The world is listening with bated breath to the struggle which to-day is rending the peoples of Europe to pieces. The knowledge that England is our chief enemy in this struggle is altogether good. 'On thine island, envious England, thou art the fundamental enemy.' The present world war may, in future, be described as the most gigantic economic struggle of all time. Economic in its origin, through British jealousy of the amazing development of German national and world economy, it has essentially also become a struggle waged with economic weapons and will be continued in the economic field even when the military weapons are silenced.

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We... would nevertheless make it clear that entirely independent political structures are impossible here [in the Baltic].... They cannot lead an isolated existence between the colossi of West and East. We hope that they will seek and find this support with us. The German occupation will have to continue for a long time, lest the anarchy we have just been combating should arise again. We shall have to safeguard the position of the Germans, a position consistent with their economic and cultural achievements.... Herr Scheiddemann, said that we have made ourselves new enemies in the world through our push in the East.... Had we continued the negotiations, we should still be sitting with Herr Trotski in Brest-Litovsk. As it is, the advance has brought us peace in a few days and I think we should recognise this and not delude ourselves, particularly as regards the East, that if by resolutions made here in the Reichstag or through our Government's acceptance of the entirely welcome initiative of His Holiness the Pope, we had agreed to a peace without indemnities and annexations, we should have had peace in the East. In view of our situation as a whole, I should regard a fresh peace offer as an evil. My chief objection is against the detachment of the Belgian question from the whole complex of the question of peace. It is precisely if Belgium is not to be annexed that Belgium is the best dead pledge we hold, notably as regards England. The restoration of Belgium before we conclude peace with England seems to me an utter political and diplomatic impossibility.... There is a great difference between the first set of terms at Brest-Litovsk and the ultimatum that we have now presented, and the blame for this change rests with those who refused to come to an agreement with Germany and who, consequently, must now feel her power. We are just as free to choose between understanding and the exploitation of victory in the case of the West, and I hope that these eight or fourteen days that have elapsed between the first set of peace terms in Brest-Litovsk and the second set, may also have an educational effect in that direction.

I must say a few words here concerning the solution of the Polish problem.... Groeber has posed the question: Do I not overestimate the value of the military guarantees? Are not political guarantees in connection with good relations between Poland and Germany far better and more durable than it is possible fo military guarantees to be?... The past conduct of the Polish fraction in the Reichstag and the House of Deputies, and the attempts to have the German Ostmark question discussed as a question of international importance at world peace congresses, do not give my political friends a sufficient guarantee to think that future relations between Poland and Germany can be based solely on a formal paper friendship.

The renunciation of war indemnities, which has been greatly lauded in some quarters here, does not appear to me only in the shining light of the conciliation it will lead to, but, as a citizen, I also see it in the light of the colossal burdens to which Germany will be exposed if this struggle ends without war indemnities.

For the old great, mighty Germany, which was the epitome of the yearning of our ancestors and our pride when one could still hold one's head high at being a German, is going under. One cannot say: it is long gone because it is not long at all but already it sounds to our ears like a fairy tale from a distant time.

I am delighted to inform you that in yesterday's sitting of the Cabinet it was unanimously agreed that your application of last August for authority to return to Germany should be sanctioned in principle.... While acquainting Your Imperial Highness of the Cabinet's decision, I cannot forbear expressing my own personal pleasure that this decision was given by the Cabinet on my proposal, and, as I may permit myself to add, as reached unanimously and without objection or criticism, after my statement had been heard.

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We see the strongest guarantee of peace for Europe in a policy of expansion. When have we exploited the embarrassments of other peoples? When Russia was at war with Japan, the Tsar was able to take his last regiment away from our frontier. We did not regard Morocco as an object of war, we looked on while East Africa was divided, while France was creating a great colonial empire of Tunis, Algiers and Morocco, while Italy occupied Tripolis, while Persia was divided between Britain and Russia into two spheres of interest—the world could always rely on the German Kaisers and the German people's love of peace. And what thanks have we had? A world of enemies.... When one awakens in this way from a beautiful dream one must not follow that dream again, must not in future believe that renunciation of a world policy will be a guarantee of permanent freedom. They grudged us the right to economic development. We thank the Chancellor for what he said yesterday concerning our security in the East and West.

Napoleon once compared England with Carthage. Carthage sank down from her height. England also can sink and will sink. For on our side is the true right and on our side the might to strike the blow at her heart, if we understand how to exploit the hour.

It is absolutely necessary to strengthen the Government. We must have a Government that in case of necessity will shoot. Germany cannot stand Bolshevism fomenting mischief. There must be shooting. Perhaps we shall bring Noske back—he was a good man, and shot in case of necessity. Even the Majority Socialists agree that order has go to be maintained with vigour.... The truth is the German people cannot stand a President in a high hat. They think he looks peculiar at a review. They must have a military uniform with plenty of orders.

If one wants to avoid war in Europe for a long time, then one must remove the things which are unsettling to a certain extent, and they include the separation of Germany from East Prussia which in my opinion is unpolitical and is seen as oppressive. But it is not at all an immediate question and certainly not a question of war.

Let us celebrate Bismarck's memory by making the great idea of his life, devotion to the Fatherland, the guiding star of our own lives. Each of us in the place where he can do his best work. Each of us is responsible for helping the country rise again to that greatness for which Bismarck, who also knew an Olmuetz, prepared the way.

This Alsace and vast tracts of Lorraine are German regions, and their inhabitants are of German blood. The tricolour may float above Strasbourg cathedral, but that imposing edifice was born of the German spirit, it has nothing in common with the French spirit; it was there that one of the greatest geniuses Germany has given the world first felt the great breath of German architecture. It all bears the impress of the German character and is animated by the German spirit. That is why we shall never forget that Alsace-Lorraine is German, that it will always belong to us in spirit and that our task will be to preserve for Germany this spiritual patrimony.

If the allies had obliged me just one single time, I would have brought the German people behind me, yes; even today, I could still get them to support me. However, they (the allies) gave me nothing and the minor concessions they made, always came too late. Thus, nothing else remains for us but brutal force. The future lies in the hands of the new generation. Moreover, they, the German youth, who we could have won for peace and reconstruction, we have lost. Herein lies my tragedy and there, the allies' crime.