Chapter 735: Run francs

The riotous operation of the Berlin government has stunned the entire European world.
For the bourgeoisie, it is even better. Prussia can play like this, and other countries can naturally follow suit. This is simply a sword hanging on everyone's head.
Public opinion has been slammed, but none of this has any effect. Since dare to overturn the table, the Berlin government will naturally not be afraid of being scolded.
Prussia's approach is not only that domestic capitalists have suffered heavy losses, but overseas investors are also mourning.
Since the news spread, the number of people hoping to jump in Frankfurt has increased a lot.
Including the little-known Flores, because of the error in the information, accidentally received the disk, hesitating to go to the roof.
Fortunately, after the end of the Prussian-Russian war, all Prussian company stocks have fallen to the bottom, and they are in a trapped state.
As long as there is no silly run to go long, the takeover is also a low takeover, the loss is not too serious.
The Berlin government has only confiscated the shares of criminals. In theory, the shares held by overseas investors are still valid.
This is also the main reason for the non-intervention of the powers. Although the Berlin government's measures are a little too radical, they are still dealing with internal affairs.
The most important thing is that the established facts have been caused. Interference will only make things more troublesome and increase everyone's losses.
As long as the business is still running, stocks have value. It is nothing more than that the major shareholder has been replaced by the Berlin government, which has made the investment prospects confused.
...
Palace of vienna
"Your Majesty, the situation has changed. Prussian actions are likely to trigger a chain reaction. If the French follow suit, our plan will be difficult to succeed." Chancellor of the Exchequer Carl worried
Sudden changes have also been a huge blow to the British and Austrian conspiracy to sell short francs.
Prussia can overturn the table, and the French can do the same. Maybe the Paris government dare not learn everything, as long as a financial regulation comes, it will be enough for everyone.
Franz shook his head: "It's different. The Berlin government has no choice but to let it go. There is no way back.
Where is the weight of France, we will at most suppress the value of the franc, and by the way make a fortune. Otherwise, the Paris government would not be so extreme.
If the Paris government really wants financial control, it will help us a lot. Prussia is a ready-made example, and the value of the Mark has completely collapsed.
Maybe we will lose money in the speculation this time, but withdrawing the franc from the international market, this share is enough to make up for our losses. "
For currency hegemony, Britain, France and Austria fought for many years. Although France is out, the franc still holds a significant share of the international market.
In the gold standard era, the larger the economy, the greater the demand for gold.
France has a large economy, but its gold production is very limited, and it cannot meet the growing demand. The reserve for issuing francs has always been insufficient, and there are hidden dangers in the financial market.
In recent years, international hot money has been frequented. It ’s just that the scale is not that big, and even if there is some gain, it will not shake the position of the franc.
Interests are moving. After the speculators taste the sweetness, they naturally want to make more profits.
This time British and Austrian Capital teamed up, it seemed that Franz was pushing in secret. In fact, this is just an introduction. Even if there is no such primer, it will happen sooner or later.
Of course, this introduction is still very important. Without government participation, capitalists would not have such a large scale even if they acted.
In essence, the French were suppressed by the British and Olympics because they moved the cheese of the two countries.
The Paris government's African development plan is too hateful. In recent years, France's textile industry has developed rapidly and has seized many British markets.
The British people are already hurting, and the cotton development has been put first in the African development plan. How can John Bull tolerate this?
While growing cotton, the French's African development plan also plans to promote new agricultural technologies in North Africa and expand the area of ​​agricultural products, which in turn moved Austria's cheese.
In this context, there will be problems if they are not suppressed by Britain and Austria.
In contrast, the battle for the international market share of the franc is relatively minor, and is mainly of interest to the financial community.
After a short pause, Franz added: "The plan has progressed to this point. It is no longer possible to quit.
I do n’t know much about financial matters, so I leave it to the transferred person to take charge.
Right now, in accordance with the plan, increase the dumping efforts on France and consume their foreign exchange reserves as much as possible. "
...
The time to come is still to come. Affected by the special policies of the Berlin government, on November 11, 1881, the Berlin Stock Exchange went a long way after opening.
The waist cut is a good performer, and many stocks have only two or three percent off, and the market value of some stocks is even less than 10% of the original.
The net assets of some enterprises are several times higher than the market value, and the typical market value is inverted.
This is normal and assets are not equal to cash. During the stock market disaster, asset shrinkage is inevitable. In order to raise funds to survive the crisis, don't cry too much.
With the launch of free trade, the economic ties between countries are getting closer and closer. The outbreak of the stock market disaster in Prussia, other countries should not want to be alone.
The first shocks were naturally Frankfurt and London. The former held up for less than three days and collapsed across the board; the latter supported less than five days and followed suit.
The Pandora's box was opened, and the stock disaster soon spread to the entire European continent, and the stock markets of all countries were mourning.
In less than a week, Vienna's stock market fell by 10%, its lowest level in five years.
Both Britain and Austria have suffered stock market crashes, and France is no exception.
In Paris, angry shareholders directly lit the stock exchange. Fortunately, the staff arrived in time to put out the fire.
At the Palace of Versailles, Napoleon IV has not yet eased from the stock disaster, and the Minister of Economy Elsa hurried in.
"Your Majesty, the big thing is not good. Hundreds of banks, including Bank of Paris, Bank of France, and Bank of Empires, were running at the same time, and the situation is very crisisy.
Many people hold certificates of deposit and specify requirements for exchange of British pounds and Aegis, and our foreign exchange reserves are decreasing sharply.
To be sure, someone wants to short the franc. The run is only the beginning, and the enemy will attack later. "
Hearing the bad news, a word emerged in Napoleon IV's mind-"financial turmoil". He paused and asked, "Do you know who is manipulating?"
The Minister of Economic Affairs Elsa replied: "There are many participants. Almost all of the world's top banks and securities companies have appeared. It can be roughly judged that the main force is British Olympic Capital.
The enemy's power is very strong. According to the information we have collected, it is estimated that they may have 3 to 5 billion francs in their hands. "
"3 billion to 5 billion francs" seems to be nothing to a big country like France, but also the French government's fiscal revenue for one year.
However, this is cash and not an asset. In the financial market, such a huge sum of money can completely leverage tens of billions of international hot money and impact the French financial market.
Napoleon IV was shocked: "Does the financial sector know nothing about the enemy raising so much money?"
Because both Aegis and British Pound are international settlement currencies, the foreign exchange reserves of Britain and Austria are relatively low, and it is simply impossible to take out so many francs.
The total circulation of francs in the international market is actually billions. This means that the funds for running the run can only come from France.
The Minister of Economic Affairs Elsa whispered: "Some time ago, several large banks in China issued large loans to overseas, which were ordinary commercial projects and did not attract everyone's attention."
This is determined by the system. Banks grant loans to others, and the French government has no right to interfere.
Since I can't control it, I naturally ignore it. Anyway, the profit and loss are the responsibility of the bank itself, and the government does not need to pay.
Napoleon IV stopped talking, knowing that the run of the run, with the participation of domestic consortia, could not do anything about it.
If it wasn't for the actions of the Berlin government that frightened the bourgeoisie, French capital will definitely be in the army of short-selling francs.
People are now invisible, and they are very face-to-face to the government. Can't we keep everyone from making money?
After thinking for a while, Napoleon IV asked, "How are you going to deal with this crisis?"
Minister of Economic Affairs Elsa: "Unlike in the past, this time the enemy is fierce, and it will certainly not be just for a small advantage.
... "
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