BMW 5 Series (E34)
The BMW E34 is the third generation of the BMW 5 Series, produced from 1987 until 1996. Launched as a sedan, the E34 saw a "Touring" wagon body style in 1990, a first for the 5 Series. BMW replaced the E34 with the E39 5 Series in December 1995, although E34 Touring models remained in production until June 1996; the E34 generation included the first all-wheel drive 5 Series with the 525iX, the first V8 in a 5 Series. The E34 saw the introduction of stability control, traction control a 6-speed manual transmission and adjustable damping to the 5 Series range. There was an unusually large range of engines fitted over its lifetime as nine different engine families were used; these consisted of straight-six and V8 engines. The E34 M5 is powered by the S38 straight-six engine and was produced in sedan and wagon body styles. Development ran from July 1981 to early 1987, with the initial design proposal penned by Ercole Spada in 1982. Under the guidance of chief designer Claus Luthe, BMW based much of the design on the E32 7 Series.
Following Spada's departure from BMW and styling approval in 1983, J Mays finalized the design for production in mid-1985. In December 1987, the E34 sedan was unveiled to global press. Special attention was paid to aerodynamics, with the E34 having a drag coefficient of 0.30. Official performance figures are as follows. 5-speed Getrag 260 5-speed Getrag 280 — 3.6 L M5 model only 5-speed ZF S5D 310 — M50 engines 6-speed Getrag 420G — 540i and 1994-1996 M5 only 4-speed ZF 4HP22 - M20 and M30 engines 4-speed GM 4L30-E - M50 engines 5-speed ZF 5HP18 - M50 and M51 engines and 1992-1995 530i. 5-speed ZF 5HP30 - 540i Front suspension consists of double pivot MacPherson struts, with a replaceable shock absorber cartridge inside a steel strut housing. Control arms and thrust arms control side-to-side movement. Steering on most models is a recirculating ball design, however the all-wheel drive 525iX uses a rack and pinion steering system. Rear suspension consists of semi-trailing arms with coil springs integrated in a strut assembly.
The base model, available only in Europe with a total of 53,248 units produced, was powered by the four-cylinder M40 engine, replaced by the M43 in 1994. The 518i was available in sedan or wagon body styles, but with only a 5-speed manual for the transmission; the lowest six-cylinder model and the base model in some countries, the 520i was the second most popular E34 model globally, with 426,971 units produced. Initial production of the 520i started in January 1988. In 1990 the M20 was replaced by the twin-cam M50 engine, updated to the M50TU in September 1992 with the introduction of VANOS; the M50-powered 520i was the most popular E34 variant sold in Europe. The tds was introduced in 1991 using. Available in both sedan and wagon body styles A mid-range model in most regions, the six-cylinder 525i was the most popular E34 model globally, with 434,549 units produced. Like the 520i, the 525i was powered by the M20 engine, updated to the M50 and M50TU engines; the 525iX was the first all-wheel drive 5 Series, the only all-wheel drive model in the E34 range.
Powered by the M50 engine and available in both sedan and wagon body styles, it saw a total of only 9,366 units. The centre differential would divide 36% torque to the front axle and 64% to the rear axle, but could adjust the ratio according to driving conditions in case one of the wheels started to slip. Unique to the 525iX was the use of a pinion steering system. There are two versions of the 530i: a six-cylinder model produced from 1988 to 1990, a V8 model produced from 1992 to 1995. In total 57,570 units were produced; the earlier model, powered by the M30, was not sold in North America. The V8 version, which replaced the six-cylinder 535i in the lineup, was powered by the new M60 engine and was available in sedan and wagon body styles. Transmission choices for the V8 version were a 5-speed automatic; the V8 models were differentiated from other models by the wide grill. Powered the six-cylinder M30B35 and only available as a sedan, the 535i saw a total of 97,679 units produced, which includes the Alpina B10 models.
