Holy Roman Empire

War is not a child's play, and it can be ignored to find excuses for war, but it is still indispensable to mobilize troops and raise strategic materials.

Do n’t look at Egypt ’s weak chickens, it also depends on who you compare with, at least people still carry the handle on the African continent, claiming to be Africa ’s number one power.

Their biggest competitor is Ethiopia, but this rival Englishman helped to weaken it, and they will be finished when they finish playing Ethiopia.

No doubt, the powers still have to face.Unless it is a small strong like Afghanistan, otherwise the British will beat Ethiopia to save face.

The hegemony needs to be maintained by force, and it can be lost to the same European powers, but not to the indigenous Africans.

The Paris government is still very pragmatic, and they made careful preparations so as not to make jokes.Napoleon III decided to go hand in hand with politics and defeated the Egyptian government before attracting pro-French people.

This is also a common method used by European countries for colonial expansion overseas, including Austria has also been used in Central America, with the exception of the African continent.

In London, news of the Suez Canal's navigable news caused an uproar in the financial markets.Many people pessimistically believe that the era of great navigation is coming to an end.

This is based on the fact that after the Suez Canal was opened, the voyage from Austria to the Indian Ocean was shortened by more than 12,000 kilometers, and the voyage from France and Spain to the Indian Ocean was shortened by more than 10,000 kilometers.

The British have the shortest voyages, which is at an absolute disadvantage in this regard.In the capital market, the decline of British local companies and export companies engaged in the Indian Ocean, Southeast Asia, and South Asia have experienced a steep decline in stocks.

This drop has spread to the entire London market. Naturally, the upstream and downstream related industries cannot afford to be alone, and the stock market crash has followed.

The capitalist world economy has taken its toll on the whole body. Do n’t want to be alone in other industries when the stock market crashes. The financial industry is the first to be affected.

Since the beginning of 1868, long lines have lined up in the streets of London.The stock market crash led to the bankruptcy of speculative financial institutions and banks, which triggered panic among the public, and a run-off crisis followed.

This is just the beginning. If there is a problem in one link of the circular economy chain, it is bound to involve other links.

Undoubtedly, the run-out crisis broke out, the banks stopped lending out for self-protection, and the financial crisis spread to enterprises.

Suez Canal navigation was only the fuse that triggered the economic crisis. The British economy has long had problems. As early as a few years ago, the United Kingdom had overcapacity.

This is also related to the rise of Fao. The market in the world is so large, and there are more competitors to grab the market, resulting in the continued decline in the international market share of British industrial and commercial products.

The market is small, and there is no reduction in production capacity, so there is naturally a surplus.It was only the American Civil War first, followed by the Russo-Prussian War, which delayed the crisis.

Now that the war is over, the commodities produced have no market, and the economic crisis is already brewing.At this time, it happened that the Suez Canal's navigation detonated the crisis ahead of time.

The original time and space began in 1864, and the economic crisis broke out from Britain.Now the time has been delayed by three or four years, and the overcapacity is naturally more serious.

This is caused by inconvenient communication and poor market information.The capitalists did not keep up with the rhythm of the market to regulate production, resulting in a serious overcapacity.

Without any new tricks, the economic crisis will naturally have to find a way to survive the winter.Enterprises without strength are directly bankrupt, and industries with strong strength have begun to lay off employees and reduce production capacity.

In the summer of 1868, the Great Depression came to London.The scale of British railway construction has shrunk by 78%. More than a dozen large and small railway companies have declared bankruptcy and more than 20 railways under construction have announced indefinite shutdown.

The shipbuilding industry also reached the peak of production in 1867, and then began to shrink. By the end of 1868, the size of the industry had shrunk by 34%.

The textile industry is the hardest hit by this crisis.Affected by the Austrian cotton spinning industry, they lost the markets of Central and Eastern Europe, and the Western European market was also hit by the French.

The pillar industry of the British was hit hard in this economic crisis. Five giant companies with more than 100,000 workers went bankrupt during the economic crisis.

The bankrupts are full of people. They were still rich and magnificent half a year ago. Now they are reduced to street refugees.

At the same time, due to the economic crisis, exports have shrunk sharply.The outflow of gold is serious, funds are tight, banks and companies have gone bankrupt, and the British have ushered in the eleventh crisis in economic history-the Canal Crisis.

After the outbreak of the economic crisis, the British government did not take timely measures to deal with it, but allowed the crisis to wreak havoc and make the crisis out of control.

Countless unemployed people took to the streets of London for demonstrations, and capitalists also complained.The opposition parties attacked the government for inaction in the newspaper, and the economic crisis triggered a political crisis.

The John Russell cabinet encountered the biggest crisis of trust since taking office.However, this is really not their business. According to British law, the government has no right to interfere in the free economy.

