The German economy was beginning to implement price fixing and other emergency measures by the time the war broke out, however, they could likely have propped it up until 1941 which would have left the Italians in a significantly better economic state. What happened, possibly, is Hitler genuinely thought the Allies were so war-averse that they would concede Danzig and he effectively backed himself into a corner.I've heard it said repeatedly, though admittedly not seen proof, that Germany's economy was unsustainable, holding off for a couple of years might well have led to economic collapse. I believe this in part because the Germans themselves knew that they weren't ready for the war, it's possible that Hitler was simply over-eager, but I feel that's also reasonable to say that it could be because of a desperate need to start things before an impending disaster.
IRL I think the Germans over-estimated the Italians and under-estimated British resolve. The Nazis expended a lot of energy and resources trying to attack the British Isles and had they instead adopted a defensive stance along the Atlantic wall, sent the Afrika Korps to Benghazi sooner and consolidated their position in Europe they might have been more successful. In the end I think Germany was doomed to fail in this war but as a player this is the path I would be taking.Agreed, though I think IRL North Africa was promised to the Italians, which would be a fair reason for why the Germans wouldn't want to expend all their energy there. I would be quite happy as Germany to take North Africa and then turn to the Soviets afterwards. The added oil combined with extra time to build-up could be extremely valuable.
Stalin had plans to have the Soviet Union war-ready by 1943 IIRC which is why he pursued non-aggression pacts in Europe throughout the 30's. He was not a coward, simply calculated. As someone once said the great Irony of the 20th century is the most paranoid man in history only trusted one other person, and it was the most dishonest man in history.I doubt it personally. From what I've seen it looks like Stalin was kind of a coward, or at least very conservative, in foreign relations. The Soviets didn't really have the ability to challenge the Germans in '41 and probably not in '42 either. Even with wartime economy they didn't start really pushing back until '43. Granted they likely would have been more effective than they were in '41 simply because there would have been some sort of planning instead of just throwing units at the front.
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