The Great Depression

The domestic and international issues caused the Great depression of 1930s. The great depression did occur on the black Tuesday of October 29, 1929. In 1929, there was a crash in the stock market. The stockholders had lost an approximate value of $40 billion dollars. The failure of banks caused uncertainties in the banking sector resulting to the loss of savings by the depositors. There was unsurely of the safety of the bank depositors. The economic agents resorted to home banks leading to the further collapse of the banks. The loss of savings caused a reduction of the loanable amounts. The purchasing power declined as there was widespread fear among the economic agents. The drought conditions in the Mississippi valley caused the farmers unable to pay their farm debts. The valley turned to be a dust bowl in reference to unproductively of the valley.

The Smoot -Hawley Tariff refers to the tariff introduced in 1930 by the government to cushion American companies from further falling as a result of the great depression. The tariff intention was to levy a high taxation on the American imports. The world reacted to the Smoot Hawley Tariff negatively as the volume of trade between America and the other foreign nations reduced. This was compounded by the economic retaliation.

The FFFDs program was intended to rescue banking sector from further failure. This was the initiative of President Hoover. The Foreign Direct reserves were   increased to assist in the process of credit creation by the banks. The banks had run short of reserves due to uncertainties in the bank deposits. The program was introduced to restore confidence in the banking sector. The existing banking policy had failed to restore confidence among the depositors as there were rampant failures of the banks.

Question 2

Hitler was able to maneuver the British and Stalin in 1938 and 1939. Britain had a plan of forming an alliance together with the Soviet Union. The British Prime Minister agreed that there was need to maintain an eastern zone with the aid of Russia. The Russian interests were to be protected so as to prevent Hitler plans on Eastern Europe. The intention of the alliance was to form a strong and revolutionary military. The misinterpretation and mistrust that British were involved in a plot against Germany teaming against the Soviet Union made Stalin reluctant to support the plan. The belief came in the reinforcement after the meeting between Adolf Hitler and Neville Chamberlain in 1938. Joseph Stalin was made to belief that main aim of the British foreign policy was to aid Germany go East instead of West. It was now clear that the war with Germany was inevitable. This was according to Stalin. The signing of the pact between Hitler and Stalin was the best option for Hitler.

President Roosevelt organized foreign troops in readiness for war. This was a back door arrangement to prepare the US for war and later support Britain. The President turned to old enemies with the intention to use the US navy to protect the British. This was a calculated move to later claim innocence.

 Asia and the European countries were seriously arming themselves in preparation for the war there was subsequent invasion Czechoslovakia. Germany, France, and Britain were the three countries in the war. The big three were f the common opinion that main aim was to destruct Japan and Germany. The USSR was to spearhead influence in the Tehran conference. The USSR was to repatriate damages on Germany and was observed the Yalta conference saw the Soviets keen to regain its lost territories. The Supreme Allied commanders of the Allied and Pacific theaters were Lord Louis Mountain batten and General Douglas MacArthur (Herf 12).