Hitler’s Debt-Free Money

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Hitler is not my friend. Nor do I admire Der Fuhrer’s attitude toward human liberty. Doesn’t mean I can’t acknowledge the VW Beetle as a good idea. Nor the idea of debt-free money. That is my preface to the following couple of paragraphs about the financial system of the Third Reich. As a fledgling journalist, I learned one thing when trying to get to the bottom of anything. Follow the money. It’s always about the money. With that, I give you…. debt free money pic

When Hitler came to power, the country was completely, hopelessly broke. The Treaty of Versailles had imposed crushing reparations payments on the German people, who were expected to reimburse the costs of the war for all participants — costs totaling three times the value of all the property in the country. People were living in hovels and starving. Nothing quite like it had ever happened before – the total destruction of the national currency, wiping out people’s savings, their businesses and the economy generally. Making matters worse, at the end of the decade global depression hit. Germany had no choice but to succumb to debt slavery to international lenders.

Or so it seemed. Hitler and the National Socialists, who came to power in 1933, thwarted the international banking cartel by issuing their own money. In this they took their cue from Abraham Lincoln, who funded the American Civil War with government-issued paper money called “Greenbacks.” Hitler began his national credit program by devising a plan of public works. Projects earmarked for funding included flood control, repair of public buildings and private residences, and construction of new buildings, roads, bridges, canals, and port facilities. The projected cost of the various programs was fixed at one billion units of the national currency.

One billion non-inflationary bills of exchange, called Labor Treasury Certificates, were then issued against this cost. Millions of people were put to work on these projects, and the workers were paid with the Treasury Certificates. This government-issued money wasn’t backed by gold, but it was backed by something of real value. It was essentially a receipt for labor and materials delivered to the government. Hitler said, “for every mark that was issued we required the equivalent of a mark’s worth of work done or goods produced.” The workers then spent the Certificates on other goods and services, creating more jobs for more people.

Within two years, the unemployment problem had been solved and the country was back on its feet. It had a solid, stable currency, no debt, and no inflation, at a time when millions of people in the United States and other Western countries were still out of work and living on welfare. Germany even managed to restore foreign trade, although it was denied foreign credit and was faced with an economic boycott abroad. It did this by using a barter system: equipment and commodities were exchanged directly with other countries, circumventing the international banks. This system of direct exchange occurred without debt and without trade deficits.

Germany’s economic experiment, like Lincoln’s, was short-lived; but it left some lasting monuments to its success, including the famous Autobahn, the world’s first extensive superhighway. Hjalmar Schacht, who was then head of the German central bank, is quoted in a bit of wit that sums up the German version of the “Greenback” miracle.

An American banker had commented, “Dr. Schacht, you should come to America. We’ve lots of money and that’s real banking.” Schacht replied, “You should come to Berlin. We don’t have money. That’s real banking.”

In Billions for the Bankers, Debts for the People (1984), Sheldon Emry commented: “Germany issued debt-free and interest-free money from 1935 and on, accounting for its startling rise from the depression to a world power in 5 years. Germany financed its entire government and war operation from 1935 to 1945 without gold and without debt, and it took the whole Capitalist and Communist world to destroy the German power over Europe and bring Europe back under the heel of the Bankers.” Such history of money does not even appear in the textbooks of public (government) schools today.



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  1. “It took the whole Capitalist and Communist world to destroy the German power over Europe and bring Europe back under the heel of the Bankers.”

    The Great Bankers War of 1913 still rages on. A hundred years of restrictions, prohibitions, endless robberies, forced purchases, and trading value for worthless documents.

    Will they never be stopped? Is it to be Bankers Uber All?

    The bankers war was not ended in late April and early May of 1945.

    All that came to an end was that the Reichstag fire was put out. Shortly afterwards, the Bankers lit more Reichstag fires somewhere else. Fires of hell still being set ablaze and stoked to this very day.

    There needs to be a separation of Bank and State.

    No man should work for them until they cease their use of force and rescind their demands that we use their paper currency against our will.

  2. Mang, dom, you guys need a Previous button or somethin’.
    I wanted to post a comment on the last Today’s Thoughts, but I’m kind of tired and couldn’t find it.

    That little magnifying glass icon in the upper right hand corner could be a little more glow in the dark, too. For awhile there, I thought you guys had gotten rid of the search feature. … Maybe, ‘gray bar’ that rectangle?

    Also, why don’t you guys do Give Aways? On the prepper pages I visit, on some blog entries, it seems like there’s only five people reading the page, but when they have a give away, suddenly there’s 165+ comments.

