Chapter 1170: The Great Inflation

  Chapter 1148 The Great Inflation
Good news keeps coming, and with it comes a lot of trouble. More allies make for a better road, and more allies make for more disputes.

Originally, the Continental Union’s internal contradictions were big, and after adding member countries, the situation became even more serious.

If not for the mediation of the Vienna government, it is possible that the chaos that took place in Europe will also be staged in the Americas.

Foreign Minister Leo: “Your Majesty, news has come from the embassy in the Far East that the Japanese government has sent a representative to deliver a letter of state requesting an armistice negotiation.”

One has to admit that these days, the Japanese are still truly capable of bending over backwards. No neutral country dares to jump out to mediate, simply come to the door themselves.

Although this way, lost the initiative in the negotiations; but with the current international situation, the Japanese government had no initiative, it does not matter that it was lost.

The only thing that really needs to be paid extra is the illusory “face”; and for the weak, the worthless “dignity”.

Although there are many member countries of the Continental Union, there are not many of them, and those who are willing to speak on behalf of the Japanese are even more non-existent.

No matter what, the Japanese did offend the three big bosses, who knows if helping at this time will cause trouble?

The only option left to the Japanese government is to find a new owner to seek refuge before the British are finished.

Throughout the world, apart from the Holy Roman Empire, which has this ability, there is no other one to be found.

Politics is not about feelings, even if there is a conflict with the Holy Roman Empire, the Japanese government can only come together.

This was expected, but when it really happened, Franz couldn’t help but laugh.

In order to maintain the image of the monarch, Franz forced himself to hold back his laughter, and said in a serious manner: “If you want to stop the war, stop the war, the Japanese think that this is a child’s play.

Tell the Japanese that if they want an armistice, they must show their sincerity, or else put down their weapons and surrender unconditionally.”

The word “sincerity” is probably the most difficult word to understand in the world. I don’t think anyone can answer the question of what is considered to be sincerity.

But that was exactly what Franz wanted to see. Only an ambiguous answer could leave enough room for maneuver without taking responsibility.

Otherwise, if the news of “instructing the Japanese to kill the Russian army in the Far East” got out, where would Franz’s face go?
It doesn’t matter if you pit your allies, allies are meant to be pitched. However, if you are going to kill an ally in the open, you are going to go beyond the bottom line.

As the rule maker, Franz will not do anything that crosses the line.

In contrast, let the Japanese understand on their own, then no matter what happens, have nothing to do with Franz.

The main thing to look at is the end of the civil war in the Russian Empire, and in the unlikely event of a lucky breakup of Russia, then it would be the Japanese who had failed to show good faith, and would have to be severely punished.

If the Russians got through the crisis, out of the need to check the Russians, then there was no harm in keeping Japan as a pawn.

Of course, the prerequisite was that the Japanese took out the Russian army in the Far East and proved that they had the strength to hold the Russians in check.

Fortunately, Franz’s plan was known only to himself. If the Japanese government knew the truth, I’m afraid they would have had an immediate nervous breakdown.

What is even more tragic is that no matter how much the mind breaks down, the established script must be followed.

Gambling on whether the Russians could pull through or not, well at least there was some chance; if they refused what was on the script, they were 100% screwed.

Prime Minister Chandler: “The Japanese are just a minor nuisance, a militaristic agrarian nation that doesn’t deserve much of our attention.

Including the interest disputes between the American allies, is not a big deal, spend some time to be able to deal with.

The real trouble is the Americans and the Russians. Despite the fact that the United States has split once, the United States is still a bit too big.

No one knew how much they had gained from the British. Once they were allowed to digest the proceeds, it would certainly be a problem in the future.

The Union State must also be vigilant, although it favors us in this war, the promised war against the United States has dragged on until now and still hasn’t actually made a move.

It’s clear that they want to use the power of the Union to expand their own power. If we don’t contain it, it will be another hot potato in the future.

The Russians, not to mention, has been a threat to the European continent for the last few hundred years, but also after the rise of the Empire a few years of peace and quiet.

The Tsarist government’s greed for land is never-ending, and without weakening their power, I fear that the future of the European continent will not be peaceful.

Now is the best opportunity, once this opportunity is missed, in the future they collude with Britain and France who are not willing to fail, it will be a great trouble.”

It was evident that Prime Minister Chandler did not take the British into consideration. The World War hadn’t even ended yet, and Britain had first moved two places back from Shinra’s threat list.

Relatively speaking, targeting the United States was fairly simple. It was an enemy now anyway, so as long as it wasn’t accepted that they were on the verge of a war, it was possible to pull an ally to squarely suppress it.

The most troublesome part was disposing of the Russians. As Austria’s traditional allies and now an important part of the Continental Union, there was no way the Vienna government could go directly after them.

Not only could it not lay hands on them, but the Vienna government, as an ally, would have to provide help to the Russians on the surface.

