Chapter 735 Run on Francs

The whole European world was stunned by the riotous operation of the Berlin government.

For the bourgeoisie, it was even more of a blow. Prussia can play like this, and other countries can naturally follow suit. This is simply a sharp sword hanging over everyone's heads.

Public opinion is a blast of criticism, but this has no effect. Since it dares to overturn the table, the Berlin government will not be afraid of being scolded.

Prussia's approach has not only caused heavy losses to domestic capitalists, but also overseas investors are also mourning.

Since the news spread, the number of people in Frankfurt who want to jump off the building has increased a lot.

Including the well-known Flores, because of the error in the information, he accidentally took the order and was hesitating whether to go to the rooftop.

Fortunately, after the end of the Russian-Prussian War, the stocks of all Prussian companies fell to the bottom, and they were in a state of lock-up.

As long as there is no silly running to do more, the takeover is also a low-level takeover, and the loss is not too serious.

The Berlin government only confiscated the shares of criminals. In theory, the shares held by overseas investors are still valid.

This is also the main reason why the foreign powers did not interfere. Although the Berlin government's methods were a bit extreme, they were still dealing with internal affairs.

The most important thing is that the established facts have been created, and interference will only make things more troublesome and increase everyone's losses.

Stocks have value as long as the business is in operation. It is nothing more than the replacement of the major shareholder by the Berlin government, which makes the investment prospect confusing.

...

Vienna Palace

"Your Majesty, the situation has changed. Prussia's approach is likely to trigger a chain reaction. If the French follow suit, our plan will be very difficult to succeed." Chancellor of the Exchequer Karl said worriedly

The sudden change was also a huge blow to the conspiracy of Britain and Austria to short the franc.

Prussia can overturn the table, so can the French. Perhaps the Paris government does not dare to study all, as long as there is a financial regulation, it will be enough for everyone.

Franz shook his head: "This is different, the Berlin government is forced to do nothing, and there is no way out but to give up.

Where is the size of France, we can at most suppress the currency value of the franc, and make a fortune by the way. If they die, the Paris government will not be so extreme.

If the Paris government really implements financial control, it will help us a lot. Prussia is a ready example where the value of the mark has completely collapsed.

Maybe we will lose money on this speculation, but with the withdrawal of the franc from the international market, this part of the share will be enough to make up for our loss. "

For currency hegemony, Britain, France and Austria fought for years. Although France is out, the franc still holds a significant share in the international market.

In the era of the gold standard, the larger the economy, the greater the demand for gold.

The French economy is very large, but the gold production is very limited, which cannot meet the growing demand. The reserves for issuing francs have always been insufficient, and there are security risks in the financial market.

In recent years, international hot money has frequently visited. It's just that the scale is not very large, and even if there is a gain, it will not shake the status of the franc.

Interests are moving, and after the speculators taste the sweetness, they naturally want to make greater profits.

This time Yingao Capital joined forces, it seems that Franz is secretly promoting, in fact, this is just an introduction. Even without this introduction, it will happen sooner or later.

Of course, this introduction is still very important. Without the participation of the government, even if the capitalists act, they will not have such a large scale.

In essence, the French were suppressed by the British and Austrian because they moved the cheese of the two countries.

The Paris government's African development plan is too much to hate. In recent years, the French textile industry has developed rapidly and has seized a lot of the British market.

Originally, the British were hurt, and the African development plan put cotton planting in the first place. How can John Bull be able to endure this?

While planting cotton, the French are also planning to promote new agricultural technologies in North Africa and expand the area of ​​agricultural products in their African development plan, which has moved Austrian cheese.

In this context, if it is not suppressed by Britain and Austria, there will be problems.

In contrast, the competition for the international market share of the franc is secondary, and it is mainly interested in the financial sector.

After pausing for a moment, Franz added: "The plan has progressed to this point, and it is no longer possible to quit if you want to quit.

