v5 Chapter 71： Crazy Digging
A genius remembers the address of this site in one second: (Vertex Chinese), the fastest update! No ads!? Since the French abandoned the gold standard, the value of the franc has plummeted. At its peak, the value of the franc was equivalent to the lev, but it has now fallen to the point. 10:1.
Following the plunge, the French government plundered a lot of wealth from the private sector, got rid of the government's financial crisis, put a lot of cash on the market, and the domestic economy began to recover.
In the first half of 1923, France's total exports increased by 38% compared to the same period in 1922, almost catching up with the peak level of the same period in 1913.
In a favorable environment, the unemployment rate in France has also begun to drop significantly. As a price, the living standards of the French people have also fallen year-on-year.
The advantages and disadvantages of abandoning the gold standard are in front of us, and Ferdinand is also considering whether to follow up. With the current Bulgarian economy, it is far from the point where it cannot hold the value of the Lev currency.
The most serious consequence is the serious contraction of export trade volume, but now Bulgaria’s total export trade volume does not account for a large proportion. Bulgaria’s tariff revenue only accounts for 4.8% of fiscal revenue, while export revenue accounts for The proportion is smaller.
It is mainly the Bulgarian-Russian trade, which accounts for nearly half of the import and export trade. The two sides implemented symbolic tariffs. This is a large amount of tariffs. However, other taxes have also been increased, which is generally profitable.
After all, export goods will be exempted from many domestic taxes, such as stamp duty, value-added tax, business tax...
If all of these taxes are to be levied, it is estimated that companies will no longer need to export, and the cost will have risen long ago. Who can afford it?
"Prime Minister, what do you think of the French new monetary policy?" Ferdinand asked
"Your Majesty, in the short term, the French used currency depreciation to increase currency circulation and stimulate the economy, but in the long run, this only delayed the crisis.
There have been problems in the French economy, but they have not solved the problem fundamentally. How can the problem be solved only by printing money?
If nothing happens, the situation will only get worse when the crisis breaks out in the future! "Constantin thought for a while and said
Ferdinand nodded, and then asked, "The Chancellor of the Exchequer, what do you think?"
"Your Majesty, my opinion is the same, but I think the French crisis has just begun. As France adopts a currency devaluation to pull it out, other countries may follow suit.
If this continues, the advantages of the French currency devaluation will soon be wiped out, so that except for the bankers who made a fortune, all French assets will shrink.
Excessive concentration of wealth can easily lead to insufficient currency in the market. Unless the French government can keep printing money and keep printing, the shortage of funds in the market will break out sooner or later, and finally an economic crisis will erupt! "Kennedy said carefully
Ferdinand nodded. In history, countries in the world have abandoned the gold standard after World War I, which is to imitate France, and finally caused the short-term prosperity of the world economy.
Until 1929, the American economic crisis broke out, detonating the world economic crisis, and France was also the hardest hit.
"Let's ignore the French problem, let's think about it now, should we follow up, and estimate, if all countries in the world adopt currency devaluation, how much impact will it have on us?" Ferdinand said cautiously
"Your Majesty, if all countries follow suit, our total export volume will probably drop by one third, or even more!
However, the impact on us will not be too great. Our biggest trading partner is the Russian Empire, and the trade between Russia and Russia should not change much.
In the continental European market, the competition is now very fierce. Coupled with the existence of cheap German goods, it is very difficult for us to expand our trade share.
When necessary, we can take export tax rebates to protect some of our markets!
As long as these years have passed, countries that abandon the gold standard after the economic crisis breaks out will have to pay a heavy price for this, and Lev’s international credit will be established for this! "Kennedy analyzed
Ferdinand nodded. In fact, he was ready to directly link the lev with oil to determine the lev’s status as an international currency after further development of the industry.
The Chancellor of Finance advocates keeping the value of the Lev currency, and establishing an international monetary system through credit in the hearts of the public. In essence, everyone's purpose is the same.
"Prepare foreign exchange and buy gold internationally!" Ferdinand thought for a while
"Yes!" Kennedy replied
To challenge the international status of the pound sterling, it must first defeat the British Empire, which is an essential step.
However, the British Empire in this era is too strong. Except for Ferdinand, no one else has any confidence. Therefore, all Bulgaria’s policies are often conservative and try to avoid direct collisions with the British.
Even Ferdinand didn’t know where to start? Encouraging the independence of the three North American countries? Or support the colonial uprising?
It is a pity that there is no hard-hearted one here, no matter who it is supporting, there is no ability to shake the hegemony of the British Empire!
Can't learn from that idiot Louis XVI? In order to support the independence of the United States, every franc in the treasury was spent and was finally sent to the guillotine!
