Chapter 991: Financing
Chapter 971 Financing
In order to help the little brother to restore the economy, an Austrian version of the “Marshall Plan” came out. The core purpose is to revitalize the European economy, seize the commodity sales market, the difference is only the content has changed a little.
At the moment, Austria is far from the Americans after World War II so rich and generous, huge amounts of financial assistance, the Vienna government a moment and a half can not come up with.
To provide countries with funds for post-war reconstruction, it is necessary to use the financial market for financing, so the interest rate is still not less.
Before the outbreak of the continental war, Europe’s four major financial centers are London, Paris, Vienna, Frankfurt. As the financial sector of the hegemony, the London capital market is almost equivalent to the sum of the latter three.
Because of the war, Paris is basically counted as a waste. Napoleon IV ran away before the counterattack, the French consortium will be five labor seven injuries, can survive is not easy.
Austria’s development time is still too short. Franz and pay special attention to the real economy, most of the domestic capital flows into the industry, the financial market circulation of capital is not too much.
Vienna and Frankfurt can become Europe’s four major financial centers, not how powerful they are, completely behind the competitors are too garbage.
If the European financial market circulation of the currency is 100 percent, the London financial market occupies 48.7%, ranked second in Paris occupies 19.6% (before the war), followed by Vienna and Frankfurt respectively occupy 14.1%, 13.7%.
Further back the gap is huge, ranked fifth Milan even less than two percentage points, further back Madrid, St. Petersburg, needless to say.
This ranking is not only valid for continental Europe, but also for the whole world. Any one of the four major financial centers has more capital than the sum of all the financial markets behind them.
Looking at the data, we know that the British people’s heritage is really thick. The colonial empire’s hundred years of accumulation, simply can not be surpassed overnight.
Even if Austria gives full play to the rainbow effect, bringing together the capital of Central Europe, Southern Europe, Eastern Europe and Northern Europe, it is still a younger brother.
This is still the result of robbing the South African gold, or the gap would be even more disparate. To know the original time and space London financial market, at the moment has more than half of the world’s capital.
Relying on this thick heritage, John Bull survived two world wars, has continued to the 21st century, London can compete with New York for the position of the world’s financial center.
Now Austria not only to finance themselves, but also to help the minions financing, a rough estimate, no three billion guilders can not handle.
All from the domestic financial market to find a way, must be sucked dry to the funds can not be, or even cause a stock market crash. This kind of stupid thing, the Vienna government naturally will not do.
Can not be done domestically, then we can only think of ways from abroad. Anyway, capital without borders, no matter where the money from is money, Franz does not mind borrowing is domestic debt or foreign debt.
“Do you mean that the British will use this as blackmail to negotiate terms with us?”
Wanting to raise money from the London financial market, naturally the British government could not be shaken off. Although the British clamor for a “free economy”, but this kind of international large amount of financing, or the government is not involved.
With John Bull’s style, see the opportunity to take advantage of the Austrian conditions, that is completely possible.
“Yes, Your Majesty!”
Prime Minister Karl: “Without affecting the economy, the domestic financial market can provide at most half of the funds, and the other financial markets combined are estimated to settle for twenty to thirty percent.
Just for our own use, this amount is definitely enough. But considering the funding gap of our allies, it’s not even close.
Now not only Belgium and Italian states are short of money, Switzerland, Spain, the Russians are equally poor, need us to provide financial support.
If they can’t get money from us, they will most likely move closer to the British, which is very unfavorable to us.”
Franz had personally experienced the power of “money power”. Not to mention the fact that these allies were originally united by their interests, even if they were really close allies, they could not withstand the attack of “money power”.
The essence of international politics is the interests, there is no betrayal because the interests are not enough. If we talk about “loyalty”, then we have already lost.
In a sense, Austria’s ability to gather so many allies was also the result of the use of “money power”. The government in Vienna had more money than the government in Paris and was more willing to pay, so Austria won.
There is no way, who let Austria’s allies are poor? Even if they weren’t poor before the war, they are now.
Belgium and Italian states aside, it’s all because of the war.
Switzerland, the land of mountains, has never been rich. So far it is accumulating capital for the industrial revolution, and is not yet the ideal country that everyone envies in later times. It is impossible to digest the newly occupied territories without borrowing money.
Spain can only say that their ancestors were bullish, and since the 19th century, they have never been financially sound. Now, not only to digest the results of the war, but also to go to the South Seas and start a war with the Japanese, without money is never possible.
The Russians are even more of an old hardship case, and a quick look through the history books shows that there was basically no time when the Tsarist government wasn’t short of money.
The only thing that Franz is glad is that the anti-French alliance is still relatively solid, not a little bit of small profits, can be pulled by the British run.
Geopolitical reasons, in addition to Spain, Austria has a strong deterrent to other allies. If you want to be the second five, you have to see if you can afford the Austrian retaliation.
In this regard, continental countries are stronger than oceanic countries. Especially cruel to small countries like Belgium and Switzerland.
