Holy Roman Empire

The benefits of monetary hegemony are known to all, but few countries are qualified to compete for it. As the currency of international trade settlement, there are at least a few basic conditions that must be met.

1. The economy of the currency-issuing country must be sufficiently large.

2. The volume of import and export trade of the currency-issuing country must be sufficiently large.

3. Stability of the currency's own exchange rate.

4. The ability of the currency-issuing State to guarantee the payment of the currency.

5. If the currency-issuing countries themselves are the world's policemen.

In modern times, the British were the first to satisfy these basic conditions, so the pound became the first international currency.

However, due to the limited communication and low degree of economic globalization, the promotion of the pound did not go smoothly, and we are still more keen to use gold and silver in international settlements.

With the increasing volume of international trade, the simple settlement of gold and silver has become obsolete, the pound only took the stage of history and became the earliest international currency.

Unfortunately, by this time, Britain's economic supremacy was no longer secure, and was successively challenged by the franc and the guilder in the process of establishing monetary hegemony.

Once an opportunity was lost, it was no longer available. As time went on, Britain gradually lost its advantage in industry and economic size, and the dream of pound hegemony came to an end.

Especially after the end of the European War, the Holy Roman Empire completed its unification once again, and the Holy Shield was established as the strongest competitor for monetary hegemony on the European continent.

An advantage is an advantage, and until the dust settles, there is no guarantee that anything will happen again. Franz, however, clearly remembers that there is still the Chosen Nation and is working hard at the moment.

There was no way around it, the natural conditions of the Americans were just too superior. Basically all resources could be self-sufficient, and even if it was divided into three, it still possessed the potential to become a top power.

Whether it was the United States of America, or the Alliance, they all far surpassed Britain, France, and West in terms of development potential. In particular, the United States of America's development potential even surpassed that of Russia.

The present deficiency is nothing but the population, both in quality and quantity, which has become an important factor limiting the economic development of both countries.

Although Franz had prepared in advance and sent an untimely bomb over when the Americans didn't react, it was unknown if and when this thing would explode.

Franz didn't want to pin his hopes on the unknown, and rather than wait for a challenger to develop, he used his existing advantages to determine the big picture in advance.

Once the monetary hegemony is established, it's not so simple to overthrow it again. In later years, the old U.S. tricks to die, make countries suffer, the hegemonic position of the dollar has still not been shaken.

The reason is very simple: the siphon effect. Monetary hegemony gathers money from all over the world, and with money, the speed of scientific and technological development is faster, and the military hegemony is consolidated.

One step faster, one step faster. Once the hegemonic position was established, it was just like the Internet industry leader, squeezing the later to death.

Once the monetary hegemony of the Holy Shield is established, at that time "the only one who can play dead the Holy Roman Empire is the Holy Roman Empire itself."

Economic Minister Reinhardt analyzed, "Your Majesty, if you want the God's Shield to become an international settlement currency, then our economic model will have to change as well.

The biggest problem facing the God's Shield in order to become an international settlement currency is foreign exports. As the volume of international trade continues to increase, simply issuing international loans is no longer enough to meet the demand.

In the early years, in order to reduce capital loss, we adopted a balanced foreign trade model. For the last four decades, we have had a trade surplus for the vast majority of the time.

It's not that this surplus was bad, in fact in years gone by we grew by building up our house little by little on foreign trade surpluses.

But it would be anachronistic to break the pound and make the guilder the dominant currency in international settlements.

The British are the best people to learn from in terms of monetary output. The current method of exporting the pound relies heavily on the British trade deficit model.

To overdrive to the trade deficit model, we would have to make trade-offs and reduce the amount of goods exported or increase the amount of goods imported.

The Department for the Economy believes that it can give up some of the unimportant low-tech industries to other countries, while we focus on developing high-tech industries."

The issue of S.H.I.E.L.D.'s export has been discussed many times by the Vienna government. In order to better promote S.H.I.E.L.D., as early as two decades ago, the Vienna Government had continuously granted international loans to countries around the world.

If there was no great background for exporting S.H.I.E.L.D., no matter how politically necessary it was, an inferior customer like the Tsar's government would not have been able to borrow so much money from the Empire.

As fast as the speed of lending out was fast, the speed of returning capital was equally fast. As the world's number one industrial power, all industrial and commercial products can be found here. Most of the debtors, after getting the money, hadn't even covered it up and took it out to spend again.

There's nothing to say, in this context, even if the Vienna government just wanted a trade balance, the end result would still be a trade surplus.

The result of the surplus was a massive influx of capital, which boosted the empire's economy while also hindering the development of international trade.

Simply put, there was a massive outflow of gold and silver, and trading partners became poorer and had no money to buy more goods.

Knowing is knowing, and trying to change the economic model is no easy task. One bad operation can lead to massive losses.

