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Actually the Great Depression began in Germany shortly after the end of World War 1 largely as a result of the demanding and oppressive amounts of reparations required by the Treaty of Versaille. The economy of Germany collapsed and inflation rates exploded out of control, destroying personal savings. As much of the reparations were paid with highly inflated and effectively worthless currency, they dragged down the economies of the countries receiving them.

The tightly coupled world trade network allowed the depression in Germany to gradually spread through all other European countries and eventually hitting the United States in 1929 (roughly a decade after it began originally in Germany). The only country totally unaffected by the Great Depression was the communist USSR. Many interpreted this as proof that communism was a more successful economic/government system than capitalism/democracy. However the actual reasons that the USSR was unaffected by the Great Depression were that it had been in a depression since the end of the Bolshevik revolution and Stalin had ordered the USSR to cut off all international trade in the middle 1920s, isolating the USSR from the economic collapse.

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Which was not reason for the establishment of European overseas colonies?

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