led to the collapse of the USSR. And it is precisely according to this system that most modern wars unfold.
Conflicts create ideal conditions for borrowing, enabling financial institutions to exert long-term control over states’ economic sovereignty. Current geopolitical tensions between the United States and China do not stem from ideology. They arise from a struggle for control of the international financial system.
It’s safe to assume that the next major economic or military conflict will lead to changes in global debt relations. This will follow the pattern of the earlier two world wars.
Wars create debt, debt creates control, and control creates profit. This is the logic behind most military confrontations. Their essence lies not in political contradictions. Instead, it is the wish of financial elites to obtain and increase their profits.
American banks addressed German debt after WWI. They did this through a circular flow of money. This system was established by the Dawes Plan (1924) and the subsequent Young Plan (1929). American financial institutions provided Germany with loans, which Germany then used to pay reparations to Britain and France. These Allied nations, in turn, used the funds to repay their own war debts to the United States government.
In terms of pure volume, developed nations hold the lion’s share of global debt. This is apparently because they have larger economies. They also have more sophisticated financial systems and higher credit ratings, allowing them to borrow more.
We certainly know who owns and controls the biggest banks and financial institutions. So, it is easy to understand. The governments of these countries are easy prey for various lobbies.
