Chapter 650 Preparation for Transferring the Crisis

Arthur was aware of all William's actions in London, and naturally understood the fact that the London stock market was about to collapse.

This time can be long or short, and it can be controlled or left alone.

If there is human intervention, the crisis of the London stock market should be delayed for several years. This is also the real reason why a large number of consortiums have not withdrawn. After all, the stock market still has several years of profit, and the British government will not let the stock market collapse.

Moreover, compared with the outbreak of the economic crisis in London, Arthur would rather see the economic crisis break out in the United States.

After all, the wheel of history cannot be changed. Americans are larger and more likely to withstand the harm caused by the economic crisis.

Arthur has been seriously considering it, but in the current world environment, if an economic crisis breaks out, what impact and harm will it bring to various countries?

Because economic crisis is inevitable, this is an inevitable law in the capitalist market, and human control cannot avoid it. It can only advance or delay the time of the outbreak of the economic crisis.

The economic market under capitalism is like a person, and the economic crisis is like the death of this person. This is something that current scientific and technological means cannot change at all.

However, the economic market will still recover, but humans will have nothing after death.

To consider the impact of the economic crisis on various countries, the economic scale of each country and the bubbles under the economic scale become particularly important.

As the two cities with the largest populations, London and New York, the twin stars, undoubtedly have the largest economic scale.

London is backed by the entire British Empire, and New York is backed by the entire United States, both of which have a huge market support.

The reason why London can surpass New York is nothing more than that most of the companies in Britain's colonies also go to London to list, which in disguise increases the prosperity of London.

Except for London and New York, the scale of other stock markets is too small to affect the whole world.

This also means that in order to minimize the impact of the economic crisis on Australasia, the economic crisis must break out in the United States as it did in history, and perhaps there is only one answer, New York.

Because once the crisis breaks out in London, major European stock markets will also be unavoidable. This will cause great destruction to Europe, and the United States will smoothly become the world's number one power, and even without World War II, it will directly become that giant country.

This is something Arthur cannot accept at all. After the United States becomes stronger, it is bound to cause trouble everywhere, which will not only destroy the colonial system of Britain and France, but also destroy the rule of Australasia in the southern hemisphere and across the Pacific.

Even in a bold guess, if the economic crisis destroys Europe, Europe will directly lose its competitiveness without the baptism of war.

Because the capital ties between European countries are quite close, once there is a problem in London, all European stockholders will be affected, most European industries will go bankrupt, and Europe's prosperity will end.

"Your Majesty, I don't think we need to worry too much about the economic crisis, because our economic situation is different from that of Europe and the United States." At the cabinet meeting, the Chancellor of the Exchequer Hunt said to Arthur seriously.

"What we should worry about is the extreme shrinkage of imports and exports after the economic crisis, and the coming of the winter of international trade. I am afraid that by then, except for some food and meat trade, all our exports will be terminated, and all imports will be out of stock."

For the current world economy, the stronger the country, the less it can avoid the impact of the economic crisis.

To give a simple example, a strong country will definitely occupy more markets and create more import and export trade.

But even if the economic crisis does not affect itself, it will reduce the purchasing power of other countries, and the export trade volume will naturally shrink.

If things cannot be sold, it will also be a heavy blow to the industries and sectors of one's own country, because this will force companies to lay off employees and create a new round of unemployment.

Can it be said that it is immoral for companies to lay off employees at this time? If companies do not lay off employees, the companies will be finished.

But the problem is that once companies start to lay off a large number of employees, those people who quickly lose their jobs and sources of income will not only breed a large number of criminal cases, but also increase people's dissatisfaction with the government.

How to solve the impact of other countries' economic downturn on Australasia's goods exports is what Hunter believes Australasia should worry about.

Arthur nodded, and what Hunter said was not much different from what Arthur expected. Australasia's economy does not have a big bubble, and it is basically a real economic growth driven by various infrastructure.

Like those real estate, stock market and finance that are prone to bubbles, Australasia has them, but they are far less serious.

Even Sydney and Melbourne, which have large populations, have not reached the situation of London with small land and large population.

The whole of Australasia is still in a state of vast land and sparse population, so there is no shortage of land for self-built houses, and house prices will not rise too much.

As for those stock investors in the stock market, there are also some in Australasia, but they have not reached the exaggerated level of London.

The number of stock investors in Australasia is only about hundreds of thousands, and the funds entering the Sydney and Melbourne stock markets every day do not exceed one million Australian dollars. Even if the stock market crashes, the impact will not be that great.

