Chapter 638 Financial Market

With the outbreak of the second industrial revolution, the total industrial volume of various countries has grown like a snowball, and the demand for the market and industrial raw materials is also increasing day by day.

The Vienna government is eager to promote free trade. In addition to the needs of domestic economic development, it also has ulterior strategic goals.

Once entering the era of free trade, Austria, which has an advantage in emerging industries, is bound to amplify this advantage and set a higher threshold for the future.

If it goes well, it will appear in the near future: the British occupy the traditional textile industry and shipbuilding industry; Austria occupies the world industrial pattern of the emerging power, communication, and internal combustion engine industries.

It can almost be said to replicate the economic rise of the Second German Empire, except that Austria has a stronger family background and is itself the largest exporter of agricultural products in Europe, backed by vast colonies.

Britain and Austria have divided up the world's industrial main body, what about the remaining countries?

In particular, France, which is second only to the two countries, has no advantage in competing with the British for tradition or for emerging industries with Austria.

It's not that the technology can't keep up, but the main reason is that there is no way to solve the problem of the supply of industrial raw materials. Unlike later generations, transportation in this era was not so developed. Once the distance is too far, the cost goes up.

It is too risky to defeat France militarily. France is now a big country with a population of nearly 60 million. Even if the Italians have no military contribution, they can still contribute in logistics.

Two dogs fight, play off.

Unless the war can be ended in a short period of time and the opponent can be completely defeated, otherwise the winner will be the fisherman.

As long as you look at the map, anyone with a little military common sense knows that France and Austria cannot win or lose in a short period of time, which is determined by geographical location.

By contrast, crushing France economically would be far less risky and far more likely to succeed.

Economically, the UK, France, and Austria are all competitors. Even if the London government likes to play the continental balance, it can only be a military balance, and there is no way to play a balance economically.

The economies of France and Austria have been out of balance for a long time, and the British have never thought about taking the French, which means capitalizing on the enemy.

Don't talk about strategy, capitalists don't have such high morals. Making money is the first priority. If you can kill a competitor and make more profits, why should you refuse?

No matter how big the threat of Austria is, it is also a problem in the future. It is impossible for capitalists to give up making money because of potential danger.

The most typical case is the rise of the Soviet Union in the original time and space. In terms of threat alone, this is far more terrifying than the current Austria, and the capitalists still cooperate with the Soviets for the sake of profit.

In the era of free trade, the economy is determined by the market, and government intervention is relatively small. Take the London government of this era, for example, they barely interfered in the market.

Needless to say, once Austria joins the free trade system, vested interests will push the two governments to unite and pull all the remaining countries into the free trade system.

There is no doubt that most European countries have no confidence to refuse. When everyone joins the free trade system, the French will be in trouble.

If they join the game circle, they are not competitive. If they do not join the circle, they will fall into the embarrassing situation of stand-alone.

Originally, France was ostracized on the European continent. Napoleon III worked hard for 20 years before being accepted by everyone.

Maybe the British will give up the free trade system one day, but definitely not in favor of France. As long as the advantages outweigh the disadvantages, free trade is the trademark of the British.

Judging from the current situation, as long as you don't kill yourself, the British industry and commerce will be able to remain competitive in the next few decades. This is the foundation of an old industrial powerhouse.

...

Franz: "What is the reaction of domestic public opinion?"

Prime Minister Felix: "The voices of support and opposition are almost the same. The two sides quarreled very fiercely. I am afraid that the winner will not be determined in a short time."

It is not only the emerging industries that support free trade, but also the agricultural product processing industry. They are Austria's advantageous industries and are confident enough to participate in international competition.

Joining the free trade system and reducing import and export tariffs, these industries are all vested interests.

Some people benefit and others lose their interests. For example, the cotton textile industry is the most staunch opponent. Once the tariff barriers are abandoned, the British will inevitably seize a part of their market.

Of course, if these companies are competitive enough, they may also have the opportunity to go out and grab the British market. After all, these industries have low technical content, and the gap between everyone in technology is not large.

If it is not for the higher labor costs in Austrian Africa, it is estimated that the domestic cotton textile industry will move. Once it enters the era of free trade, cost control has become an indispensable part of the enterprise.

Franz: "Then provide them with a platform for debate between supporters and opponents, and the people who eat...the people do the refereeing."