    I don’t know what you could give away? Maybe, oh, I don’t know, a KL250 a certain somebody owns? Or one of them Toro boxes? The guys who raffle off the bass boats outside the grocery store here locally aren’t doing it for free either. Maybe you could sell tickets? But that’s probably against the law? Eh.

    Mama Liberty might not be too keen on it, but why don’t you guys have Liberty Chick of the month segments or something? With photos. That young chick Josey Wales is in first place so far, Ha. Maybe have a classy version so the older guys don’t get portrayed as perverts or something? It’s about the subject, not the matter.

    Myself, I don’t like having to scroll down to the bottom of the page to see, “What’s New”. I’d like it to be at the top and save me the trip.

    Crap, That means I’m getting lazy. …I’m blaming it on my slow puter.

    Yes, your page loads slow for me. But lately, many webpages do. Maybe I got one of those leach sucking sea lamprey thingies on my puter?

    It must not be worth a shit, but why not have a classifieds? Mac Salvo has been promising a forum for, forever. A way for people to get in contact with one another locally. Maybe he knows nobody wants to blow OSPEC?
    A Craigslist 2.0? Idk.

    And dang, the background needs more color. A race track? A car interior? A change every month? The white background is pretty bland. People sure did like the photo of the Swiss Alps on The Daily Bell, and mentioned when it disappeared.

    Yeah. I know that takes time. I’m not faulting you. It’s just that you asked.

    Maybe have some kind of .Gif icon of a motor floating below the recent comments that I could press and I could hear a motor running? It’d be like one of those stress balls that used to be so popular?

    It seems like there should be a moving yellow dotted line on the top, and a white line on the bottom of that border you have for a header?

    The illusion of motion.
    What’s that old song, Emotions in motion?


    Most webpages are so static, so very still.

    When I first saw webpages I wanted to create speed. …Motion.

    Maybe I’m wrong. But I think motion attracts people. Add some quality content, and it’s a smashing success?

    I could be wrong, as I only know some things. That’s just my Two Cents you asked for previously.

    • Helot, you have some good ideas. Classifieds could work to everyone’s advantage including eric and dom. Maybe draw more females with “hunk of the month” since it’s easy to post eye candy for men, they’ll ogle anything. I know this from many decades of doing same. I like the idea of a engine you can “run” just to break the monotony of an icon. For many years and with many computers I’ve had a shortcut to a particularly hilarious video I sometimes watch for the umpteenth thousandth time just for a grin. It’s the one where the monkey in the bar is telling a joke about a seal taking his car to the mechanic. It never gets old for me, mainly because the monkeys remind me so much of me and my friends. Then again, I’m easily entertained.

      I had actually been thinking yesterday of a Craigslist type thing for gearheads. Was looking at an ex-cop Kaw that needed a rebuild and wondered where I might get detailed instructions.

  3. Why Civilized People Buy Gold

    “The Nazis were Keynesians. Hitler’s Minister of Economics, Hjalmar Horace Greeley Schacht, was the head of the central bank until 1937. He was a believer in fiat money and government spending, especially spending on public works projects. He believed this would reduce unemployment. He was a shovel-ready kind of guy. […]

    The Keynesianism of Nazi Germany was of a special kind: highly centralized”…


    U.S. Collective Dictatorship Enlarges

    “Schacht had always feared an inflation in Germany. As early as 8 May 1936, he emphatically stated that he would “never be party to an inflation’ (1301-PS). In January 1939, Schacht was convinced that ruinous inflation was, in fact, imminent (EC-369). There was, it appears, ample basis for his fear. The Finance Minister, von Krosigk, had already recognized the situation in September 1938, and had written to Hitler warning that we are steering towards a serious financial crisis… […]

    Schacht set up a dummy corporation, called MEFO for short, that “bought” arms from the arms manufacturers. It accepted the (mefo) bills of these manufacturers who then were able to discount them at banks and get paid. The banks then discounted them with the Reichsbank. Lo and behold, inflationary finance paid for the arms production in huge amounts, circumventing the law’s prohibitions. […]

    When companies can no longer finance themselves through the standard private means of capital markets and banks, they turn to government. When government can no longer handle the bankruptcies, it seizes the means of production.” …