Do you want the Germans to challenge the world again? But after looking at the map, Ferdinand soon gave up this tempting plan. At this time, the Germans, I am afraid they dare not challenge the world!
Sandwiched by France and the Austro-Hungarian Empire, there are Bulgaria and the British Empire behind. There are a lot of messy problems in the country. They want to engage in trouble, first fight a civil war and settle the country!
Even if they can complete the reunification again, their strength is not enough? Without Austria, without the Czech region, the strength of the Germans has been weakened by at least three levels compared to the history, but the enemy is stronger than in history. Why do they play such a mortal chess game?
Unless they are driven to a dead end, it is estimated that the French have no plans to drive the Germans to death. It irritates the Germans and the French to have another PK. Do you still know the outcome?
"Your Majesty, the economic situation in Italy is very bad, and the Italian government may declare bankruptcy in the near future!" Foreign Minister Metjeev said cautiously.
The bankruptcy of the Italian government is no longer news. As early as 1921, the Italians made a public announcement and demanded countries to reduce or forgive Italy’s debt, otherwise they would declare bankruptcy.
It was just that Britain and France very hardly announced that as long as the Italian government went bankrupt, the Allied Powers would govern Italy and use bayonets to urge them to repay their debts, which dispelled their desire to repay.
"Is the news confirmed?" Ferdinand Zou asked, frowning
"It's not far from ten. The Italians have filed an application for bankruptcy with us for the third time. This time they should be serious. Judging from the information we have collected, their domestic economy is very bad, with unemployed people everywhere.
Coupled with the huge debt, it has exceeded their ability to bear. If they do not fall into the debt, the Italian people will be hungry! "Medev explained
"So, now Italy is a mess. They have lost the ability to repay their debts?" Ferdinand asked
"From the intelligence analysis we collected, it is like this!" Metev replied
Ferdinand wandered around, he was still hesitating, should he take advantage of Italy and France?
After a while, Ferdinand said: "If we pull the British and French forces to control Italy, what will be the consequences?"
Everyone was shocked and stunned by Ferdinand's whimsical thoughts. Now the Italian government really has no money to repay its debts. Even if the military controls Italy, it can’t squeeze out oil?
For Italians to repay their debts, they must first be able to repay their debts!
What will the UK and France do?
Help Italy recover its economy?
Or directly squeeze and exploit the Italian people. How much oil can be squeezed?
"Your Majesty, what is the purpose of this?" Constantine asked suspiciously
This is clearly detrimental to others. No matter how you deal with the Italians, Bulgaria can't get half a dime profit, so is it necessary to participate?
"It's very simple. Is the current labor wage in Italy much lower than that in Britain and France?
As long as we delimit several economic zones, is it possible for capitalists in Britain and France to transfer some of their industries to Italy?
As long as they move some industries into Italy, can the Italian government collect taxes, and can they repay their debts with these taxes?
As for our interests, the British industry is really too strong. We have to let British capitalists learn to find cheap labor and reduce production costs!
It would be better for them to transfer all their local industries out, that would be even better! "Ferdinand explained
Is it possible to transfer all local industries out? At the national level, this is certainly not in the interests of the country, but it is in the interests of capitalists!
By reducing production costs, greater benefits can be obtained. With the current labor costs in the UK, many physical industries actually have little profit.
If the factory is moved out, this profit can be recovered immediately, and the capitalists have no reason not to do it!
What are the consequences for them?
When the British mainland has no industrial support, once the economic crisis breaks out, the social crisis caused cannot be undone It is really difficult to defeat the British Empire from the outside, but what about starting from the inside?
Is a British Commonwealth with serious internal problems still so terrible?
Once there is a problem in the British mainland, can they still be able to suppress the colony? Will the three kingdoms of North America be the younger brothers in peace?
Once the UK declines, there will be more people who will kill them at that time, and Bulgaria will be hidden behind the scenes from beginning to end, at most the last moment!
"Your Majesty, this success rate is probably not high! With the strength of the British, it is estimated that no one would dare to stand up to challenge them, as long as they are given time, they will still be out of trouble before long!" Constantine said with a wry smile
"Did I say that I would defeat them all at once? Does the following matter have anything to do with us? Now our task is to dig pits for them, dig more pits for them, and watch them jump!
Whether they can be buried in the end depends on them.
If the Commonwealth is united, then we will continue to weaken them, and we will continue to dig holes for the British on the way forward.
The British Empire is old, and when they are old, they will have no strength. Sooner or later they will sink in and never get up again!
If the Commonwealth cannot be united, then we will help and let them divide themselves, at least the Suez Canal at the door we must get back! "Ferdinand said fiercely
Everyone heaved a sigh of relief, as long as it wasn't Bulgarian shirtless, and personally PK him with the British Empire, they were the best at making up the knife.
