Chapter 652: Financial Markets

  Chapter 638 The Financial Market

With the outbreak of the Second Industrial Revolution, the total amount of industry in each country snowballed, and the demand for markets and industrial raw materials increased day by day.

The Vienna government rushed to promote free trade, in addition to the domestic economic development needs, there are also ulterior strategic purposes.

Once the era of free trade had begun, Austria, which had an advantage in new industries, was bound to magnify that advantage and set a higher threshold for the later.

If the progress is smooth, in the near future will appear: the British occupy the traditional textile industry, shipbuilding industry; Austria occupies the emerging power, communications, internal combustion engine industry of the world’s industrial pattern.

It can almost be said to replicate the economic rise of the German Second Empire, except that Austria has a thicker family background, itself Europe’s number one exporter of agricultural products, as well as vast colonies to back it up.

Britain and Austria divided the main body of the world’s industry, the rest of the country how to do?

Especially after the two countries of France, whether it is the British competition for traditional, or and Austria competition for new industries, they have no advantage.

Not technically unable to keep up, mainly industrial raw material supply has no solution. Unlike later generations, the transportation in this era is not so developed. Once the distance is too far, the cost goes up.

Militarily the risk of crushing France is too great, now France is already a large country with a population of nearly 60 million, even if the Italians do not contribute militarily, they can still contribute logistically.

The snipes will be the ones to get the job done.

Unless the war can be ended in a short period of time and the other side completely defeated, the victor is the fisherman.

Just take a look at the map, a little bit of military common sense people are clear, France and Austria can not be divided in a short period of time, this is the geographical location of the decision.

In contrast, crushing France economically is much less risky and has a much higher success rate.

Economic aspects of Britain, France and Austria are competitors, even if the London government likes to play a continental balance, it can only be a military balance, the economy can not play balance.

France and Austria have long been out of balance economically, and the British have not thought of stepping in to pull the French, which means capitalizing on the enemy.

Don’t talk about strategy, capitalists don’t have that high a sense of propriety. Making money comes first, why turn down the ability to take out a competitor and make more profit?

As big a threat as Austria is, it’s a future problem, and there’s no way capitalists are going to give up making money just for the sake of potential danger.

The classic case in point is the rise of the Soviet Union in the original time period. In terms of threat alone, this could be much more terrifying than the current Austria, and for the sake of profit capitalists cooperated with the Soviets as usual.

In the era of free trade, the economy is determined by the market, and the government’s interference is relatively small. Take the London government of this era for example, they hardly interfered in the market.

Needless to say, once Austria joins the free trade system, vested interests will also push for the two governments to join forces and pull all the remaining countries into the free trade system.

There’s no doubt that most of Europe doesn’t have the backbone to refuse, and when everyone joins the free trade system, the French will be in trouble.

By joining one of the game circles, they are not competitive, and by not joining the circle, they will fall into the awkward situation of being a single player.

Originally, France was ostracized in the European continent, Napoleon III worked hard for twenty years to be barely accepted by everyone, and now playing single player is back to the former state.

Perhaps the British will give up the free trade system at some point, but definitely not in favor of France. Free trade is the British signature as long as the benefits outweigh the disadvantages.

From the current situation, as long as you do not make your own death, the next few decades, British industry and commerce will be able to maintain competitiveness, which is the heritage of the old industrial powers.

……

Franz: “What is the reaction of domestic public opinion?”

Prime Minister Felix: “Supporting voices and opposing voices are not far apart, both sides are very noisy, I’m afraid that in a short period of time can not be divided into winners and losers.”

Support for free trade is not only emerging industries, but also the agricultural processing industry, they are Austria’s advantageous industries, have enough confidence to participate in international competition.

By joining the free trade system and reducing import and export tariffs, these industries have a vested interest.

For example, the cotton textile industry was the staunchest opponent, and once the tariff barriers were dropped, the British were bound to take part of their market.

Of course, if these companies are competitive enough, there is also the opportunity to run out to steal the British market. After all, these industries were low-tech, and the gap between everyone in technology was not that big.

If not for the higher labor costs in Austrian Africa, it is estimated that the domestic cotton textile industry will move, once the era of free trade, cost control has become an essential part of the enterprise.

Franz: “Then give them a platform for supporters and opponents to debate, with the eat …… public as the referee.”

Originally Franz wanted to say “melon eating masses”, just words to the mouth, feel out of place, in time to change to “the public”.