What's more, the stock market in Australasia is basically Australasia companies, and there are very few foreign companies, so the possibility of collapse is not great.

This is also because Australasia is too far away from Europe and the United States. These companies have better options such as New York and London to go public, and naturally will not choose Sydney or Melbourne, which is thousands of miles away.

Sydney and Melbourne are more attractive to Southeast Asian companies. There are many rubber and mining companies founded by Europeans, as well as a small number of agricultural product companies. Most of them will choose to go public in Sydney or Melbourne.

Add to that the local companies in Australasia, and this is the composition of the Australasia stock market.

Under the premise that the rubber industry is under control, it is almost impossible for the Australasia stock market to usher in a collapse. After all, the size of the royal consortium is here, and Arthur cannot sit back and watch the collapse of the royal consortium and other consortiums.

It is also very simple for Australasia to reduce the impact of the economic crisis. It only needs to reduce the share of production, provide certain relief to the unemployed, and use work-for-relief to allow them to obtain income and food.

Judging from the grain and meat production of Australasia, it is impossible for the country to collapse, not to mention that there is Arthur in charge.

It is not even an exaggeration to say that Australasia can almost avoid the harm caused by the economic crisis, and it is nothing more than a period of economic slump.

But out of consideration for the interests of the royal family, the economic crisis will still have a certain impact on Australasia.

After all, as the heir to the throne, William has grown up, and he needs opportunities like the economic crisis to brush up his reputation and improve the public's favorability towards him.

Anyway, the economic crisis is within his control. Let William brush up his reputation under his control, and there is no need to worry about any accidents.

Even if the situation cannot be controlled in the future, there is Arthur in charge, so there is no need to worry about the serious impact on the economy of Australasia.

This can also be regarded as paving the way for the next king. No matter how high Arthur's prestige is, his rule cannot last for hundreds of years.

The throne must be stable in the inheritance from generation to generation, which is crucial for the training of the next one, not only in terms of ability, but also in terms of his prestige and status.

After confirming that the economic crisis had little impact on Australasia, Arthur turned his attention to other countries, looking at Hunter, who had grown significantly, and asked: "If the economic crisis breaks out in the United States, what impact will it have on Europe at present?"

Hunter thought carefully for a while, and then continued: "Your Majesty, according to the current industrial situation of Britain and France, they will inevitably transfer most of the crisis to Germany after the outbreak of the economic crisis.

Long before, the Allies placed some heavily polluting factories in Germany. This allowed Germany's industry to recover rapidly and Germany's exports to continue to grow.

After the outbreak of the economic crisis, no matter where it broke out, Germany would be severely affected. According to the current number of British and French factories in Germany, at least millions of German workers will be displaced, and Germany's economy will collapse overnight.

But if the economic crisis is not serious, perhaps they will try to eat the economic crisis themselves. Especially for the British, they should not want to see a collapsed Germany."

Arthur nodded, and was quite satisfied with Hunter's guess. No country wants to bear a very serious crisis alone. Under the premise that the crisis can be transferred to other countries, Britain and France will definitely transfer the crisis without hesitation.

After all, because of the loan repayment, Britain and France transferred some heavily polluting industries.

Although these industries have accelerated the recovery of German industry, they have made the German economy more tied to Britain and France.

Once the economic crisis comes, it is easy for Britain and France to blame Germany. Although it is not possible to completely get rid of the impact of the economic crisis, it is still okay to let the Germans bear the brunt, at least they can bear most of the harm caused by the economic crisis.

Because the essence of the economic crisis is that overcapacity causes a large number of industrial products to be accumulated. If there are too many products that cannot be recovered by the economy, it will cause a shortage of economic chains and eventually cause the company to go bankrupt.

After the company went bankrupt, a large number of workers lost their jobs. These workers and their families lacked income to buy daily necessities, and their consumption capacity was reduced again, and they had no money to buy industrial products.

This cycle forms a vicious circle. This is the process of economic crisis and a major crisis that the capitalist world cannot avoid.

Germany's current industry is undoubtedly in a state of overcapacity, and it exports a large number of cheap industrial products to Britain, France and other European countries every year.

Once Britain and France take the initiative to reduce their import share, Germany's industry will face a devastating blow, and the number of unemployed people facing Germany will definitely be in the millions.

Even if Britain wants to support Germany against France, when faced with an economic crisis that is enough to affect itself, it will definitely choose to transfer the crisis to Germany without hesitation. After all, saving itself is the most important thing.

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