By abijohn.com
Hitler’s Accountant: How Nazi Germany Built a War-Driven Economy That Required Conquest to Survive
Nazi Germany’s economic rise between 1933 and 1939 has long fascinated historians. How did a country crushed by the Treaty of Versailles, drowning in debt, suffering mass unemployment, and experiencing hyperinflation only a decade earlier, transform into a military powerhouse capable of launching the largest war in human history?
The real answer is simple and brutal:
Nazi Germany’s economy was never sustainable. It was a “conquest economy” that required continuous territorial expansion, plunder, forced labor, and theft to function.
The war was the economy, and the economy required war.
While Hitler himself was not an accountant, his regime relied heavily on the financial strategies laid out by Hjalmar Schacht (Minister of Economics), Fritz Reinhardt (tax administrator), and later Hermann Göring (head of the Four-Year Plan). Together they engineered a system that looked miraculous—until its underlying fraud became obvious.
This article explains how Germany rebuilt itself, why it had to expand, how slave labor and looting powered the system, and why Nazi Germany’s economic machine literally could not survive without war.
1. Germany’s Economic Disaster After WWI
After WWI, Germany faced:
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Massive reparations debt
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Loss of industrial territories
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Sky-high unemployment
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Hyperinflation (1923)
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Collapse of savings, pensions, and investment
The Weimar Republic was forced to borrow aggressively from American banks (Dawes Plan, Young Plan), creating a fragile economy dependent on foreign credit.
When the Great Depression hit in 1929, the entire system collapsed.
2. Hitler’s Economic Magicians: Financing the Recovery
When Hitler came to power in 1933, he used a combination of real reforms and financial tricks to revive the economy.
(a) Public Works + Military Production (Mefo Bills)
Hjalmar Schacht introduced MEFO bills, a secret, off-the-books financing tool used to hide rearmament spending from foreign powers.
Germany could secretly pay armaments companies with MEFO bills instead of real money. The bill could be cashed later—or rolled over indefinitely.
This allowed Germany to:
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Avoid inflation
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Hide rearmament
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Borrow without foreign lenders
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Rapidly build weapons, tanks, and aircraft
But it created a massive hidden debt that would soon explode.
(b) Rearmament as Stimulus
Millions of Germans were employed in:
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Weapons manufacturing
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Autobahn construction
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Military service
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Related industries (steel, oil, chemicals)
This reduced unemployment but did not create consumer prosperity. Everything went into preparing for war.
(c) Autarky: Fake Self-Sufficiency
Hitler believed Germany needed “economic independence,” so he pushed for:
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Synthetic oil (from coal)
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Synthetic rubber (Buna)
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Replacement industrial chemicals
These systems were expensive, inefficient, and unsustainable. Germany could not produce enough food, oil, rubber, or steel without importing.
Thus, autarky was a fantasy, and the economy was being stretched to its limit.
3. By 1938, Germany Was Bankrupt
Behind Nazi propaganda, Germany faced:
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No foreign currency
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Shortages of food and raw materials
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Exploding hidden debt (MEFO bills)
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A population consuming less than before 1933
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A government unable to pay its bills by 1939
Germany had rearmed itself to the point where it needed new resources or the economy would collapse.
Schacht himself warned Hitler the system was unsustainable.
Hitler’s response?
“We must expand. Only conquest will solve our problems.”
4. Why Germany Needed to Invade Austria
In 1938, Hitler annexed Austria (Anschluss) primarily for economic survival, not ideology.
Austria provided:
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Gold and foreign currency reserves (German banks were empty)
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Manufacturing plants
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Skilled labor
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Natural resources
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Confiscated Jewish assets
Immediately after annexation, the Nazi regime seized Jewish property, looted banks, and absorbed Austria’s gold into the Reichsbank. This provided a short-term financial rescue.