Even cut off the supply of strategic materials, have found a “priority supply front Russian troops” excuse, otherwise it is not accountable.

This was the limit of what the Vienna government could do. Supporting the national independence movement and assisting the revolutionaries was not an option.

“The problem of the Americans, put aside for the time being, and wait for the end of the war against Britain, and then deal with it.

The Russian question, it is not convenient for us to intervene directly, let the Berlin government look after itself.”

Fortunately, the Holy Roman Empire still had a staunchly anti-Russian Prussia, or else it would have come down to blackmail, and Franz wouldn’t have known who to let out.

Although these small actions, can not be hidden from the people who have the heart; but as long as the Vienna government firmly do not recognize, it is the same as not doing.

As for the anti-Russian behavior of the Kingdom of Prussia, that is a historical legacy and has nothing to do with the central government.

……

While the government in Vienna was preparing for the aftermath, the government in London was also thinking about the way forward. At this point in the war, Britain had essentially lost.

Along with the allies continue to fall, the British Isles supplies have become more and more difficult.

Not only do we have to guard against enemy submarine attacks, but we also have to worry about stabbing backs from our allies.

Once the allies changed sides, then all of Britain’s assets in that country, all of them will be in vain.

In a sense, Britannia’s huge investments overseas are one of the reasons why countries dare to jump ship.

Confiscated these assets of the British, not only to the Continental Union Na cast, even the price to be paid to make up a lot back, certain countries even have to earn.

The war has not yet been lost, but the aftermath of defeat, the British have experienced it first.

A large number of overseas asset loss, the British capital sector also suffered a heavy blow, especially in the financial market is woeful, the stock market market directly waist cut and then waist cut.

Unlike the previous confiscation of assets by the Continental Union, at that time, we also thought that after the end of the war, we could get back with interest.

Now the situation is very obvious, a little bit of insight people know that the British Empire has lost the possibility of winning the war.

The most optimistic estimate now is only that Britain can get out of the war in one piece after paying a certain price.

The stock speculation is the expectation, now the future of the expectation is gone, naturally become the biggest negative in the market.

Compared to ordinary investors, the well-informed consortium reacted more fiercely, and has now defiantly cut their meat.

Cutting meat is not enough, after getting cash, capitalists are trying to find ways to exchange gold. Even now need premium, still can’t stop everyone’s enthusiasm for gold.

In the era of the gold standard, the pound for gold needs a premium, from the economic point of view is the price of gold, or the pound depreciation.

As a currency reserve, the value of gold itself has not changed, then it is only the pound depreciation.

And along with the “premium” continues to rise, in the invisible, the pound’s “devaluation” continues.

Based on the market’s general judgment of the impact of the devaluation of the pound, as if overnight, the pound from the world’s currencies, reduced to everyone dislikes the garbage coin.

Affected by this environment, the British Isles prices, once again embarked on the highway, began to run wildly upward.

Not to mention looking forward to a victory, even pay a certain price, the whole body back, we do not have hope.

The stock market crash is second to the financial crisis triggered by the stock market crash, which is the biggest headache for Prime Minister Campbell.

War is about money, the British Empire’s financial revenue is not too high, at least when compared with the Holy Roman Empire, the two are not on a level.

Can mobilize enough money for the war, the most critical factor is the British financial system is developed, the government’s ability to finance strong.

But now the outbreak of the financial crisis, the London financial market was hit hard, a short period of time and then want to finance from the market, almost no possibility.

War is a beast that swallows gold, only with the government’s hand of the little money, if there is no follow-up funds to replenish, can not support for a long time.

Originally the situation is dangerous, and now the supply of materials, the government’s money bag, and together with the problem, Campbell heart want not to panic are difficult.

Just panic is useless, now Britain’s biggest problem is “confidence”. People, interest groups, and even government officials are skeptical about whether they can win this war.

Unless the British army can achieve a major victory on the battlefield, stimulate the nerves of everyone, otherwise want to change the concept of everyone, almost impossible.

Asquith, the Chancellor of the Exchequer: “In recent times, inflation in the country has been so strong that the people at the bottom of the ladder are suffering, and the market is losing confidence in the pound.

More and more people are choosing to exchange for gold, and our reserves have fallen to the lowest point in fifty years, necessitating a temporary suspension of free exchange.

But this is treating the symptoms rather than the root cause of the problem, and can only temporarily curb the outflow of gold, and cannot address the root cause of the problem.

The best way to avoid this situation is to decouple the pound from gold and implement a credit standard system.

……”

The solution is forced out, if not the outbreak of a run on the bank, Asquith said nothing would not engage in the “credit standard system”.

It’s not that he doesn’t know the benefits of the “credit standard system”, but mainly because the risks involved are too great. If you are not careful, the value of the British pound will be completely cold.

(End of chapter)