Offended the marine hegemony of the British, the Royal Navy and can not go ashore, the most is the overseas trade time to suffer; offended the continental hegemony of Austria, but there may be a direct death of the country.
After a few moments of contemplation, Franz said coldly: “This financing is mainly to solve the difficulties for everyone, it is unreasonable to assume that we have a family, pulling on the Antifa Alliance and the British to talk about.
We can take the French war reparations as a guarantee, the Antifa alliance countries together to provide security for the debt security, and jointly bear the responsibility of default.
If the British are not assured, the Antifa Alliance can maintain a garrison of not less than 500,000 men in France to urge the French government to honor its debts.
By the way, let it be known that we are preparing to form a European Customs Union and are considering whether or not to include Britain.
Other conditions are at your discretion. All are negotiable as long as they don’t jeopardize our core interests, and I’m sure the British government will make the right choice.”
Taking himself into account, Austria wanted the markets of the Antifa Alliance countries, and there was no reason for the British not to spy on them. In this context, helping the countries to restore their economies is essentially beneficial to everyone.
If the British government take the loan card people, Franz also do not mind to come to a lose-lose, in advance of the “European Economic Community”, the British excluded from the European economic system.
“Lack of money” is a big deal, the economic recovery a little slower, the Antifa Alliance and not a lack of food, as long as the people are fed, there will be no major chaos.
“Lack of market” is different. This year, the European continent can be said to be the world’s most purchasing power of the region, occupying more than half of Britain’s total foreign trade.
All of a sudden lost such a large market, a short period of time can not find a new market to replace. India’s market potential is indeed large, but potential is not equal to purchasing power.
When the market is cultivated, the time has long passed. Without Europe, Britain will have to add at least millions of unemployed people in a short time, and an economic crisis is inevitable.
Although the contradiction between Britain and Austria is big, but the hatred is really not much. Even if it is a war of words, that is also in the dark, the relationship between the two countries on the surface is still okay.
Franz does not think that the British government will risk the risk of losing both sides, running to die with Austria, which is not in line with the interests of politicians.
Likewise, it was not in Austria’s interest. In terms of potential for development, Austria was clearly far ahead of Britain, and to slow down the pace of development would be to squander its advantage.
It can be said that every day that time is pushed back, Austria’s advantage will be one point greater. Especially after the annexation of the German Confederation, there will be a qualitative leap.
In order to achieve the goal, even the “garrison against France” was used by Franz as a negotiation condition.
In order to guarantee the fulfillment of the debt, the garrison must be there. Otherwise, the French government defaulted, can not come back to the war against France, right?
Only the number of garrison, is a problem. “Not less than half a million” is certainly impossible, really if there are so many troops in France, not to mention the revival of France, just eat can eat poor French people.
If the military discipline in a little bad, then the French government will not have to do anything, every day for the garrison to do the aftermath of the work on the line.
The British want to keep the French energy, but also fantasize about the revival of France, it is necessary to suppress the number of troops of the anti-French alliance.
Foreign Minister Weissenberg: “Your Majesty, all other issues are fine, but I am afraid that the British will find it difficult to agree to the use of the French reparations as a guarantee for financing.
Even if the countries of the Anti-French Alliance come together to provide a security endorsement, it will only guarantee that the French government will not maliciously default.
Judging from the current situation, it would take a long time for France to recover its economy after the war. Without economic recovery, the government has no money to pay its debts. With no money in its pocket, there is nothing anyone can do.
Not long ago the German federal government proposed the transfer of claims, the London government asked the state governments within the German Confederation to guarantee in advance to ensure that the French can normally pay reparations before accepting the transfer of claims.
Obviously, the British have realized the risks involved, and it’s not easy to screw them over.”
As the protagonists of the war, no one knew better than the government in Vienna what the French had lost in the war.
According to the Draft Disposition of France drafted by the Anti-French League, it was only a matter of time before the French defaulted on their debt unless they collectively turned on the heat.
If the guarantee was accepted, once the French defaulted on their debt, would the British pursue the debt, or not?
Debt collection is undoubtedly stabbing the French, pushing them down into the abyss, cutting off the opportunity for them to rise again.
Not to pursue the debt, indeed helped the French a favor, but the capital will not agree. The financial consortium will not be concerned about the big picture, debt repayment is a must.
Franz shook his head: ”There is no relationship, there is no need for the British government to promise, as long as the financial institutions that provide us with funds recognize it.
High risk has high return, the interest release when the increase some, not afraid of bankers do not move.
Moreover, we have also provided a debt security guarantee. If the French government is really unable to repay, all countries will be jointly and severally liable for repayment.
The money lent out isn’t their own anyway, so as long as the interest is big enough and there are enough reasons to convince the investors, they won’t mind taking the risk.”
It’s certainly not as easy as Franz makes it out to be, and “joint and several liability” presupposes that the French are insolvent.
The mere determination of “insolvency” is a huge pitfall. Paying off a debt in cash is repayment, as is paying off a debt in kind.
If they are forced to do so, they can even set aside a piece of land from the mainland of France and give it to them to offset the debt.
(End of chapter)