5. Why Germany Seized Czechoslovakia
Czechoslovakia was the next target because it contained:
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The Škoda weapons factories (one of Europe’s largest arms manufacturers)
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Huge coal and steel deposits
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Gold reserves
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High-tech industrial infrastructure
The Nazis took control without firing a shot.
This single conquest dramatically increased German military production capacity.
But more importantly:
Czechoslovakia’s looted gold allowed Germany to continue paying for imports—temporarily.
6. The Logic of Conquest: Why War Became Necessary
By late 1938, Nazi Germany was in a vicious cycle:
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Rearmament required more resources and money.
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Resources and money could only come from conquest.
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Conquest required even more rearmament.
This is what historians call the “conquest economy”.
Germany could not:
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Feed itself
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Fuel its army
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Build its weapons
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Pay its debts
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Sustain its population
without stealing from other countries.
Thus, Hitler concluded:
Germany must conquer Europe or collapse.
There was no peaceful path forward.
7. The Holocaust and Slave Labor as Economic Tools
As Germany conquered Europe, the Nazis systematically exploited:
(a) Jewish property and bank accounts
Jewish communities were robbed through:
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Aryanization (forced sale of businesses)
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Confiscation of bank savings
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Jewelry, art, gold, and valuables
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Special taxes and penalties
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Seizure of businesses
Billions of Reichsmarks were absorbed into the state.
(b) Slave labor
As German men joined the army, factories lacked workers. The solution:
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Concentration camp prisoners
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Jewish ghettos
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Soviet POWs
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Forced labor from occupied nations
By 1944, one in four German workers was a slave laborer.
(c) Looting conquered nations
The Wehrmacht seized:
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Oil (Romania)
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Grain (Ukraine)
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Coal (France and Poland)
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Industrial equipment
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Railroad stock
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Livestock
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Precious metals
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Art and cultural treasures
Germany literally transported entire factories back to the Reich.
This was not random theft—it was official economic policy.
8. Why Hitler Believed the War Could Never Stop
Hitler viewed war as the engine powering Germany:
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War provided labor
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War provided raw materials
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War provided stolen wealth
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War provided food
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War kept the population obedient
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War kept the economy running
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War prevented the collapse of the MEFO debt bubble
Stopping the war meant the economy would instantly implode.
Thus:
The war existed to feed the economy, and the economy existed to feed the war.
Hitler’s own statements confirm this worldview—Germany needed Lebensraum (living space) not merely for ideology, but for economic extraction.
9. The Collapse: When a Conquest Economy Runs Out of Territory
By 1942–1943, Germany reached its maximum expansion:
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The Soviet Union was too big to conquer
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North Africa was lost
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Allied bombing crippled industry
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Food and fuel ran out
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Slave labor was unable to keep up
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Massive MEFO debts remained unpaid
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The system began to implode
Without new conquests, the economic machine died.
10. Final Analysis: Hitler’s Economy Was a Ponzi Scheme
When you strip away ideology, Nazi Germany’s recovery was built on:
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Secret debt
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Fraudulent accounting
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Looted gold
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Annexed bank reserves
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Seized property
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Enslaved labor
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Forced extraction of resources from conquered nations
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An economy designed to collapse without continuous expansion
It was not a miracle.
It was a Ponzi scheme funded by theft, war, terror, and genocide.
And like all Ponzi schemes, it collapsed the moment it could no longer take from new victims.
Now Did I say Learn From Hitler ? I meant Can you really Learn anything from The Devil ?
Like Scammers in Nigeria Today The Americans & The British & Roman Empires & Even North Korea’s Kim It is The Same playbook Invade Others To Survive But Like all Ponzi Schemes & Scams You WILL Eventually Fail
“If You fit ” as Nigerians Say
Links (Sources & Further Reading)
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https://encyclopedia.ushmm.org/content/en/article/economy-of-the-nazi-state
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https://www.iwm.org.uk/history/how-nazi-germany-used-and-abused-its-economy
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https://www.yadvashem.org/holocaust/about/nazi-germany-1933-39.html