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The Dawes Plan, established in 1924, aimed to ease the reparations burden on Germany after World War I by restructuring its debts and facilitating loans from the U.S. However, this reliance on American loans created a fragile economic situation; when the U.S. Stock Market crashed in 1929, it led to a withdrawal of funds and a collapse of the German economy. This financial instability not only deepened Germany's economic woes but also contributed to a global economic downturn, ultimately playing a role in the onset of the Great Depression.

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