When the bubble burst, Shinra, the economic leader, suffered the most; Britain, the second largest industrial country in the capitalist world economic system, naturally suffered the second largest loss.
Regardless of whether the two countries are already opposed to each other politically, they have long been tied together economically. The Shinra Empire has a serious economic bubble, and the economic bubble in Britain is not much less.
In fact, the crisis should have erupted after the end of the European Continental War, but it was suppressed by the joint forces of all parties.
The Vienna government has taken steps, and the London government has not been idle. When the Gladstone cabinet was in power, Britain's foreign strategy almost collapsed. If the economic prosperity disappeared, it is estimated that the British people would tear them apart.
The cabinet wanted to spend its final term safely, and the consortium needed time to retreat. The two sides hit it off and artificially created a virtual economic boom in the second half.
The economic crisis that should have erupted in 1893 has been dragged to the present. If it weren't for the thunderstorm in the Vienna stock market, it is estimated that the crisis will continue.
In this context, Robert Cecil, who just took office, was tragic. The stock market crash is coming, and the economic crisis is about to break out.
In these years, the UK implements a free economy, and the government cannot interfere in the market. Of course, this is good to listen to, if you are serious, you will lose.
Not being able to directly intervene in the market does not mean not intervening at all. In fact, the government's economic policies, laws and regulations are all important factors affecting economic development, and the only difference lies in the degree of interference.
Including tax adjustment, social assistance, joint consortium to save the world, launching foreign wars to transfer crisis, etc., are all part of the government's intervention in the market.
"What's the matter, does the consortium agree to rescue the market?"
No need for Prime Minister Robert Cecil to be in a hurry. Since the economic bubble was burst, the London stock market has followed in the footsteps of the Vienna stock market, opening a continuous downward pattern.
Unlike a conservative country like Shinra, there are a large group of family businesses that hold their shares tightly and not go public. Britain is the most developed country in the financial industry, but all companies that have a large scale are listed companies.
It is easier for listed companies to obtain financing, which is conducive to accelerating the development of enterprises. The aftermath is that enterprises are affected by stock price fluctuations.
The management model of professional managers seems to be very scientific, but the company's money is not its own after all. In order to obtain higher returns in the short term, corporate management is usually more aggressive when formulating strategies.
In normal times, it’s okay. Once the stock price drops sharply and corporate financing becomes difficult, aggressive development strategies often lead to the breakage of the corporate capital chain.
In contrast, non-listed, conservative family businesses prefer to play steadily. Although the development speed is a little slower, the company itself rarely has a large amount of debt, and it maintains sufficient capital flow most of the time, and there is no risk of capital chain breakage.
The most important thing is that the large enterprises that are not listed are usually high-quality enterprises with good profitability and strong market competitiveness, and their ability to resist risks is the strongest.
For details, please refer to Wen Franz’s royal consortium. Most of the companies listed are high-risk technology companies, or companies with insufficient profitability, uncertain development prospects, and companies whose development potential has touched the bottleneck of the industry.
Companies that are really profitable, or are in the stage of rapid development, all nest below and make a fortune. When the development reaches the bottleneck of the industry ceiling, when is the time for listing and cashing.
What to grow and share together, this kind of deceitful nonsense is enough. A high-yield transaction that is guaranteed to make a profit without losing money, is it not good to hold it in your own hands, why should you share it
Maybe some companies have done it, but such companies are very rare. There are only 180 of the thousands of listed companies.
Enterprises that can operate stably, outperform inflation, keep up with the speed of national economic development, and have no thunderstorms are conscientious enterprises.
If all these high-quality companies in the audience are listed, no matter how low the valuation given by the market is, with the economic size of the Holy Roman Empire, the scale of the two major financial centers of Vienna and Frankfurt cannot be smaller than that of London.
In this context, the Holy Roman Empire, where the stock market fell the most, was not as economically hit as Britain.
Economic Minister Aquinas shook his head: "It is very regrettable that they rejected our proposal. The consortium believes that the current stock market is still in a bubble, and there is a very big risk in raising the stock price now, and it needs to wait.
