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It's a long standing prejudice. Partially propagated by the Catholic church, there had been various pogroms against the Jews through out the medieval period. They were blamed for the black death (by poisoning wells) and various atrocities were carried out such as the attack in York where 200 were burnt to death in a tower. Also one of the targets of the Inquisition were the Jews. The Nazi's just used existing prejudice and forged medieval documents to justify their actions.

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The Nazis blamed (scapegoated) the Jews, accusing them of:

  1. Starting World War 1.
  2. Pofiteering in World War 1.
  3. Making Germany seek an armistice on devastatingly disadvantageous terms in November 1918 ('Stab-in-the-back legend').
  4. Causing the Great Inflation (1923).
  5. Causing the Great Depression.
  6. Corrupting morals in Germany.
  7. Causing World War 2.

In other words, the Nazis demonized the Jews.

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