Chapter 1030: Print, Print, Print.

  Chapter 1010 – Print, Print, Print

“Money, money, money” has become the curse of the European governments. “Twelve hundred million” is not “twelve dollars”, because the previous war emptied the treasury, even if the Vienna government can not raise so much money for a while.

Assets and cash are two different concepts. It was a myth that one could withdraw 1.2 billion guilders without affecting the normal functioning of the economy.

Whether it was borrowing from banks or issuing bonds, it was reducing the liquidity in the market. Once it exceeded the market’s tolerance limit, it would affect the normal functioning of the economy and backfire again to exacerbate the crisis.

One of the essences of the economic crisis is the uneven distribution of social wealth, overly concentrated in the hands of a few people, the ordinary people’s pockets are cleaner than their faces, the loss of purchasing power, the economic cycle will naturally go wrong.

The most ideal state is naturally for the rich to spend their money and activate the economic market. As long as money flows, the economic crisis will cease to exist.

Obviously, this is impossible. Even after a hundred years, there was no solution to the problem, Franz did not think he would be able to solve it.

In a sense, supporting the nobility in building overseas fiefdoms was the biggest policy stimulus. The only regrettable thing was that the emerging military nobles, who had made their fortunes for too short a period of time, were for the most part not that wealthy.

Apart from the aristocratic groups, the other ones who held huge wealth were the big capitalists. These people’s pockets are more difficult to pull out, one by one, all ghostly, just waiting for the crisis after the bottom.

Unless the knife hard on, otherwise these want to maximize the benefits of the guy, simply will not obediently pay.

There is nothing to blame, tend to benefit and harm is the essence of human nature. Truly selfless, that is a saint.

No one is nobler than anyone else, and most people would make the same choice if they were in a different position, including Franz. If you can’t do it yourself, you won’t expect others to be able to do it.

“How will the funds be solved?”

Specific rescue program, Franz does not care. The program that can be accepted by the governments must have weighed the interests of all parties in the final game results. As for whether it is the optimal program, that can only go to ask God.

In contrast, the funding gap was the key to the problem. Franz knew all too well about Shen Luo’s wealth, and the fact that he was able to solve half of the funding was the result of everyone’s cooperation.

The rest of the gap could only be figured out from the financial markets of European countries. If a year ago is really not difficult, unfortunately now is the economic crisis period, coincides with the market is the most short of money.

Take Franz himself as an example, in the case of not counting real estate such as land resources, the peak of his fortune up to 14.6 billion, properly rich. After the outbreak of the economic crisis, it directly shrunk by fifty-four percent.

There is no way, the stock market is such a magical place. Even this is the result of having insider information and retreating in advance, and if you are slow, you can refer to the technology concept stock market.

Anyway, it is all tears, Franz single-handedly pounded up the bubble, the bitter fruits naturally can only be swallowed by their own …… incorrect leeks.

This is the price of scientific and technological progress, if not a bunch of listed companies continue to finance and burn money, God Luo’s technology is not likely to rush to the forefront of the second industrial revolution.

On average, in the last thirty years, the Shen Luo Empire has invested as much as eighty million divine guilders per year in scientific and technological research and development; if the time is drawn closer to the last five years, the figure is even more astonishing two point one billion divine guilders.

Apart from financing from the capital market, which was shared by all investors, no organization or individual could support this expense.

Input and return are proportional, more than two billion dollars of capital smashed down, airplanes, tanks, battleships have come out, civilian facilities are more numerous, mankind also entered the era of electric power and internal combustion engine in advance.

The tragedy is that like many stockholders, Franz became poor. Hands of thousands of technology companies, can make money less than fifty, in addition to has entered bankruptcy and reorganization of the more than two hundred, the rest are continuing to burn money mode.

Despite compressing corporate operating costs and slowing down the burn rate, when summarized, there is still a loss of up to tens of millions of Shendian per month.

When the market environment is good, there is a lot of capital willing to accompany the burning money, now the market situation has deteriorated, the original by everyone together to support the “leek” company, only Franz first pocket.

Not die to hold on, if the company went out of business, and then want to re-establish the signboard in the future will be difficult. After all, the story is no longer good, it is also a failed project, investors will not be so quick to pay money.

