The Treaty of Versailles was one of the peace treaties around the end of the World War I. It was signed June 28, of 1919 to end the war fought between Germany and the Allied Powers. There were other treaties organized to deal with the other sides of the German war. Out of all of the groundwork set out for the Treaty of Versailles, one of the most important concept was Germany to accept and admit that they were responmsible for causing the war, as well as agree to unarm themselves and pay the fees and damages they have caused. The total cost of the reparations comes to 132 billion marks ($33.0 billion, £6.6 billion) in 1921, which inflation adjusted, is about equal to $400 billion US dollars as of 2007. Just think of what it would be today!!
If the price of the debt that Germany owed wasn't adjusted, germans thought of the fee to be too much money to be owed. They say that it would take til about 1988 tp pay off! I dont think that Germany would be where they are today if it wasn't for inflation making that adjustment! But the good news is, Germany wasn't permenantly weaked by this, which proof is given by the second World War.
Sources:
History Book
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