Vol 5 Chapter 64: European Depression

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The huge war indemnities have exhausted the pockets of the German people. Now not only are ordinary people's life difficult, but even the Junker nobles' life is not so good.
Half of the industrial products are used to repay debts, and the remaining industrial products have to be exported in exchange for industrial raw materials. In order to reduce foreign exchange consumption, the Weimar government has banned the use of luxury goods in the country.
Inflation turned Mark into waste paper, and many people’s wealth was swept away. Sixty percent of the German people owed a lot of debt to the bank. The bankers behind the scenes became the only winner!
Had it not been for Ferdinand's increased food aid to Germany, and the Weimar government had food to fill their stomachs, they would have collapsed.
The influx of aid grains also harmed the interests of a class, that is, the Junker aristocracy based on land, and the Weimar government's rule has begun to be unstable.
Germany’s food gap is now more than three million tons, which means that after deducting Bulgaria’s food aid, they have to import at least two million tons of food every year to fill the domestic food gap.
The main producers of food, the Junker nobles, did not want the government to continue to import food. They believed that as long as domestic food prices increased, they could mobilize everyone's enthusiasm for production and fill the domestic food gap.
Of course it is impossible for the Weimar government to agree. It is estimated that no ruler would dare to agree. If the import of food was stopped, the German people would rebel!
The First World War was because of the food problem. German talents surrendered. As one of the leaders, the Weimar government also knew that one thing must be done, that is, to ensure domestic food supply!
Compared with the instability of the German central government, the development of several domestic kingdoms is actually better. Take the Kingdom of Bavaria as an example. They vigorously develop domestic agriculture, and the income of the people has not increased, but the living standards are compared with other regions. But it's much higher!
If there is no comparison, there will be no harm. In terms of governance, the Weimar government, which has no experience in governing, naturally loses.
Under the banner of freedom, capitalists grew rapidly and exerted increasing influence in the government.
Similarly, to match it, they are increasingly oppressing the domestic people.
Many people know that there is no future for developing industry in Germany. Fifty percent of industrial and commercial products are used to pay war reparations.
Capitalists are not philanthropists, how can they do such stupid things? So they have set their sights on the financial sector one after another, than lending usury!
Under this background, the conflict between the German central government and several major kingdoms has also begun to plan. The Weimar government hopes that the economic recovery of the several kingdoms can bear a greater proportion of debt. Obviously this is not acceptable to the major kingdoms. of.
Now these kingdoms are not afraid of the central government. In order to bury the nails in Germany, the French insisted on delegating the four powers of military, diplomacy, finance, and personnel to all kingdoms.
Except for the nominal unity of Germany, Germany is in fact its own affairs. It is impossible to expect each king to support a republic, right?
Especially in the past year, with the deterioration of the world economy, the Great Depression spread to the entire European continent, everyone's life is difficult, and the export of German industrial and commercial products is not so easy.
Looking at the intelligence gathered from Germany, Ferdinand rubbed his forehead. European history has been completely changed by him.
Judging from the current situation, if the Great Depression continues, the foreign exchange gained from the export of German artificial commercial products will no longer be able to buy the industrial raw materials they need.
Then debt repayment has become an inevitable result. Without enough industrial raw materials, what do they use to produce so many products to pay off their debts?
If there is no money to import industrial raw materials, naturally there is no money to import food. Even with the 1 million tons of Bulgarian aid each year, that is a drop in the bucket!
"The Prime Minister, tell the Germans that we agree to give them a batch of grain on credit, but we must follow business rules!"
Ferdinand made the final decision to continue exporting grain to Germany. After the end of the World War, Bulgaria was the largest food exporter to Germany.
This is also a political business. After the war, Germany desperately hoped to improve relations with major powers and get rid of the diplomatic impasse, while Bulgaria also hoped to get along with Germany in order to recruit talents, so the two sides became a hit.
Although the Germans have no money to buy food, the problem is in the short term. Can you find new buyers for the agricultural products produced in Bulgaria?
So knowing that it is difficult to receive money for exporting grain to Germany in the short term, Ferdinand still wants to continue this business!
"Your Majesty, this is too conniving to the Germans. There are a lot of foreign exchanges flowing into Germany from Bulgaria every year. We didn't say anything. Now we dare to..."
Constantine is naturally aware of the issue of food exports. However, the hundreds of thousands of Germans working in Bulgaria have to remit 780 million levs to Germany every year, which can basically offset the grain exports.
Every year such capital flows into Germany, Bulgaria has not said anything. Now that the German government has announced that it cannot pay for their food, Constantine is naturally dissatisfied!