In the First World War, didn't the Germans be compensated by Bulgaria? Wasn't even the Austro-Hungarian Empire beaten to death by the Russians first, and Bulgaria finally jumped out to grab the head?
...
Following the plunge, the French government plundered a lot of wealth from the private sector, got rid of the government's financial crisis, put a lot of cash on the market, and the domestic economy began to recover.
In the first half of 1923, France's total exports increased by 38% compared to the same period in 1922, almost catching up with the peak level of the same period in 1913.
In a favorable environment, the unemployment rate in France has also begun to drop significantly. As a price, the living standards of the French people have also fallen year-on-year.
The advantages and disadvantages of abandoning the gold standard are in front of us, and Ferdinand is also considering whether to follow up. With the current Bulgarian economy, it is far from the point where it cannot hold the value of the Lev currency.
The most serious consequence is the serious contraction of export trade volume, but now Bulgaria’s total export trade volume does not account for a large proportion. Bulgaria’s tariff revenue only accounts for 4.8% of fiscal revenue, while export revenue accounts for The proportion is smaller.
It is mainly the Bulgarian-Russian trade, which accounts for nearly half of the import and export trade. The two sides implemented symbolic tariffs. This is a large amount of tariffs. However, other taxes have also been increased, which is generally profitable.
After all, export goods will be exempted from many domestic taxes, such as stamp duty, value-added tax, business tax...
If all of these taxes are to be levied, it is estimated that companies will no longer need to export, and the cost will have risen long ago. Who can afford it?
"Prime Minister, what do you think of the French new monetary policy?" Ferdinand asked
"Your Majesty, in the short term, the French used currency depreciation to increase currency circulation and stimulate the economy, but in the long run, this only delayed the crisis.
There have been problems in the French economy, but they have not solved the problem fundamentally. How can the problem be solved only by printing money?
If nothing happens, the situation will only get worse when the crisis breaks out in the future! "Constantin thought for a while and said
Ferdinand nodded, and then asked, "The Chancellor of the Exchequer, what do you think?"
"Your Majesty, my opinion is the same, but I think the French crisis has just begun. As France adopts a currency devaluation to pull it out, other countries may follow suit.
If this continues, the advantages of the French currency devaluation will soon be wiped out, so that except for the bankers who made a fortune, all French assets will shrink.
Excessive concentration of wealth can easily lead to insufficient currency in the market. Unless the French government can keep printing money and keep printing, the shortage of funds in the market will break out sooner or later, and finally an economic crisis will erupt! "Kennedy said carefully
Ferdinand nodded. In history, countries in the world have abandoned the gold standard after World War I, which is to imitate France, and finally caused the short-term prosperity of the world economy.
Until 1929, the American economic crisis broke out, detonating the world economic crisis, and France was also the hardest hit.
"Let's ignore the French problem, let's think about it now, should we follow up, and estimate, if all countries in the world adopt currency devaluation, how much impact will it have on us?" Ferdinand said cautiously
"Your Majesty, if all countries follow suit, our total export volume will probably drop by one third, or even more!
However, the impact on us will not be too great. Our biggest trading partner is the Russian Empire, and the trade between Russia and Russia should not change much.
In the continental European market, the competition is now very fierce. Coupled with the existence of cheap German goods, it is very difficult for us to expand our trade share.
When necessary, we can take export tax rebates to protect some of our markets!
As long as these years have passed, countries that abandon the gold standard after the economic crisis breaks out will have to pay a heavy price for this, and Lev’s international credit will be established for this! "Kennedy analyzed
Ferdinand nodded. In fact, he was ready to directly link the lev with oil to determine the lev’s status as an international currency after further development of the industry.
The Chancellor of Finance advocates keeping the value of the Lev currency, and establishing an international monetary system through credit in the hearts of the public. In essence, everyone's purpose is the same.
"Prepare foreign exchange and buy gold internationally!" Ferdinand thought for a while
"Yes!" Kennedy replied
To challenge the international status of the pound sterling, it must first defeat the British Empire, which is an essential step.
However, the British Empire in this era is too strong. Except for Ferdinand, no one else has any confidence. Therefore, all Bulgaria’s policies are often conservative and try to avoid direct collisions with the British.
Even Ferdinand didn’t know where to start? Encouraging the independence of the three North American countries? Or support the colonial uprising?
It is a pity that there is no hard-hearted one here, no matter who it is supporting, there is no ability to shake the hegemony of the British Empire!
Can't learn from that idiot Louis XVI? In order to support the independence of the United States, every franc in the treasury was spent and was finally sent to the guillotine!
Do you want the Germans to challenge the world again? But after looking at the map, Ferdinand soon gave up this tempting plan. At this time, the Germans, I am afraid they dare not challenge the world!