Stick with it is different, as long as you survive this wave, there is plenty of capital to enter the field. If the middle technology breakthrough, that is more blood money.

There are so many dragons in, even if there is still money in the pocket, Franz must first keep. After all, their hands are quality projects, although may be ahead of some, that is the future of the world.

Franz’s days are not easy, and other people are even more so. Anyone who does the real economy, want to do a career, now there is a counting one, are storing food for the winter, who do not dare to unauthorized use of the hands of valuable funds.

Really have a large amount of idle funds, or play with the financial. Sometimes Franz even want to take the payoff, directly nationalize the bank, these guys click off.

Of course, this was just a thought. If Shinra’s financial capital power catches up with Britain, then Franz might really be unable to resist overturning the table.

The problem is that Shen Luo’s financial capital strength was originally limited, and jumped the technological pit dug by Franz, and when the stock market crash broke out they were all pretty much buried.

Of course, such a good thing is only this wave. Eat a lesson, grow up. Waiting for the next wave of the market began, it is estimated that the main force to play technology will be replaced by retail investors, after all, this success rate is really too touching.

Everyone has no money, so where did the money go?

The answer is simple: it was burned by the war. The war consumed a large amount of social wealth, destroying the normal cycle of the economy, in order to curb inflation and stabilize the value of the currency, the government of Vienna had to reduce the amount of Shendian put.

The post-war market boom was supported more by virtual credit than by real money in circulation.

This is also the main reason why Franz wants to fight for monetary hegemony, and only by making the S.D.A. an international settlement currency can he avoid the embarrassment of a war that empties his family’s capital.

Prime Minister Karl: “Your Majesty, the current financial market is not suitable for financing. The only way to solve the financial dilemma is to raise the leverage and issue more currency.

Our reserves are relatively abundant, and all along the leverage ratio of the Sacred Shield has been on the low side. The Ministry of Finance has calculated that as long as the leverage ratio of the S.H.I.E.L.D. issue is raised to the level of pounds sterling, it will be able to issue an additional eight point three billion in currency.

If there is a joint endorsement from the European countries, the market will be able to accommodate even a one-time issuance of an additional 1.2 billion.”

As a latecomer, the SHIELD naturally had to have its own advantages if it wanted to beat the British pound to become an international currency.

Before the end of the continental war, Shen Luo did not unify, from the world hegemony is more than eighteen thousand miles, the international status is far from catching up with Britain, Shen Dun can only rely on the “low leverage ratio”, “stability” to obtain the recognition of the market.

It just so happens that Shen Luo is the world’s top gold-producing country, production than the back of the two, three, four, five, six, seven, eight together are more, for the government’s currency issuance to provide sufficient margin.

Knowing what he knew, Franz was stunned by the government’s solution. Printing money when there is a shortage of money seems to be no problem, but in reality the problem is much bigger.

Now may be the 19th century, the painting style suddenly changed to the 21st century, how to see how to feel abnormal. However, for the moment, it seems that “printing money” is really a good solution to the crisis.

Printing more money, inflation is bound to happen. But there are European countries together endorsement is different, which is equivalent to the whole of Europe together to help digest inflation.

One-time printing of more than 1.2 billion, the European world per capita amortization down, less than a month’s salary. This little bit of money circulating to the market, even if inflation occurs will not be too big.

As long as the Vienna government’s gold reserves are sufficient, and the Bite of Death Shield exchange ratio doesn’t waver, the internal inflation will be digested over time.

The most crucial thing was that while solving the capital problem, it also pushed the pace of the divine shield becoming a world currency. Once the crisis passes, the market’s confidence in the divine shield will reach a new height.

Franz was the more he thought about it, the more feasible he felt, and there was a saying, “As long as I print money fast enough, the debt won’t be able to catch up with me.”

After hesitating for a while, Franz asked, “How do I get countries to recognize it? What if they make the same demands?”

It is not that Franz is overly concerned, Shenla can rely on the printing of tickets to solve the financial problem, European countries can also increase the printing of tickets to alleviate the financial crisis.

Governments are not fools, the Vienna government can ask them to endorse the value of the divine shield for them, then governments will in turn also ask the Vienna government to endorse their currencies for them as well.

All together “print, print, print”, that scene Franz simply do not dare to imagine. If Pandora’s Box is opened, the gold standard is ready to stop, gold production can not catch up with the speed of money printing.

