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===Mukden Incident===

===Mukden Incident===

The Japanese invasion of [[Manchuria]] in 1931 marked the beginning of World War II in Asia.  In March 1932 the Japanese set up the [[puppet state]] of [[Manchukuo]]. On 24 February, 1933, the [[League of Nations]] adopted a resolution calling for the non-recognition of Manchukuo, however the [[Soviet Union]] nonetheless did recognize Manchukuo and sold Japan the Chinese Eastern Railway in 1935.<ref>''While You Slept : Our Tragedy in Asia and Who Made It'', John T. Flynn, New York : The Devin - Adair Company, 1951, [http://www.mises.org/books/whileyouslept.pdf pgs. 18, 36, 65] pdf.</ref>

The Japanese invasion of [[Manchuria]] in 1931 marked the beginning of World War II in Asia.  In March 1932 the Japanese set up the [[puppet state]] of [[Manchukuo]]. On 24 February, 1933, the [[League of Nations]] adopted a resolution calling for the non-recognition of Manchukuo, however the [[Soviet Union]] nonetheless did recognize Manchukuo and sold Japan the Chinese Eastern Railway in 1935.<ref>''While You Slept : Our Tragedy in Asia and Who Made It'', John T. Flynn, New York : The Devin - Adair Company, 1950, [http://www.mises.org/books/whileyouslept.pdf pgs. 18, 36, 65] pdf.</ref>

===The Ethiopian War===

===The Ethiopian War===

In 1935, [[fascist]] [[Italy]] under the leadership of [[Mussolini]] invaded [[Ethiopia]], the only uncolonized nation in [[Africa]] and a member state of the [[League of Nations]]. While Ethiopian Emperor Haile Selassie tried to get the League to help his country, his pleas in [[Geneva]] went unheard. Italy's colonial occupation of Italy was marked by the aerial bombardment and use of poison gas against civilian populations.

In 1932, [[fascist]] [[Italy]] under the leadership of [[Mussolini]] invaded [[Ethiopia]], the only uncolonized nation in [[Africa]] and a member state of the [[League of Nations]]. While Ethiopian Emperor Haile Selassie tried to get the League to help his country, his pleas in [[Geneva]] went unheard. Italy's colonial occupation of Italy was marked by the aerial bombardment and use of poison gas against civilian populations.

===Reoccupation of the Rhineland===

===Reoccupation of the Rhineland===

In 1939-1940, Poland, Estonia, Latvia, Lithuania and Bessarabia were invaded and annexed into the Soviet Union proper. The Soviets lowered the local standard of living and disrupted and destroyed the prevailing socioeconomic structure. Local currencies were still legal tender but so was the Russian ruble. The occupying Russian soldiers were paid in rubles and the established exchange rate inflated the ruble by as much as 2000 to 3000 per cent. Overvaluing made the average Russian soldier extremely rich. This huge influx of rubles started a wave of inflation that natives did not notice at first. Eventually shortages were caused by Soviet purchasing agents that fanned out through the newly occupied nations, buying up wholesale goods in warehouses and the production of local factories.  

In 1939-1940, Poland, Estonia, Latvia, Lithuania and Bessarabia were invaded and annexed into the Soviet Union proper. The Soviets lowered the local standard of living and disrupted and destroyed the prevailing socioeconomic structure. Local currencies were still legal tender but so was the Russian ruble. The occupying Russian soldiers were paid in rubles and the established exchange rate inflated the ruble by as much as 2000 to 3000 per cent. Overvaluing made the average Russian soldier extremely rich. This huge influx of rubles started a wave of inflation that natives did not notice at first. Eventually shortages were caused by Soviet purchasing agents that fanned out through the newly occupied nations, buying up wholesale goods in warehouses and the production of local factories.  

Goods produced locally were shipped to Russia instead of resupplying the local market. Russian propaganda stated the goal was to raise the ordinary working person's standard of living. Prices were frozen, and wages raised by as much as ten times. Merchants and factory owners declared bankruptcy and went out of business. Shortages of food and other necessities introduced growing inflation, a black market, and discontent among the population. These deliberate Soviet policies raised the cost of living but not the actual standard of living. Once annexation was complete, local stores and industries were nationalized, their former owners arrested, stripped of their possessions, including their accumulated rubles, and shipped to the [[gulag]]s of Siberia. Workers still employed were then paid in rubles. <ref>Vladimir Petrov, Money and Conquest: Allied Occupation Currencies in World War II, Baltimore: The Johns Hopkins Press, 1967, pgs. 173 -175.</ref>

Goods produced locally were shipped to Russia instead of resupplying the local market. Russian propaganda stated the goal was to raise the ordinary working person's standard of living. Prices were frozen, and wages raised by as much as ten times. Merchants and factory owners declared bankruptcy and went out of business. Shortages of food and other necessities introduced growing inflation, a black market, and discontent among the population. These deliberate Soviet policies raised the cost of living but not the actual standard of living. Once annexation was complete, local stores and industries were nationalized, their former owners arrested, stripped of their possessions, including their accumulated rubles, and shipped to the [[gulag]]s of Siberia. Workers still employed were then paid in rubles. <ref>Vladimir Petrov, Money and Conquest: Allied Occupation Currencies in World War II, Baltimore: The Johns Hopkins Press, 1967, pgs. 170 -175.</ref>

[[Image:2-463.jpg|thumb|350px|right|Soviet and German troops meet up in the town of Brześć on September 18, 1939.<ref>[http://www.ipn.gov.pl/portal/en/23/211/September_17_1939__Soviet_aggression_on_Poland.html September 17, 1939 - Soviet aggression on Poland], The Institute of National Remembrance - Commission of the Prosecution of Crimes against the Polish Nation.</ref>]]

[[Image:2-463.jpg|thumb|350px|right|Soviet and German troops meet up in the town of Brześć on September 18, 1939.<ref>[http://www.ipn.gov.pl/portal/en/23/211/September_17_1939__Soviet_aggression_on_Poland.html September 17, 1939 - Soviet aggression on Poland], The Institute of National Remembrance - Commission of the Prosecution of Crimes against the Polish Nation.</ref>]]

The French and British were initially reluctant to honor promises to the Polish government, avoiding serious consideration of an invasion of Germany. The British failed to send land forces in time to support the Poles (see [[Western betrayal]]). The French mobilized slowly and then launched a token offensive in the Saar. The Meanwhile, on September 8, the Germans reached Warsaw, having slashed through the Polish defenses.  On September 17, the Soviet Union invaded Poland from the East.

The French and British were initially reluctant to honor promises to the Polish government, avoiding serious consideration of an invasion of Germany. The British failed to send land forces in time to support the Poles (see [[Western betrayal]]). The French mobilized slowly and then launched a token offensive in the Saar. The Meanwhile, on September 8, the Germans reached Warsaw, having slashed through the Polish defenses.  On September 17, the Soviet Union invaded Poland from the East.