The 535i was replaced by the V8 engined 530i and 540i models in 1993. Despite the 535i designation and'3.5' casting on the intake manifold, the M30 6-cylinder engine found in the E34 535i was 3.4 litres. In 1992, the 540i model was added to the top of the 5 Series lineup, powered by the M60 V8 engine and available in both sedan and wagon body styles. Transmission options were a 5-speed automatic. A total of 26,485 units were produced, with only 3,203 units equipped with a manual transmission; the V8 models were differentiated from other models by the wider grills. In 1994 the wide grills became available on other models as well; the E34 range was launched in October 1988 in North America with the 525i and 535i 6-cylinder models for the 1989 MY. Over the course of the E34 generation, the 525i Touring, 530i, 530i Touring, 540i and M5 models were sold in North America; the 3.6 L version of the M5 remained in production until 1993, by which time the 3.8 L version was being produced for other regions.
Introduced in September 1988 and produced until August 1995, the E34 M5 was produced in both sedan and Touring body styles, a first for the badge. The E34 M5 is po
BMW 7 Series
The BMW 7 Series is a full-size luxury sedan produced by the German automaker BMW since 1977. It is the successor to the BMW E3 "New Six" sedan and is in its sixth generation; the 7 Series is only available in a saloon bodystyle. It traditionally introduces technologies and exterior design themes before they trickle down to other models in BMW's lineup; the first generation of the 7 Series was powered by straight-6 petrol engines, following generations have been powered by inline-4, straight-6, V8 and V12 engines with both natural aspiration and turbocharging. Since 1995, diesel engines have been optional in the 7 Series. Unlike the 3 Series and 5 Series saloons, BMW has not produced a M model for the 7 Series. However, in 2014 an "M Performance" option became available for the 7 Series; the E23 is the first generation 7 Series, was produced from 1977 to 1987. It was built in a 4-door sedan body style with 6-cylinder engines. From 1983 to 1986, a turbocharged 6-cylinder engine was available; the E23 introduced many electronic features for the first time in a BMW, including an on-board computer, service interval indicator, a "check control panel", a dictaphone and complex climate control systems.
It was the first BMW to offer an anti-lock braking system, a driver's airbag and double-link front suspension. The E32 is the second generation of 7 Series, produced from 1986 to 1994, it was available with a straight-six or V12 engine. In 1992, V8 engines became available; the E32 introduced the following features for the first time in a BMW: Electronic Damper Control, V12 and V8 engines, double glazing, the CAN bus electronic protocol, Xenon headlamps, traction control and dual-zone climate control. The E32 750i was the first car adhering to BMW's self-imposed speed limit of 250 km/h. The'iL' models were the first time that a long-wheelbase option was offered by BMW; the E38 is the third generation of the 7 Series, produced from 1994 to 2001. The model range consisted of standard length and long wheelbase sedans; the petrol engines available consisted of straight-six, V12 engines. The E38 was the first 7 Series; the E38 was the first car available with curtain airbags. It was the first European car to offer satellite navigation and the first BMW to offer an in-built television.
The E65/E66/E67/E68 is the fourth generation 7 Series, produced from 2002 to 2008. The model range consisted of standard length and long wheelbase sedans; the E65/E66/E67/E68 was the first BMW to include iDrive, "flame-surfacing" exterior styling, active anti-roll bars, a 6-speed automatic transmission, an electronic smart Key and night vision. The 760i model was the world's first production V12 engine to use direct injection; the F01/F02/F03/F04 is the fifth-generation 7 Series, produced from 2008 to 2015. The model range consisted of standard length and long wheelbase sedans; the F01 was the first BMW to be available with a hybrid drivetrain, an 8-speed automatic transmission and a turbocharged V12 engine. It was the first 7 Series to be available with a turbocharged petrol engine and all-wheel drive; the G11/G12 is the sixth generation of 7 Series, in production since 2015. It was revealed on June 2015 at BMW's headquarters in Munich. An official public reveal took place at the 2015 International Motor Show Germany.
G11 is the codename for the short-wheelbase model, the extended wheelbase model is codenamed G12 and designated with an additional L letter. The G11/G12 is the first car lineup of BMW Group to be based on the modular OKL platform; the OKL platform adopts technology first introduced in BMW i models, namely the introduction of carbon-fiber-reinforced polymer as structural chassis components. As part of BMW's strategy of introducing plug-in hybrid variants for all future car models, the short and long-wheelbase models will be available with hybrid powertrains under the designations 740e and 740Le in 2016. Sales of hybrid-powered 7 Series models in the United States are as follows: Official BMW 7-Series page Official The All New BMW 7 Series in India
Manufacturing is the production of products for use or sale using labour and machines, tools and biological processing, or formulation. The term may refer to a range of human activity, from handicraft to high tech, but is most applied to industrial design, in which raw materials are transformed into finished goods on a large scale; such finished goods may be sold to other manufacturers for the production of other, more complex products, such as aircraft, household appliances, sports equipment or automobiles, or sold to wholesalers, who in turn sell them to retailers, who sell them to end users and consumers. Manufacturing engineering or manufacturing process are the steps through which raw materials are transformed into a final product; the manufacturing process begins with the product design, materials specification from which the product is made. These materials are modified through manufacturing processes to become the required part. Modern manufacturing includes all intermediate processes required in the production and integration of a product's components.