“Your Majesty, I’m afraid this will cause even more trouble. Already many people have applied to the police station, for a demonstration.” Prime Minister Felix advised

Franz shook his head, “It is precisely because things have gotten so heated that it is necessary to let them debate. Without giving them a channel to vent, will these people with damaged interests be willing?”

It was better to let the capitalists and capitalists spar than for the government to come down on them personally. Regardless of the outcome of the debate, reforms are needed.

It’s just that there’s an extra layer of cushioning that allows those with damaged interests to shift the target of their hatred.

That’s the way it should be, and as those with vested interests in the reform can’t just take the benefits without doing anything, pulling the hate is part of their responsibility.

……

Finance Minister Karl: “Your Majesty, our negotiations with the British have been blocked, and in general both sides have reached an agreement, except that the British have asked us to open up the financial sector.

With the strength of the financial sector in the country, once we open up the financial market, it will be difficult for us to gain an advantage.”

Not to mention occupying an advantage, the strength of the Austrian financial sector is still not comparable to the French, let alone compared to the British. If the restrictions were liberalized, it would basically be left hanging.

After hesitating for a moment’s effort, Franz: “Liberalizing financial restrictions is impossible, domestic capital is subject to restrictions, how can foreign capital not be restricted?

Continue to talk to the British, British capital can be allowed to enter the securities market, but must comply with the relevant laws.

If the British continue to dwell on financial issues, the big deal is that we sign an agreement that the capital of the two countries will not enter each other’s financial markets, and that will be fair.”

Austria has never prohibited foreign capital from entering the financial market, only that it is subject to quite a lot of restrictive conditions. If you want to roam freely in finance, just wait for the management to confiscate it!

Unlike the London financial market, where the rule makers deliberately left the back door open, the Vienna financial sector market, that is patched from time to time.

Drill the rules of the loophole, does not equal to be able to make money, but also must be fast enough to complete the operation before the management response.

After so many years of patching, the loopholes in the Austrian financial market are now very few, and the difficulty coefficient of wanting to unscrupulously shear sheep’s wool has greatly increased.

“Do not enter each other’s financial markets” is a complete joke.

It doesn’t matter to Austria, the domestic financial industry is still in the stage of capital accumulation, even if you want to reach out to the London financial market, you don’t have enough strength.

Standing in the position of the British, it is different. The London financial market is the world’s financial center, bringing together capital from all over the world to play here.

In addition to a very few lucky people who were able to make money from it, the vast majority of the rest were harvested by the British consortium.

The foreign capital that enters the London financial market is the fat sheep that comes to the door for the British financial consortium, so why should we refuse people to enter?

The British were the first to complete the Industrial Revolution, and in the early years, with the advantage of the world’s factory, they accumulated a large amount of capital, and from twenty years ago there was a surplus of capital.

The original time and space America was able to rise, is the British in order to vent the excess capital in the country, otherwise the Chosen Nation is not so easy to develop.

Austria was able to rise in the early years with the help of British capital. Only Franz used the economic crisis, and the advantage of the rule maker, in the middle of the pit British capital.

Now the British want Austria to open up its financial markets, and are actually scared of being pitched.

Early detonation of the economic crisis is just, this can only be considered their own means is not enough, the next time to pay attention to the line.

But the rules of restriction, that is desperate. A lot of seemingly insignificant rules, in ordinary times have little impact, once the economic crisis broke out, often able to break out a fatal blow.

These rules, on the other hand, are formulated in advance and are still public. Belong to the rules of the game, did not notice, that is their own problem, so that they have bitter to say.

The same trick, the British are also playing. The London financial market also has similar rules, specifically used to pit uninformed outsiders.

It’s just that people are like double standards, their own use of the rules to pit others, that is a clever means; by others with the rules pit, that can not be tolerated.

Eat a moat, grow wise. After having lessons learned, British capitalists want to cancel these rules and restrictions.

Franz was also in a difficult position, and he was tempted to tell the British that it was entirely too much to worry about.

The same tricks couldn’t be played all the time, and as the market continued to be regulated, there simply weren’t that many traps to set.

Unfortunately this will not be believed even if you say it, from the initial water and railroad monopoly project sinkhole that the Vienna government made, to the early detonation of the economic crisis not long ago, all of which made British capital lose a lot of money.

Standing in the Austrian position, this is a normal operation, completely in line with the rules of the game; but standing in the position of British capital, these are huge pits.

(End of chapter)