    The Nazis Were Socialists

    “For its first year the regime concentrated on a program of government grants of loan credit and stimulus bills for public works, such as road building and forrestation, and “targeted tax cuts” to enterprises that increased capital expenditure and increased their number of employees. But from 1934 onward, the implementation of the Wehrwirtschaft, or war economy, became the model, to which business and labor were subordinated and which was designed to function not just in time of war, but in the period before war began. The economy of total war was based on rearmament – the construction and maintenance of an enormous war machine, to which all of society was subordinated. To do this the regime resorted to inflation. Hjalmar Schacht, the Minister of Economics, printed Reichmarks, manipulated their official exchange value so that at one time it was estimated by contemporary economists to have 237 different official values, arranged barter deals with foreign governments, and invented financial instruments which were issued by the central bank and “guaranteed” by the government, and which were kept “off-budget” to pay for rearmament. German banks were required to accept them and they were discounted by the central bank. The Minister of Finance explained to Hitler that these were merely a way of “printing money.” In 1936, Goering’s Four Year Plan was inaugurated and which made Goering, almost as ignorant about economics as Hitler, Germany’s economic dictator. In the drive for a total war economy, protectionism was decreed and autarchy the desire – the so-called “Battle of Production.” Consumer imports were nearly eliminated, price and wage controls were enacted, vast state projects were built to manufacture raw materials. The bureacratization of the economy necessarily followed suit. […]

    Businessmen and entrepreneurs were smothered by red tape, told by the state what they could produce and how much and at what price, burdened by taxation and forced to make “special contributions” to the party. Corporations below a capitalization of $40,000 were dissolved and the founding of any below a capitalization of $2,000,000 was forbidden, which wiped out a fifth of all German businesses. […]

    Then in february 1935 all employment came under the exclusive control of government employment offices which determined who would work where and for how much. And on June 22, 1938, the Office of the Four Year Plan instituted guaranteed employment by conscripting labor. Every German worker was assigned a position from which he could not be released by the employer, nor could he switch jobs, without permission of the government employment office. Worker absenteeism was met with fines or imprisonment. All in the name of job security. A popular Nazi slogan at the time was “the Common Interest before Self! […]

    It is unfortunate that the 85% of Germans who believe that it is necessary to learn from the past have not learned the true lessons. But what is even more tragic is that citizens of the countries that conquered the National Socialist German Workers “paradise” have also not learned those lessons from the past and are advocating the same Nazi ideas that lead to – and will lead to – so much evil: conscription, militarism and war, increasing centralization and government control of the economy and the private lives of all citizens, belligerent nationalism, ethnic demagoguery, foreign adventurism and occupation.”


    Hitler’s Money was not Debt-Free, nor was any of it a good idea, no matter what seemingly great things the stolen money via inflation was used to create.