If the government really wants them to fund the rescue of the city, the consortium has also put forward a condition, that is, it must join forces with Vienna, and they are worried that they will be profited by the fisherman. "
Robert Cecil frowned and said unhappily: "Wait a minute, if you wait any longer, the company will go bankrupt, and the city will be saved. Let's work together with Vienna, but they can figure it out.
The current situation is very obvious. After the European Continental War, the Holy Roman Empire's economy has experienced major problems. Now it is in a period of economic adjustment. Whether there is this stock market crash, they will have an economic crisis.
And we are not the same, just the unlucky ones who were implicated. If the stock market cannot be stabilized, it is necessary to accompany them through the economic crisis.
If they don't drag everyone into the water, it's no wonder that the Vienna government will rescue the city. Now they can't wait to drag everyone into the water and share the loss for them. "
It's no use complaining, and there is not only British capital on the London stock market, but also capital from continental Europe.
If the parties cannot reach an agreement, the British consortium will rescue the market, and people will take the opportunity to sell, and they will become the takers.
Although European capital began to flow back since the beginning of the year, only a small part of their huge volume has flowed out.
After the Vienna stock market crash broke out, the British consortium took advantage of the advantages of sitting on the ground to take action one step ahead, giving international capital a blow.
Now they have to think about bailout, they are naturally worried that others will follow suit. They spend a lot of money to pull up the stock price, and others take the opportunity to run away, and they will be forced.
After all, consortia are not everything. In the intriguing capital market, everyone must be cautious, or they will be eliminated by the market sooner or later.
What's more, the large number of bankruptcy of enterprises is very unfavorable to the country, but it is a capital feast for the consortium. They can completely take advantage of the opportunity of corporate bankruptcy and reorganization to earn some high-quality enterprises at the price of cabbage.
…
It's not just the British government that has the headache, all the capitalist industrial countries have a huge headache in the face of the hobhead who is bent on pulling everyone into the water.
In the past, all countries criticized the Vienna government for interfering in economic freedom. This time, there is no need to spray it, but the result is even more unacceptable.
The Vienna government finally followed the natural laws of a market economy, and as a result everyone was dragged into an economic crisis.
In fact, Franz is also in a difficult position now. He also doesn't want an economic crisis to happen now, if possible. But there was no other way, and the economy of the Holy Roman Empire unknowingly went astray.
Especially in the northern states, not only is the industrial development unbalanced, but there is also a large amount of overcapacity. For example, railways and construction are the two hardest hit areas.
After the end of the European War, I don't know who came up with the idea, and several states in the north started to build large-scale infrastructure. Originally, there was no problem with infrastructure construction. The problem was that they built a lot of unnecessary infrastructure.
The repeated construction of railway lines and branch lines even penetrated into the villages, the real estate projects that are blooming everywhere, and the water conservancy projects that are not practical at all.
If it weren't for the outbreak of the economic crisis and the bankruptcy of the government of the Kingdom of Prussia, Franz would not have known that someone was having such a good time.
In fact, even if he knew in advance, there was no way he could interfere. State autonomy is not a joke, how to develop the economy is the freedom of others, and there is no need to report to the emperor.
The only positive is the lack of grain harvest in North Germany last year. Yes, the food shortage is also good at this time, at least for now.
If there is a bumper grain harvest, Franz will also consider the problem of excess agricultural products. After all, after the economic outbreak, people have to tighten their belts, and even the sales of just-needed products such as food will decline.
The poor harvest of grain in the north last year at least ensured the stability of the empire's agriculture. As for the follow-up impact of the lack of food harvest, those are all minor issues.
Except for the Kingdom of Prussia, which became impoverished due to the Russian-Prussian War, the economic conditions of the other northern states are very good, otherwise they have no money to pretend.
Since the outbreak of the economic crisis, with the exception of Wilhelm II who came to Vienna for help, the other states have only sent a few telegrams to complain about difficulties, and by the way weep for money.
It can be seen that they can hold on for the time being and are unwilling to let the central government intervene in the internal economic problems of the state.
This kind of worry-free little brother, Franz is the favorite. As long as it doesn't cause trouble to the central government, who would want to interfere in the internal affairs of the state if it is not fed up
Regardless of whether they were killed or not, purely from the perspective of economic development, these state governments did better than most of the provinces directly under the Central Government.
