London

Prime Minister Macdonald is no longer in the spirit of the past, he has already paid a huge price, the cabinet has completely compromised with the consortium, and the economic crisis has erupted.

"Your Excellency Prime Minister, the Japanese government announced on October 1 that it would suspend the payment of international debts, and the stock market may continue to fall!" Chancellor of the Exchequer Pitt said with a frown

Now it is not a question of one or two defaults, but almost all of the loans and bonds issued by the British Empire overseas have defaulted.

This is undoubtedly worse for domestic financial institutions. Originally, everyone's life was not easy, and the bad news at this time was probably the last straw that crushed them.

"Let's go down, it's all at this point, how can the stock market fall?

The scope of the economic impact this time is so large, and a debt default is almost inevitable, haven't we been prepared for it? MacDonald said with a wry smile

It's completely free, ready to break the jar and break! But there is really no good way at the moment, more than a dozen countries have announced debt defaults, how many independent countries are there in this era?

It's not that people don't have money to pay back, but they don't have money to pay back at all, and it's the most troublesome for such creditors, whatever you do, no money is no money.

Cover in kind, and they have to dare to collect it at this time?

Obviously, the factories in the country are all mountains of goods, and as long as MacDonald is not stupid, he will not receive these things anymore at this time.

"So we've got to do something, right? The people of Britain are looking at us, and if we don't come up with some results, I'm afraid we won't be able to say it! Secretary of State Condoleezza Rice said depressedly

"I went to visit Chancellor Stanley, and he suggested that we adopt tariff barriers, temporarily abandon our interests in Germany and Italy, and give priority to our homeland!" MacDonald said with a frown

This decision is not easy to make, once tariff barriers are adopted, even German and Italian goods will not be allowed to enter, except that the capitalists behind the foundry will definitely be dissatisfied.

Everyone knows that once this happens, it will not be a problem that can be solved by a few months of shutdown, and Germany and Italy are about to break out in chaos, and most of their investments there will be wasted.

"This is a bad idea, simply adopt trade barriers, you can try, but giving up so many overseas assets is simply killing us!" Chancellor of the Exchequer Pitt said with a grim face

"I also know this problem, but the current domestic economic situation, if you want to get out of the economic crisis as soon as possible, this is the best way!

Most of our foreign imports come from Germany and Italy, and if we do not impose high tariffs on these industrial products, the so-called trade barriers are impossible to talk about!

Our domestic market, even with the addition of colonies, cannot afford to raise so many enterprises, let alone the three North American countries?

Their situation is similar to ours in our homeland, and now they have begun to adopt tariff barriers, if we don't abandon our pawns to protect the commander, I'm afraid the situation will worsen! MacDonald said with a headache

The current British Empire is a mess, if you want to get out of the economic crisis, then you have to make a choice, in fact, you don't give up the foundry in Germany and Italy, it's not impossible, just give up the three North American countries.

As long as the goods of the three North American countries are not allowed to enter the colonies of the British Empire without restrictions, then they can slowly get through the difficulties as they have historically.

But such a thing, just think about it, once it is really done, then the three North American countries will have to part ways with the British Empire.

No one doubts that they can't do it, and once their interests are damaged, they can rebel in minutes. At that time, all the efforts of the previous two governments will come to naught, and no one can afford such consequences.

"Then let's do it, the current situation, we can't afford to delay, in this month or so, more than 10,000 people have committed suicide in London alone, and the whole country still doesn't know how many?

Crime rates are also skyrocketing, and our prisons are already overcrowded.

Even the reasons for going to prison are all strange, some people are to take revenge on society, some people are to avoid debts, and some people are just looking for a job as a food manager!

Hell, when you see that jail has become a job in their eyes, you know how bad the situation is now! Secretary of State Condoleezza Rice complained

"But then the capitalists will probably go crazy! Besides, the party can't get through, don't forget who our supporters are? Chancellor of the Exchequer Pitt said nervously

"There is no way, if they don't go crazy, it is estimated that the people in the country will go crazy first, according to the current situation, the revolution is not far from us!

As for the problems within the party, at this time, everyone should be in the same boat, and the interests of the country are above all else! Secretary of State Condoleezza Rice retorted

"Okay, Pete I know what you're trying to say, now that we're in power, it's not the same as it was then, what will happen if we take measures at this time?

You wouldn't be unaware, would you? We have to take into account the overall situation, this time someone has to sacrifice, these capitalists' losses, we can find a way to make up for them later, but now they have to make sacrifices!

Domestic jobs must be saved, otherwise the British Empire will be finished, and the rioters will not reason with you! MacDonald said with great embarrassment

Once tariff barriers were adopted, the free trade policy that the British Empire had always advocated would soon come to an end.

Everyone is not stupid, as long as someone takes the lead, everyone will follow suit.

Governments around the world have begun to adopt trade barriers, which means that everyone is playing alone, and in the face of high tariffs, competition will become illusory.

