Chapter 1029: The Forced European Economic Summit

  Chapter 1009 – The Forced European Economic Summit

In order to quell the wave of revolution, stabilize the situation in Europe, and revitalize the European economy, the European Union decided to hold a European Economic Summit in Vienna.

Strictly speaking, this can only be considered a continental union economic summit. Participating in the meeting is only the members of the Continental Union, Britain and France are excluded from the invitation list. No reason is needed, just don’t want to take them for a ride.

At this time to convene the European economic summit, the countries are also forced to do nothing. After the outbreak of the economic crisis, everyone’s economy has been hit hard, the more economically developed countries, the greater the impact suffered.

Because of the lack of experience in coping with the crisis, the governments of various countries did not take timely action, so much so that the crisis expanded and social conflicts climbed sharply.

In order to stabilize the domestic situation after the wave of revolutions, the Governments of various countries have put forward “relief laws”.

The effect of the “Relief Act” was very obvious, after being able to barely fill their stomachs, the momentum of the revolutionaries soon withered, the only drawback is that it is too costly.

Originally, the European Union is a lot of poor people, in the economic crisis, the governments of the financial income and greatly reduced, this time but also to take the money “relief” unemployed people, the countries of the financial is a test.

In addition to the five foreign countries of Shenla, the Netherlands, Montenegro, Armenia and the Nordic countries, the rest of the countries that have one are either already financially bankrupt or on the verge of bankruptcy.

It goes without saying that the Kingdom of God, which has a strong family background and was the first to take countermeasures to stabilize the real economy in the country, has now passed through the most dangerous period of time.

Montenegro and Amelia were both agricultural countries, and if handicrafts were counted as industry, their industry would account for roughly five or six percentage points of the national economy. Such an economic structure naturally does not qualify for an economic crisis.

Although the Netherlands and the Nordic Confederation did not participate in the Continental War, they were indeed the beneficiaries of the war. Having just made a fortune from the war, and with their own family fortunes not too bad, the government could just tighten its belt by saving a little in other areas.

The rest were miserable. The Tsarist government had never been rich, the war fortune made in the Continental War wasn’t enough to fill the hole from the Anglo-Russian War, and now that it had suppressed a few waves of revolutions in the country, the treasury was able to run the rats again.

Although Portugal is also a member of the colonial empire, but because of corruption within the government, should create wealth in the hands of their colonies have become a money-losing goods.

Everyone knows that once bureaucrats lose their limits, no amount of revenue is enough for them to squander, so it’s no surprise that the Portuguese government went bankrupt.

As for Spain, Belgium, Italy, the seven states are war to the harm, Switzerland is eaten up indigestion.

As for Greece, that’s a country capable of driving its debtors crazy. Since independence in 1832, they all broke out more than a dozen times of financial crisis, on average, every three to five years to make a mess, bankruptcy is certainly no less than them.

Of course, this also has Britain and France, the two major debtors are too black. If all like Franz so conscientious, the chances of financial bankruptcy is estimated to be much smaller.

Until now, the European continent has already had ten countries including Greece, Belgium, Switzerland, Portugal, Sardinia …… declared bankrupt. Those that are on the verge of bankruptcy also include the Papal States, Spain, and Russia.

There is no doubt that this large-scale collective bankruptcy is certainly abnormal. It should be known that only a short time ago the government of Vienna had given out loans to everyone, and even if the countries were in financial difficulties, they would not have fallen so quickly.

The truth does not need to be delved into; anyway, those with good history understand it.

Since geopolitics determines the pro-Austrian stance of European countries, Britain, which has been sidelined, naturally will not take the hot face to the cold ass, and diplomatic relations have faded.

After the outbreak of the economic crisis, European countries have erupted in financial crisis, Britain’s bankers naturally will not let go of this opportunity to take advantage of the fire.

Greed is what makes people lost. Taking advantage of the fire has nothing to do with it, the key is that in front of the interests, the bankers did not adjust their mentality in time, still immersed in the glory of Britain.

With the birth of the European Union, Britain’s voice in the European continent has been weakened to an all-time low. Of course, Britain is still bullish, and no one dares to tease his tiger’s whiskers.

But as the economic situation continues to deteriorate and the wave of revolutions continues to rise, the harsh reality of a lack of money in the pocket has overridden everyone’s fear of Britannia.