The Kingdom of Prussia is mainly due to the serious problems left over from history. The huge indemnity brought by the war has affected the domestic economic development.
But in general, the economic recovery is still good. Although it is a little behind its neighbors, its per capita income is still higher than that of Spain and Russia, and it is almost catching up with France before the war.
Although the impact of the economic crisis is great, it has just begun, far from the most difficult time. With the family background of the Kingdom of Prussia, even if it can't support it, it will not kneel at the first wave.
In particular, the Kingdom of Prussia was suddenly declared financially bankrupt without any warning. Normally, before declaring bankruptcy, they should turn to the central government for help.
Even for the sake of imperial face, as long as the funding gap is not too big, the Vienna government will pull them.
The reality is just the opposite. Before the government declared financial bankruptcy, apart from tossing out a bunch of unfinished projects, it never asked Vienna for help, as if it wanted to go bankrupt.
After the Berlin government declared financial bankruptcy, Wilhelm II jumped out and went to Vienna to cry poor and miserable. This is obviously abnormal.
Today is different from the past. As a member of the Holy Roman Empire, Prussia already has the ability to bargain with the British.
Franz had every reason to believe that the Prussian government deliberately bankrupted itself, and the economic crisis just provided them with an "excuse for bankruptcy".
Even without this economic crisis, they will go bankrupt under other excuses after a period of time, for example: the government's capital chain is broken, unable to pay for the project...
After all, there are many benefits to the bankruptcy of the Prussian government now! Domestic economic problems can be turned to the central government for help, and the Vienna government cannot sit idly by; the debt owed to the British that may not be repaid in the next century can also be reasonably requested for debt restructuring.
The Kingdom of Prussia also has a criminal record in this regard. When the "German Federal Government" went bankrupt a year ago, the Berlin government followed suit.
It's a pity that the last move was short, and the British just accepted the transfer of creditor's rights from the German federal government. After all, the German federal government was a government that did not sign a contract today and would be disbanded tomorrow. In order to avoid finding a debtor, the British could only pinching their noses.
The Kingdom of Prussia is different. Even if the government is dissolved and the king is still there, it is impossible for William II to lose the throne because of debts. As long as the country is still there, the government will not be re-formed, and the debts owed will not escape anyway.
In addition, the Holy Roman Empire was still being formed at that time, and there was no central government to stand in front of the wind and rain. The Berlin government could not bear the pressure exerted by the British, and was counseled after obtaining a debt extension for a few months.
It's different now, as long as the Berlin government is thick-skinned, the British can't do anything about them.
"Collateral" for debt
There is no problem, even if you send someone to pick it up, we promise to cooperate fully.
Tariffs, now collected by the central government, as long as the British think they can take them away from the Vienna government, there is no problem.
The port terminal, although in the hands of the Kingdom of Prussia, involves territorial sovereignty, which is also the job of the central government. If we want to talk about it, we will also ask the Ministry of Foreign Affairs to discuss, as long as the Vienna government is willing to agree that everything can be negotiated.
The right to mint coins also belongs to the central government. If you want to discuss with the Ministry of Foreign Affairs, the Prussian government, as the local government, has no right to intervene now.
…
In short, after the debt default, none of the series of mortgage contracts signed by the Prussian government and the British can now be implemented.
Although these treaties still have legal effect before the establishment of the Holy Roman Empire, the only way to fulfill the content agreed upon in these treaties is to negotiate with the Ministry of Foreign Affairs of the Empire.
"Deliberate default" and "no money to repay debts" are two completely different concepts. The former is despised by the international community, while the latter only needs to hand over the collateral.
Now, as long as Wilhelm II is willing to put down his face, put on a posture that he is willing to hand over the collateral, and then push the problem to the Vienna government, the matter is over.
In the end, it was the British who compromised, and the Vienna government paid their debts for them, and he didn't need to worry about these issues.
Knowing that it was trouble, Franz could only bite the bullet and take it. No matter what the reason, he, the emperor of the empire, cannot let the country's sovereignty be lost.
Thinking of this, Franz wanted to beat up some keyboard warriors to death. Who said that William II was a jerk, and his political tactics were so smooth.