Take Hitler: They say there is insufficient evidence that Hitler was an overt homosexual. But it seemed clear he had latent homosexual tendencies, and that he worried a lot about them. He was terribly concerned, for example, lest he give the impression of showing feminine traits - which, indeed, he did. A colleague of the himself-homosexual English diplomat and historian Sir Harold Nicolson, spoke of Hitler as being "the most profoundly feminine man that he had ever met, and that there were moments when he became almost effeminate."
Hitler also revealed fears of homosexuality by protesting so much that he had no feminine characteristics whatsoever. He was totally masculine - tough, hard, cold, ruthless, brutal. His tendency to think in terms of disjunctive stereotypes about men and women (strong, iron-willed, effective males vs. weak, emotional, incompetent female) is in itself revealing. Such thinking demonstrates a strong conflict and confusion between masculine and feminine natures. To him, sexual differences appeared as exaggerated and mutually exclusive opposites, as roles to be played, rather as natural attributes of human personality. In Hitler's case, as in Himmler's, the fantasized tough male role developed into sadism, murder and destruction.
The question of Hitler's latent homosexuality can also be approached indirectly. It can be stated with some confidence that Hitler must have had latent homosexual tendencies because he showed clear indications of paranoia. This does not mean that all homosexuals are paranoid, but it does mean that all paranoids have fears of homosexuality. The direct connection between homosexuality and paranoia was first noticed by Freud, who concluded that paranoia "invariably arises from an attempt to subdue an unduly powerful homosexual wish."
There is a terrifically strong need to deny homosexuality; the very thought of sexual contact with another man is "completely intolerable." Moreover, the need felt by a paranoid for approval is especially acute; his megalomania is in itself an expression of his need for proof that he is important. There is a high incidence of constipation in paranoid individuals. All paranoids have strong anal components, problems with order and cleanliness, and obsessions with purity and vice, as well as impurity and infections of others. Anal sadistic fantasies are directed towards the father, because he is seen as the rival for the mother's love; the intensity of the drive to be loved is supported mainly "by the intense need to neutralize and erotisize a tremendous hate." When the unconscious hate is so great, the attempt to erotisize it fails, and the individual turns to sadism.
While homosexual feeling and paranoid delusions may be in bitter conflict, both are, in a sense, dependent on each other and are defenses against one another. Thus, it seems quite possible that Hitler developed paranoid delusions, in part, to fight his homosexual feelings. As long as he persecuted and attacked homosexuals, he felt he was successfully combating his own inadmissible inclinations toward homosexuality.
Does the latter mean that, Hitler called, for instance, Jews homosexuals (allegedly undermining the manliness and and fighting spirit of the German people) in part to fight his unacceptable homosexual feelings? Or, that he judged so many other people as being inferior, lacking that perceived German "manliness" and "fighting spirit," as it was the case with Communists, liberals, gypsies, homosexuals, victims of warfare, etc?!
Distancing now a bit from the homosexual part of the equation, to fully address the paranoia one, we would have to add that when concocting the Jews conspiracy he mixed antisemitism and stereotypes of the Jews as Communists, as subversives and all kinds of other things - as a means to an end. Jews became a scapegoat for Germany's economic problems - enough to remind people of that conspiracy of "Jewish bankers" (Remember Fräulein Kost's line from "Cabaret," when asking, "If all the Jews are bankers, then how can they be Communists, too?")
A distinctive feature of Hitler's antisemitism was that it was formulated as conspiracy theory. For many, especially in Bavaria, this went hand in hand with the 'stab-in-the-back' theory, that is, with the view that Germany had not been defeated on the battlefield but had been brought down by liberal, socialist and Communist subversives on the home front. In other words, it was claimed that "the Jews had caused Germany's defeat in World War 1." Potentially, this made antisemitism explosive in Germany.
As we try to understand Holocaust, we'd have to also explain a bit the Darwinian biology of the time. There was a growing sense that there were those in society who were 'biologically' inferior and that for a 'fit' world to survive and thrive, those who were 'unfit' should be done away with. Instead of letting nature take its course, there was a unspoken sense that humans could take matters into their own hands. So when Hitler took power he started rounding all these people up. He used the Jews, Poles, gays, gypsies, Russians and mentally challenged people as slave labor and then started to annihilate them in gas chambers. He classed the above mentioned people as sub-human and basically in his Nazi world there was no place for the "sub-human", only the 'Aryans'.