Chapter 414 Inflation

A dividend of 250 million florins at a time is an astonishing amount. People have speculated on how much money the Austrian Royal Overseas Development Company has made, or how much money it has made.

In fact, the Austrian Royal Overseas Development Company has made a lot of money, but the investment is even more exaggerated, but fortunately the capital is sufficient.

In just one year, the Austrian Royal Overseas Development Company's various investment costs have reached 270 million florins, plus Franz's big spending this time, the total cost is as high as 520 million florins.

This is equivalent to Prussia's three-year fiscal expenditure. In comparison, the income from the colonies seems not worth mentioning.

At this time, the Namibian region, which has the best money-making effect, pays a profit of only more than 10 million florins each year, and the situation of the other four colonies is similar. In addition, the income of Austria's domestic railways is only about 100 million florins.

If Franz continues to spend money like this, he will start to be in debt in the seventh year.

However, no one knows what will happen to Austria and the world in seven years.

In fact, Franz had already begun to expand production capacity half a year ago with the help of the Luxembourg crisis, hoping to reduce the impact of the shock, because he did not like to fight a battle without confidence.

The "money-throwing" behavior of the Austrian Royal Overseas Development Company this time made more than one-third of the families in Austria feel what "royal grace" means.

Especially in the Netalenia region, almost half of the population enjoyed this benefit.

More than four million shareholders benefited from this dividend, most of whom were civilians, small nobles, and small employees, because most of the rich had already cleared their positions and left the market when the crisis (stocks) broke out.

In a sense, this dividend can be regarded as narrowing the gap between the rich and the poor in the Austrian Empire, and the people's trust in the imperial government and the royal family has been further improved. At the same time, the people do feel "happy".

However, there are always two sides to things.

Thun Street, Grizzly Hotel.

Soros's forehead was bulging with veins and he crushed the pencil in his hand. He did not expect that the Austrian royal family would dare to distribute dividends like this.

"My dear, are you okay? The Habsburgs are very courageous and trustworthy. They should be a good trading partner. We may be able to invest here." Ferona comforted her husband and gave her own judgment.

Ferona Mercure is the only daughter of the Mercure family.

(Of the 9 brothers and sisters, 3 died young, two died in accidents, and four died in revenge.)

The Mercure family is one of the richest Jewish families in the United States at this time. It started in the banking industry and is also the largest shareholder of the Northern Shipping Company of the United States.

(The shipping here is inland shipping, not an airline.)

Ferona has been investing with her father since she was a child, and her eyesight is naturally extraordinary.

But Soros snorted coldly and said in a cold tone.

"This is just courting death!"

Soros's expression and tone frightened Ferona a little. The latter knew that the former had always been a witty and elegant gentleman, but now he looked like a frustrated gambler.

At this time, Soros also woke up and smiled. The smile was like a spring breeze, and there was no trace of the previous haze.

"Haha, the Austrian Empire's practice is tantamount to drinking poison to quench thirst. My dear Ferona, are you going to do business with a dead person?"

In a trance, Ferona felt that she had seen it wrong, and Soros was still the same Soros. So she said.

"Drinking poison to quench thirst? Dear, you can see that there are crowds of people celebrating everywhere on the street. People are taking the newly earned money to spend in the shops, especially the shops under the name of the royal family are already crowded with people. There is no doubt that the money will return to the hands of the royal family. How can it be drinking poison to quench thirst?"

How to make civilians more willing to spend money and spend more money has always been the ultimate problem studied by businessmen.

In fact, Ferona knew after visiting a mall in Vienna that the commercial potential of this country is almost infinite. There are a wide variety of goods and people are willing to consume and believe that tomorrow will be better.

Moreover, the royal family and the government have a great influence on the economy, and they have indeed coordinated and resolved many market contradictions. Ferona had never seen such an orderly and vibrant market, and she wanted to see the creator of all this with her own eyes.

"The Austrian Empire's recent big move is not just to pay dividends, they have repaid part of their debts. What are the consequences of such a large amount of money entering the market?" Soros said slowly.

"Inflation?" Ferona immediately thought of this word in her mind, and also thought of some bad things.

"Yes, it is inflation." Soros said affirmatively.

"The problem with the Austrian Empire now is that there is too much money, and you can see that these civilians have no sense of saving money at all, and the rich people also want to spend all their money, because there are too many things that can be consumed in this country. Look at the wheels of those carriages."

Ferona subconsciously looked at the wheels of the carriages and did not find anything wrong, so she looked at her husband in confusion.

Soros smiled.

"My dear, you certainly don't care about this wheel, but this is a rubber pneumatic tire. In our country, such a tire can buy a cow, and almost all private carriages on the streets of Vienna use this tire.

Look at the box in the lady's hand."

Ferona looked at it and then widened her eyes.

"Camera?! How can it be so small!"

"This is really an amazing country. Today I understand why Europeans always like to call us Americans country bumpkins. Their technology is really too advanced." Ferona sighed.

"But the Austrian Empire does not have so many goods for people to consume." Soros said casually.

"People suddenly have more money in their hands, but factories will not expand production because of this, because this hot money is only temporary.

Following the trend will lead to product surplus, which will lead to price drops, factory profits decline and eventually trigger an economic crisis.

But if production is not expanded, people will not be able to buy things with money, which will lead to rising prices. Austria's expected banknotes will depreciate, and at that time the country will still not escape the fate of an economic crisis.

So no matter what the Austrian government does, this country will be finished."

After listening to Soros's analysis, Ferona also felt that it made sense, and the Austrian Empire's use of expected banknotes, an unconvertible currency, was a hidden danger in itself.

Coupled with the series of operations of distributing dividends and repaying debts at this time, I am afraid that no one can save this country.

Felona could already imagine the scene of banks going bankrupt in a run.

"What a pity for this beautiful city." Felona couldn't help but sigh.

"There's nothing to be sorry about. I will make New York the most beautiful city in the world. Dedicated to you!" Soros said with a smile.