Chapter 53 Economic Situation

The international situation determines the economic trend, and the cessation of the world war will inevitably lead to a new round of economic change, so Hitler came to Bremen to discuss future economic plans with Dembutch and Ginter.

Dembucci and Ginter already knew about the armistice of the world war, but neither they nor all the Germans knew what would happen to Germany in the future, although it was clear when the armistice was signed that all the overseas colonies, as well as Lorraine and Alsace, were to be ceded.

However, the real peace agreement has not yet been signed, and Germany is like a fish on the chopping block, and no matter what the Entente does, Germany will not be able to resist.

Was it just the cession of overseas colonies, Lorraine and Alsace, and the reparations of large war reparations?

Will there be harsher punishments?

For example, the division of Germany, the confiscation of all the land companies of the Junker aristocracy?

None of this can be said well.

Even those who have studied international strategy can only speculate about Germany's future.

"The collapse of the German economy is highly likely." Ginter is a top student in finance and economics, and understands what a huge indemnity means for a country.

"At least the currency will depreciate and the economy will become depressed." Dembucci also said that there are many reasons for currency depreciation, one of which is inflation, and the more currency a country issues in it, the weaker the purchasing power of the unit currency. When a country is issuing a steady stream of currency, if it is not manipulated by policy, the country's currency becomes less and less valuable.

The German government, in the face of huge reparations, may issue a large amount of currency, so that one mark and a pack of cigarettes yesterday will be two marks a pack of cigarettes tomorrow.

In fact, from the beginning of the world war, whether it was the Entente or the Central Powers, every country had a domestic economic deterioration, and the war of industrialization greatly distorted the economy of each country, exhausting a large number of manpower and material resources, bomb craters all over the position, countless casualties, coupled with the blockade of the navy and each other, all made the country continue to print money, and in the end it was the ordinary people who paid the bill.

The currencies of various countries have depreciated by almost half compared to the pre-war period.

"Currency depreciation is certain, even if there is no indemnity, it will depreciate because of the defeat, our company cannot deposit money in the bank, invest in real estate immediately, and buy more precious metal spots."

Hitler did not understand the economy, but he still understood that if the currency devaluation occurred inflation, the best way to avoid the crisis and avoid the depreciation of the money in hand is to buy precious metals, such as gold, one of the precious metals, its risk-averse properties will never disappear, the entire history of human civilization, no matter in any era, gold is a thing with high purchasing power, unless there is alchemy to turn stones into gold, otherwise gold will never depreciate.

For individuals, it is better to invest in precious metal collections and the like, but for enterprises, in addition to internal use management methods and adjustment of capital strategies, there is also a way to buy entities before inflation, as long as they own a large amount of real estate before inflation, then no matter how the economy collapses, it can at least not protect itself.

"Invest more in real estate and steel." Ginter said as he sat in a chair at his desk, fiddling with a pen in his hand.

The real estate that Ginter said is mainly machinery and equipment, land estates and minerals, as for the investment in real estate, it is not considered, unlike a certain country in later generations, whenever the money printing machine is opened to print money, it will speculate on the house, so that it can use some of the people who just need it, to drive economic development. This may work in some countries, but not in Germany.

The first is that Germany has strict legal controls, and if someone goes to speculate on real estates, speculators will be fined heavily. The government also sets a price for the rental market, encouraging renting, and landlords are not allowed to increase prices by more than 20% of the government's fixed price, and if the price increases too much, they can even face jail time. There are also landlords who have to take back their contracts at the end of their contracts, so many Germans can live in rented houses.

The second is because the Germans at this time do not like to squeeze into the big cities too much, the national living space of the whole country is relatively evenly distributed, and many people see that the housing prices in the big cities are expensive, and they can open a company and live directly in the suburbs or rural areas by buying a comfortable villa.

The third reason is that because of the German government's perfect welfare, many people can buy cheap housing, and workers can buy a house for a few years' salary.

Therefore, the German method does not use property speculation to preserve the value of the currency, as was the case in some later countries.

The Germans are more focused on real business, believing that no matter how much the economy deteriorates, their excellent goods will never depreciate. They prefer to use the money in their hands to invest in factories and machinery.

"By the way, isn't Russia in a civil war now? Now is a good time to do business with the Russians. Hitler's mind flashed.

"Do you mean doing business with the Russian White Army? They have the help of the Entente, they don't need us. Dembuch said.

Hitler shook his head and said: "No, we do business with Soviet power. ”

"Soviet power?" Dembucci was surprised that at this time, the Soviet only controlled Petrograd and Moscow, and there were only 200,000 troops, which was very small. In particular, the Entente had gathered a large number of troops and were uniting with the White Army to attack the Soviet power, which in the eyes of many people was about to collapse at any time.

"Believe me, the Russian Soviets will grow, the red flag will eventually be planted throughout Russia, and it will become a new political force, and we must now make political investments and unconditionally finance the Soviets, so let's take all my money and finance the Soviet power." Hitler had a taste for directives.

Ginter was suspicious: "Are you a revolutionary? It turned out that Hitler was very confident in predicting that the Soviets would succeed in taking control of Russia, which made Ginter suspect that Hitler was a revolutionary.

At this time, although many people sympathized with the revolution and were inclined to revolution, many elites and leaders saw that Russia had actually established a "dictatorship of the proletariat" against all Western beliefs, and that there would be endless troubles in the future, and they regarded Soviet power as a beast of prey.

Hitler laughed at himself: "I am also a landlord class, how can I be a revolutionary." But I believe that the Russian Soviets will really control all of Russia, so why don't we invest in it first. ”

Dembucci was, after all, a veteran businessman: "Since you say so surely, then let's make a political investment in the Russian Soviets, but it cannot be an unconditional investment, and I will send a large amount of supplies to the Soviets by Swedish merchant ships in exchange for mineral mining and prospecting rights not controlled by the Soviet power in Russia." This is actually a political gamble. ”

Dembucci's approach was indeed a gamble, the Russian Soviet power now only controlled Moscow and Petrograd, and in the eyes of the regime leaders, the areas controlled by the old Russian forces were simply "out of reach", and at this time Dembucci took a large amount of supplies to the leaders and told the leaders that he was willing to exchange a large amount of materials for minerals controlled by other forces in Russia.

The Russian Soviets did not control these areas, and were not confident that they would be able to control them in the future, given that they were outnumbered.

It's a free giveaway!

As for the minerals mentioned in the contract, who knows how many years it will take us to occupy these areas, maybe the weak Soviet power will fall next month?

At the same time, Dembucci's actions will also win the gratitude of the leaders of the Russian Soviet power, and if the Soviet power finally falls, Dembucci will have no profit and will give the Russian Soviet supplies for nothing.

ps: There have been too many things in the past few days, the state is not right, and I apologize here.