Holy Roman Empire

In the Royal Palace of Berlin, Frederick III only felt the pressure.Affected by the war, after the economic crisis broke out, the Kingdom of Prussia fell into the Great Depression.

The Berlin government is able to support it until now, that is, by overturning the table, the copycat has obtained a sum of money.

Overturning the table is also costly. Although Frederick III took decisive measures and resumed production in time, the government's fiscal revenue was still greatly affected.

If this is the case, then it will be fine, and it will always recover in a few days.

When the house was leaking, it was raining all night, and the factory was just assigned. When everyone was preparing to roll up their sleeves and dry, the economic crisis that swept the world came.

A large number of products are piled up like mountains, but they cannot be sold.The officers and soldiers who got the factory, of course, have to find the government to solve the problem.

Without enough market, Frederick III could not change the market.There is overcapacity in all of Europe, and the two big hooligans in Britain and Austria have unscrupulously played dumping.

As a result, the prices of industrial and commercial products internationally are lower than the production costs of Prussian enterprises.Not only is the price incomparable, the quality of Prussian products is far worse.

The Berlin government and the British creditors have an agreement. In theory, they can use industrial and commercial products to pay off the debt. Unfortunately, the pricing power is in the hands of the British.

For example, now, the British make a 30% discount with reference to the wholesale prices in the international market, and then after the comprehensive quality assessment of the deduction, it is the final pricing.

According to British pricing, the price of most commodities is less than half of the production cost.

"Selling" is a blood loss, and this loss cannot be borne by the producers. Otherwise, one factory in the country will be counted as one, and all will be bankrupt.

This is unacceptable to the Berlin government, and now the owners of these factories are the cornerstones of the Kingdom of Prussia.

It was finally difficult to buy it with economic benefits, so that the noble Junkers accepted the disarmament, and now they immediately smashed their jobs, that is the dead government.

The European revolution was so turbulent, and the Kingdom of Prussia was able to maintain stability only because it saved employment.

The factories are all workers themselves, and there is naturally no unemployment.In order to appease the people, the Berlin government assures everyone that the cost is low.

When the economy is operating normally, there is no problem with this commitment.Enterprises want to make money, and no one will deliberately produce a bunch of unsalable products and throw them to the government for trouble.

It's different now. The economic crisis broke out. The market is so bad that companies can't make money at all.

According to the agreement, now that everyone's products cannot be sold, the Berlin government has an obligation to help them deal with them at cost.

Prussia has no colonies, and if it wants to dump goods, it must compete with European countries.

From a purely economic point of view, the British's pricing is reasonable.Prussian industrial and commercial products are indeed not competitive, and can only play price wars.

Do n’t count on the European continent. Affected by the economic crisis, most Europeans are very poor. Unless it ’s just a commodity, it ’s hard to find a market.

For many people, the commodity just needed at this time is food. Unfortunately, this stuff is not enough for Prussia itself, and exports do not exist.

These industrial and commercial products of poor quality can only be dumped overseas.There is no doubt that Prussia does not have the ability to conduct global dumping, and they cannot enter most overseas markets.

There are only a few countries with relatively complete business networks and the ability to dump in most parts of the world.

These are Britain, Austria, France, West, Netherlands, and Portugal. These six countries have a common feature-colonial empire.

Among them, Spain, the Netherlands, and Portugal all declined, the commercial network was still there, but the colony was not much, and it was unable to digest Prussia's industrial production capacity.

There are many colonies in France, but the market is not large, and domestic capitalists are not divided enough. Naturally, it is impossible to enter Prussian commodities.

The colonies in Austria are well developed and the market is relatively complete. Unfortunately, Austria ’s own industrial production capacity is huge and there is no redundant market.

Moreover, even if they put in Prussian goods, they would not be able to sell them in the face of competition from Austrian goods.

The British have the most colonies, the market is relatively abundant, and the internal competition is not so fierce. It can be said that Prussia is the only choice.

Against this background, the British naturally want to lower prices.While exporting industrial raw materials to Prussia, and accepting Prussian industrial and commercial products for debt relief, it seems to be helping the Berlin government, but Prussia is working for them in vain.

More than just working in vain, the British are now going one step further and want the Kingdom of Prussia to work at a loss.

Frederick III is now in the same mood: Fortunately, he worked hard for a year, but at the end of the year he did not earn a penny, and he owed a debt.

But he couldn't refuse, otherwise he lost his job, and the mortgage, credit card, ~~ chant together, it was simply ...

Life is always going to go, "blood loss" is better than "bloodlessness".The suppressed price can only be recognized, and the Berlin government has to bluntly bear the loss.

Frederick III looked forward to asking: "How is the situation, the British agreed to postpone the debt?"

There is no way. The Kingdom of Prussia lacks resources and must import industrial raw materials. Mark does not recognize it, which must consume foreign exchange.

The in-kind settlement agreement with the British does not mean that the goods are left to the creditors. The Berlin government has not been so domineering.

The creditors of Prussia are mostly banks and financial institutions. These people are all financial players and have no interest in international commodity trade.

The truth is that Prussia sold industrial and commercial products to British capitalists in exchange for foreign exchange. After deducting the cost, the remaining money was used to pay the debt.

The role of the "Agreement" is that the British government also allows Prussian commodities to come in.Otherwise, under the free trade system, the sales of Prussian commodities are limited to the British mainland. Don't think about it, it will not be sold at all.

