Mediterranean Hegemony Road

The uproar of the London Conference has come to an end, the cloud of the Great Depression is still looming over the world, inflation has exploded, and the world economy has entered a recession.

First, the defeated countries such as Italy and Germany, in order to repay their debts, the government chose to increase the money supply. In just a few years, the German mark depreciated more than 4ooo times, and private wealth was plundered.

In addition to defeating foreign countries, the life of the victorious country is not easy, and no one wants to be alone.

After the First World War, France adopted a policy of paper currency inflation, and the franc was devalued. By 1921, its purchasing power had dropped to 41% of that in 1914. The price of the pound fell from 25.o2:1 in 1914 to 99.6:1 by the end of 1922.

Your Majesty, the French government has just announced that it has abandoned the gold standard! said the Chancellor of the Exchequer Kennedy cautiously

Ferdinand's face changed, and history changed again. Originally, he thought that the French would not give up the gold standard until 1926!

Do you know why? Ferdinand asked with concern

Your Majesty, the domestic economy in France has deteriorated, and their loose monetary policy has caused severe inflation, and it can no longer be sustained!

This is the data we have collected. It is certain that the economic plight of the French is directly related to the war reparations paid by the defeated countries.

Before the World War, 92% of the industrial products in France were produced locally, while 38% of the industrial products used by the French now come from Germany, 5% from Italy, and 38% from Germany. Six percent came from the Austro-Hungarian Empire! ' Kennedy replied, handing over a document to Ferdinand.

Due to the butterfly effect, the French on this plane received more war reparations, adding two industrial countries, Italy and Austria-Hungary, and more cheap industrial products entered the French market in the form of war reparations.

Now France has 49% of the market,

The industrial products that were paid by the defeated countries to pay the war reparations were seized. If you count their trade with other European countries, then the domestic industrial products of France accounted for less than half of the market!

This means that the French industry will suffer a fatal blow, countless factories will be forced to close their doors, unemployment will skyrocket, and the normal order of the domestic economy has been broken!

What about other countries? For example, the British Empire, has the same situation happened? Ferdinand asked with concern

Yes, but it's not as serious as France, as long as the countries that receive the debt of the defeated country in kind have happened.

According to an analysis of data collected by the Bureau of Statistics, the total industrial volume of the French may have fallen by 23 percent compared to 1918, and will continue to decline as time goes on!

Compared with 1918, the total industrial volume of the United Kingdom has also dropped by 18%. However, with the addition of the three North American countries, their industrial total has greatly increased, which masks this problem.

Now the French intend to use the devaluation of their currency to increase the competitiveness of their export goods to save their domestic industry! ' Kennedy explained

Ferdinand shook his head helplessly. After the World War, the domestic markets of Germany and Italy were basically abolished. Except for the most basic daily necessities, they could not afford other industrial products, and then this product was All flowed into the international market.

The Austro-Hungarian Empire is not much better, but their reparations pressure is less, and the overall market shrinkage is inevitable.

Mao Xiong is no exception. After so many years of war, the population has dropped by a quarter, the domestic economy has long been a mess, and the people's spending power has long since disappeared.

Not only the European Big 6 market has shrunk, but the Americas Big 6 market has also shrunk. Since the division of the United States, in addition to the development of the arms market, other industries have declined.

On the one hand, due to the independence of various countries, tariffs appeared naturally, which restricted the circulation of U.S. industrial and commercial products. In addition, in this era, American-made products were inferior to Bulgarian knockoffs. Apart from being cheap, they did not have much international competitiveness at all. .

When the economic development is not good, the purchasing power of the people naturally declines. After independence, most of the federal states have experienced economic recession, and this decline has far exceeded that of Europe.

The purchasing power of so many markets is declining, and the global industrial overcapacity is inevitable! It is no wonder that the international media will ridicule the Bulgarian capitalists for not being able to see and act clearly, but increasing industrial investment under such circumstances!

Consummate the theory of deindustrialization that we have prepared, and then sell it to the British! Ferdinand thought for a while and said

Yes! Kennedy replied cautiously

De-industrialization theory does not mean completely abandoning industry, and it is estimated that no country will completely abandon industrialization in this era!

Instead, it promotes the idea of ​​limited industrialization, that is, keeping the total domestic industry within a range that can meet the most basic needs of its own war years.

It advocates transferring unnecessary industries to colonies with cheaper labor, or to economically backward countries, thereby reducing production costs.

Of course, it's not enough to talk about de-industrialization, and we need to give a suitable reason. There is no need to talk about environmental protection. People in this era do not have this awareness.

Isn't London the financial capital? Then let the British continue to develop finance!

By the way, I also mention tourism, service industry, and upstream development of the industry, such as: making the UK a manager, or making the world work for the British Empire.

Anyway, they are all fooling people. It doesn’t matter whether ordinary people believe it or not. As long as the capitalists move their factories out of the UK now, they can make more profits!

As for the problem of the unemployed, let them develop real estate. This is a good industry that benefits the country and the people.

Where is London? The capital of the British Empire, the financial center of the world!

What are the prices for in London right now? As long as 300 pounds, you can buy a house with an area of ​​more than 200 square meters, and the house prices in the suburbs are even cheaper.

You must know that this is a freehold property, and the land is sold together!

It is too cheap, not selling three million pounds, it is really sorry for the name of the British Empire! A house for a battleship, this is the normal opening mode.

It has to be fried, otherwise it will be a waste of time. How can you miss such a good financial opportunity?

It seems that the British have also fired real estate. Ferdinand can't remember exactly when, and it doesn't matter if they do it in advance!

When the capitalists realize that the huge profits of real estate have passed, it will be difficult to brake again! Even this generation of politicians in London will support them to develop real estate!

As long as the Lloyd-George government doesn't want to get out of the country right away, they must solve the unemployment problem in the country. Is there an industry that is easier to stimulate employment than real estate?

This is a conspiracy, as long as the British believe that house prices in London will rise, then house prices will really rise!

When house prices rise, capitalists will definitely enter the market. As long as capital comes in, Ferdinand's goal will be achieved.

Karl, find some economic experts to promote London's exhibition prospects, and give a proper reminder that the current housing prices in London are too low, and there is still a lot of space for exhibitions! Ferdinand thought for a while and said

Yes! Carl replied

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