Chapter 686: The Importance of Information
Chapter 671 The Importance of Information
The government’s guidance still hasn’t been able to resist the enthusiasm of capital, and interests are always easy to get lost and overlook the risks.
Can’t get government support, then find ways to reduce costs, for example: put the factory on the outskirts, or in a town with convenient transportation, the cost of land at once saved most of it.
There is no tax incentives is also no harm, Prussia are buying and buying, now the factory profits are very lucrative, is not bad that a few points.
“Good words are hard to persuade the damned, and great compassion does not ferry the self-defeated.”
Watching the moth-eaten capital continue to pour in, Franz can only choose to see no evil.
In addition to greed, the madness of the market has a more serious social problem. The capitalist world economy was once again experiencing overcapacity, especially in Britain and Austria, where it was most serious.
The fact that the crisis did not break out had something to do with the international situation. From 1873 to 1878, the Second Near Eastern War and the colonial wars launched by Britain, France and Austria to divide the African continent broke out.
The wars consumed a great deal of wealth and materials, and the prosperity of the market masked the crisis of overcapacity. If the Russo-Prussian War does not break out, a new economic crisis will break out next year at the latest.
After so many years of accumulation, the surplus is no longer just overcapacity, but even overcapitalization.
As the saying goes, money spent is money; money lying in the bank is just a pile of numbers. In the vast majority of industries have been saturated, surplus background, capital needs new investment channels.
According to the practice of death, every time this time, the stock market should be stormy. A large amount of money poured into the stock market, creating an unprecedented boom, and then the bubble was burst, the excess capital with the bubble was evaporated.
The conflict between Prussia and Russia was capitalized on when the dead Taoists died. Austria supported the Czarist government and Britain and France supported the Berlin government, and apart from political necessity, there was also the role of capital.
Money was lent out, and the problem of overcapitalization naturally ceased to exist. The large number of orders brought by the war in turn boosted the economy.
The most important thing is that the industrial crisis, which was originally mainly the industrial powers of Britain and Austria, had spread to the whole European continent through the stimulus of the war, and no one should want to be left alone.
Dragging everyone down together, from the national level, this is not detrimental. Rather, it was called striking a blow at a potential competitor.
Economic wars and military wars are not the same, the most heavy losses are not necessarily the countries that are fighting each other, the greater likelihood is that the boss and the oldest two game, and finally the oldest three, the oldest four, the oldest five …… to death.
Under the free trade system, the global market is still very limited, it is impossible to satisfy everyone’s appetite, and can only follow the law of the jungle to compete.
The industries of Britain and Austria occupy 29.8% and 36.5% of the world’s total industry respectively, and the total imports and exports of the two countries occupy 49.6 and 24.7% of the world’s total exports respectively.
Because of their interests, conflicts have become inevitable. Capital is cannibalistic, and in this world of the weak and the strong, the first to fall is definitely the weak.
Now speculators are swarming around trying to make war fortunes, not that they are totally unaware of the risks, it is just that the authorities are obsessed and many of them think that they can run faster than others.
As long as they find a receiver before the crisis breaks out, they can make a handsome profit.
Vienna Palace
Palace Minister Mirabelon: ”Your Majesty, as of now, we have sold 76 factories one after another, and the rest have entered negotiations, and we expect to sell them all within the next two months.
The stock bond holdings, which are also being sold off slowly now, are only about one-tenth sold at this point in order not to cause market turmoil.
Influenced by the hot market, this reduction of assets gained a few points more than expected. It has now reaped 130 million God’s Guilders, and after all of them are sold it will be about 440 million God’s Guilders.
Still, our actions have attracted the attention of people with an axe to grind. For the follow-up operation, we may encounter certain troubles.”
Franz nodded, being discovered was inevitable. Selling off assets when the market was at its hottest, such an alternative approach, it would only be a problem if it wasn’t noticed.
But there was no way around it, the royal assets had snowballed over the years, and if they didn’t retreat earlier, they wouldn’t be able to retreat later.
The kind of thing in the day before the crisis broke out, looking for a high price receiver, Franz can only say that is living in a dream.
Where in the world are so many fools? Other than that, as soon as the Russo-Prussian war was over, the value of these factories would be greatly discounted.
