A City Guide To Arakkonam for From 1935 on, though, with full employment achieved and with the principal brake on German output becoming an increasingly acute labor shortage, re-armament took precedence over all other forms of public investment. By the time of the Sudeten (German territorial expansion) crisis in September 1938, fully half of all pub- World War II 927 lic spending was being applied to military purposes. This vast re-armament project was financed largely through the manipulation of various credit instruments, supplemented by rigorous state controls”amounting almost to a complete takeover”of overseas trade. Notwithstanding the dubious nature of many of these transactions, there is little reason to believe that the German economy was heading for an inevitable crash before the war, although the comforting illusion that the rearmament effort had strained Germany to the point of collapse paradoxically helped sustain British morale, and commitment to continuing the war, after the Dunkirk defeat. Japan, for its part, began to mobilize its economy simultaneously with its attack upon China in 1937. Japan’s motives were purely predatory: To acquire by force the territories, resources and markets to which it believed it was entitled by virtue of the racial superiority and technological advancement of its people, and upon which Japan’s status as a first-rate power was thought to depend. Heavily reliant on supplies of iron, steel, oil, and machine tools from America, Japan adopted a series of schemes in the late 1930s aimed at reducing import dependence and drastically increasing the output of munitions industries. A City Guide To Arakkonam 2016.