Ruhr Valley incident, January 1923: Germany was finding it extremely difficult to pay reparations. Germany was late on several reparations payments as well. As a result, France invaded the Ruhr Valley, Germany’s industrial heart, to get the coal that was due as reparations. As the French occupied the Ruhr Valley, humiliating the Germans, the workers in the Ruhr valley went on strike with the support of the Government. To show their support, the Government printed more money to pay wages to the workers. This only further exacerbated the hyper-inflation. The French finally pulled out in 1925.
The reliance on foreign loans following the Dawes Plan led to a severe economic depression following the Wall Street Crash. This ultimately led to further political instability, and eventually, contributed to the end of democratic government.