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by qsort
1988 days ago
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Is there any evidence whatsoever to this claim?
France, UK, US, Canada all have huge chronic trade deficits. Weimar Republic's economic problems were mostly related to hyperinflation caused by their unsustainable debt, not sure how you're factoring trade deficits into that. I agree nationalism is just an excuse like any other, but it's a remarkably good one: it's a cancerous mind virus that makes solving problems impossible, everyone is too busy calling everyone else unpatriotic or something. |
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It caused central banking failures all throughout Central Europe. Germany's banking system collapsed in the early 30s. In the wake of the Depression, European nations had very protectionist trade policies. With weakened international trade as a result of such policies, countries like Germany that did not have global empires had to resort to military force to acquire raw materials.
WWII was inevitable and that summary of the Weimar Republic's problems is overly-simplistic to the point of being misleading.
It's not enough just to look at trade imbalance from the lens of balance sheets. It's about what resources markets are (un)able to provide. You can look at the Opium wars similarly, which we think based on the name are about Opium but really were largely about the Silver trade from West to East and China's refusal to circulate that Silver back into the market.
Defecits are fine as long as everyone thinks they have reasonably fair access to the same resources. Notice the soft trade war that started mostly as a result of global manufacturing shifting to China and China's theft of IP...