Some industries, such as semiconductor and steel manufacturers use the term fabrication instead. The manufacturing sector is connected with engineering and industrial design. Examples of major manufacturers in North America include General Motors Corporation, General Electric, Procter & Gamble, General Dynamics, Boeing and Precision Castparts. Examples in Europe include Volkswagen Siemens, FCA and Michelin. Examples in Asia include Toyota, Panasonic, LG, Samsung and Tata Motors. In its earliest form, manufacturing was carried out by a single skilled artisan with assistants. Training was by apprenticeship. In much of the pre-industrial world, the guild system protected the privileges and trade secrets of urban artisans. Before the Industrial Revolution, most manufacturing occurred in rural areas, where household-based manufacturing served as a supplemental subsistence strategy to agriculture. Entrepreneurs organized a number of manufacturing households into a single enterprise through the putting-out system.
Toll manufacturing is an arrangement whereby a first firm with specialized equipment processes raw materials or semi-finished goods for a second firm. Manufacturing Engineering Agile manufacturing American system of manufacturing British factory system of manufacturing Craft or guild system Fabrication Flexible manufacturing Just-in-time manufacturing Lean manufacturing Mass customization – 3D printing, design-your-own web sites for sneakers, fast fashion Mass production Ownership Packaging and labeling Prefabrication Putting-out system Rapid manufacturing Reconfigurable manufacturing system Soviet collectivism in manufacturing History of numerical control Emerging technologies have provided some new growth in advanced manufacturing employment opportunities in the Manufacturing Belt in the United States. Manufacturing provides important material support for national infrastructure and for national defense. On the other hand, most manufacturing may involve significant environmental costs; the clean-up costs of hazardous waste, for example, may outweigh the benefits of a product that creates it.
Hazardous materials may expose workers to health risks. These costs are now well known and there is effort to address them by improving efficiency, reducing waste, using industrial symbiosis, eliminating harmful chemicals; the negative costs of manufacturing can be addressed legally. Developed countries regulate manufacturing activity with environmental laws. Across the globe, manufacturers can be subject to regulations and pollution taxes to offset the environmental costs of manufacturing activities. Labor unions and craft guilds have played a historic role in the negotiation of worker rights and wages. Environment laws and labor protections that are available in developed nations may not be available in the third world. Tort law and product liability impose additional costs on manufacturing; these are significant dynamics in the ongoing process, occurring over the last few decades, of manufacture-based industries relocating operations to "developing-world" economies where the costs of production are lower than in "developed-world" economies.
Manufacturing has unique health and safety challenges and has been recognized by the National Institute for Occupational Safety and Health as a priority industry sector in the National Occupational Research Agenda to identify and provide intervention strategies regarding occupational health and safety issues. Surveys and analyses of trends and issues in manufacturing and investment around the world focus on such things as: The nature and sources of the considerable variations that occur cross-nationally in levels of manufacturing and wider industrial-economic growth. In addition to general overviews, researchers have examined the features and factors affecting particular key aspects of manufacturing development, they have compared production and investment in a range of Western and non-Western countries and presented case studies of growth and performance in important individual industries and market-economic sectors. On June 26, 2009, Jeff Immelt, the CEO of General Electric, called for the United States to increase its manufacturing base employment to 20% of the workforce, commenting that the U.
