Vol 5 Chapter 71: Crazy digging

Since the French gave up the gold standard, the value of the franc has plummeted. At its peak, the value of the franc was equivalent to Lev. Now it has fallen to 1o: 1.
Along the way, the French government plundered a large amount of wealth from the people, got rid of the government's financial crisis, a lot of cash was put on the market, and the domestic economy began to recover.
In the first half of 1923, France's total exports increased by 38% compared with the same period in 1922, almost catching up with its peak in the same period in 1913.
Under the favorable environment, the unemployment rate in France has also begun to decline significantly. As a cost, the living standards of the French people have also fallen year-on-year.
The pros and cons of abandoning the gold standard are in sight, and Ferdinand is also considering whether to follow up. With the current Bulgarian economy, it is far from being able to keep the value of Lev.
The most serious consequence is that the export trade volume has shrunk severely, but Bulgaria ’s total export trade now accounts for a small proportion. Bulgaria ’s tariff revenue also accounts for only 4.8% of fiscal revenue, while export revenue accounts for The proportion is even smaller.
It is mainly the Bulgarian-Russian trade that occupies nearly half of the import and export trade. The two sides implement symbolic tariffs. This one reduces a lot of tariffs, but it also increases other taxes and generally makes money.
After all, after export duties are levied, many domestic taxes will be exempted, such as stamp duty, value added tax, business tax ...
If all these taxes are to be levied, it is estimated that enterprises no longer need to export, and the costs have already gone up. Who can afford it?
"Similar, what do you think of the French new monetary policy?" Ferdinand asked
"Your Majesty, in the short term, the French have used the devaluation of the currency to increase the circulation of the currency and boost the economy, but in the long run, this has only postponed the crisis.
There have been problems in the French economy, but they have not solved the problem fundamentally. How can the problem be solved simply by printing money?
If nothing else happens, the situation will only get worse in the future when the crisis breaks out! Constantine thought about it and said
Ferdinand nodded and asked, "Treasurer, what do you think?"
"Your Majesty, my views are similar, except that I think the French crisis has just begun. As France adopts a currency devaluation to pull it out, other countries may follow up.
If this continues, the advantages brought by the devaluation of the French currency will soon be wiped out. In this way, all the French assets will shrink except for the bankers who have made a fortune.
Excessive concentration of wealth can easily lead to insufficient currency in the market. Unless the French government can always print banknotes and keep printing them, the shortage of funds on the market will sooner or later, and finally the economic crisis! "Kennedy said cautiously
Ferdinand nodded. In history, all countries in the world gave up the gold standard after World War I. They were imitating France, and finally caused the short-term prosperity of the world economy.
Until 1929, the U.S. economic crisis exploded, detonating the world economic crisis, and France was also the hardest hit area.
"The French's problem doesn't matter. Let's think about it now. Would we follow up and estimate how much impact it would have on us if all countries around the world adopted currency depreciation?" Ferdinand said cautiously
"Your Majesty, if countries follow suit, our total exports will probably fall by a third, or even more!
However, the impact on us will not be too great. Our largest trading partner is the Russian Empire. The trade between Russia and Russia should not change much.
In the big 6 markets in Europe, the competition is already very fierce. With the existence of cheap goods in Germany, it is very difficult for us to expand the trade share.
When necessary, we can take export tax rebates to protect some of our markets!
As long as it has been supported for a few years, when the economic crisis breaks out and the country that abandons the gold standard will have to pay a bitter price for this, and Lev's international credit will be established! Kennedy analyzed
Ferdinand nodded. In fact, he was planning to link Lev and oil directly after the industry was further developed to determine Lev's international currency status.
And the Minister of Finance insists on keeping the value of Lev, and through the credit in the public's mind, the establishment of an international monetary system is essentially the same for everyone.
"Prepare foreign exchange and buy gold internationally!" Ferdinand thought for a moment
"Yes!" Kennedy replied
To challenge the international status of the pound, it is necessary to defeat the British Empire first. This is an essential step.
However, the British Empire in this era is too strong. Except Ferdinand, everyone has no confidence. Therefore, all Bulgarian policies are often conservative, and try to avoid direct collision with the British.
Even Ferdinand doesn't know where to start? Encouraging the independence of the three North American countries? Or support a colonial uprising?
It is a pity that there is no hard spirit in it, no matter who it supports, it has no ability to shake the British Empire's hegemony!
Can't learn the stupid Louis XVI? In order to support American independence, every franc in the treasury was spent, and was finally sent to the guillotine!
Would you like the Germans to challenge the world again? But looking at the map, Ferdinand soon gave up this attractive plan. At this time, the Germans are afraid to challenge the world!