  4. “WICKED DEBT FRAUD” The one and ONLY answer to the debt problem is to declare it null and void because of FRAUD! It is fraud because it is mathematically impossible to repay ! It can not be repaid because the interest is never created on the loan and that is fraud ! And fraud voids all ! If we don’t void all out of thin air debt the bankers will own almost EVERYTHING ! And we will be homeless slaves ! They have a license to counterfeit ! Can I counterfeit the money to repay the loan ? Why not ? If we even attempt to repay a impossible debt (the national debt) all we do is show our ignorance ! The way to fix this mess is so simple a 3rd grader can figure it out ! We void the fraudulent debt! and everyone keeps ALL the items they have so called debt on ! And then we start to use a debt free currency and / or gold and silver ! And then we will have a robust economy like never before — OR WE LET THE BANKERS STEAL EVERYTHING !
    I was in about the third grade when the news was talking about the national debt and I asked my dad who do we owe money to and who could possibly be richer than the United States? and where did they get the money? And then my dad took a gulp off his beer and said we owe it to our self ! I said that’s the dumbest thing I ever heard of ! that’s like me borrowing from my right pocket and setting fire to the interest and putting the rest in my left pocket ! This was about 1972 ! But Dad was wrong! We owe it to international Bankers running the biggest Ponzi scheme on earth called The Federal reserve system! And yes it really is this simple ! The bankers have a shoe in on ALL loans they make ! All they have to do is stop lending and then start foreclosing on ALL debts!-meaning they now own everything that has a debt by having a license to counterfeit ! So we” 1″ keep getting fleeced by continuing to pay this fraudulent scheme ! OR” 2 “we declare ALL out of thin air debt NULL AND VOID because of FRAUD ! And we keep everything we have so called debt on! MOST people don’t get this part Every car, boat, house, machine, tool, farm,ect. has already been paid for by the fraudulent paper! So no one looses ! WE sure as hell cant give it to the banksters! (let them steal it) AND IT DOESENT MATTER IF YOU WANT TO REDUCE THE DEBT 99% ITS STILL UNPAYABLE! So when we void the FRAUD This will be the ultimate FRESH start for everyone ! Share this if you want THE solution to the WORLDS problems! If not everything will continue to get worse until we have HONEST DEBT FREE MONEY /and GOLD AND SILVER ! And there is plenty of gold and silver! just Divide the paper money (FRN) by the gold /silver and you have the value of them! NO MATTER WHAT IT COMES TO per OZ ! Then we would be happy to work for SAY A ONE OZ. SILVER COIN A day ! Because a one OZ. silver coin ( REAL MONEY ) will buy what $100 – $200 did before the reset! THINK ABOUT IT! This is what Scripture calls the jubilee ! “WICKED” Debt And the amount and size of the debt has nothing to do with it being mathematically impossible to pay This fraud is so “WICKED” that even a $10 loan is a Ponzi scheme here’s how it works ! I’m the new banks first customer ( CHUMP ) I borrow $10 @ 1% interest I now owe the bank $10.10 but ALL the money in the world is $10 the .10 cents doesn’t exist so some one else has to borrow some so called money and I have to find a way to get .10 cents from them so I can repay my loan ! Now say they borrowed $10 also now I somehow get .10 cents from them to pay my loan back ! But now he is short .20 cents to pay his loan ! so now you can see how a $100,000. house that will cost you $ 265,000 to pay off because you have to pay $165,000 in interest is a GIGANTIC PONZI SCHEME ! Now multiply that by millions of people in the U.S. and you can see how It turned into the monster debt we see today ! And for the loans that do get repaid multiple people have to default on there loans for you to pay off your loan ! NOW you can understand why we have a rapidly growing homeless problem ! Now that is a WICKED debt money system that we must declare Void !

  5. It sounds a lot like the Real Bills doctrine as discussed extensively at The Daily Bell, and a lot like Ellen Brown’s state money (Greenbackism) as described by Gary North here:

    Interest Rates in a Gold Coin Standard

    “They claim that capital – the tools of production – can be obtained free of charge at a rate of zero percent per annum, just as Keynes did. […]

    Modern men are deceived by the above-zero money rate of interest received by fractionally reserved banks in a price inflationary economy. This distracts their attention from the fundamental aspect of the free market economy, namely, the constantly declining real price of goods and services.” …


    Both, the Real Bills doctrine, and Greenbackism are inflationary, both rely on a state monopoly.

    “This government-issued money wasn’t backed by gold, but it was backed by something of real value. It was essentially a receipt for labor and materials delivered to the government.” – That, is a credit (which is inflationary) based on the constantly declining real price of goods and services.

    Kilowatt Money: Another Zombie Fiat Money Scheme.

    “Here is the problem: there is lots of room for manipulation. This is the problem with every system of money that is not a commodity-based money system that is governed by the free market. […]

    The surest mark of a crackpot is the call for a rate of interest of zero. There are no exceptions to this rule. Whenever you see a call for zero interest, you are seeing the equivalent of a call for a perpetual motion machine.

    [A monetary crackpot would say:] “The only way to solve the inefficiencies of the current system is to use a currency that has real value, whose supply is tied to an accurate economic indicator, and doesn’t need interest attached just for the sake of creating it.”

    This attack on interest denies a fundamental category of human action: “now, not later.” This was refuted by Austrian School economists in the late 19th century. Read Chapter XIX of Mises’s book, Human Action. […]

    The free market establishes economic value [Not a government]

    demand-side economics: economics without productivity. This is magic. This is something for nothing. This is stones into bread. In short, this is Keynesianism.”…


  6. Title 12 USC Sec. 411
    Sec. 411 Issuance to reserve banks; nature of obligation; redemption
    Federal Reserve Notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose of making advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are authorized. The said notes shall be obligations of the United States and shall be receivable by all national and member banks and Federal reserve banks and for all taxes, customs, and other public dues. They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank.
    (Dec. 23, 1913, ch. 6, Sec. 16 (par.), 38 Stat. 265; Jan. 30, 1934, ch. 6, Sec. 2(b)(1), 48 Stat. 337; Aug. 23, 1935, ch. 614, title II, Sec. 203(a), 49 Stat. 704.)