Perhaps the lucrative profits gained during the war period would be able to make up for the losses brought about by the decline in the value of the business, but it would not be easy to find a buyer at that time.
In case there is no taker, then we can only fight hard and get through the most brutal years of competition with our strong financial strength.
It may not seem like much, anyway, these low-tech industries, the last remaining must be the financial strength, but the royal family can not stand the stall is big. If you don’t stockpile some ammunition in advance, Franz has no idea.
After deciding to start a dumping war with the British, Franz decided to give up the food processing industry, textile industry, primary processing and manufacturing industry.
Once the crisis breaks out, these low-tech industries, the impact is absolutely the biggest, Franz is not ready to die in this.
A one-time sale of 274 factories, covering more than 14 countries, such a large sum of money, can apply for the world gillis record.
Factories do not want, investment in stocks, bonds, not to mention, early sold early easy. Money is still in the bag, the nominal market value is the most unreliable.
After thinking about it, Franz: “Good job, now the market is too crazy, we do not have to be buried with them.
In addition to these sell-off assets, from May next year, but also to gradually reduce the shares of our long-term investment in several listed companies.
Including our holding companies, as long as the stock price exceeds the normal market value, we have to reduce a portion of our holdings, and then buy back after the stock market crash breaks out.
Overseas investments, in particular, should be disposed of as soon as possible. For example: the investment in the Panama Canal, find someone to take it over while you can!
This crisis could go far beyond the past and last a long time. Investments for the next two years are short-term and conservative.”
Man-made disasters are far more frightening than the laws of the market, and once an economic war breaks out, it doesn’t end in a day or two.
Capital will not stop until a large number of backward production capacity is eliminated and enough markets are freed up.
At this critical moment, the bigger the spread, the greater the final loss.
The fact that most of the latter-day consortia have turned to the financial sector, and few are dead set on manufacturing, is also an important factor.
Reality once again corroborates the importance of information, Franz has the self-awareness that he has never been a business genius.
If not mastered the first-hand information, grasp the investment wind, in time to avoid the crisis, the royal industry has long been lost to the bottom of the sky.
Of course, really if there is not so much information, the royal industry’s spread will not be spread so big. What to make money, what to invest, itself is not scientific.
Even the giant consortium, it is impossible to take care of all the industries. The latter day’s “Samsung” is an example, spread too large, tore to the balls, if not to rescue the country, on the death.
In order to better development, throw away some of the baggage is inevitable. Now is just the beginning, in the years to come, the royal family consortium will give up more business.
The main reason for not shedding them now was because of the lucrative profits. Traditional and emerging fields are themselves relative; what is still a promising high-tech today may become a traditional field tomorrow.
Mirabelon asked in surprise, “Your Majesty, give up your shares in the Panama Canal now, won’t you wait for the final harvest?”
Franz shook his head, “There’s no need. From the current situation, I’m afraid I can’t wait for the final moment of harvest.
Once the economic crisis breaks out, the Panama Canal will not go ahead. It’s not our place to alert the French unless they take the initiative to close their nets early.
We have a limited number of shares in our hands, and even if we were to harvest early, the profit would be very limited. Getting out now is just the thing to avoid the storm that will follow.
There’s no telling what would happen if the stockholders knew that the canal they were looking forward to was suddenly gone all at once.”
The royal family wanted a reputation, not just any money. It was also a good thing to withdraw early, saving resources to be spent on the aftermath later.
Others do not know, Franz is indeed clear, the Panama Canal is not navigable for the next thirty years.
It is not a technical problem, but mainly a political impossibility. The Vienna government has always been opposed to action, that is, the canal has just been dug in no hurry.
French capitalists pull the Austrian royal family into the shares, in essence, is also to let the shareholders feel at ease, to the outside world to release the illusion that the Vienna government will not intervene.
If it is not known that these people just to harvest in the stock market, Franz will not participate in it, even if it is more lucrative.
The purpose of the stand had been achieved, and there was nothing wrong with leaving with the appearance fee. As for the death or life of the Panama Canal Company, it had nothing to do with an investor who left early.
Anyway, the Panama Canal is listed in Paris, the pitfalls are also French investors, and has little to do with Austria.
If the Canal Company goes bankrupt, it is not Franz’s turn to take the blame.
……
(End of chapter)