How do Austrians account for the creation of the Nazi war machine?

[ianlippert]

So today was the day!

My Macro 101 class finally got to learn about how the depression was caused by a lack of aggregate demand and how world war 2 saved us from eternal unemployment. It was beautiful, Keynes saved the day!

But as I was running the usual austrian arguements against keynsianism I did come to one interesting point that I couldnt answer. My teacher made the arguement that Hitler accidently stumbled upon Keynesian economics since his change to a war economy pulled the german people out of poverty.

I have to say I dont really get how hitler was able to pay for his military. I could see it if he was able to print off money like they do nowadays, but Germany had already reached the bottom of that barrel. The Deutch mark was so devalued that printing more money would probably have no effect. How did he produce a military out of thin air?

Was it because the german economy was actually recovering and he could run government spending on the back of a semi productive economy? Was he just lucky that the other countries agreed with classical economics and followed an agenda of savings and non intervention?

There is a lot of hand waving that goes on this course, so I wouldnt be surprised if there is way more to what actually went on, unfortunately I havent read past Rothbards 'Americas great depression' and it seems the Austrian arguement runs a little short at this point.