Sandwiched between France and the Austro-Hungarian Empire, followed by Bulgaria and the British Empire, there are a lot of messy problems in the country. If they want to get things done, they will start a civil war and settle the country!
Even if they can complete the reunification again, their strength is not enough? Without Austria and without the Czech region, the Germans are at least three levels weaker than in history, but the enemy is stronger than in history. Why are they playing such a mortal chess game?
Unless they are driven to a dead end, it is estimated that the French do not intend to force the Germans to death now, and annoyed the Germans and the French to have another pk. Is it still unknown?
"Your Majesty, Italy's economic situation is very bad. The Italian government may soon declare bankruptcy!" Foreign Minister Metiev said cautiously.
It is no news that the Italian government is bankrupt. As early as 1921, the Italians issued a rumor, demanding that countries reduce or cancel Italian debt, or they would declare bankruptcy.
It was just that Britain and France announced very hardly that as long as the Italian government went bankrupt, the Allies would govern Italy and use a bayonet to urge them to repay their debts, only to dispel their worries about their debts.
"Is the news confirmed?" Ferdinand Zou asked with a frown.
"It's not too late to leave, and the Italians have filed for bankruptcy applications with us for the third time. This time they should be serious. From the information we have gathered, their domestic economy is very bad, and unemployed people are everywhere.
Coupled with the huge amount of debt, they have already passed their affordability. If they do not settle their accounts, the Italian people will be hungry! Metiev explained
"So, now Italy is a mess, they have lost their ability to pay their debts?" Ferdinand asked
"The analysis of intelligence gathered from us is like this!" Mev said.
Ferdinand wandered around. He was still hesitating. Would you like to use the Italian pit to dig into Britain and France?
After half a ring, Ferdinand began to say, "What would happen if we pulled Britain and France over Italy?"
Everyone was shocked, and stunned by Ferdinand's whimsical idea. Now the Italian government really has no money to pay off its debts. Even if the military manages Italy, it can't squeeze oil?
In order for the Italians to pay their debts, they must first be able to pay their debts!
What will Britain and France do?
Helping Italy recover its economy?
Or directly exploit the Italian people, how much oil can be squeezed?
"Sir, what is the purpose of this?" Constantine asked in confusion.
This is clearly detrimental to others, no matter how to deal with the Italians, Bulgaria can't get the benefit of half a dime, must we participate?
"It's very simple. Isn't the current wage in Italy much lower than in Britain and France?
As long as we delineate several economic zones, is it possible for British and French capitalists to transfer some industries to Italy?
As long as they move some industries into Italy, can the Italian government collect taxes and rely on these taxes to pay off debts?
As for our interests, the British industry is too strong. We must let British capitalists learn to find cheap labor and reduce production costs!
It's better to let them transfer all the local industries out, and that's even better! Ferdinand explained
Is it possible to transfer all local industries out? At the national level, this is definitely not in the national interest, but it is in the interest of capitalists!
By reducing production costs, you can gain greater benefits. With the current labor costs in the UK, many physical industries have actually lost much profit.
If the factory is transferred out, this profit can be recovered immediately, and the capitalists have no reason to do nothing!
What are the consequences for them?
When there is no industrial support in the UK, once the economic crisis explodes, the social crisis caused by it cannot be recovered.
It's really hard to defeat the British Empire from the outside, but what from the inside?
Is it still terrible for a British Commonwealth with serious internal problems?
Can they suppress the colony once problems arise in the British mainland? Will the Three Kingdoms of North America be a little brother in peace?
Once Britain declines, there will be more people down the road at that time, and Bulgaria has been hidden behind the scenes, and at the last moment will make up for it!
"Your Majesty, I'm afraid this success rate is not high! With the strength of the British, it is estimated that no one dares to stand up and challenge them. As long as they are given time, they will still get out of trouble!" Constantine said with a grin.
"Did I say that I would defeat them all at once? Does the later matter have anything to do with us? Now our task is just to dig them, dig more pits for them, and watch them jump!
Whether they can be buried in the end depends on themselves.
If the Commonwealth is united, then we will continue to weaken them, and persist on the way forward ~ EbookFREE.me ~ continue to dig the British.
The British Empire is old, and as soon as it is old, there is no energy. One day they will fall into it and never climb again!
If the Commonwealth cannot unite, then we will help again and let them divide themselves. At least the Suez Canal at the door will be taken back! Ferdinand said fiercely
Everyone was relieved, as long as they were not Bulgarian shirtless, and he and his British empire were in front of each other. They were the best at making up a knife or something.
Did n’t the Germans make up the last sword in Bulgaria during World War I? Did n’t even the Austro-Hungarian Empire was killed half by the Russians before Bulgaria finally jumped out and grabbed its head?
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