S. has outsourced too much in some areas and can no longer rely on the financial sector and consumer spending to drive demand. Further, while U. S. manufacturing performs well compared to the rest of the U. S. economy, research shows that it performs poorly compared to manufacturing in other high-wage countries. A total of 3.2 million – one in six U. S. manuf
An industry is the production of goods or related services within an economy. The major source of revenue of a group or company is the indicator of its relevant industry; when a large group has multiple sources of revenue generation, it is considered to be working in different industries. Manufacturing industry became a key sector of production and labour in European and North American countries during the Industrial Revolution, upsetting previous mercantile and feudal economies; this came through many successive rapid advances in technology, such as the production of steel and coal. Following the Industrial Revolution a third of the economic output comes from manufacturing industries. Many developed countries and many developing/semi-developed countries depend on manufacturing industry. Slavery, the practice of utilizing forced labor to produce goods and services, has occurred since antiquity throughout the world as a means of low-cost production, it produces goods for which profit depends on economies of scale those for which labor was simple and easy to supervise.
International law has declared slavery illegal. Guilds, associations of artisans and merchants, oversee the production and distribution of a particular good. Guilds have their roots in the Roman Empire as collegia Membership in these early guilds was voluntary; the Roman collegia did not survive the fall of Rome. In the early middle ages, guilds once again began to emerge in Europe, reaching a degree of maturity by the beginning of the 14th century. While few guilds remain today, some modern labor structures resemble those of traditional guilds. Other guilds, such as the SAG-AFTRA act as trade unions rather than as classical guilds. Professor Sheilagh Ogilvie claims that guilds negatively affected quality and innovation in areas that they were present; the industrial revolution saw the development and popularization of mechanized means of production as a replacement for hand production. The industrial revolution played a role in the abolition of slavery in North America; the Industrial Revolution led to the development of factories for large-scale production with consequent changes in society.
The factories were steam-powered, but transitioned to electricity once an electrical grid was developed. The mechanized assembly line was introduced to assemble parts in a repeatable fashion, with individual workers performing specific steps during the process; this led to significant increases in efficiency. Automation was used to replace human operators; this process has accelerated with the development of the robot. Certain manufacturing industries have gone into a decline due to various economic factors, including the development of replacement technology or the loss of competitive advantage. An example of the former is the decline in carriage manufacturing when the automobile was mass-produced. A recent trend has been the migration of prosperous, industrialized nations towards a post-industrial society; this is manifested by an increase in the service sector at the expense of manufacturing, the development of an information-based economy, the so-called informational revolution. In a post-industrial society, manufacturers relocate to more profitable locations through a process of off-shoring.
Measurements of manufacturing industries outputs and economic effect are not stable. Traditionally, success has been measured in the number of jobs created; the reduced number of employees in the manufacturing sector has been assumed to result from a decline in the competitiveness of the sector, or the introduction of the lean manufacturing process. Related to this change is the upgrading of the quality of the product being manufactured. While it is possible to produce a low-technology product with low-skill labour, the ability to manufacture high-technology products well is dependent on a skilled staff. An industrial society is a society driven by the use of technology to enable mass production, supporting a large population with a high capacity for division of labour. Today, industry is an important part of nations. A government must have some kind of industrial policy, regulating industrial placement, industrial pollution and industrial labour. In an industrial society, industry employs a major part of the population.
This occurs in the manufacturing sector. A labour union is an organization of workers who have banded together to achieve common goals in key areas such as wages and other working conditions; the trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with employers. This movement first rose among industrial workers; the Industrial Revolution changed warfare, with mass-produced weaponry and supplies, machine-powered transportation, the total war concept and weapons of mass destruction. Early instances of industrial warfare were the Crimean War and the American Civil War, but its full potential showed during the world wars. See military-industrial complex, arms industries, military industry and modern warfare. Industries portal Industry information North American Industry Classification System North American Product Classification System Outline of industry Standard Industrial Classification Krahn, Harvey J. and Graham S. Lowe.
Work and Canadian Society. Second ed. Scarborough, Ont.: Nelson Canada, 1993. Xii, 430 pp. ISBN 0-17-603540-0 Media related to Industries at Wikimedia Commons Quotations related to industry at Wikiquote
A tank is an armoured fighting vehicle designed for front-line combat, with heavy firepower, strong armour, tracks and a powerful engine providing good battlefield manoeuvrability. They are a key part of combined arms combat. Modern tanks are versatile mobile land weapon system platforms, mounting a large-calibre cannon in a rotating gun turret, supplemented by mounted machine guns or other weapons, such as ATGMs, or rockets, they combine this with heavy vehicle armour which provides protection for the crew, the vehicle's weapons, its propulsion systems, operational mobility, due to its use of tracks rather than wheels, which allows the tank to move over rugged terrain and adverse conditions such as mud, be positioned on the battlefield in advantageous locations. These features enable the tank to perform well in a variety of intense combat situations both offensively with fire from their powerful tank gun, defensively due to their near invulnerability to common firearms and good resistance to heavier weapons, all while maintaining the mobility needed to exploit changing tactical situations.