But in the face of crisis, who can take care of so much? The question of the future, let's talk about the future, at least to survive the current catastrophe?

"All right, Your Excellency Prime Minister! I respect your choice, but that's not enough, is it?

In my opinion, unless the three North American countries are excluded, our market will still not be able to meet our needs, which is equivalent to doing useless work! Chancellor of the Exchequer Pitt said with some hesitation

"Of course it's not enough, but what if you add to that the abandonment of the gold standard?" Prime Minister MacDonald said fiercely

The face of the crowd changed dramatically, and once the gold standard was abandoned, the pound would immediately depreciate sharply. More importantly, this will lose the international credibility of the pound and gradually lose its status as a world currency.

"Your Excellency, Prime Minister, you can't do that! Don't forget that this economic crisis has not affected the whole world, at least not Bulgaria!

As soon as we abandon the gold standard, they will take advantage of the situation, and the Lev will gradually replace the pound as an international currency, and then it will be a big trouble! Chancellor of the Exchequer Pitt said with a frown

"Of course I know the risks of abandoning the gold standard, just as the franc was the second international currency after the pound sterling, and after they gave up the gold standard, it was quickly overtaken by Lev and its influence became less and less.

But don't we have no choice now? After the French gave up the gold standard, in the long run, they did suffer heavy losses, but in the short term, French goods did increase their international competitiveness, and the economy also developed rapidly!

At this point, we can't care so much, let's get through the current catastrophe first, and then talk about the rest of the matter! MacDonald said with a wry smile

Well, enhancing the competitiveness of commodities is all an excuse, you give up the gold standard, others also give up the near standard, everyone is depreciating, enhance the competitiveness of individual goods?

Is it better to see whose currency depreciates faster? If it were useful, did the rapid depreciation of the franc after the First World War really increase the competitiveness of French industrial and commercial products?

In addition to playing a role at the beginning, once the foreign exchange market reacted, it recovered immediately, and you can't play depreciation every day, right?

The biggest effect of currency depreciation is to make money, to plunder the wealth of the people and solve the government's financial problems by means of over-issuing currency.

It's just that these words can't be said, why the French gave up the gold standard, not because their economy can't hold on, but because the government owes too much debt in the world war.

Is there a better way to solve the debt problem? The situation of the British is similar now, the war in Southeast Asia has consumed a lot of their money, and the high welfare expenditure at home has overwhelmed the government's finances.

Solving the economic crisis and creating jobs all require money, and where do these jobs come from without money?

Including Roosevelt's New Deal to engage in engineering construction, don't you want government investment? It always takes money to invest, right?

One of the reasons for the economic crisis is that the capital chain of some industries is broken, and where can the government get money at this time in addition to printing money?

The consortium is rich, but isn't it good for people to keep it? Want to take it out and fill the bottomless pit for you?

You must know that the currency circulating in the market is far less than the theoretical value of wealth, and after the outbreak of the run crisis, in fact, the banks do not have much money, and they must shrink the monetary base in order to protect themselves!

Including Ferdinand's government bonds, which he guaranteed through the government so that they could be circulated in the market like money, which was essentially printing money.

It's just that in people's mental cognition, they don't regard the debt as a lev, so everyone doesn't think that the government has issued more currency, and used everyone's confidence in the market to prop up the value of the currency.

Originally, when gold was insufficient, the monetary supplement was made, but now it has become a credit currency.

As long as the government's credit does not collapse, it can circulate on its own in the market, and the banks are willing to endorse the bonds, is there a fundamental difference between the bonds and the lev?

The only pity is that this kind of bond cannot be issued in large quantities, and once it exceeds the market capacity, it will impact Lev's position and cause uncontrollable consequences.

History is always full of coincidences, and the MacDonald cabinet has adopted a similar policy to deal with the economic crisis.

On October 15, 1929, the London government announced the implementation of a new tariff policy, and all foreign goods entering the British market would be subject to an ultra-high tariff of 50%.

On October 16, the London government announced that it would abandon the gold standard, and the value of the British pound was no longer pegged to gold, and the world was in an uproar!

Sofia

After receiving the news of the British raising tariffs, the faces of the Bulgarian cabinet were not good, and it was clear that the most feared situation had happened.

"Prime Minister, since the British have raised tariffs, are you ready to deal with them?" Ferdinand asked lightly

"Your Majesty, we have decided to retaliate by raising the tariffs on British goods as well!" Konstantin said with a grim face

Now the British Empire is Bulgaria's second largest trading partner, and Bulgaria is the British Empire's largest trading partner.

However, the British still raised tariffs, so it became inevitable that they would compete with each other, and the trade between the two countries was almost cut off.

"Then let's improve together! Anyway, we are not a country that eats foreign trade, as long as we stabilize the country and there is no British market, we can afford it! Ferdinand thought for a moment and said

Losing the British market is actually not so terrible, even if the tariffs are raised, it is impossible to keep all products out of the door.