Originally, Franz wanted to say "the people who eat melons", but the words came to his mouth and felt inappropriate, so he changed it to "the people" in time.

"Your Majesty, I'm afraid this will make the riot even worse. Many people have already applied to the police station to apply for a demonstration." Prime Minister Felix persuaded

Franz shook his head: "It is precisely because the matter is so big that it is necessary for them to debate. If you don't give them a channel to vent, how can these losers be reconciled?"

It is better to let the capitalists fight against the capitalists than the government itself. Regardless of the outcome of the debate, reform is needed.

Just an extra layer of buffer

The losers diverted the target of hatred.

This is what it should be. As the vested interests of the reform, they can't just take the benefits and do nothing. It is one of their responsibilities to raise hatred.

...

Chancellor of the Exchequer Carr: "Your Majesty, our negotiations with the British have been blocked, and the two sides have generally reached an agreement, but the British have asked us to open up the financial industry.

With the strength of the domestic financial sector, once the financial market is opened up, it will be difficult for us to gain an advantage. "

Not to mention an advantage, the strength of the Austrian financial world is not comparable to that of the French, let alone the British. If the restrictions are released, it is basically the fate of being hanged.

After hesitating for a while, Franz said: "It is impossible to loosen financial restrictions, domestic capital must be restricted, how can foreign capital be unrestricted?

Continue to talk to the British, British capital can be allowed to enter the securities market, but must comply with relevant laws.

If the British continue to be entangled in financial issues, the big deal is that we sign an agreement, and the capital of the two countries will not enter each other's financial markets, which is fair. "

Austria has never banned foreign capital from entering the financial market, but it is subject to many restrictions. If you want to run freely in finance, just wait for it to be confiscated by the management department!

Unlike the London financial market, where the rule makers deliberately left a back door, the Vienna financial market, which is often patched.

Taking advantage of the rules does not mean that you can make money, and you must be fast enough to complete the operation before the management department can react.

After so many years of patching, there are now very few loopholes in the Austrian financial market, and the difficulty factor has greatly increased if you want to shear sheep unscrupulously.

"No access to each other's financial markets", this is a complete joke.

It doesn't matter to Austria. The domestic financial industry is still in the stage of capital accumulation. Even if it wants to reach out to the London financial market, it does not have enough strength.

From the standpoint of the British, it is different. The London financial market is the financial center of the world, where capital from all over the world gathers to play games.

Except for a very few lucky ones, who can make money from it, most of the rest were harvested by the British consortium.

Foreign capital entering the London financial market is a fat sheep delivered to the door of the British financial consortium. Why should they be refused entry?

The British were the first to complete the industrial revolution. In the early years, they accumulated a large amount of capital by virtue of the advantages of the world's factories. Since 20 years ago, there has been a surplus of capital.

In the original time and space, the United States was able to rise because the British wanted to vent their excess domestic capital, otherwise the country of heaven would not have developed so easily.

Austria was able to rise, and it also borrowed the capital of the British in its early years. It's just that Franz took advantage of the economic crisis and the rule-makers to pit British capital in the middle.

Now the British want Austria to open up the financial market, but they are actually scared.

It is enough to detonate the economic crisis ahead of time. This can only be regarded as insufficient means, and it will be enough to pay attention next time.

But the rules limit, it is hopeless. Many seemingly inconspicuous rules have little impact in normal times. Once the economic crisis breaks out, it can often be a fatal blow.

However, these rules are formulated in advance and are still public. It belongs to the rules of the game. If you don't notice it, it's your own problem, so they can't tell the pain.

The same trick, the British are also playing. The London financial market also has similar rules, designed to trap unsuspecting outsiders.

It's just that people like double standards, and they use the rules to trick others, that's a clever way; to be tricked by others' rules, it's unbearable.

learn from mistakes. British capitalists want to remove these rules after they have learned their lesson.

Franz was also very embarrassed, and he wanted to tell the British that this was completely overthinking.

The same tricks cannot be played all the time. With the constant regulation of the market, there are simply not so many traps to set.

It is a pity that no one will believe it. From the water supply and railway monopoly project Tiankeng created by the Vienna government at first, to the early detonation of the economic crisis not long ago, British capital suffered heavy losses.

From the standpoint of Austria, these are all normal operations and completely in line with the rules of the game; but from the standpoint of British capital, these are huge pits.