In the blink of an eye, 1894 came to an end. The Vienna government, which had been in deficit for a long time, finally got rid of the fiscal deficit this year.
Embarrassingly, the main reason for getting the Vienna government out of the fiscal deficit is not the increase in tax revenue for economic development, but the over-issue of money.
With the joint endorsement of the European Union, the Vienna government has issued more than 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 the Vienna government that takes the big bucks. According to preliminary estimates, after deducting printing costs and profit sharing, the seigniorage income belonging to the Vienna government is still as high as 780 million.
Compared with the normal season, the annual fiscal revenue is more. If it can't turn losses into profits, it's really unreasonable.
The endorsement of the alliance only stabilizes the value of the SHIELD, but the bad effects of currency over-issue still exist.
According to the statistics of the Vienna government, the domestic inflation rate will be as high as 3 points this year. This is still the result of the over-issued currency not all flowing out, otherwise inflation will be even more severe.
If it is placed in the credit standard era of later generations, the inflation rate of 3 points will not be a problem at all, and inflation of seven or eight points will occur from time to time.
Inflation is happening all over the world, and no inflation is news. There are even more than double-digit countries that have maintained double-digit inflation rates for many years.
But now it's different. In the gold standard era, inflation was minimal. Except for a wave of inflation caused by the influx of gold and silver in the sixteenth and seventeenth centuries, after entering the industrial age, there has been little major inflation.
The inflation rate of 3 points has already made the Vienna government nervous, for fear of causing 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 it weren't for the Vienna government's loan of a large amount of Aegis, the amount of consumption in Shinra was limited, and now it has been reversed to the export industry.
There are pros and cons, taking such a big risk, naturally there are corresponding benefits.
With this additional income, the Vienna government not only made up for the financial deficit, but also started the ring railway plan, and by the way also paid off part of the government debt.
The most important thing is to suppress the revolutionary wave, contain the continued expansion of the economic crisis, 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 came to the throne.
In the first quarter, the curtain of the economic crisis was opened, and the GDP fell by 8.7% compared with the same period last year;
In the second quarter, the economic situation further deteriorated, with GDP falling by 12.8% compared with the same period last year;
In the third quarter, the measures taken by the government began to play a role, and the economy showed a certain improvement, but the GDP still fell by 10.8% compared with the same period last year;
In the fourth quarter, European and continental countries reached an agreement to jointly launch a "water release" rescue plan, but compared with the same period last year, GDP still fell by 5.1%.
On an annual basis, Shinra's economy fell by 8.93% in 1894. In the end, it did not break through 10 points, and the number of sliding points was controlled by single digits.
Unfortunately, the reality is more serious than that. The above data also includes the already localized African territories into the calculation, which dilutes the decline ratio.
If it weren't for the fact that the aristocratic lords in the African region were desperately engaged in construction, maintaining rapid economic growth and boosting economic data, Shinra's economic data in 1894 would have been extremely moving.
In parts of Europe alone, the GDP growth rate is definitely double-digit, 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 respond in a timely manner, this number may even double directly.
Shinra, who has a big family and a big business, is so miserable now, and other countries are naturally not much better.
Not to mention the defeated France, the aftermath of the war continued. Compared with before the war, it would be slashed and then slashed, and then a 20% discount.
Not to mention repaying debts, it would be good to be able to smooth out the daily expenses of the government. So that since Carlos came to power, he has been fighting corruption until now.
According to estimates by the Vienna government, Armenia, which suffered the least in the economic crisis of 1894, maintained positive economic growth, although the agricultural country was growing at a snail's pace.
Even Montenegro, an agricultural country, was not able to escape the disaster. Although the economic crisis did not follow, its own economy was too heavily affected by Shinra.
The Shinra economy is sluggish, and Montenegro's import and export trade has also been greatly affected. Because the proportion of exports is not large, the economy has only declined slightly, and it is initially estimated that the decline will not exceed 1 percentage point.
Followed by the Nordic Commonwealth and the Netherlands, which have made a fortune in war, and their wealth is not weak, they are far less affected by the economic crisis than other countries.
However, the economies of the two countries are too closely linked with Europe. A serious economic crisis broke out in Europe, and they can only follow the crisis.
Affected by the economic crisis, even if there is not 10 points of GDP decline, 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 were too close, the Shinra economic crisis broke out, and the Russians' industrial raw materials were also unsalable. Stock market crashes, layoffs, and bankruptcy are also unavoidable.
If this is all, it can only be regarded as a drizzle of economic pains. Unfortunately, revolutions broke out in Poland and Bulgaria, and the guerrillas in Central Asia also joined in the fun.
If the tsarist government had taken the right economic measures in time, perhaps the situation would not have been so serious, but unfortunately they did nothing.