Now that prices have fallen sharply and the sales prices of commodities are not enough for the cost of industrial raw materials, they have bought and sold at a loss. Naturally, the Berlin government has no "foreign exchange" to pay its debts.

Foreign Minister Fredman's face sank all at once: "We have tried everything we can, and we have even obtained the support of the London government, and the negotiation failed in the end.

The impact of this economic crisis on the UK is greater than we expected, and banks are now short of money.

One of our creditors, Garrett Bank, went bankrupt during the negotiation because of a broken capital chain."

Creditors are also short of money, which is a big problem.In particular, Garrett Bank, which is bankrupt because of a broken capital chain, is even more unlikely to agree to debt extension.

Frederick III sighed deeply and asked the Chancellor of the Exchequer: "How much foreign exchange do we have now, and how long can we support it under normal debt payments?"

The Chancellor of the Exchequer, frowning, replied: "The situation is very bad. Now our total foreign exchange is worth about 7.656 million pounds, including 3.54 million pounds, 5.68 million Aegis, 8 million francs ...

Theoretically, if no other expenses are used, it is only used to pay debts, which can support up to seven months.

In fact, this is impossible.We must import industrial raw materials, machinery and equipment, and agricultural products to meet domestic production and living needs."

Foreign exchange can come in and go out. Normally, with the export of industrial and commercial products, the balance of payments can still be achieved.

After all, the domestic industrial raw materials and labor costs do not need to pay foreign exchange, and the mark can solve the problem.

7.656 million pounds is equivalent to 56.04 tons of gold, which is already a well-deserved huge sum in this era, exceeding the total gold reserves of many countries.

If there is no external debt to be repaid, for a small country, such a large amount of foreign exchange reserves is enough to live a small life.

It is a pity there is no if, the Kingdom of Prussia has huge foreign debts to be repaid.This huge sum of money is only enough to pay seven months of debt.

In fact, it did not last that long. Due to the decline in the price of export commodities, the Kingdom of Prussia has entered an era of trade deficit.

Unless the creditors are willing to accept the Mark payment, the Berlin government simply cannot pay the debt on time.

...

After receiving a telegram from the Berlin government for help, Franz's first reaction was: to encourage the Prussian to pay for it.

As soon as this thought came out, it seemed that he had fallen into a magic obstacle, and he could never linger again.

"If the Berlin government defaults, what will happen?"

Foreign Minister Weisenberg's face changed slightly: "Your Majesty, Prussia's economy is seriously affected by the British, and the Berlin government does not have the ability to default on debt.

If the Berlin government defaults on its debts, as long as the British impose trade sanctions on them, Prussia will collapse in half a year."

This is a fact. The Royal Navy put the coastline alone, and the Kingdom of Prussia will fall into a state of embarrassment due to lack of industrial raw materials and products.

Of course, they can also go by land, bypassing neighboring countries, but this cost is enough to bankrupt any business.

Felix rebutted in the opposite: "Not necessarily! Ordinarily, the British might do this to kill chickens and monkeys.

But now it's different. The European revolution is intensifying.

The French Revolutionary Party has occupied Paris, the situation in the Kingdom of Prussia is also very bad, and there is a possibility of revolution at any time.

As long as the British are not prepared to collect debts from the Revolutionary Party, the Kingdom of Prussia cannot be finished.

Now that the Berlin government is really incapable of repaying debts, defaults on debts are sooner or later. The London government should also be prepared.

As long as the Berlin government does not directly declare bad debts and find a reasonable excuse for debt extension, the British government will not take extreme measures.

It is banks, financial institutions, and speculators who lend money to the Berlin government. Although these interest groups have great influence in the UK, they have not reached the point of making decisions for the government.

It is impossible for the British government to ignore the overall national strategy for their own benefit.Without the support of the government, these people could not help the Kingdom of Prussia.

If the situation in Europe deteriorates further, the Berlin government can also negotiate conditions with the British to seek partial debt relief."

It is not after World War II. The aristocracy is in its heyday. The consortium's desire to control the government is simply a fool's dream.

The French Revolution is already scary, and if the Prussian Revolution is to succeed again, the wave of the European Revolution can no longer be controlled.

Although Britain was lonely overseas, the revolutionary wave still did not let them go.

The two countries have been exporting to each other for many years, and they cannot survive on the spread of the revolution.

...

On May 1, 1882, a massive anti-hunger campaign broke out in the Kingdom of Prussia. Numerous people took to the streets to ask the government to import more food and solve the domestic food shortage.

After the outbreak of the anti-hunger movement, the Berlin government responded very quickly and helped the international community in the shortest possible time.

At the same time, a large amount of foreign exchange was consumed to repay foreign debts, and there was no money to buy food.

There is no doubt that this is not like a "request", but more like a notice.

At the same time as the request, the Berlin government has suspended debt payments in May.

It was announced that the debt-servicing funds in May would be used to buy food to solve the domestic food shortage.

The creditors of the Kingdom of Prussia are mostly concentrated in Britain and France, and hold a total of 95.4% of the external debt of the Berlin government.

After the two major creditors of Britain and France are settled, it can be said that all the creditors have been settled, that is to say, it is enough to manage the British.

The French are very busy now, the civil war has broken out, and for a while it will not be able to ignore this trivial matter.

Did the Kingdom of Prussia really famine?

It depends on what the British think!

If the London government accepts this statement, then the Kingdom of Prussia "really" broke out in famine.

If the London government does not endorse this statement, then there is no famine in the Kingdom of Prussia.

Politics only needs to weigh the pros and cons, the truth is not important.