Bulgarian products do not rely on volume to win, many high-profit goods can be sold, this is the difference between an industrial power and a copycat power.

The profit of resisting goods is not high, and now it is impossible to enter the British market. However, Ferdinand's high-end goods, which were produced exclusively for the wealthy, were also free to enter and exit.

Just like in later generations, a certain country had to pay forty or fifty percent tax on imported cars, and the result was the same good sales, which was nothing more than adding taxes to consumers.

Now it is no exception, ordinary goods are not selling. In fact, even if the British don't raise tariffs, they won't be able to sell it, and the people have no money, so what can they buy?

On the contrary, the impact on the sales of luxury goods is not very large, and some people lose money in the stock market crash, and some people make money, and there are not a few outbreaks.

Shorting the stock market is not big news, how can there be no smart people to do it? No matter how the economy deteriorates, there are still many rich people.

The million people with the most purchasing power have not actually decreased much, and with the advantage of information, these people can always stay one step ahead of others and avoid crises.

However, Ferdinand's mood was still very unhappy, and for a long time, overseas trade was unprofitable, and he would have to lose a sum of money.

The profits obtained from the export of high-end commodities should be used to make up for the losses in other fields, and enterprises should reduce production and transform, all of which need to be invested.

The world economy will not be very good in the next three to five years, and it is impossible for him to let the market recover such as the shutdown of factories, and he must enter new industries to grab profits, which is the instinct of capitalists.

"Your Majesty, in addition to raising tariffs, in fact, we can retaliate in other aspects, such as North America!" Foreign Minister Metev proposed

"You mean to instigate the independence of the three North American countries? I'm afraid this is difficult, and the British are not stupid, how can they be defenseless? Ferdinand said, shaking his head

"Of course not, but we can add to the British's blockage, the three North American countries have their own government teams, we don't need to do anything else, just build momentum in public opinion and let them raise tariffs!

Including the other major Dominions, they can do the same, let them raise the tariffs within the Commonwealth, after all, according to the current situation, some states are actually losing money economically! Mejev analyzed

The circulation of goods within the Commonwealth is also subject to taxation, but for example, the outside world is much lower, and there are a series of preferential policies.

Now Metev's plan is to take advantage of the uneven development and uneven distribution of benefits among the states, and encourage them to formulate tariffs, which, whether or not they succeed in the end, can keep the London government busy for a while.

"Then go ahead and try it, I'll get the intelligence department to cooperate, and if you want to do it, do it bigger!

There are independent organizations in all three countries of North America, and we are secretly funding them with some funds, and a set of independent founding cheats are included, so let them make trouble! Ferdinand said lightly

If you don't stab each other, is that still an imperialist country?

The British brought up the tariffs at once, which caught Bulgaria off guard, and there was no news at all in advance, it was clear that they were harboring evil intentions, and Ferdinand naturally wanted to return the favor.

"Your Majesty, in fact, making a fuss about the currency will hit the British even harder!" Chancellor of the Exchequer John F. Kennedy proposed

"You're saying we're going to start a currency war right now?" Ferdinand asked, confused

"Of course not, as long as the British Empire remains the world hegemon, the position of the pound sterling will not be so easily shaken.

Now that the British have abandoned the gold standard, the pound will definitely depreciate, so let's let the pound depreciate a little faster! Kennedy suggested

Ferdinand nodded, it is indeed not easy to break the position of the pound immediately, but it is easy to make the pound depreciate faster.

As long as the market loses confidence in the pound, then the pound will depreciate faster than imagined.

Just like the last devaluation of the franc, according to the French plan, the franc was to depreciate slowly, halving its value in three years, and finally tripling in one year.

The market's confidence in the franc collapsed, governments sold the franc one after another, the French government had to take over, the number of francs in circulation in the world was greatly reduced, and finally the value of the currency was stabilized at one-tenth of its original value.

Now feng shui takes turns, this time it is the turn of the British, if the pound depreciates tenfold, there is no need for Ferdinand to do anything, and the status of the international currency will naturally collapse.

Anyone who sees that they hold a currency that has depreciated so much at one time and does not dare to hold it for a long time?

Whether governments want to or not, and for the sake of safety, they must reduce their holdings of the pound and replace it with a more stable international currency.

If there is no currency to compete with, then that's fine, everyone gritted their teeth and admitted it, but is there still Lev now?

Everyone knows that the stability of Lev's currency is terrible, unlike countries such as Britain and France, their people have no savings in their hands, and the currency depreciates because of its depreciation.

The Bulgarian people have not yet given up the tradition of savings, let alone the concept of advanced consumption, at this time, if anyone dares to let the lev depreciate, they must first ask them whether they agree!

Against this backdrop, the international market's confidence in Lev has always been strong, and it is now the second largest monetary system in the world.

"This matter will be handed over to your Ministry of Finance, be cautious, at this time the British may be on guard and pull a few more allies to take action together!" Ferdinand said after a moment's thought

"Yes, Your Majesty!" Kennedy replied

……