Integrating tanks into modern military forces spawned a new era of combat, armoured warfare. There are classes of tanks, some being larger and heavily armoured, with high calibre guns, while others smaller armoured, equipped with a smaller calibre, lighter gun; these smaller tanks move over terrain with speed and agility and can perform a reconnaissance role in addition to engaging enemy targets. The smaller faster tank would not engage in battle with a larger armoured tank, except during a surprise flanking manoeuvre; the modern tank is the result of a century of development from the first primitive armoured vehicles, due to improvements in technology such as the internal combustion engine, which allowed the rapid movement of heavy armoured vehicles. As a result of these advances, tanks underwent tremendous shifts in capability in the years since their first appearance. Tanks in World War I were developed separately and by Great Britain and France as a means to break the deadlock of trench warfare on the Western Front.
The first British prototype, nicknamed Little Willie, was constructed at William Foster & Co. in Lincoln, England in 1915, with leading roles played by Major Walter Gordon Wilson who designed the gearbox and hull, by William Tritton of William Foster and Co. who designed the track plates. This was a prototype of a new design that would become the British Army's Mark I tank, the first tank used in combat in September 1916 during the Battle of the Somme; the name "tank" was adopted by the British during the early stages of their development, as a security measure to conceal their purpose. While the British and French built thousands of tanks in World War I, Germany was unconvinced of the tank's potential, built only twenty. Tanks of the interwar period evolved into the much larger and more powerful designs of World War II. Important new concepts of armoured warfare were developed. Less than two weeks Germany began their large-scale armoured campaigns that would become known as blitzkrieg – massed concentrations of tanks combined with motorised and mechanised infantry and air power designed to break through the enemy front and collapse enemy resistance.
The widespread introduction of high-explosive anti-tank warheads during the second half of World War II led to lightweight infantry-carried anti-tank weapons such as the Panzerfaust, which could destroy some types of tanks. Tanks in the Cold War were designed with these weapons in mind, led to improved armour types during the 1960s composite armour. Improved engines and suspensions allowed tanks of this period to grow larger. Aspects of gun technology changed as well, with advances in shell design and aiming technology. During the Cold War, the main battle tank concept became a key component of modern armies. In the 21st century, with the increasing role of asymmetrical warfare and the end of the Cold War, that contributed to the increase of cost-effective anti-tank rocket propelled grenades worldwide and its successors, the ability of tanks to operate independently has declined. Modern tanks are more organized into combined arms units which involve the support of infantry, who may accompany the tanks in infantry fighting vehicles, supported by reconnaissance or ground-attack aircraft.
The tank is the 20th century realization of an ancient concept: that of providing troops with mobile protection and firepower. The internal combustion engine, armour plate, continuous track were key innovations leading to the invention of the modern tank. Many sources imply that Leonardo da Vinci and H. G. Wells in some way "invented" the tank. Leonardo's late 15th century drawings of what some describe as a "tank" show a man-powered, wheeled vehicle with cannons all around it; however the human crew would not have enough power to move it over larger distance, usage of animals was problematic in a space so confined. In the 15th century, Jan Žižka built armoured wagons containing cannons and used them in several battles; the continuous "caterpillar" track arose from attempts to improve the mobility of wheeled vehicles by spreading their weight, reducing ground pressure, increasing their traction. Experiments can be traced back as far as the 17th century, by the late nineteenth they existed in various recognizable and practical forms in several countries.