Sandwiched by France and the Austro-Hungarian Empire, there are Bulgaria and the British Empire behind. There are a lot of messy problems in the country. They want to engage in trouble, first fight a civil war and settle the country!
Even if they can complete the reunification again, their strength is not enough? Without Austria, without the Czech region, the strength of the Germans has been weakened by at least three levels compared to the history, but the enemy is stronger than in history. Why do they play such a mortal chess game?
Unless they are driven to a dead end, it is estimated that the French have no plans to drive the Germans to death. It irritates the Germans and the French to have another PK. Do you still know the outcome?
"Your Majesty, the economic situation in Italy is very bad, and the Italian government may declare bankruptcy in the near future!" Foreign Minister Metjeev said cautiously.
The bankruptcy of the Italian government is no longer news. As early as 1921, the Italians made a public announcement and demanded countries to reduce or forgive Italy’s debt, otherwise they would declare bankruptcy.
It was just that Britain and France very hardly announced that as long as the Italian government went bankrupt, the Allied Powers would govern Italy and use bayonets to urge them to repay their debts, which dispelled their desire to repay.
"Is the news confirmed?" Ferdinand Zou asked, frowning
"It's not far from ten. The Italians have filed an application for bankruptcy with us for the third time. This time they should be serious. Judging from the information we have collected, their domestic economy is very bad, with unemployed people everywhere.
Coupled with the huge debt, it has exceeded their ability to bear. If they do not fall into the debt, the Italian people will be hungry! "Medev explained
"So, now Italy is a mess. They have lost the ability to repay their debts?" Ferdinand asked
"From the intelligence analysis we collected, it is like this!" Metev replied
Ferdinand wandered around, he was still hesitating, should he take advantage of Italy and France?
After a while, Ferdinand said: "If we pull the British and French forces to control Italy, what will be the consequences?"
Everyone was shocked and stunned by Ferdinand's whimsical thoughts. Now the Italian government really has no money to repay its debts. Even if the military controls Italy, it can’t squeeze out oil?
For Italians to repay their debts, they must first be able to repay their debts!
What will the UK and France do?
Help Italy recover its economy?
Or directly squeeze and exploit the Italian people. How much oil can be squeezed?
"Your Majesty, what is the purpose of this?" Constantine asked suspiciously
This is clearly detrimental to others. No matter how you deal with the Italians, Bulgaria can't get half a dime profit, so is it necessary to participate?
"It's very simple. Is the current labor wage in Italy much lower than that in Britain and France?
As long as we delimit several economic zones, is it possible for capitalists in Britain and France to transfer some of their industries to Italy?
As long as they move some industries into Italy, can the Italian government collect taxes, and can they repay their debts with these taxes?
As for our interests, the British industry is really too strong. We have to let British capitalists learn to find cheap labor and reduce production costs!
It would be better for them to transfer all their local industries out, that would be even better! "Ferdinand explained
Is it possible to transfer all local industries out? At the national level, this is certainly not in the interests of the country, but it is in the interests of capitalists!
By reducing production costs, greater benefits can be obtained. With the current labor costs in the UK, many physical industries actually have little profit.
If the factory is moved out, this profit can be recovered immediately, and the capitalists have no reason not to do it!
What are the consequences for them?
When the British mainland has no industrial support, once the economic crisis breaks out, the social crisis caused cannot be undone It is really difficult to defeat the British Empire from the outside, but what about starting from the inside?
Is a British Commonwealth with serious internal problems still so terrible?
Once there is a problem in the British mainland, can they still be able to suppress the colony? Will the three kingdoms of North America be the younger brothers in peace?
Once the UK declines, there will be more people who will kill them at that time, and Bulgaria will be hidden behind the scenes from beginning to end, at most the last moment!
"Your Majesty, this success rate is probably not high! With the strength of the British, it is estimated that no one would dare to stand up to challenge them, as long as they are given time, they will still be out of trouble before long!" Constantine said with a wry smile
"Did I say that I would defeat them all at once? Does the following matter have anything to do with us? Now our task is to dig pits for them, dig more pits for them, and watch them jump!
Whether they can be buried in the end depends on them.
If the Commonwealth is united, then we will continue to weaken them, and we will continue to dig holes for the British on the way forward.
The British Empire is old, and when they are old, they will have no strength. Sooner or later they will sink in and never get up again!
If the Commonwealth cannot be united, then we will help and let them divide themselves, at least the Suez Canal at the door we must get back! "Ferdinand said fiercely
Everyone heaved a sigh of relief, as long as it wasn't Bulgarian shirtless, and personally PK him with the British Empire, they were the best at making up the knife.
In the First World War, didn't the Germans be compensated by Bulgaria? Wasn't even the Austro-Hungarian Empire beaten to death by the Russians first, and Bulgaria finally jumped out to grab the head?
...
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