Chapter 988: The Tangled ……

  Chapter 968 The Tangled ……

It is not only the international situation that has caused the British government to be torn, but also the economic problems that go along with it.

If there is no accident, the French exit the market, most will be replaced by Austrian industrial and commercial products, Britain can only pick up some of the leftovers.

The law of “the strongest is always stronger” also applied here. Austria itself is the industrial hegemony, and now the capture of the French market, the domestic industry and commerce will certainly be further developed.

Anyone with a little common sense knows that the more industrial and commercial products are produced, the lower the cost, and the more competitive the market will be.

The market is so big, the further development of Austria’s industry and commerce will inevitably compete with Britain.

Other regions not to mention, at least Britain’s market share in Europe, will certainly be squeezed.

The market shrinks, the enterprise’s profits fall, invested in product development, promotion of the money will also be reduced, this is a vicious circle.

Of course, these are long-term issues, Britain has the world’s richest colonies, a short period of time is to hold up.

The big deal is to slowly transform the economy, give up the manufacturing industry with meager profits, and vigorously develop the financial and service industries. The original time and space have done so, now naturally can also.

The long-term problem is the next term, or the next thing, Gladstone is not guilty of worrying about them, the current trouble is enough to give him a headache.

As the world’s number one financial empire, naturally there is no shortage of loan sharks. Everyone knows that those who play with finance are all bold + knuckle-dragging masters.

As long as the interest is big enough, no matter how big the risk is, there will be people who will do it.

The government of Britannia, which promotes a free economy, does not interfere with private lending. In the continental wars, naturally, these speculators are rare.

Some people made a profit, while others suffered a loss. With the end of the Continental War, the financial groups that bet on the French government are now trapped.

If it was the consortium’s money that was hedged, Gladstone would have just popped champagne and celebrated, not caring about these vampires at all.

Unfortunately, the vampires were shrewd and had long ago crafted a script where the profits were self-serving and the losses were collected from the private sector.

From the end of the Continental War until now, Britain has more than three hundred financial institutions declared bankruptcy, directly throwing the mess to the government.

Debt collection is impossible, and as things stand, the French government, even if it has money, has been raided by the Antifa alliance. It is estimated that it will be impossible to honor this debt for decades.

Before the French had a chance to deal with their rotten debt, the German Confederation burst into debt default, once again giving the London government a head start.

This time it is not just a private loan, many of these loans, or the British government provided a secure endorsement.

There was no way, the German Federal Government declared bankruptcy. People in order to save money expenses, and even withdrew the embassy in London, the business entrusted to the Austrian embassy in London to handle.

It is not that the German federal government intentionally “reneged on the debt”, they really have no money now. The following states do not pay taxes, the centralized region is broken, the government has lost all income, even the salaries of public officials have to be advanced by Austria, let alone pay back the money.

Near the end of the year settlement, the government can not get money to fulfill the debt, can only choose to bankruptcy default.

In fact, the German Federation is not the only one bankrupt. The Belgian government, whose old home had been turned into a white field, also declared bankruptcy at this time.

No money means no money, no pretending to be poor. People are not alone against Britain, but all the debt default together. Only Britain lent out the most and became the biggest victim.

“Than the German and German governments to give a statement?”

The French government Gladstone directly ignored, apparently he also did not think he could pull money out from under the eyes of the Antifa Alliance.

It was a well-known fact that the governments of Belgium and Germany had no money, and Gladstone didn’t expect them to cough up any money right away.

It didn’t matter if they didn’t have money, Britain had a professional financial team. As long as you can come up with enough collateral, another loan is no problem.

The key lies in the attitude to solve the problem, whether it is because there is no money and had to “suspend payments”, or to “renege on the debt”.

“The Belgian government gave the program is a five-year payment deferral, with the French war reparations as a guarantee, five years after the French war reparations paid to us as a priority.

The German federal government gave the program is the transfer of claims, directly in the war reparations against the corresponding amount, the French to assume the debt.

Theoretically, the programs of both the Belgian and German governments would work. The only question is whether the French have the ability to pay.”

It wasn’t that George was being soft, it was just that the situation was unique. Now Belgium is a poor man, the treasury can not even need to go on the gate, simply can not fry the oil.

The German Confederation seemed to be in better shape, but this government was so weak that it could shut down at any time.

If you do not quickly deal with the debt problem, when Austria announced the restoration of the Holy Roman Empire, dissolved the German Confederation as an illegal organization, then directly even the debtors are not whole.

No country would pay for an illegal government set up by a chaotic party, unless Britain could get Austria to recognize the legitimacy of the German federal government.

This was obviously impossible. Recognizing the legitimacy of the German federal government would mean the division of the empire, and Vienna was able to withstand the pressure thirty years ago, not to mention now.

“Trouble!”

“Judging from the current situation, the Anti-French Alliance will definitely knock the French hard, and I’m afraid the war reparations won’t be a billion pounds.

Belgium in this war to make sacrifices is very big, in reason Austria have to be pacified, share of the reparations proportion should not be low.

There are five years as a buffer, the French should have recovered a few vitality, even if it is not able to pay the full amount of compensation, the part of the annual share to the head of Belgium, but also enough to pay our debts. Even if there is a shortfall, we can let the Belgians make up for it.

The proposal of the German federal government is troublesome, the transfer of debt we seem to have no loss, in fact, need to bear the risk is very big.

Not only do we have to worry about the French ability to pay, but we also have to consider the political risks. If Russo-Austria plays a trick on us and makes the French deliberately delay, or puts the transferred debt to be fulfilled at the end, it is estimated that we will not even see the money at the end of this century.”

No wonder Gladstone wasn’t worried, Britain had played a similar tactic, and now the tide had turned and it was their turn to be passive.

