During the 1800's Europe had been the cultural, military, political, and the financial center of the world. Political Liberalism and parliamentary institutions was prosperous. After World War I the world faced economic disasters.

In the years following the First World War, a new era of democracy seemed to be unfolding and it was looked promising. The autocratic regimes in Russia, Germany and Austria, were all overthrown and replaced by republics. The seven new states in Europe all had a republican form of government. Democracy seemed to be doing good in the post-war world.

European economy was in a desperate situation. They had to borrow money to cover the cost of the war. Their debt needed to be paid and they didn't have any money. So the British borrowed from the United States.

Two decades following World War I, many democratic countries in Europe were taken over by some...