Chapter 1020 Jiawu

In a blink of an eye, 1894 came to an end again. The Vienna government, which has been short-lived for a long time, finally got rid of the fiscal deficit this year.

Embarrassingly, the main reason for the Vienna government to get rid of the fiscal deficit: not the increase in taxation for economic development, but the excessive issuance of currency.

With the joint endorsement of the European Continental Union, the Vienna government has issued an excess of 1.2 billion Aegis, which is slowly flowing into the market at this moment.

Although the money has to be shared with everyone, it is still the Vienna government that takes the lion's share. According to preliminary estimates, after deducting printing costs and profit sharing, the seigniorage revenue belonging to the Vienna government is still as high as 780 million.

The financial income of the year is more than that of normal seasons. If it can't turn losses into profits, then it really can't be justified.

The alliance's endorsement only stabilized the value of the Aegis currency, but the adverse effects of currency over-issuance still exist.

According to statistics from the Vienna government, the domestic inflation rate will be as high as 3 points this year. This is still the result of not all the over-issued currency flowing out, otherwise the inflation will be even worse.

If we put it in the credit standard era of later generations, an inflation rate of 3 points is not a big deal at all, and inflation of seven or eight points will happen from time to time.

Inflation is happening all over the world, and no inflation is news. There are even countries with double-digit inflation rates that have maintained double-digit inflation rates for many years.

But it is different now, the inflation rate in the gold standard era is negligible. Except for a wave of inflation caused by the influx of gold and silver in the 16th and 17th centuries, after entering the industrial age, there was very little inflation.

The inflation rate of 3 points has already made the Vienna government nervous, fearing that it will cause the market to collapse.

For the national economy, inflation increases the cost of industrial production, which is obviously not conducive to the export of industrial products.

If the Vienna government had not lent a large amount of Aegis and was limited to the amount of consumption in Shinra, it would have been backfired on the export industry.

There are pros and cons, taking such a big risk, there will naturally be corresponding benefits.

With this extra income, the Vienna government not only made up for the financial deficit, but also started the ring railway project, and also repaid part of the government debt by the way.

The most important thing is to suppress the wave of revolution, contain the economic crisis from expanding, stabilize the situation in Europe, and secure the hegemony of the European continent.

Just look at this year's report. The economic crisis broke out at the beginning of the year, and there was the biggest economic downturn since Franz took office.

In the first quarter, the curtain of the economic crisis was opened, and gdp fell by 8.7% compared with the same period last year;

In the second quarter, the economic situation further deteriorated, and gdp fell by 12.8% compared with the same period last year;

In the third quarter, the measures taken by the government began to take effect, and the economy showed some improvement, but gdp still fell by 10.8% compared with the same period last year;

In the fourth quarter, European countries reached an agreement to jointly launch the "water release" rescue plan, but gdp still fell by 5.1% compared with the same period last year.

On an annual basis, Shinra's economy fell by 8.93% in 1894. Finally, it did not break through 10 points, and controlled the single digits in the number of falling points.

Unfortunately, the reality is more serious than that. The above data include the localized African territories in the calculation, which dilutes the proportion of decline.

If it weren't for the aristocratic lords in Africa who were working hard on construction, maintaining high-speed economic growth and boosting economic data, the economic data of Shinra in 1894 would be absolutely touching.

In parts of Europe alone, the growth rate of gdp is definitely double digits, but unfortunately it is negative. The specific data is -13.7%, which is simply appalling.

There is no way, this is the aftermath of the war. If the government does not take timely response measures, this number may even double directly.

Shenluo, with a big family and a big business, is so miserable now, and other countries are naturally not much better.

Needless to say, the defeated France, the aftermath of the war is still continuing. Compared with before the war, it was cut in half and then cut in half, and then there was a 20% discount.

Not to mention repaying debts, it would be nice to be able to smooth out the government's daily expenses. So much so that since Carlos came to power, he has been fighting corruption until now.

According to the estimates of the Vienna government, Armenia suffered the least loss in the 1894 economic crisis, maintaining positive economic growth, although the economic growth rate of agricultural countries was comparable to that of a snail.

Even Montenegro, which is an agricultural country, has not been able to escape. Although the economic crisis did not follow, its own economy was too heavily affected by Shinra.

Shinra's economy is in a downturn, and Montenegro's import and export trade is also greatly affected. Because exports account for a small proportion, the economy has only declined slightly, and the initial estimate is that the decline will not exceed 1 percentage point.

Followed by the Nordic Federation and the Netherlands, who made a fortune in war, and their own family background is not weak, and the impact of the economic crisis is far less serious than other countries.

However, the economies of the two countries are too closely linked to Europe. If a serious economic crisis breaks out in Europe, they can only follow suit.

Affected by the economic crisis, even if the gdp decline is not 10 points, eight or nine points are still indispensable. It looks similar to Shinra's whitewashed data.

Then there is the Russian Empire. There is no doubt that the Russians were dragged into the water by Shinra.

The economic ties between the two countries are too close, and the economic crisis broke out in Shinra, and the Russian industrial raw materials also became unsalable. Stock market crashes, layoffs, and bankruptcy are also indispensable.

If there are only these, it can only be regarded as a drizzle of economic pain. Unfortunately, revolutions broke out in Poland and Bulgaria, and the guerrillas in Central Asia also joined in the fun.

