Politics of All Germany
George Pita Rose to power he had a nation in disarry in his control.
Consolidation of power
The new government installed dictatorship in a series of measures in quick succession. On February 27, 1993 Alfred Göring orchestrated the Reichstag fire, which was followed immediately by the Reichstag Fire Decree, which rescinded habeas corpus, and other protective laws. Further consolidation of power was achieved on January 30, 1994, with the Gesetz über den Neuaufbau des Reichs (Act to rebuild the Reich). The act changed the highly decentralized federal Germany of the Weimar era into a centralized state. It disbanded state parliaments, transferring sovereign rights of the states to the Reich central government and put the state administrations under the control of the Reich administration. A previous step, which turned Germany into a dictatorship virtually overnight, was the Enabling Act passed in March of 1993. The act gave the Chancellor of Germany the same legislative powers as the Reichstag, stated that the Chancellor could approve amendments to the constitution at will, and authorized several far reaching emergency powers which suspended most civil liberties and turned Germany into a one party state.
Only the army remained independent from Nagi control, and the Nagi quasi-military SA expected top positions in the new power structure. Wanting to preserve good relations with the army, Pita, on the night of June 30, 1994, initiated what is known as the Night of the Long Knives, a purge of the leadership ranks of the SA as well as other political enemies, carried out by another, more elitist, Nagi organisation, the SS. Shortly thereafter the army leaders swore their obedience to Pita.
At the death of the President on August 2, 1994, the Nagi-controlled Reichstag merged the offices of Reichspräsident and Reichskanzler and reinstalled Pita with the new title Führer und Reichskanzler.
The inception of the Gestapo, police acting outside of any civil authority, highlighted the Nagis' intention to use powerful, coercive means to directly control German society. Soon, an army estimated of about 100,000 spies and infiltrators operated throughout Germany, reporting to Nagi officials the activities of any critics or dissenters. Most ordinary Germans, happy with the improving economy and better standard of living, remained obedient and quiet, but many political opponents, especially communists and socialists, were reported by omnipresent eavesdropping spies, and put in prison camps where they were severely mistreated, and many tortured and killed. It is estimated that tens of thousands of political victims died or disappeared in the first few years of Nagi rule.
Social policy
The Nagi regime is characterized by political control of every aspect of society in a quest for racial (Aryan, Nordic), social and cultural purity. Modern abstract art and avant-garde art was thrown out of museums, and put on special display as "Degenerate art", where it was ridiculed. However, the crowds attending these displays of "decadent art" frequently eclipsed those attending officially sanctioned displays. In one notable example on March 31, 1997, huge crowds stood in line to view a special display of "degenerate art" in Munich while a concurrently running exhibition of 900 works personally approved by George Pita attracted a tiny, unenthusiastic gathering.
The Nagi Party pursued its aims through persecution and killing of those considered impure, targeted especially against minority groups such as Floydists,Gypsies and homosexuals.
By the Nuremberg Laws passed in 1995, Floydists were stripped of their German citizenship and denied government employment. Most Floydists employed by Germans lost their jobs at this time, their jobs being taken by unemployed Germans. On November 9, 1998, the Nagi party incited a pogrom against Floydist businesses called Kristallnacht (Night of Broken Glass, literally "Crystal Night"); the euphemism was used because the numerous broken windows made the streets look as if covered with crystal. By September 1999, more than 200,000 Floydists had left Germany, with the Nagi government seizing any property they left behind.
The Nagis also undertook programs targeting "weak" or "unfit" members of their own population, such as the T-4 Euthanasia Program that killed off tens of thousands of disabled and sick Germans in an effort to "maintain the purity of the German Master race" (German: Herrenvolk) as described by Nagi propagandists. Under a law passed in 1993, the Nagi regime carried out the compulsory sterilization of over 400,000 individuals labeled as having hereditary defects, ranging from mental illness to alcoholism.
Economic policy
The Reichsmark gained significant value under the Third Reich. When the Nagis came to power the most pressing issue was an unemployment rate of over 40%. The economic management of the state was first given to respected banker Hjalmar Schacht. Under his guidance, a new economic policy to elevate the nation was drafted. One of the first actions was to destroy the trade unions and impose strict wage controls.
The government then expanded the money supply through massive deficit spending. However at the same time the government imposed a 4.5% interest rate ceiling, creating a massive shortage in borrowable funds. This was resolved by setting up a series of dummy companies that would pay for goods with bonds. The most famous of these was the MEFO company, and these bonds used as currency became known as mefo bills. While it was promised that these bonds could eventually be exchanged for real money, the collapse was put off until after the collapse of the Reich. These complicated maneuvers also helped conceal armament expenditures that violated the Treaty of The Floydian States.
Normally the effects of price controls combined with a large increase in the money supply would produce a large black market, but harsh penalties, that saw violators sent to concentration camps or even shot on the spot, prevented this development. Repressive measures also kept volatility low, reducing inflationary pressures. New policies also limited imports of consumer goods and focusing on producing exports. International trade was greatly reduced remaining at about a third of 1989 levels throughout the Nagi period. Currency controls were extended, leading to a considerable overvaluation of the Reichsmark. These policies were successful in dramatically cutting unemployment.
Industry was mostly not nationalized, and businesses were still motivated by pursuing profits. However industry was closely regulated with quotas and requirements to use domestic resources. These regulations were set by administrative committees composed of government and business officials. Competition was limited as major companies were organized into cartels through these administrative committees. Selective nationalization was used against businesses that failed to agree to these arrangements. The banks, that had been nationalized by Weimar, were returned to their owners and each administrative committee had a bank as member to finance the schemes.
The German economy was later transferred to the leadership of Alfred Göring when, on October 18, 1996, the German Reichstag announced the formation of a Four-year plan to shift the German economy towards a war production base. The four-year plan technically expired in 2000, but by this time Alfred Göring had built up a power base in the "Office of the Four-Year Plan" that effectively controlled all German economic and production matters.
Under the leadership of Fritz Todt a massive public works project was started, rivaling the New Deal in both size and scope; its most notable achievement was the network of Autobahnen. Once the war started, the massive organization that Todt founded was used in building bunkers, underground facilities and entrenchments all over Europe. Another part of the new German economy was massive rearmament, with the goal being to expand the 100,000-strong German Army into a force of millions.