    Phrase “hereinafter set forth” is from section 16 of the Federal Reserve Act, act Dec. 23, 1913. Reference probably means as set forth in sections 17 et seq. of the Federal Reserve Act. For classification of these sections to the Code, see Tables.
    Section is comprised of first par. of section 16 of act Dec. 23, 1913. Pars. 2 to 5, 6 (formerly 7), 7 to 10 (formerly 8 to 11, respectively), 12 (formerly 13), 13 (formerly 14), and 14 to 16 (formerly 15, 16, and 18, respectively) of section 16 of act Dec. 23, 1913, are classified to sections 412 to 415, 416, 418 to 421, 360, 248-1, and 467, respectively, of this title.

    Former pars. 6 and 17 of section 16 of act Dec. 23, 1913, formerly classified to sections 415 and 467, respectively, of this title, were repealed by Pub. L. 90-269, Secs. 5, 7, Mar. 18, 1968, 82 Stat. 50. Par. 11 (formerly 12) of section 16 of act Dec. 23, 1913, formerly classified to section 422 of this title, was superseded by act June 26, 1934, ch. 756, Sec. 1(a), (b)(3), 48 Stat. 1225.
    1934 – Act Jan. 30, 1934, struck out from last sentence provision permitting redemption in gold.

    Section 203(a) of act Aug. 23, 1935, changed name of Federal Reserve Board to Board of Governors of the Federal Reserve System.

  7. 3 comments:

    I wonder what is the link between cars, Hitler and money….

    Second, it is not Hitler’s lack of respect of human liberties that should be pointed out but the millions of dead (children too) he has on his track.

    Third, with regards to monetary policy at that time, only one policy was applicable: stealing countries gold (reason why Greece is still missing a 100 tons gold from German occupation in 1943…) or stealing wealth of private persons, wealthy Jew people, or France having to pay back 10 time war compensation from 1914.

    I am afraid someone must have been sleeping during history class at school.

    • Hi Ignorance,

      I prefaced the piece with what I had hoped would be a clear statement of disapproval – of Der Fuhrer. But I refuse to be bound by the PC orthodoxy that insists we must refuse to acknowledge any achievement/right action associated with an odious person. It’s ridiculous.

      The Soviet Union was evil; Stalin was a mass murderer. But the Kalishnikov rifle, the T-34 tank… superb achievements.

      Hitler, likewise, was a fiend. Does it obviate the merit of issuing debt-free money? Cutting out the international banking cartels?


    • Ignorance is Bliss wrote:

      “Second, it is not Hitler’s lack of respect of human liberties that should be pointed out but the millions of dead (children too) he has on his track.”

      Talk about your basic non sequitur. Genocide is the ultimate lack of respect for human liberties.

      “I am afraid someone must have been sleeping during history class at school.”

      You truly believe the shit you were programmed with in public school? Eric’s comments were backed by documentation as noted when he referenced Billions for the Bankers, Debts for the People (1984), Sheldon Emry. All you have to say is gibberish about public school “history” classes. I think your nome de plume is appropriate……

      Oh yeah, speaking of countries stealing gold…..check out the situation with the U.S. and Germany…….interesting.

  8. UK Commonwealth state of Canada issued Debt-Free Money 1935-1974

    Colonial History of Money, 1764 – 1776, Found on Internet, must be true

    Debt Free Money Was a Big Success in the Colonies

    The colonists had a shortage of metals for minting coins so they printed paper money called Colonial Script. It was a true fiat currency and was debt free money. It proved to be very successful so successful that it had to be stopped.

    Benjamin Franklin “screws the pooch”

    While in London Benjamin Franklin fails to persuade the British parliament to allow the use of paper money in the colonies.

    Continental Currency is a success

    On June 23 two million dollars of Continental Currency was issued with the guarantee that they would be redeemed by taxes upon the return of peace. The paper money was a success and was exchanged freely at its nominal value for gold and silver coin. On November 29 three million more were printed with the guarantee that they would be redeemed by taxation to begin in eight years. The issue was a success and there was no loss of value.

    The colonies lose battles, British counterfeiting and the Continental loses value

    On February 17 an additional issue of four million notes were released with no real promise of redemption by taxes. It was found that there was no depreciation in the value of the paper currency. On August 13 another five million were released and the total in circulation at that time was fourteen million dollars of paper money.

    Military loses to the British started the devaluation of the currency when people started to lose faith in the colonies. Additional issues of paper money accelerated the drop in value.

    However the real devaluation in the continental currency didn’t begin until the British started to counterfeit the money in an attempt to debase the currency which succeeded.


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