Naturally, they didn’t dare to renege on their debts, but they still dared to find excuses to defer their debts. Anyway, the British government does not give them low-interest loans, borrowed from commercial banks are usurious, now even if you want to pay back can not afford.

The world has never lacked warriors, perhaps it was the career under house arrest in London, or perhaps it was the thrilling escape road that left a shadow on Vittorio Emanuele III.

Driven mad by finances, Vittorio Emanuele III, in a trend of hatred did a ruthless thing. First, he went on a borrowing spree from the Bank of England, and as soon as he got the money, he declared the government bankrupt and demanded a debt restructuring.

In order to share the pressure, Vittorio Emanuele III not only did this himself, but also encouraged his neighbors to do it together.

Franz does not know how to operate, but the final result is to let them do it, a few Italian states from the British side of the hard to fool 30 million pounds.

No wonder the six Italian states declared bankruptcy at almost the same time, it is clear that it is a collusion in advance. Because they were not bold enough to hack the British directly, they took bankruptcy as an excuse.

As for the other participant, the Papal States, did not follow suit and declare bankruptcy, it was because they had a religious bodyguard.

The Pope can do a lot of things as long as he can let go of his integrity. “It would be too humiliating to go bankrupt. As a servant of God, everything belongs to God, so a servant’s debt can be considered God’s debt.

That’s a bit of a bummer, so to paraphrase a popular medieval saying, “Usury is the ugliest and most abominable of crimes in the eyes of God.”

If one is a devout follower of God, then the interest must be brought down. Faced with such an unreasonable existence, it is expected that most bankers would have a headache.

……

These were Franz’s brainstorming based on the information in hand, and he had no time to care about exactly how it worked.

As a matter of fact, the Italians had done a very good job of keeping the secret. If it wasn’t for the British bankers making a scene at the back, Franz wouldn’t have known that there was this kind of divine operation.

Fortunately, these guys knew the difference and knew to use bankruptcy as an excuse to ask for debt restructuring. If they directly reneged on the debt, it would be a death wish.

Not everyone is a hairy bear, these days if you want to renege on a debt, you first have to see if you can resist the beating. Otherwise, people armed door-to-door debt collection, then they slowly cry!

Don’t expect anyone to step up to the plate on something like this that is clearly unjustified. Politics requires a roundabout way, and the master of the direct hard line doesn’t mix well.

In any case, Vittorio Emanuele III deserves a lot of credit for the Italian regions not being in chaos. If he hadn’t taken the lead in getting money from the British, the situation would be much worse now.

If someone takes the lead, there is no fear that no one will respond. Now everyone is short of money, can save a sum of money is a sum of money, even if it can only be temporarily borrowed, in the future will have to continue to return, it can also solve the urgent need.

In order to reduce financial expenditures, governments have hit the idea of their own monthly debt repayment, one by one, as if rushing to declare bankruptcy.

Not only the British bankers were screwed, all the bankers who lent money to them, one by one, all of them were screwed.

If you want your government to continue to honor its debts after it has gone bankrupt, then let’s talk about debt restructuring! It doesn’t matter to these “bankrupt governments” whether they can negotiate or not.

Negotiate a deal, means that the debt expenditure can save a sum of money, the worst can be postponed; talk about not close to continue to pretend to be dead, anyway, owed money is not in a hurry, even if there is a collateral, now this situation is not a way to cash.

Bankruptcy in the trick, no bankruptcy is no better. It’s not that they don’t want to go bankrupt, but they can’t.

Spain, for example, is now at war with the Japanese, and the government’s bankruptcy like what to say, that is not in our morale?

Another example: the Russian Empire, the tsarist government has gone bankrupt several times in recent years, and has long been on the blacklist of the capital, and now the biggest debtor is the god Luo. Borrowing is not usury, and then consider the relationship between the two countries, even if it is intent on reneging on the debt, the tsarist government is also embarrassed ah!

Each one has learned to play a scoundrel, half a bit of integrity can not be seen, Franz can only sigh moral corruption, the world trend is deteriorating. If it continues like this, then there is no way to play.

This just rumored that the government of Vienna to create three million jobs, to help the little brother to solve the problem of unemployment in the country, one by one, they all came up.

The Holy Roman Empire is the boss of the continent, as the leader of the European world, just focusing on their own little brother, is really too no big picture.

If the European continent is in disarray, can you, the boss, be happy? So to solve the problem, can not be limited to a place, to help must also help, only everyone is really good.