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If the tsarist government took the right economic measures in time, maybe the situation would not be so serious, but unfortunately they did nothing.

All the factors were added together, and in the end the Russians handed over a slightly better answer sheet than Shinra, and a drop of seven or eight points was inevitable.

Of course, these are only the estimates of the Vienna government, and the tsarist government itself does not make statistics, so it is even more difficult for outsiders to figure it out.

Except for these less damaged ones, the remaining ones are counted as one, and the economic decline and growth are all negative double digits.

Even Britain, which has a big family and a big business, is no exception. As a financial empire, the banking and financial industry occupies an important proportion in the national economy.

Because the crisis was artificially delayed, the market bubble further expanded. Among them, the stock market is the most inflated, so after the economic crisis broke out, Shinra and Britain became bad brothers.

A post-war industrial imbalance + stock market bubble triggered a national economic crisis; an oversized stock market bubble dragged down the financial industry and then broke out into a crisis, which eventually turned into an economic crisis.

Franz couldn't determine how much the specific loss was, but a dozen or so points were necessary. Otherwise, sorry for the title of "the greatest economic crisis in human history".

Compared with the tragic economic crisis, a small inflation is naturally nothing. But as the economic situation improves, this kind of inflation is a bit of an eyesore.

Don't look at the fact that European countries and Shinra are bearing the losses together. The short-term impact will not be great, but Shinra is still a super country.

With the continuation of overseas trade, the loans released will continue to flow back to the Shenluo Empire. If no countermeasures are taken, Shinra will be accompanied by inflation in the next few years.

In this context, once the economic crisis is over, the Vienna government has only two options: either lend money again; or adopt austerity monetary policy.

After experiencing the wave himself, Franz suddenly understood why the Americans were throwing money to the outside world after the two world wars.

There is a serious excess of capital. If the money is not distributed, inflation will occur in the country.

Similar troubles seem to have plagued the British for many years. It's just that Franz didn't expect that it would be his turn so soon.

In a sense, Franz was able to reunify the Shenluo Empire and also benefited from the excess capital of the British.

If it weren't for the British who had money and no place to spend it, Austria would not have completed industrialization in a short period of time. Including infrastructure construction, British capital has also contributed a lot.

Of course, British capital is not at a loss. Except for a few times designed by Franz, they accidentally jumped into the pit, and they made a lot of money at other times.

The only one losing money is probably the British government. For profit, capitalists invest and lend overseas aggressively, and as a result create a competitor for themselves.

History seems to have returned to the original point. The rapid development of the United States in the original time and space also benefited from the contribution of British capital.

Not only that, it seems that the rise of Prussia, British capital has also contributed a lot. If there were no funders like them, where would the impoverished Berlin government get the money to do things?

From this point of view, the bankers in London are the gravediggers of the British Empire.

Without their help, competitors certainly wouldn't have grown as fast. Britain may also lose its hegemony, but it will certainly not decline so quickly.

"The teacher who remembers the past does not forget the future", there are such tragic examples, and Franz can't do it carelessly.

...

One wave is not flat, and another wave rises again.

While Franz was thinking about future development, the Japanese who had just been hit by a cephalosporin in the Philippine Islands and were forced to evacuate made trouble again.

While the neighbor was taking a nap, he brazenly launched a sneak attack and directly disabled the Beiyang Navy. Immediately afterwards, the Japanese army launched a landing operation with lightning speed.

Regardless of whether the Far East Empire has woken up from its bewilderment, the enemy has already hit the door. Although the Japanese army is still on the Korean peninsula, the war has already broken out.

This is not over yet, the Far East is in flames of war, and the Americas are also in turmoil.

The backhand launched by the British finally began to play a role and set off an independence movement in Cuba.

Spain, which had just ended the Philippine War and had not had time to catch its breath, was also forced into a new war.

Just a little bit short, they rushed together. I don't know if the Japanese government, which just abandoned the Philippine Islands, is annoyed at the moment, just hold on a little longer.

Of course, what the Japanese government thinks is irrelevant. A new war is waiting for them. Besides, even if they want to turn around, the international situation will not allow it!

The European Continental Alliance forced the palace together, the scene was really scary. The Japanese government will never want to experience the same scene again.

Whether the Japanese government regrets Franz knows, anyway, the Spanish government absolutely wants to cry now. The independence movement broke out in Cuba at this time, directly hitting their weakness.

Just after the end of the Philippine War, it was the poorest time for the Spanish government. Even the Spanish government hadn't finished raising the money to rebuild the colonial government, and another major source of income had gone wrong.

The empire that once never set on the sun has fallen. Although the Philippines and Cuba were not the only colonies of Spain, these two places were the richest colonies in their hands.

No matter losing any of them, it would be a serious blow to Spain. It is not only a severe economic blow, but also a deadly political crisis.

Just now I was disgraced by the Japanese in Nanyang, and it is the time when domestic nationalists are at their peak

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If it weren't for the power of the European Union to successfully take back the Philippine Islands and use the victory to appease the domestic people, there would have been no peaceful days.

By this time, the Kingdom of Spain could not afford any defeat. Any failure would crush their shaky great power status and even trigger a revolution.