In a previous article How the Federal Reserve Caused the Great Depression I explained that by doing the complete opposite of what it was created to do the Federal Reserve caused the Great Depression. By selling assets in the economy in the early 1930's instead of purchasing assets the Federal Reserve caused money to appreciate to unprecedented levels which caused widespread hoarding and the Great Depression.

The Federal Reserve Caused a Worldwide Depression

In addition to causing money to appreciate in the United States economy the Federal Reserve also caused the dollar to appreciate versus other currencies around the world. Many other economies most notably Great Britain and all her satellite economies responded by doing the same thing and causing appreciation in their own money which caused a worldwide depression.

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Hitler Rose to Power as a Result of the Worldwide Depression

As a result of the worldwide depression and economic collapse in the world the German economy suffered a massive financial crisis which ultimately allowed Adolph Hitler to become dictator of Germany. Hitler then rearmed Germany and invaded Poland which started WW II.

Hitler and the Nazis Were Not Popular in Germany Until the German Economy Collapsed

Prior to the financial crisis in Germany brought about by the worldwide depression Adolph Hitler and the Nazi Party had little or no hope of legitimately gaining power in Germany.

In 1923 Hitler and the Nazis attempted to seize power in Bavaria and Germany by force which failed and Hitler was arrested and jailed. In 1924 the Nazi Party received 6.5% of the nationwide German vote. When Hitler was released from jail he gave speeches and tried to rally public support for the Nazis but in subsequent elections the Nazis failed miserably to gain any meaningful support from the German people (see below).

Nazi Party Percentage of German Votes

May 1924 - 6.5%

December 1924 - 3%

May 1928 - 2.6%

September 1930 - 18.3%

July 1932 - 37.4%

March 1933 - 43.9%

In the May 1928 elections the Nazis lost well over half the votes they had received in May of 1924 and the party and Hitler were headed for obscurity.

However once the financial crisis occurred in 1930 the Nazis were able to gain some support receiving 18.3% of the vote and then as the German economy totally collapsed the Nazis and Hitler received 37.4% of the vote in July of 1932 which was enough for Hitler to demand to be Chancellor which he was named in January of 1933. In the March 1933 elections Hitler and the Nazis received 43.9% of the vote which was short of a majority but enough to allow the Nazis to consolidate their power and name Hitler as dictator of Germany. Hitler then spent the rest of the decade rearming the country and invaded Poland in 1939 which started WW II.

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By Causing the Great Depression the Federal Reserve Helped Put Hitler in Power and Caused WW II to Happen

Had the Federal Reserve not caused the Great Depression the worldwide depression would not have occurred and the German economy would not have collapsed and Adolph Hitler and the Nazis would probably have never been able to gain any real power in Germany.

By causing the Great Depression the Federal Reserve set into motion the circumstances which ultimately caused WW II to happen.

For more see How the Federal Reserve Caused the Great Depression

Why Congress Created the Federal Reserve

Why People Are Not Spending Their Money in the United States Economy

Why Consumer Credit and Credit Card Debt Keeps Dropping in the United States

Largest Economies in the World

Sources: http://en.wikipedia.org/wiki/Adolf_Hitler