From the continental economic summit held in Vienna, we know that Franz has been convinced by everyone, who let him rich internationalist spirit?

“How much money needs to be invested, has it been calculated yet?”

Franz asked.

The international spirit also needs money to support it. It was the age of the gold standard, and the “good old days of letting go of money when you didn’t have any” were too much for everyone to think about.

Even though Shinra is the world’s largest gold producer, plus the world’s largest economy, Franz does not dare to print money recklessly.

Prime Minister Karl shook his head: “The information provided by the governments and the information collected by the intelligence department are in serious discrepancy, and it is still uncertain whether the information collected by the intelligence department is one-sided or whether the bureaucrats of various countries are underreporting the crisis.

On top of that, there are many uncertainties, such as: when will the Japan-West War end, will the wave of revolution rise again, etc. These uncertain events may increase the cost of the bailout.

According to the most optimistic estimate, at least 800 million dollars would have to be raised to get through this economic crisis. At worse, it could cost $1.2 billion.

Our ring road railroad plan alone, and the construction of supporting facilities, will cost 270 million shillings, and with other smaller projects, the country will need roughly 400 million shillings to stimulate the economy.

The three million jobs program that has already been set up, although there are noble lords to pay for it, the government will still have to invest 120 million God’s Guilders, mainly for policy subsidies, personnel training and management, and road fees and other expenditures.

Fiscal Loan ……”

Hearing the Prime Minister’s answer, Franz’s frown tightened. Sizable is impossible, bureaucrats are what creatures Franz knows best, deception is just a basic operation.

If the rule of government is clear, even if there is some concealment, it is still within control; if the corruption is serious and the officialdom is rotten, then it is finished, they not only can conceal the crisis, but also can artificially create a bigger crisis, commonly known as “the official forced the people to rebel”. The vast majority of uprisings are attributed to these guys.

Unfortunately, there are such corrupt empires in the European Union. The Two Teeth were the first to suffer, looting huge amounts of wealth from their colonies every year, but still making a mess of their domestic economy. One look and you know it’s the end of a dynasty.

As for the Russian Empire, it has not reached that point yet. After the reforms of Alexander II, the Russian Empire during the time of Alexander III was still getting by.

In Franz’s view, the biggest uncertainty was not the war between Japan and the West, which was a million miles away, but the Two Teeth, which could break out into revolution at any time, and the bitterly defeated France.

Both are said to blow up the existence of a careless Western Europe can change color. So even though France didn’t participate in the economic summit, the Vienna government still set aside a hundred million dollars of bailout money for them.

Individually look at each country’s funding gap is not big, but the European Union member states ah, together is an astronomical sum.

These days, the purchasing power of the shield is a strong, “1.2 billion guilders” is equivalent to the sum of two years of fiscal revenue at the peak of the European countries.

Such a large sum of money, put on anyone is pressure. No way, who let the European continent just broke out a big war?

Even if the time has passed two years, the major warring countries still have not come out from the shadow of the war. Including the Vienna government, now can not do to balance the books.

In a sense, this continental economic summit is “money” forced out. Now that the capital markets have deteriorated, governments are faced with financing difficulties and have to turn to the Vienna government.

Similar to the original time and space, the economic crisis is difficult for everyone to finance, but the U.S. government’s treasury bonds still sell well. Even if the old Special nerve-racking print print print, the dollar is still strong in the capital market.

Now the situation is similar, God Luo can almost act as the role of the Americans, although not the only world hegemony, but the “divine shield” and “gold” has become the main settlement currency of the continental countries side by side.

Against this background, the Vienna government, which has a strong family background and a lot of collateral, naturally has a strong reputation in the capital market.

For example: in the Russian capital market, the Vienna government issued bonds than the tsarist government issued bonds sold well. Even if the interest rate of the Shenla treasury bonds was one-third lower than that of the Tsarist government, it still could not dampen the enthusiasm of the Russian public.

If it were not for the fact that there was still a maritime power, Britain, watching over the country, Franz would have been able to live the good life of “print print print”. The times are different, like the old special so print is impossible, but a hundred million or two hundred million more is not excessive, right?

As a matter of fact, S.H.I.E.L.D. has long been overissuing money. Only do not dare to one-time more hundreds of millions, but each year to print more thousands of million or so still have to have.

This little bit of water, spread out the sun will dry up. Professionals are difficult to find, put into the capital market naturally can not stir up waves.

(End of chapter)