Chapter 1001 Shrewd William II

The bubble was burst, and Shinra, as the economic leader, suffered the most losses; Britain, as the second largest industrial country in the capitalist world economic system, naturally suffered the second largest losses.

Regardless of whether the two countries are already at odds politically, but economically everyone has long been tied together. The economic bubble of the Shenluo Empire was serious, and the economic bubble of Britain was not far from it.

In fact, the crisis should have erupted after the end of the European war, but it was suppressed by the joint forces of all parties.

The government of Vienna took steps, and the government of London was not idle. When the Gladstone cabinet was in power, Britain's diplomatic strategy almost collapsed. If the economic prosperity is gone, the British people will probably tear them apart.

The cabinet wants to spend its final term safely, and the consortium needs time to retreat. The two sides hit it off and artificially created a virtual economic prosperity in the second half.

The economic crisis that should have erupted in 1893 has been delayed until now. If it weren't for the thunderstorm in the Vienna stock market, it is estimated that the crisis will continue in the future.

In this context, Robert Cecil, who had just taken office, was tragic. Before the buttocks could sit still, the stock market crash came, and the economic crisis was about to erupt.

These days, Britain implements a free economy, and the government cannot interfere with the market. Of course, it's good to listen to this, if you are serious, you will lose.

Not being able to directly intervene in the market does not mean not intervening at all. In fact, the government's economic policies, laws and regulations are all important factors affecting economic development, the difference lies only in the degree of intervention.

Including adjusting tax rates, social relief, joint consortia to save the world, launching foreign wars to divert crises, etc., are all part of government intervention in the market.

"What's the matter, does the consortium agree to rescue the market?"

Prime Minister Robert Cecil couldn't help being in a hurry. Since the economic bubble was burst, the London stock market has also followed in the footsteps of the Vienna stock market and started a continuous decline.

Unlike the conservative country like Shinra, where a large group of family businesses hold on to their shares and do not go public, Britain has the most developed financial industry, but all large-scale companies are listed companies.

It is easier for listed companies to obtain financing, which is conducive to accelerating the development of enterprises. The sequelae are that enterprises are affected by stock price fluctuations.

The management model of professional managers seems to be very scientific, but the company's money is not their own after all. In order to obtain higher returns in the short term, corporate management is usually more aggressive when formulating strategies.

Normal times are fine, but once the stock price falls sharply and corporate financing becomes difficult, aggressive development strategies often easily lead to a break in the corporate capital chain.

In contrast, conservative family businesses that are not listed on the stock market prefer to be steady and steady. Although the development speed is a bit slower, the company itself rarely has large debts, and maintains sufficient capital flow most of the time, without the risk of capital chain breaks.

The most important thing is that large companies that are not listed are usually high-quality companies with good profitability and strong market competitiveness, and their own ability to resist risks is the strongest.

For details, you can refer to the royal consortium of Wen Franz. Most of the listed companies are high-risk technology companies, or companies with insufficient profitability and uncertain development prospects, and companies whose development potential has touched the bottleneck of the industry.

Companies that are really profitable, or are in the stage of rapid development, all nest in the bottom and make a fortune. When they develop to the bottleneck of the industry's upper limit, when is the time to go public and cash out.

What about growing together and sharing together, just listen to this kind of deceitful nonsense. A high-yield business that is stable and not lost, is it not good to hold it in your own hands, why should you share it?

Maybe some companies have done it, but such companies are rare. There are only a hundred or eighty companies out of thousands of listed companies, and most companies perform mediocrely after listing.

Enterprises that can operate stably, outperform inflation, keep up with the speed of national economic development, and have no thunderstorms are all conscientious enterprises.

If all these high-quality companies under the stage are listed, no matter how low the valuation given by the market is, with the economic size of the Holy Roman Empire, the two major financial centers of Vienna and Frankfurt cannot be smaller than London.

In this context, the Holy Roman Empire, which suffered the worst stock market decline, did not suffer as much economically as Britain.

Economic Secretary Aquinas shook his head: "Unfortunately, they rejected our proposal. The consortium believes that there is still a bubble in the current stock market, and there is a very big risk in raising the stock price now, and we need to wait.