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BMW 7 Series (E65)
The BMW E65 is the fourth generation of the BMW 7 Series range of full-size luxury saloon/sedans, was produced from 2001 to 2008. The variants of the range are: sedan long-wheelbase sedan armoured car sedan hydrogen-powered sedan The E65 was the first BMW vehicle to include the iDrive infotainment system, the new brand design language, active anti-roll bars, a 6-speed automatic transmission, an electronic smart Key, night vision; the 760i model utilised the world's first production V12 engine to use direct injection. In late 2008, the E65 7 Series was replaced by the 7 Series. Development for the BMW E65 7 Series began in early 1996. In early 1997, Chris Bangle delivered a brief to BMW's DesignworksUSA studios. After a competition between 20 designers, Adrian van Hooydonk's design was approved in the spring of 1998. Production specifications were frozen in January 1999 and took 34 months from freeze to market launch; the design was patented on 16 November 2000 and development ended in early 2001.
The E65 was introduced at the Frankfurt Auto Show in September 2001, launched in Europe on November 2001. The launch model in the U. S. was the 745i model, released in January 2002, followed by the long-wheelbase 745Li in March. In order to produce the E65 7 Series and other future models, the BMW Dingolfing plant was retooled at a cost of €500,000,000. Under the direction of Chris Bangle, BMW's Design Chief at the time, the BMW E65 7 Series heralded a new styling era for BMW. BMW's board of directors were keen to move the company's image into the future, the initial styling sketches from 1998 by Adrian van Hooydonk were of a fastback body style - more radical than the eventual production model; the controversial "flame surfacing" design contrasted the conservative lines of its E38 predecessor. The rear end styling was nicknamed "Bangle Butt" by critics, due to the elongated rear bootlid. Dimensionally the E65 7 Series is 45 mm longer, 38 mm wider and 60 mm taller than the E38; the wheelbase is an increase of 60 mm over the outgoing model.
Despite these increased dimensions, the E65 7 Series is only 15 kg heavier than the E38. The E65 contained many departures from automotive interior design conventions. BMW removed the traditional console mounted gear selector, replacing it with a steering-column mounted stalk in favour of two cup holders; the e-brake is controlled using a button on the dashboard. The seat adjustment controls were moved from their traditional place on the side of the seat base to the inside of the raised central console, which drew some criticisms. Unlike most BMWs since 1975, the centre instrument panel is not angled towards the driver. Compared to the outgoing E38 model, the E65 7 Series has more shoulder room in the front and the rear, increased rear headroom; the E65 was the first BMW to use the iDrive infotainment system. The system was built on the Windows CE for Automotive platform, featured an interface based around a central control knob. Many of the functions such as climate, seat heating and car settings were incorporated into a single system allowing for centralised control.
Early versions of iDrive were criticised for a steep learning curve. The first generation of the system relied on CD media for map data. In March 2003, the maps switched to DVD format, a faster processor was used and a'Menu' and'Customisable' button were added below the control knob. In 2005, dedicated buttons were added to change radio stations or skip tracks and a brighter screen was used for the 8.8" widescreen option. The E65 was the flagship model and the most technologically advanced car produced by BMW at the time; the following features were first introduced on the E65: V8 models were the first to use BMW's new N62 V8 engine, the world's first engine to use a continuously variable-length intake manifold. It was BMW's first V8 engine to use variable valve lift, replacing throttle butterflies for added response and power. Active anti-roll bars to reduce body roll when cornering, it uses a hydraulic servo in the middle of the anti-roll bar to counteract body roll and to reduce body roll without the traditional trade-off in ride comfort.
Directional headlights which electronically adjust the low beam lights horizontally and vertically adjustment of the low beam. The E65 was the first BMW available with bi-Xenon headlights. World’s first 6-speed automatic transmission in a sedan. World's first car with an electric park brake; this could automatically activate in stop-and-go traffic situations and when the ignition was switched off. First BMW with DVD-based GPS Automotive navigation system. Adaptive Cruise Control, however this was available in some markets on the previous generation 7 Series; the optional Automatic Soft Close system minimized the force required to close the doors and boot lid, would close them if improperly closed. Two fibre optic electronic networks: MOST Bus and "Byteflight"; these busses operate at 10Mbit/s respectively. The I-bus, K-bus and P-bus were replaced by the K-CAN; this increased the system speed from 9.6kbit/s to 100kbit/s. The available transmissions are: 6-speed ZF 6HP26 automatic (730d / 735i / 740d / 740i / 745i / 750i
Hyperinflation in the Weimar Republic
Hyperinflation affected the German Papiermark, the currency of the Weimar Republic, between 1921 and 1923. It caused considerable internal political instability in the country, the occupation of the Ruhr by France and Belgium as well as misery for the general populace. To pay for the large costs of the ongoing First World War, Germany suspended the gold standard when the war broke out. Unlike the French Third Republic, which imposed its first income tax to pay for the war, German Emperor Wilhelm II and the German parliament decided unanimously to fund the war by borrowing, a decision criticized by financial experts such as Hjalmar Schacht as a dangerous risk for currency devaluation; the government believed that it would be able to pay off the debt by winning the war, when it would be able to annex resource-rich industrial territory in the west and east. It would be able to impose massive reparations on the defeated Allies; the exchange rate of the mark against the US dollar thus devalued from 4.2 to 7.9 marks per dollar, a preliminary to the extreme postwar inflation.
