The German economy’s recovery after the inflation had been financed not least by heavy investment from the world’s largest economy, the United States. German interest rates were high, and capital flowed in; but, crucially, reinvestment mainly took the form of short-term loans. German industry came to depend heavily on such funds in its drive to rationalize and mechanize. Firms such as Krupps and the United Steelworks borrowed very large sums of money. American enterprises invested directly in Germany, with Ford automobiles owning factories in Berlin and Cologne, and General Motors buying up
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