The Party of Mouthfire does n’t control that much, it ’s the government ’s fault anyway.Fortunately, Prime Minister John Russell did not interfere in the market, otherwise he would bear the guilty of "interfering with the free economy and causing an economic crisis."

Needless to say, politicians have encountered the most common means of resolving problems—resignation.

...

In Vienna, the sudden economic crisis triggered Franz's attention.Unless it is a planned economy, this overcapacity is simply unavoidable.

Now that there is a problem in the UK, Austria should not want to be alone. It will be a problem sooner or later.

Franz asked with concern: "The economic crisis is coming again, what measures does the cabinet have?"

Prime Minister Felix replied: "Your Majesty, judging from the situation in Britain, the impact of this economic crisis will be very large.

In order to get rid of the crisis, the cabinet decided to let the state-owned enterprises start to destock and dump the low-priced stocks to the world.

We have to grab time with the British and the French, the market is so big, and the slow response will be in our hands."

During the economic crisis, it is no longer time to calculate profits.It is most important to sell all the products in exchange for a large amount of cash, so that the enterprise can survive.

It is enough for the state-owned enterprises to destock only one administrative order.Everyone will surely implement it seriously, and few bureaucrats will be so stupid as to face the government.

Private enterprises are different. This kind of government direct intervention in the market cannot be ordered.In the capitalist economic market, the government cannot interfere with the normal operation of enterprises.

It is naturally impossible for the government to break the law when it comes to making law.Moreover, so many companies have overcapacity, they can't directly execute administrative orders, order them to reduce production?

Anyway, the survival of the fittest in the market always kills a batch.Long-term pain is worse than short-term pain.

The cabinet chose to save the state-owned enterprises first, and the son should always receive preferential treatment.When the slow-moving products of state-owned enterprises are exported, the pressure on domestic overcapacity is reduced.

Franz continued to ask: "Is the emergency plan ready?"

Private enterprises are not unrestrained. They mainly depend on the specific situation of the economic crisis and take measures according to the actual situation.

The government is not a nanny and it is impossible to guarantee that the enterprise will not go bankrupt.Whether you can survive depends on the capitalist's own judgment.

If you die yourself, you will really die.Smart people saw the big movements of state-owned enterprises and began to follow suit early in the morning.

If the response is not overwhelming, it should be unlucky.Didn't you see that the royal industry is running away?

Royal Bank can be regarded as the vane of the Austrian economy. As long as the bank tightens the money, there must be a problem with the economy.

It is even more impossible to open an economic crisis. Then, if there is no economic crisis, an economic crisis will be created artificially.

Once panic occurs in the market, the losses caused are even more terrible than the economic crisis.According to Franz ’s experience, the economic crisis is in the game, whoever runs faster is the winner, and whoever takes the game deserves the luck.

Prime Minister Felix explained: "Your Majesty, this economic crisis is different from the past. It is simply overcapacity. Not only us, but most European countries have overcapacity.

The American Civil War and the Russo-Prussian War exacerbated this crisis.Before the war, countries had signs of overcapacity.

If the crisis broke out at that time, the market would soon adjust itself.It is different now. It is initially estimated that domestic production capacity should exceed 30% of the market demand. Some industries may exceed half of the market demand and may be higher.

In addition to letting the market beat the fittest and eliminate the weak, we have no choice at all.No one in the world can find such a large market and vent such a large capacity."

This is a sequelae of making war money. During the Russian war, most of the supplies were supplied by Austrian monopoly, which led to overcapacity in many industries in Austria.

After the war, the market made some self-regulation.However, the economic transformation cannot be completed in a few months.

Now that the economic crisis is coming, many companies that have reacted slowly will naturally not be able to escape.

Of course, the impact on large companies may not be too fatal. After all, war wealth was accumulated in the first two years and capital strength was accumulated.

As long as there is no blind expansion, there is still some money in my pocket and ammunition to survive this crisis.

The overcapacity is serious, which also means that we cannot escape the crisis by exporting.When the economic crisis erupts, the international market will soon shrink, and the only markets that belong to Austria are the homeland and the colonies.

Other overseas markets are not worth mentioning at all. It is not a question of market size, but of purchasing power.

In any case, Austria is also the world's largest economy in this era.There are two countries with more populations than Austria, but the market is far from comparable.

Of course, in calculating the colony, this ranking has dropped by one.The British are still kings of this era, and no one can compare with them.

Franz nodded. The solution is not without, but it is not in line with this period.The economic crisis broke out, allowing the traditional industry crisis to break out.

To some extent, it also accelerated the outbreak of the second industrial revolution.Traditional industries do not have enough profits, so capitalists have to focus on emerging industries.

It is conceivable that it will not take long for Austria ’s new industries to flourish.In this context, Franz will naturally not intervene.

In the face of the economic crisis, the capitalists can only count them as unlucky.Who can blame my own investment vision?

It should be a sacrifice for the new era, and it was glowing for the second industrial revolution.