53. Germany Is No Longer a Loser.
"With this, our empire has become great once more. Cast your minds back to those days. After the tragedy of the Treaty of Versailles struck. In a mere twenty years, we overcame all those crises. Nay, we turned those crises into opportunities—a monumental achievement."
December 23, 1934. On the eve of Christmas, I began my New Year's address as if boasting of all Germany had accomplished thus far. But this speech had a purpose even greater than rousing the masses. It was to proclaim to the entire world that Germany had now escaped most of its perils.
"In recent years, Germany's economic indicators have been exceedingly positive, restoring our pre-Great War economic strength. Prices have stabilized once more, food costs have fallen, and we've resolved the bulk of our social debts."
In the past, I had established institutions like the German Birth Commission, the Third Reich Food Distribution Corporation, the German Scientists Union, and the National Food Commission, pouring meticulous effort into improving the quality of life for our citizens. Thanks to these, living standards had soared, the national economy brimmed with vitality, and as consumer spending rose, the domestic market expanded rapidly. The illusion of prosperity conjured by promissory notes was temporary, of course—but if managed well, we could bulk up the economy before repayment, slipping free as per Schacht's exit strategy. And if things went awry? We'd pivot to conquest. Our wartime economy was being prepared step by step, after all.
"People of the Third Reich, workers! It is thanks to your great sacrifices that our Third Reich lives in such glory today."
I raised both hands high. The crowd erupted in cheers.
In the modern world, there's a saying: Get famous first. Then even if you shit, people will applaud. I knew it was a joke, but I wholeheartedly agreed. They were cheering without me even saying a word.
"If my actions and policies have earned the greatest trust of you, the people—and if that allows me, as your representative, to stand tall on the world stage—then I say this."
As I raised my hand and continued, the crowd's voices hushed. No more cheers; they listened in rapt attention. A speech is like a vast wave: splash about, and it ripples; stay still with palms flat, and it calms. The audience responds instantly to my gestures. In this interplay, I become the undisputed master of the space. All lights converged on me. Shutter clicks echoed from countless cameras, flashes bursting like stars.
"My declaration is Germany's declaration! The declaration of the German people! And from this place, as your representative, I declare!"
I bellowed even louder.
"The German people have once again become the industrious, vibrant citizens of a mighty nation! The Third Wave has been realized! Nation and people are one! Our people can achieve anything! What a tremendous accomplishment! In the past, our people proved more diligent and capable than any in the world! Therefore!"
It evoked an orchestra, a grand theater. I orchestrated lighting, angles, expressions, gestures—everything. Nonverbal cues mobilized in full. Words have limits in conveying emotion, but body language excels at it...
"Germany is no longer a loser! This is my declaration—and yours, people of Germany! We are no longer losers! The Treaty of Versailles branded us losers, but we have overcome it, standing proudly on the world stage to prove our strength!"
I gave them the words they yearned to hear. Then I stretched both arms wide, proclaiming a new era's dawn.
"The German people have built the world's finest roads, achieved the greatest technological advances, erected massive industrial complexes, and shielded ourselves from the Great Depression's waves! In every field, our diligent Germans create new wonders day by day! Has history ever seen such brilliance? What a tremendous feat! What a glorious achievement! I declare: Germany is no longer a loser!"
I declared that Germany was no longer a loser. That no one could define us as such.
February 1935. Support for the DDRAP, the Third Reich's sole party, soared to the heavens. The New Deal policies' expanded social infrastructure finally synergized with the economy, while eased food distribution prices curbed the rising cost of staples. As a final touch, I established the Third Reich Sovereign Wealth Fund.
A sovereign wealth fund draws its capital from national assets, with the state holding operational control. I created it to invest in key industries. Not haphazardly, of course—no printing promissory notes to scatter funds wildly. If the fund collapsed, welfare would crumble. Typically, its returns fund social programs.
"I'll entrust the initial operations of the Third Reich Sovereign Wealth Fund to you, Hess. But no indiscriminate investments. Consult Schacht and Toddt first, or invest only in the stocks I specify."
"Understood, Mein Führer."
I assigned the initial management to my secretary, Rudolf Hess, who obeyed my every command unquestioningly. But this was just the start. Once funds accumulated, we'd bring in economists. For now, with investments under my direct guidance, blind loyalty was paramount.
"Initial capital will come partly from the gold collection drive's national assets and a sliver from welfare budgets. That alone will amass a tidy sum. Key investments: coal liquefaction, steel, bauxite mines, ammonium nitrate plants, and shipping and shipbuilding firms."
"Understood, Mein Führer. But... these are mostly resources and logistics. Why invest this way? Isn't it just extending the New Deal?"
"If it looks that way, all the better. Do you grasp what I'm preparing, Rudolf Hess?"
"...No, I don't."
Hess wasn't the sharpest. He seemed clever penning My Struggle, but no—he was dim. Flashes of wit now and then, but otherwise thoughtless.
"If the world shuns Germany, what then? Self-sufficiency. What I want is Germany's complete independence."
Wartime economy. That's what I was building—an economy that thrives even in war. No parts, no functioning machines. So secure them in advance.
"Civilian economy's stable enough. Next: wartime economy. We must prepare."
More preparations ahead. In any case, the sovereign wealth fund was key to running a wartime economy while easing welfare burdens. If it avoided flops and grew steadily, it'd yield profits handily. And depending on circumstances, we could pay retirement pensions in fund shares. Nordic countries dispensed them as national pensions; in America, big firms funneled them into S&P 500 ETFs. Funds had endless uses.
"Trim useless welfare, expand what truly resonates with the people. And overhaul pensions while we're at it."
Pensions existed even then, and Germany's youthful pyramid population structure made them viable—not mere taxes, but true retirement support. But knowing the future, how could I leave them untouched? France's future loomed: untouchable pensions, failed reforms, bankruptcy crisis. Plan ahead.
"Once the fund stabilizes, replace national pensions with its shares. That should suffice. Say, 30% of payouts in fund equity. Or bonds."
Details to Schacht.
March 1935. Italy. War clouds already gathered there.
"Duce, we're moving troops to Somalia and Eritrea as ordered. But the League of Nations has voiced concerns. Britain and France have issued stern demands that Italy not start a war."
"Amusing. Britain and France gobbled up Africa like gluttons when carving it up, yet block Italy from a scrap of land? Shameless hypocrites..."
"For now, it's just formal protests."
"Tell them to check Germany together. With us in the mix, what can they do to friendly Italy? They'll send letters forever."
"But Duce, there's a problem."
"A problem? What problem?"
"France and Britain's relations are at a nadir. Germany and Britain even compromised via the London Naval Treaty, fostering amity."
"Ha. Foolish Anglo-French idiots. They warred viciously just twenty years ago, now cozying up to Germany?"
"France's leftward tilt might be the cause."
Italy's Duce, Benito Mussolini. Since January, he'd prepared to re-invade Ethiopia. But international winds blew strangely. France had elected some obscure red, Georges Cyrson, as president, proclaiming the French International. They swiftly soured on old ally Britain, cozying up to the Soviets instead. As the red plague swept Europe, Britain naturally warmed to rightward Germany.
"Duce, before invading Ethiopia, we must choose. Whom to pull to our side."
Thus, unlike original history, Mussolini faced a fork: France or Britain? Whom to befriend?
Mussolini pondered. The answer came swiftly.
"Britain will never tolerate an Ethiopian invasion. They can't stand others expanding colonies. France, though? Different. Embracing communism branded them international pariahs. They desperately need friends."
Mussolini decided: before Ethiopia, court France.