Now Franz has some understanding of why latter-day Americans are playing de-industrialization. Aren't the labor-dependent, polluting, low-tech industries the ones to give up?

It was only when the abandonment was almost complete that the insightful people suddenly realized - the country was hollowed out. However, it was too late by then.

Competitors had developed on cheap labor, and the only way to revive industrialization was to accelerate artificial intelligence research and rely on robots to compete with cheap labor.

What the end result will be, Franz does not know, and anyway, before he crossed over, artificial intelligence had not yet replaced artificial.

"What industries is the Ministry of Economy going to abandon?"

Giving up some industries is inevitable, and Franz is no idealist. How is it possible to want to enjoy the dividends of monetary hegemony while not wanting to bear the consequences of hegemony?

Just exactly what industries are to be abandoned is yet to be studied.

Economy Minister Reinhardt: "The industries that the Economy Ministry is prepared to give up are mainly focused on low-end manufacturing and the extraction of non-renewable resources.

The main industries are: mining of rare resources, textiles, printing and dyeing, and low-end clothing and footwear production ......

Considering the need for domestic economic development and employment, it is obviously unrealistic to directly shut down these industries, and in the short term, the measures we have taken are to strictly approve new mining operations and the registration of enterprises in low-end industries.

At the same time, we will cut import tariffs on products in related fields and phase out these backward production capacities through time and market competition.

If the plan goes well, in about five years' time, we will move into the era of trade deficit."

There are no core industries among those ready to be abandoned, and Franz is relieved. It seems the Ministry of Economy is still qualified and knows what the country's foundation is.

If someone in the top echelons of the government really did propose to abandon the core industries, then Franz would have to consider whether to turn the tables and change the way the fight for monetary hegemony was conducted.

After all, the current generation of leaders, all of whom he has handpicked, are so short-sighted that their future successors are even less to be counted on.

Future generations of Americans engaged in industrial hollowing out, all daring to play that way because they saw that artificial intelligence was developing rapidly and could be picked up again at some point in the future.

Because of errors in judgment, the expected technological breakthroughs did not happen, people regret.

If you play in the 19th century, you can refer to the French in the original time and space, the monetary hegemony did not get, but also turned themselves from an industrial empire into a usury empire.

With a lesson from the past, Franz naturally did not dare to take it lightly.

The same fight for monetary hegemony, but before the Vienna government has two choices. The most lucrative one, naturally, was to take the fight personally; the second best option, Franz could also push the European Union out to seize monetary hegemony.

In a sense, the latter had a greater chance of success. Gathering the power of the European Union these days, not to mention the British, even the whole world put together would not be enough.

The only problem was that the Holy Roman Empire, which invested the largest amount of money, would not be able to get a high rate of return, and would probably only get slightly more than it was getting now.

After contemplating for a moment, Franz shook his head: "The risks brought about by the economic model change are very big, we are different from the British, it's okay to learn from them, but it's not necessary to emulate them.

To be on the safe side, all we can do in the short term is to reduce mineral extraction, leave the mines that have been developed alone, and rigorously review the mines that have not yet been developed.

Which minerals must be developed, which minerals can be reduced, which minerals can be left undeveloped for the time being, the government should have a clear idea of what to do. It can't just blindly mess around and affect the economic development of the country.

It is best to introduce relevant natural resource laws to ban the export of mineral raw materials in legal form. Including coal and petroleum, these energy sources can also be temporarily included in the resource control list, strict approval of exports.

The low-end manufacturing industry is closely scrutinized to reduce capital inflows on it, and the rest of the market to make choices, specifically targeted to reduce tariffs is unnecessary, too deliberate but not beautiful.

In the short term, the government's focus can be on pollution remediation, especially the local core area, the lake or river upstream heavy pollution enterprises, must be relocated or shut down."

Comprehensive pollution control is not realistic, not only do not have that technology, the Vienna government does not have that much money.

But to carry out a certain degree of fine-tuning, relocating or shutting down some of the heavily polluting enterprises, Franz still had a bottom line.

Anyway, in order to promote SHIELD, the Holy Roman Empire to gradually enter the era of trade deficit, just take the opportunity to eliminate a part of the heavy pollution industry.

In order to promote God's Shield, Franz is also fighting hard. Even his own oil industry can be included in the resource control list.

Of course, this is also the restrictions of the times, the international market demand for oil is not high, the "oil - S.H.I.E.L.D. system" is even no shadow of a thing.

Moreover, restricting oil exports is not a benefit. On the surface, the money is less earned, but the substance is a blow to competitors.

As an important oil exporting country, once the Holy Roman Empire reduces crude oil exports, international oil prices are bound to rise.

As a result, the promotion and use of the internal combustion engine is bound to be affected. Now is the critical period of the Second Industrial Revolution, and it will be difficult to catch up once you miss it.

A win-win situation, Franz didn't mind sacrificing a little money for a while. The oil was buried in the ground anyway, and it couldn't run away.