No, marks were not paid for those. Dollars were received via loans:
http://en.wikipedia.org/wiki/Dawes_Plan
Those loans were a response to hyperinflation to stabilize Germany's currency and thus the European economy.
Exactly. They were A RESPONSE to hyperinflation. They did not precede it. The Dawes Plan was agreed upon in 1924, after hyperinflation had already hit. Prior to that, Germany DID buy foreign currency in paper marks (see below)
Germany couldn't use her currency to buy foreign currency and gold once hyperinflation hit.
But we're talking about the pre-hyperinflation period here, and how to prevent it.
sure, and british pound owners were just twiddling their thumbs...
dream on.
If you ever heard of german "Erfüllungspolitik", good job.
If not, now is the time to look it up, mate.
http://en.wikipedia.org/wiki/Hyperinflation_in_the_Weimar_Republic
Because reparations were required to be repaid in hard currency and not the rapidly depreciating Papiermark, one strategy Germany employed was the mass printing of bank notes to buy foreign currency which was in turn used to pay reparations. This greatly exacerbated the inflation rates of the paper mark.[8][9]
In the future, I wouldn't be so cocky any more, mate.