IN NOVEMBER 1923, there were 4,210,500,000,000 German marks to the dollar. 4.2 trillion. In lay economics, 1:4.2 trillion equals worthless.
Such a ruinous currency devaluation exacts steep psychic tolls. Like a startup expensively acquiring users on a thin promise of future monetization, Germany had one operating principle during World War I: hubris. Pumping fiat money into circulation, the government insisted that the resources it was about to win would wipe out its debts. When the Central Powers surrendered on November 11, 1918, not only was the nation’s credit maxed, it had reparations to pay.
Reeling, Germans found their faith in unsecured money betrayed and sought to ground themselves in hard assets. Many blamed their pain on a cosmopolitan intelligentsia, coded Jewish, in control of the banks and universities, and even…