All the factors were added together, and in the end, the Russians handed in a slightly better answer than Shinra, and a drop of seven or eight points was indispensable.
Of course, these are only the estimates of the Vienna government. The Tsarist government did not count them, and it is even more difficult for outsiders to figure out.
In addition to these less damaged ones, the rest are counted as one, and the economic decline and growth are all negative double digits.
Even Great Britain, with a big family, is no exception. As a financial empire, banking and financial industry occupy an important proportion in the national economy.
Because the crisis was artificially delayed, the market bubble grew further. Among them, the stock market is the most inflated, so after the economic crisis broke out, Shinra and Britain became rotten brothers and rotten brothers.
A post-war industrial imbalance + stock market bubble triggered a national economic crisis; an oversized stock market bubble affected the financial industry and followed by a crisis, and finally turned into an economic crisis.
How big the specific loss is, Franz can't be sure, but there must be more than a dozen points. Otherwise, I'm sorry, the title of "the biggest economic crisis in human history".
Compared with the tragic economic crisis, small inflation is naturally nothing. But as the economic situation improves, this kind of inflation becomes a bit of an eyesore.
Don't look at the fact that European countries and Shinra bear the losses together, and the impact will not be large in the short term, but Shinra is still a super country.
With the continuation of overseas trade, the loans released will continue to flow back to the Shinra Empire. If no countermeasures are taken, Shinra will be plagued by inflation for the next few years.
In this context, once the economic crisis is over, the Vienna government has only two options: either to lend money again; or to adopt a tightening monetary policy.
After experiencing a wave in person, Franz suddenly understood why the Americans were madly throwing money to the outside world after the two world wars.
There is a serious excess of capital, and 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 reunite the Shinra Empire and also benefited from the capital surplus of the British.
If the British had no money and nowhere to spend, Austria could not have completed its industrialization in a short period of time. Including infrastructure construction, British capital has also made great efforts.
Of course, British capital is also not at a loss. Except for a few times designed by Franz, they accidentally fell into the pit, and other times they made a lot of money.
The only loser is probably the British government. For the sake of profit, capitalists invest and lend money overseas, and as a result, they create a competitor for themselves.
History seems to have returned to its 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, but it seems that with the rise of Prussia, British capital has also made great efforts. Without them, where would the impoverished Berlin government get the money to do things
In this respect, London bankers are the gravediggers of the British Empire.
Without their help, competitors certainly would not have developed as fast. Britain may also lose its hegemony, but certainly not so fast.
There is such a tragic example of "the teacher who never forgets the past", Franz can't think about it carefully.
…
One wave has not settled, and another has risen.
Just when Franz was thinking about his future development, he had just hit a cephalosporin in the Philippine Islands, and the Japanese who were forced to evacuate did something again.
While the neighbors were dozing off, they brazenly launched a sneak attack, directly crippling the Beiyang Navy. Immediately afterwards, the Japanese army launched a landing operation with lightning speed.
Regardless of whether the Far Eastern Empire has woken up from the daze, the enemy has already hit the door. Although the Japanese army was still on the Korean peninsula, the war had already broken out.
This is not the end, the Far East is caught in the flames of war, and the Americas are in turmoil.
The backhand launched by the British finally came into play, setting off an independence movement in Cuba.
Spain, which had just ended the Philippine War and had not had time to breathe, was also forced into a new war.
Just a short while later, they got together. I don't know if the Japanese government, which has just abandoned the Philippine Islands, is annoyed at this moment.
Of course, what the Japanese government thinks doesn't matter anymore. A new war is waiting for them. Besides, even if they want to turn around, the international situation will not allow it!
The European Union forced the palace together, the scene was really scary. The same scene, the Japanese government will never want to experience it again.
Does the Japanese government regret that Franz knows, anyway, the Spanish government absolutely wants to cry now. Cuba's independence movement broke out at this time, directly hitting their soft underbelly.
The war in the Philippines had just ended, and it was the time when the Spanish government was at its poorest. Even the money for rebuilding the colonial government has not been raised by the Spanish government, and another source of money has gone wrong.
The empire on which the sun never sets has fallen. The Philippines and Cuba were not the only colonies of Spain, but they were the richest colonies in their hands.
Losing any of them would be a huge blow to Spain. Not just an economic blow, but a politically fatal crisis.
Just after being disgraced by the Japanese in Nanyang, it was the time when the nationalists in the country were at their most prosperous.
If it hadn't been for the power of the European Continental Alliance to successfully take back the Philippine Islands and use the victory to appease the domestic people, there would have been no peace.
At this time, the Kingdom of Spain cannot stand any failure. Any failure would crush their shaky status as a great power and even spark a revolution.