And in the midst of the Japan crisis there is Germany. Germany had no idea that they were really losing WWI. They finally found out by reading it in the paper and this caused great psychological shock. Their leaders had lied to them. Germany thought they had lost in an unfair fight. Nazi’s said that the Jews had stabbed them in the back. And they were humiliated by the Treaty of Versailles. In 1923 the currency was so inflated that it wiped out the savings of the middle class of Germany. They did recover some prosperity during 1923-1929 but the economy had not completely recovered. By the 1930s their economy had stabilized due to American loans. The Great Depression