The strategy failed. The new Weimar Republic was saddled with a massive war debt; that was worsened by the fact. The Treaty of Versailles, with its demand for reparations, further accelerated the decline in the value of the mark, so that 48 paper marks were required to buy a US dollar by late 1919. German currency was stable at about 90 marks per dollar during the first half of 1921; because the WWI Western Front had been in France and Belgium, Germany came out of the war with most of its industrial infrastructure intact. It was in a better position to become the dominant economic force on the European continent. In April 1921, the Reparations Commission announced the "London payment plan", under which Germany would pay reparations in gold or foreign currency in annual installments of 2 billion gold marks, plus 26% of the value of Germany's exports; the first payment was made when it came due in June 1921. It marked the beginning of an rapid devaluation of the mark, which fell in value to 330 marks per dollar.
The total reparations demanded were 132 billion gold marks, but Germany had to pay only 50 billion marks. Since reparations were required to be repaid in hard currency, not the depreciating paper mark, one strategy that Germany used was the mass printing of bank notes to buy foreign currency, used to pay reparations exacerbating the inflation of the paper mark. Late in 1922, Germany failed to pay France an installment of reparations on time, France responded in January 1923 by sending troops to occupy the Ruhr, Germany's main industrial region; the German government ordered a policy of passive resistance in the Ruhr. Workers were told to do nothing. What this meant in practice was a general strike, but all the workers on strike had to be given financial support. The government paid its way by printing more banknotes. Germany was soon awash with paper money; the result was a hyperinflation. A loaf of bread that in Berlin cost around 160 Marks at the end of 1922 cost 200,000,000,000 Marks less than a year From August 1921, Germany began to buy foreign currency with marks at any price, but that only increased the speed of breakdown in the value of the mark.
As the mark sank in international markets and more marks were required to buy the foreign currency, demanded by the Reparations Commission. In the first half of 1922, the mark stabilized at about 320 marks per dollar. International reparations conferences were being held. One, in June 1922, was organized by Jr.. The meetings produced no workable solution, inflation erupted into hyperinflation, the mark falling to 7,400 marks per US dollar by December 1922; the cost-of-living index was 41 in June 1922 and 685 in a 15-fold increase. By fall 1922, Germany found itself unable to make reparations payments; the mark was by now worthless, making it impossible for Germany to buy foreign exchange or gold using paper marks. Instead, reparations were to be paid in goods such as coal. In January 1923, French and Belgian troops occupied the industrial region of Germany in the Ruhr valley to ensure reparations payments. Inflation was exacerbated when workers in the Ruhr went on a general strike and the German government printed more money to continue paying for their passive resistance.
By November 1923, the US dollar was worth 4,210,500,000,000 German marks. The hyperinflation crisis led prominent economists and politicians to seek a means to stabilize German currency. In August 1923, an economist, Karl Helfferich, proposed a plan to issue a new currency, the "Roggenmark", to be backed by mortgage bonds indexed to the market price of rye grain; the plan was rejected because of the fluctuating price of rye in paper marks. Agriculture Minister Hans Luther proposed a plan that substituted gold for rye and led to the issuance of the Rentenmark, backed by bonds indexed to the market price of gold; the gold bonds were indexed at the rate of 2790 gold marks per kilogram of gold, the same as the pre-war gold marks. Rentenmarks were not redeemable in gold but only indexed to the gold bonds; the plan was adopted in monetary reform decrees, on October 13–15, 1923. A new bank, the Rentenbank, was controlled by new German Finance Minister Hans Luther. After November 12, 1923, when Hjalmar Schacht became currency commissioner, Germany's central bank was not allowed to discoun