Perhaps the French would like this scene to happen, only if everyone prints print print print, they can hope to pay off their debt. Better yet, just like France before them, billionaires per capita, then they will be able to pay off their reparations in minutes.

Prime Minister Karl replied confidently, “We can use interest-free loans plus material assistance in exchange for recognition by the governments.

Now they have no choice, printing additional currency is simple, but that’s not something anyone is qualified to do. All of the continental countries have their own shortcomings, and it is simply not possible to issue additional currency at this time.

The ten countries that are already bankrupt need not be mentioned, to increase the printing of currency is to think that they are not dying fast enough; Montenegro and Armenia do not have the ability to print money, and their currency is entrusted to our printing presses to print on their behalf.

The Netherlands, the Nordic countries, Spain, the three countries have limited economic volume, increase the printing of currency will immediately trigger a sharp inflation; the Russian Empire’s economic volume is enough, but the credibility of the tsarist government, once the printing of the currency ruble is the second franc.

The countries of the anti-risk capacity and its limited, not only domestic can not afford, the international more will not recognize. Currency printing will inevitably trigger a run on the bank, unless they can give up the gold standard, or simply can not hold out.

In this context, they want to solve the financial difficulties, the only way is to raise external debt. The only people who can solve their financial problems for them now are us and the British.

If someone betrays the European continent at this time and falls back on the British, our swords are no slouches, and it’s just the right time to make an example of them.”

It is true that there is nothing new under the sun, the original time and space after World War I countries to give up the gold standard, and the current situation is how similar.

“Give up the gold standard”, now seems impossible, but once pushed, do not want to give up can not.

See a leaf and know the autumn, if there is no god Luo this alternative, estimates that the final result of this economic crisis, is to countries were forced to give up the gold standard end.

To be exact, there are already countries that have given up the direct gold standard. History is amazingly similar, this leading brother is France.

The French government is no choice, after the continental war, the domestic gold was looted. Issuance of currency reserves of gold are gone, and how to implement the gold standard?

International loans are lent out of paper money, there is no loan of gold. Despite the French government’s best efforts to rummage through its coffers, it failed to raise enough reserves.

Finally was forced by the urgent King Carlos put heart a cross, directly borrowed a sum of the shield as a reserve, opened the indirect gold standard system.

Indirect gold standard can barely be considered a gold standard, better than directly on the credit standard. If you really want to play with credit money, I guess the French people will continue to go through the same old path of “billionaires”.

There are many things that can be done if someone takes the lead, and the same goes for the monetary standard. France was just the beginning, followed by several Italian states as newly independent countries, also embarked on the “indirect gold standard” path.

The only regrettable thing was that Belgium still continued the gold standard.

This is no way out of things, although Belgium in the continental war suffered heavy losses, but the Belgian army’s resistance, or for the government to evacuate to buy time, snatch out of the gold reserves by Leopold II brought to the god Luo.

As a moral and cultivated monarch, Franz naturally could not do anything to take advantage of the fire, with enough reserves of Belgium, naturally to continue to implement a more autonomous gold standard system.

Although regrettable, Franz does not regret. Shield to replace gold is not an overnight thing, step too big is going to pull the balls.

At least a little bit of excess first, to give everyone a time to accept. For example: first realize the “gold – shield” side-by-side native system.

To do this is not difficult, as long as the god Luo reduce gold exports, with the development of the economy, countries sooner or later will be because of the lack of gold reserves and headaches, then promote the parallel standard system, is a natural thing.

Wait for a long time, everyone is used to the divine shield as the native gold, only then is the divine shield to replace the gold, to lay down the currency hegemony time.

Plans are plans, and no one can guarantee success until they are completed. There are many similar programs, or alternatives, and this is just a set that seems relatively easy.

Have to admit that the end of the Continental War, to the Vienna government brought about a huge change. In the past, when it came to this kind of thing, the most Chancellor Karl could do was to give it a little shoeing afterward.

Now it is obviously different, first of all, the continental traitors of the big hat deducted, followed by the need to make an example of the chicken, the proper style of the hegemony.

In fact, this is the normal operation of the 19th century. The alliance has been concluded, this time to the British close that is betrayal, the traitor must die without discussion.

(End of chapter)