I don't know much about financial matters, so I leave it to someone who has changed careers to be responsible.

For now, it is still according to the plan, to increase the dumping of France, as much as possible to consume their foreign exchange reserves. "

...

What should come will still come. Influenced by the special policy of the Berlin government, on November 11, 1881, the Berlin Stock Exchange plummeted as soon as it opened.

The halving is considered a good performance. Many stocks are only 20% or 30% off, and the market value of some stocks is even less than 10% of the original.

The net assets of some companies are several times higher than the market value, and the typical market value is inverted.

This is normal, assets are not equal to cash. During the stock market crash, asset shrinkage is inevitable. In order to raise funds to tide over the difficulties, not too many tearful sales.

With the development of free trade, the economic ties between countries are getting closer and closer. The stock market crash broke out in Prussia, and other countries should not try to stay safe.

The first to be hit, of course, were Frankfurt and London. If the former persists for less than three days,

The line collapsed; the latter also supported less than five days and followed suit.

Pandora's Box was opened, the stock market crash soon spread to the entire European continent, and the stock markets of various countries were mourning.

In less than a week, Vienna's broader stock market fell 10 percent to its lowest level in five years.

Both Britain and Austria have suffered stock market crashes, and France is no exception.

In Paris, angry investors lit the stock exchange directly. Fortunately, the staff arrived in time to put out the fire.

In the Palace of Versailles, before Napoleon IV recovered from the stock market crash, Elsa, the Minister of Economic Affairs, hurried in.

"Your Majesty, things are bad. Hundreds of banks, including BNP Paribas, Banque de France, and the Imperial Bank, were run at the same time, and the situation is very critical.

Many people are holding certificates of deposit and specifying that they need to exchange for British pounds and Aegis. Our foreign exchange reserves are decreasing sharply.

To be sure, someone wants to short the franc. The run is just the beginning, and the enemy will attack later. "

Hearing the bad news, Napoleon IV instantly thought of a word - "financial turmoil", paused and hurriedly asked: "Do you know who is manipulating it?"

Economy Minister Elsa replied: "There are many participants, almost all of the world's top-ranked banks and securities companies have appeared, and it can be roughly judged that the main force is Ino Capital.

The enemy's forces are very strong. According to the information we have collected, it is estimated that they may hold 3 billion to 5 billion francs in their hands. "

"3 billion to 5 billion francs" seems to be nothing to a big country like France, and it is also the fiscal revenue of the French government for a year.

However, this is cash not an asset. In the financial market, such a huge sum of money can fully leverage tens of billions of international hot money and impact the French financial market.

Napoleon IV was shocked and said: "The enemy has raised so much money, don't our financial sector know anything about it?"

Because Aegis and the British pound are both international settlement currencies, the foreign exchange reserves of Britain and Austria are relatively low, and it is simply impossible to take out so many francs.

The total circulation of francs in the international market is actually in the billions. This means that the funds to initiate a run can only come from France.

Economy Minister Elsa replied in a low voice: "Some time ago, several large domestic banks issued large amounts of loans overseas, all of which were ordinary commercial projects that did not attract everyone's attention."

This is determined by the system. Banks are free to issue loans, and the French government has no right to interfere.

Since it can't be managed, it's natural not to pay attention to it. Anyway, the profit and loss are the responsibility of the bank itself, and the government does not need to pay for it.

Napoleon IV was hesitant to say anything, knowing that this run on the run was involving a domestic consortium, but he could do nothing.

If the actions of the Berlin government not long ago terrified the bourgeoisie, French capital would be absolutely indispensable in the army of shorting the franc.

Now everyone is invisible, and it is already very face-to-face for the government. Can't let everyone not make money?

After thinking for a while, Napoleon IV asked: "How are you going to deal with this crisis?"

Economy Minister Elsa: "Unlike in the past, this time the enemy is aggressive, and it will definitely not be just to take a little advantage.

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