"It is true that the Germans can't be too cheap, so set the interest higher. For example, the monthly interest rate of three cents is very suitable for them. Anyway, they have no choice now. I don't believe who else will give them credit!" Dinan said coldly
How is it possible not to be angry?
Now the two countries are taking what they need. Bulgaria has obtained talents from Germany, which has accelerated the pace of national development, and the Germans have also obtained Bulgarian food to feed the people in China.
The two sides are also considered to have a trade balance. The Germans obtained funds through the export of labor services, and then imported Bulgarian grains and returned to Bulgaria again.
Now Bulgaria still needs these Germans to work hard. It is not necessary for both parties to completely tear their skins. But in business, it is not excessive to charge usury?
These have nothing to do with the Bulgarian government's dime. The capitalists are so dark. If you want to take credit, you will have a high late fee. Do you want love?
The Germans don't want it, it's a big deal to help the Russians, just look for opportunities to retaliate back later, the Germans now can't stand up!
After listening to Ferdinand, Constantine did not continue to entangle this issue. If the Germans dare to bear the late fee of 3% of the monthly interest rate, then everything is easy to discuss.
"Your Majesty, what should we do about the Italians?" Constantine asked
Speaking of Italy, Ferdinand can only smile bitterly. If it is said that the Germans may fall back on the bills in the future, then the Italians have already started to fall back on the bills.
It's not that their government doesn't work hard, but it really can't afford it! If there are more to sell, it is estimated that the Italian government will sell them all!
From the signing of the Treaty of Versailles to the present, the Italian government has done everything to pay off its debts. Industrial and commercial products, this does not have the competitiveness of Germans; agricultural products are not enough for their own use, and human resources are not needed!
No, there is a labor team organized by the Italian government in Bulgaria. Simply put, it organizes criminals and sends them as hard labor to earn money.
There is also the vigorous development of the service industry. Of course, this is not organized by the government, but the capitalists have learned Japan’s advanced experience. Well, they are still a bit of moral integrity, at least not forced.
It's just that they combine sales and use this special channel to sell Italian luxury goods to European countries!
Of course, these can't let the Italian government take the blame. It is really the domestic economic downturn, and it has to bear huge debts. Many people are forced to take this road because of the pressure of life!
"Well, tell the Italians that if you want to reduce or forgive debts, you can talk to the British consortium. We have already sold all the claims, as long as they agree!" Ferdinand said indifferently.
"Your Majesty, the Italians also demanded that the payment of compensation be suspended. They will continue to perform after their economy recovers. We have an agreement with the consortium and we must be responsible for dunning!" Constantine reminded
Ferdinand laughed and said: "Yes, we promised to dunning, and we also ensured that the Italians will not fall back on the accounts!
However, the Italians spent a hundred years to pay them off. As long as they don’t pay them less late fees, it’s not a bad debt, right? The consortium asks us to drew the money, so we can rush it with other countries! "
Constantine was shocked~EbookFREE.me~ He didn't expect Ferdinand to get through with a foolish idea, but now the Italians really have no money, and they really can't do anything to them!
"Your Majesty, the Great Depression in Europe has already affected our export industry. If nothing else, our exports to the European continent will drop by 20% this year!
The government has decided to transform the company from export to domestic sales. Now the economic crisis in Italy has broken out. We plan to recruit a group of talents in the past. Their designers are still very good, but they are too lazy! Constantine continued
Ferdinand nodded, and then said: "Let’s do it this way. We have just started the ten-year plan. There is a huge market in it. If we calculate the supporting industries, the jobs created will probably exceed 5 million. One.
The domestic human resources market may be difficult to provide. When necessary, you can turn your sights on European countries to find cheap labor! "
Regarding the current German and Italian governments, Ferdinand is a bit speechless. Although the cards in his hand are rotten, he can't fight indiscriminately!
The domestic economic crisis is so serious, they still maintain a high-welfare social system, but most of the people cannot enjoy these benefits, the restricted funds are insufficient, and they are occupied by a small part of the privileged class.
This expenditure alone accounts for 23% of Germany’s fiscal revenue and 27% of Italy’s fiscal revenue. It is also known as protecting people’s livelihood.
That's all. The economic situation is not good. The government has to find a way to take active countermeasures, at least hit the domestic capitalists, let the people take a breath, and did not do it!
When encountering such two weird governments, it is no wonder that future generations can develop, but this plane has not yet appeared in their shadows. Is it because of the butterfly effect?
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