Vol 5 Chapter 67: , De-industrialization + real estate

The tumultuous London conference came to an end. The clouds of the Great Depression still shrouded the world. Inflation exploded and the world economy entered a recession.
First, the defeated countries of Italy and Germany. In order to repay their debts, the government chose to increase the money supply. In a few years, the German mark depreciated by more than 4ooo times, and private wealth was plundered.
In addition to defeating foreign countries, it is not easy to defeat the country. No one wants to be alone.
After World War I, France adopted a policy of paper currency inflation, and the franc depreciated. By 1921, its purchasing power had fallen to 41% in 1914. The exchange rate with the British pound dropped from 25.o2: 1 in 1914 to 99.6: 1 at the end of 1922.
"Your Majesty, the French government has just announced that it has abandoned the gold standard!" Chancellor of the Exchequer Kennedy said cautiously.
Ferdinand's face changed, and history changed again. Originally, he thought he would wait until 1926, and the French would give up the gold standard!
"Know why?" Ferdinand asked with concern.
"Your Majesty, the domestic economy of France has deteriorated. Their loose monetary policy has caused severe inflation, and now they cannot hold on!
This is our statistics. It is certain that the economic difficulties of the French are directly related to the war reparations paid by the defeated countries.
Before the World War 92, 92% of the domestic industrial products were produced locally. Now, 38% of the industrial products used by the French come from Germany and 5% from Italy. Six percent come from the Austro-Hungarian Empire! Kennedy answered as he handed a piece of information to Ferdinand.
Due to the butterfly effect, the French received more war reparations, increased the industrial countries of Italy and Austria-Hungary, and more cheap industrial products entered the French market in the form of war reparations.
At present, France has 49% of the market. It has been preempted by the industrial products paid by the defeated countries for war reparations. If we calculate their trade with other European countries, then French local industrial products account for less than half of the market !!
This means that French industry will be dealt a fatal blow, countless factories will be forced to close, the unemployment population will skyrocket, and the normal order of the domestic economy has been broken!
"So what about other countries? Like the British Empire, did the same thing happen?" Ferdinand asked with concern.
"Yes, it's just not as serious as France, as long as the countries that accept the defeated nations' physical debts, this has happened.
According to the data collected by the Bureau of Statistics, the total industry of the French may have fallen by 23% compared to 1918, and it will continue to decline over time!
The total industrial volume of the British mainland has also fallen by 18% compared to 1918, but with the addition of the three North American countries, their total industrial volume has increased dramatically, covering up this problem.
Now the French are planning to use the devaluation of the currency to increase the competitiveness of the exported goods in order 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. Then this product was All flowed into the international market.
The Austro-Hungarian Empire is not much better, but their compensation pressure is less, and the overall market shrinkage is inevitable.
Mao Xiong is no exception. After so many years of war, the population has fallen by a quarter. The domestic economy has long been a mess, and the people's spending power has long since disappeared.
Not only is the European Big 6 market shrinking, but the American Big 6 market is shrinking. Since the US split, except for the arms market, other industries have declined.
On the one hand, due to the independence of various countries, tariffs have naturally emerged, limiting the circulation of U.S. industrial and commercial products. In addition, in this era, American products were inferior to Bulgarian cottage products. Apart from being cheap, there was not much international competitiveness .
The economic performance is not good, and the purchasing power of the people naturally declines. Most of the post-independence federal states have experienced economic recessions. This decline has far exceeded Europe.
Purchasing power has declined in so many markets, and global industrial capacity is inevitable! It's no wonder that the international media will ridicule Bulgarian capitalists for not being clear about their actions, and actually increase industrial investment in this case!
"Complete our prepared industrialization theory and sell it to the British!" Ferdinand thought for a while
"Yes!" Kennedy replied cautiously.
"De-industrialization theory" does not mean to completely abandon industry. It is estimated that no country will completely abandon industrialization in this era!
Rather, it promotes the idea of ​​"limited industrialization", that is, keeping the total amount of domestic industry at a range that can meet the most basic needs of its war years.
Advocate the transfer of unnecessary industries to colonies where labor is cheaper or economically backward countries to reduce production costs.
Of course, it is not enough to talk about de-industrialization, but also to give a suitable reason, environmental protection does not need to talk about, people in this era do not have this awareness.
Isn't London the financial capital? Let the British continue to show finance!
By the way, also mention the tourism industry, the service industry, and the upstream exhibition of the industry, such as: make Britain all managers, or let the world work for the British Empire.
Anyway, it's all flickering. It doesn't matter if the ordinary people believe it or not, as long as the capitalists now move their factories out of the UK, they can get greater profits!
As for the problem of the unemployed, let them show their real estate, which 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!
How much is the house price in downtown London now? As long as three hundred pounds, you can buy a house with an area of ​​more than two hundred square meters, and suburban house prices are even cheaper.
You know that this is a permanent property right, and even the land is sold!
It's too cheap to not sell three million pounds, I'm really sorry for the reputation of the British Empire! Set a house for a battleship, this is the normal opening mode.
You must fry it, otherwise it will be a trip in vain. How can you miss such a good financial opportunity?
It seems that the British have also speculated in real estate. When exactly does Ferdinand have no idea of ​​it, it does not matter if it is done in advance!
After the capitalists have seen the huge profits of real estate, it will be difficult to brake again! Even this generation of London politicians ~ EbookFREE.me ~ will support them to show real estate!
As long as the Lloyd-George government does not want to get out of the way immediately, they must solve the domestic unemployment problem. Is there an industry that is more likely to stimulate employment than real estate?
This is a conspiracy. As long as the British are convinced 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 purpose will be achieved.
"Carr, find some economic experts, preach about the prospects of the exhibition in London, and give a proper reminder that the current house prices in London are too low and there is still a lot of exhibition space!" Ferdinand thought for a while
"Yes!" Carl replied
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