But they where allowed to pay with deutschmarks, not gold or silver. Pretty soon their money was worthless because of inflation soooo they where paying their billion dollar war fines when a trillion deutschmarks couldn't buy you a loaf of bread? Does this mean the Germans pulled a fast one on us? And we essentially got nothing?
You've got bad information.
The currency of Germany from the outbreak of World War I until 1924 was the so-called Papiermark, which was a replacement of the older Goldmark, which was pegged to gold and used in pre-WWI days. It's true that the Papiermark was not pegged to gold, and this is one of the things that allowed for the runaway inflation of 1923. In 1924, it was replaced by the Reichsmark, which was again pegged to gold.
Reparations for World War I were renegotiated several times during the 1920s and early 1930s, with all post-'23 payments being denominated in Reichsmarks.
The Deutschmark is the currency of the Federal Republic and was only created in 1948.
EDIT: The Deutschmark was obviously replaced by the Euro in 2002.
Ok so your saying Germany paid reparations in Reichmarks? But I still dont understand was the Reichmarks worth anything when they paid the US?