If the government really wants them to contribute money to rescue the market, the consortium also put forward a condition, that is, they must join forces with Vienna to make a move. They are worried that they will be exploited by others. "

Robert Cecil frowned, and said unhappily: "Wait a little longer, the company will go bankrupt, and the city will be saved. It's a good thing they can think of it together with Vienna.

The current situation is very obvious. After the European War, the Holy Roman Empire experienced major economic problems. Now it is in a period of economic adjustment. Whether there is this stock market crash, they will have an economic crisis.

And we are different, just the unlucky ones who were implicated. If you can't stabilize the stock market, you have to accompany them through the economic crisis.

If everyone is not dragged into the water together, it is no wonder that the Vienna government will take action to save the market. Now they can't wait to drag everyone into the water together and share the losses for them. "

Complaining is useless, and the London stock market is not only British capital, but also capital from the European continent.

If all parties fail to reach an agreement, the British consortium comes to rescue the market, and people take the opportunity to sell it, and they will become the receivers.

Although European capital has begun to flow back since the beginning of the year, only a small part of it has flowed out for their huge volume.

After the Vienna stock market crash broke out, the British consortium took advantage of the advantages of being a landowner and took the first step to give international capital a blow.

Now that they have to consider the issue of bailing out the market, they are naturally worried that others will follow suit. They spend a lot of money to pull up the stock price, and others take the opportunity to get away and run away, and they will be forced to do so.

After all, consortia are not omnipotent. In the intriguing capital market, anyone must be cautious, or they will be eliminated by the market sooner or later.

What's more, although a large number of bankruptcies of enterprises is very unfavorable to the country, it is a feast of capital for the consortium. They can take advantage of the opportunity of corporate bankruptcy and reorganization to acquire some high-quality companies at the price of cabbage.

...

It is not only the British government that has a headache. Facing the hob meat that is determined to drag everyone into the water, all capitalist industrial countries are extremely troubled.

In the past, all countries criticized the Vienna government for interfering in economic freedom. This time there is no need to spray, but the result is even more unacceptable.

The Vienna government managed to follow the natural laws of a market economy, but everyone was dragged into an economic crisis.

In fact, Franz is also in a difficult situation now. He would also prefer not to have an economic crisis now if possible. But there was no way, and the economy of the Holy Roman Empire went astray unknowingly.

Especially in the northern states, not only is the industrial development uneven, but there is also a large amount of overcapacity. For example: railways and construction are the two hardest hit areas.

After the end of the European War, I don't know who came up with the idea, and several states in the north started to play big infrastructure. Originally, there was no problem in building infrastructure. The problem is that they have built a lot of unnecessary infrastructure.

Repeated construction of railway lines and branch lines even go deep into villages, real estate projects blooming everywhere, and water conservancy projects that are not practical at all.

If it wasn't for the outbreak of the economic crisis and the government of the Kingdom of Prussia declaring bankruptcy, Franz would not have known that someone was having such a good time.

In fact, even if he knew it in advance, he would have no way to interfere. State autonomy is not just for fun, how to develop the economy is the freedom of others, and there is no need to report to the emperor.

The only good thing is that the North German region had a bad harvest last year. That's right, food shortages are also good at this time, at least for now.

If there is a bumper grain harvest, Franz will also consider the problem of surplus agricultural products. After all, after the economic outbreak, people have to tighten their belts. Even for rigidly needed products such as food, sales will decline.

The lack of grain harvest in the north last year at least ensured the stability of the empire's agriculture. As for the follow-up impact of the grain shortage, it was a minor problem.

Except for the Kingdom of Prussia, which became poor due to the Prussian War, the economic conditions of the other northern states are very good, otherwise they would not have the money to pretend.

Since the outbreak of the economic crisis, except for Wilhelm II who came to Vienna to ask for help in person, the other states just sent a few telegrams to complain about the difficulties and cry for money by the way.

It can be seen that they can hold on for the time being and are unwilling to let the central government intervene in the economic problems within the state.

This kind of worry-free little brother, Franz is the favorite. As long as you don't cause trouble to the central government, who would want to interfere in the internal affairs of the state if you don't have enough to eat?

Regardless of whether they are trying to die or not, purely from the results of economic development, the governments of these states have done better than most of the provinces directly under the central government.