Accepting the German Federation’s debt assignment meant high risk; rejecting it didn’t even give them a chance to take the risk.

Now the German Federal Government is like a limited liability company with huge debts and on the verge of bankruptcy, or the kind with the lowest registered capital.

In any case, everyone is only liable within the scope of the registered capital, and both the legal person and the shareholders have chosen to stop their losses in time, with no intention of saving the company.

Britain as a debtor is tragic, either to collect the company’s bad debts outside, or wait for the bankruptcy liquidation.

Foreign Minister George added: “Not only us, the other debtors of the German Confederation, are now treated the same way, including the Royal Bank of Austria is no exception.

Now that George I has closed his doors and thrown everything to the German Federal Government, the Kingdom of Hanover and the German Confederation have completed the cut.

In order to stop the losses, the Foreign Office offered to offset the debt with the colonies, which was still rejected by them. Ivar is still clamoring for war with us if we dare to touch their colonies.”

Neither was a savior, even Britannia’s own son was now following the rebellion. No matter how good the relationship was in the past, in any case, the debt was one they would not carry.

Even if they know that this offends Britannia to death, people are now fearless. Anyway, the revived Holy Roman Empire is the hegemony of the European continent, the British want to find trouble also have the central government on top, there is no need to wimp out.

……

The British government is not the only one that is also struggling, the Japanese government in Tokyo is not doing well either. Even the fact that the Japanese army had already occupied the Philippine Islands did not make Emperor Meiji feel relieved.

There is no way, the plan did not change quickly. Originally prepared to speculate when the situation became clear, but unfortunately, because of the inconvenience of communication, the Japanese government’s news lagged a few days.

However, in just a few days, the French surrendered. So much so that the Japanese government was unable to send out the war message it had prepared.

It couldn’t even force a touchdown if it wanted to. The French Central and Southern Peninsula was preempted by the British, and several of the French small islands in the South Seas area fell into the hands of Austria, none of which they dared to mess with.

Failure of speculation, so that Japan is now in a very embarrassing position, the international situation is not friendly to them, especially the next peace conference in Vienna.

Spain was a European country and a member of the anti-French alliance. It was clear who would be supported at the Vienna Peace Conference.

Unable to gain the recognition of all countries, the Philippine Islands they occupied were rootless and could be snatched away at any time.

In the days to come, they not only had to worry about the Spanish counterattack, but also be wary of the British and Austrians laying their hands on them.

Before Spain can hold the Philippine Islands, not only because of the strength, simply look at the strength, Spain, Holland, Portugal are not qualified to hold the hands of the colonies, more or political factors.

Now the situation in Europe has changed greatly, the Philippine Islands and fell into the hands of the Japanese, the original political factors at this time is no longer applicable.

Having missed the opportunity for speculation, the Japanese government could only speak from strength if it wanted to hold onto the Philippine Islands.

“Prime Minister, what is the position of the European countries?”

Ito Hirobumi’s complexion tightened and said with some difficulty, “The situation is not optimistic, I personally visited the ministers of various countries, and even with the concessions made by the empire, I have not gained the unequivocal support of any of them.

Among the big powers, the British have a vague position, as if they don’t care at all about our occupation of the Philippine Islands; the Russians are also more inclined to Spain, and after the Empire made concessions, they didn’t get any guarantees from them either.

The position of Austria was the most unfavorable to us, and Minister Antonio made it clear that he wished us to give up the Philippine Islands and stop our expansion into the South Seas.

The only good news is that Austria’s position is not too firm and has no intention of intervening by force. The opposition to our occupation of the Philippine Islands is supposedly because Spain is their ally.

According to the news coming from Europe, the Spaniards have begun to form an expeditionary fleet, and currently have three new battleships and ten ironclads, all from the French Navy.”

Naval Minister Saigo Fudo asked suspiciously, “Aren’t all of the French warships up for auction, how did they end up in the hands of the Spanish?”

Ito Hirobumi helplessly explained, “The French warships are all war booty from the Anti-French Alliance, and Spain is a member of the Anti-French Alliance, so it’s no big deal to borrow them in advance before the auction.

Even if the auction were to take place, it would only be a formality, and the warships would likewise fall into Spain’s hands. The warships that can really be bought by outsiders will also be the ones picked by the countries of the Antifa Alliance.”

Opening the back door couldn’t be more normal. As a member of the Antifa alliance, it would be problematic if there were no privileges.

Saigo Fudo was silent. Hundred years of navy is not a joke, don’t look at the decline of Spain, people’s naval heritage is still not lacking. As long as there is money and warships, you can quickly pull out a fleet.

The Japanese Navy has a limited family background, the most advanced warships are just a few ironclads, or cruisers, the most advanced battleships simply do not exist.

Warships are not ordinary weapons, and are not something that money can buy. The warships that can be bought on the international market are all second- or third-rate warships, and may even be simplified versions, and the British are the most skillful in this regard.

More than 10,000 tons of former dreadnoughts against a few thousand tons of cruisers, rather than fighting, but also in the slaughter. The navy relies on more than blood and courage, and the gap in technology cannot be bridged by a few slogans.

No matter how confident, Saigo from the road also do not think that the Japanese Navy that a few broken ship, and the French Navy’s essence of the warships can be comparable.

Seeing the navy wimp out, Army General Oyama Iwami hastily showed, “Don’t worry, Your Majesty. The Imperial Japanese Army is not afraid of any enemy’s challenge, and as long as we are around, we can definitely hold the Philippine Islands.”

Unlike the worries of the Navy, the Army was full of confidence. In the previous attack and defense of the Philippine Islands, the Japanese Army was hanging on to the Spanish all the way.

(End of chapter)