In the Kingdom of Prussia, the main problems left over from history are too serious. The huge indemnities brought about by the war have affected the domestic economic development.

But in general, the economic recovery is still good. Although it is a little behind its neighbors, its per capita income still exceeds that of Spain and Russia, and it is almost catching up with France before the war.

Although the impact of the economic crisis is great, it has only just begun, and it is far from the most difficult time. With the family background of the Kingdom of Prussia, even if it can't hold on, it won't kneel in the first wave.

In particular, the Kingdom of Prussia suddenly declared financial bankruptcy, without any prior warning. Normally, they should have turned to the central government for help before declaring bankruptcy.

Even if it is out of consideration for the face of the empire, as long as the funding gap is not too large, the Vienna government will give them a hand.

The reality is just the opposite. Before the government declared its financial bankruptcy, apart from tossing out a bunch of unfinished projects, it never asked Vienna for help, as if it wanted to go bankrupt.

After the Berlin government declared its financial bankruptcy, Wilhelm II jumped out and went to Vienna to cry and sell miserably. This is obviously abnormal.

Today is different from the past. As a member of the Holy Roman Empire, Prussia already has the ability to bargain with the British.

Franz has every reason to believe that the Prussian government deliberately bankrupted itself, and the economic crisis just provided them with an "excuse for bankruptcy."

Even without this economic crisis, they will use other excuses to go bankrupt after a while, for example: the government's funding chain is broken and it cannot pay for the project...

After all, there are so many benefits to the bankruptcy of the Prussian government now! For domestic economic problems, you can ask the central government for help, and the Vienna government cannot sit idly by; the debt owed to the British may not be repaid in the next century, and you can also request debt restructuring in a reasonable manner.

In this regard, the Kingdom of Prussia also has a criminal record. When the "German Federal Government" went bankrupt a year ago, the Berlin government followed suit.

It's a pity that the last move was short, and the British only

It is to accept the transfer of creditor's rights from the German Federal Government. After all, the German Federal Government was a government that did not sign a contract today and would be dissolved tomorrow. In order to avoid finding the debtor, the British could only pinch their noses and admit it.

The Kingdom of Prussia is different. Even if the government is dissolved and the king is still there, it is impossible for William II to lose the throne because of debts. As long as the country is still there and the government is not reorganized, the debts owed cannot be escaped anyway.

In addition, the Holy Roman Empire was still being formed at that time, and there was no central government to shield it from the wind and rain. The Berlin government could not bear the pressure exerted by the British, and it gave up after a few months of debt extension.

It's different now. As long as the Berlin government is thick-skinned, the British will have nothing to do with them.

"Collateral" for debt?

No problem, just send someone to get it, and promise to cooperate fully.

Tariffs are now collected by the central government. As long as the British think they can take the tariffs away from the Vienna government, there is no problem.

Although the port terminal is in the hands of the Kingdom of Prussia, it involves territorial sovereignty, which is also the job of the central government. If you want to talk, you are going to talk to the Ministry of Foreign Affairs, as long as the Vienna government is willing to agree to everything, it can be negotiated.

The right to mint coins also belongs to the central government. If you want to discuss it with the Ministry of Foreign Affairs, as a local government, the Prussian government has no right to ask.

...

In short, after the debt default, none of the series of mortgage contracts that the Prussian government had signed with the British could be implemented now.

Although these treaties still have legal effect before the establishment of the Holy Roman Empire, if you want to honor the content of these treaties, you can only negotiate with the Imperial Foreign Ministry.

"Deliberate default" and "no money to repay debts" are two completely different concepts. The former will be despised by the international community, while the latter will be over as long as the collateral is handed over.

Now, as long as William II is willing to put down his face, make a gesture of willingness to hand over the collateral, and then push the problem to the Vienna government, the matter will be over.

In the end, it was the British who compromised, and the Vienna government repaid their debts, so he didn't need to worry about these issues.

Knowing that it was troublesome, Franz could only bite the bullet and take it. No matter what the reason is, he, the emperor of the empire, cannot allow the loss of national sovereignty.

Thinking of this, Franz wanted to beat those keyboard warriors to death. Who said that William II was so stupid, his political tricks were so smooth.