Chapter 536 Sanctions against Germany and the World Economic Crisis
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Although the Spanish Civil War ended, the game between the international powers was far from over, but became more intense. Pen Γ fun Γ Pavilion www. ο½ο½ο½ο½ο½ο½ γ ο½ο½ο½ο½ββ....
The Spanish Civil War itself was a contest between the European Entente and the Central Powers, and between the capitalist and socialist camps. As far as the Entente and the Central Powers were concerned, the Allied powers after the war had the upper hand due to the collapse of the Austro-Hungarian Empire and the decline of the Turkish Empire. However, after entering the treaty era, the Entente camp was quickly weakened by the demise of Tsarist Russia. At the same time, after Mussolini came to power, Italy had actually abandoned the Entente camp and switched to the Allied camp. After Hitler came to power, Germany's economy took off further, and after the merger with Austria, Germany's national strength was further enhanced. Therefore, in the era of the treaty, the power of the Central Powers soon surpassed that of the Entente camp, and the strength of the two sides was weakened, so that when the Spanish Civil War broke out, the Allies sat back and watched the Allies invade Spain and did not react, resulting in the establishment of Franco's fascist regime in Spain.
On the other hand, the Spanish Civil War was also a contest between the capitalist world camp and the socialist world camp. With the rapid rise of Soviet Russia, the wave of red power of the Comintern swept the whole world, causing a direct confrontation between the two camps. During the Spanish Civil War, in order to avoid a direct collision with the Central Powers, the Entente intended to make the Central Powers and the Soviet Union eat dogs, so as to divert the energy of the Central Powers to deal with Soviet Russia.
It can be said that the Entente did it, because during the Spanish Civil War, Germany and Italy were directly opposed to the Soviet Union. The contradictions between the two sides are extremely acute.
However. To the Allies' tragedy, with the end of the Spanish Civil War, the expected intensification of tensions between the Allies and the Soviet Union did not appear, but the Allies and the Soviet Union soon reached various secret agreements, so that the Allies could still focus on dealing with the Entente.
After Hitler came to power, Germany was not satisfied with the passive situation of being flanked by France and Russia during the First World War, so Hitler directed the Spanish Civil War and supported Franco and other armed forces to seize power, which led to the seizure of power by the Spanish army and the establishment of a fascist dictatorship system in Spain.
After Franco came to power. On the one hand, the Gibraltar naval base, which had been promised to the Chinese Empire before the war, was transferred to the Chinese Empire to strengthen strategic cooperation with the Chinese Empire. On the other hand, Spain has reached agreements on regional alliances with Germany and Italy, with which Spain has signed non-aggression pacties and strategic alliance treaties to strengthen political, economic and military exchanges between the two countries.
According to the provisions of the treaty. Germany and Italy continued to provide Spain with a large amount of economic and military aid, and the Spanish government army, with the help of Germany and Italy, soon established a new type of army, navy and air force, with weapons and equipment that were either German or Chinese, all of which were the most advanced in the world at present. Hitler even sent senior German generals and senior Nazi Party officials to Spain to teach Franco his experience, helping him establish a system similar to that of the Nazi Party and training military personnel. In this way, Germany, Italy, and Spain formed an alliance, leaving France in a three-way strategic encirclement of Germany, Italy, and Spain, and in the event of a German war against France, France would be attacked on three sides at once. This was far more serious than the situation in which Germany was attacked on both sides during World War I. France thus entered the most dangerous environment, which provoked unanimous tension throughout France.
On the one hand, France accelerated the pace of construction of the Maginot Line on the German-French border. On the other hand, it actively contacted Franco and tried to stabilize the Franco government. For the Franco government, Spain had been in a state of collapse since the war of 1898. Spain became a third-rate power in Europe, and after the great attrition of the civil war, the Spanish economy collapsed, and in order to suppress the red people of the former republic and the Comintern, Spain was in a state of white terror and social unrest, and Franco did not want to provoke Britain and France at this time. Therefore, it also reached a non-aggression pact with Britain and France, and asked Britain and France to provide Spain with financial and technical assistance in economic and military aspects. Britain and France, knowing that Franco was asking for benefits on both sides, still complied and provided Spain with a large amount of financial aid and technical support. This has been a huge help to Spain to quickly restore the country's economic strength.
Britain, France, Germany and Italy are well aware of the Spanish government's national policy of "grass on the wall". But there was no way, I didn't want to lose more, so I had to tolerate Franco's behavior.
On the Spanish issue, because the Chinese Empire only claimed the right to garrison Gibraltar and control of the Strait of Gibraltar, Britain was a little unwilling to give up Gibraltar, but with the current strength of the British Navy, its Mediterranean Fleet has no value in existing, after all, the Suez Canal has been taken away by the Chinese Empire. Therefore, in the face of the influence of the Allies on Spain, Britain chose to make concessions to the Chinese Empire and voluntarily gave up the right to lock Gibraltar. In this way, the Chinese Empire got Gibraltar as it wished, completely controlled the import and export of the Mediterranean, and there was no reason to strike at Britain again, so when the Chinese Empire declared its neutrality on the Spanish issue, the Spanish issue was temporarily stabilized.
The Entente and the Central Powers were temporarily unsettled on the Spanish issue, but on the Soviet issue, the Entente camp was quickly defeated. ββ
Britain and France had adopted a policy of appeasement on the Spanish question, believing that they would provoke the Central Powers into direct confrontation with the Soviet Union, but they soon found that they had failed.
In the summer of 1931, when the flames of war in Spain had not yet been completely extinguished, the Soviet Union realized that they would lose Spain, so soon the new leader of the Soviet Union, Stalin, decided to immediately withdraw the Soviet forces in Spain to avoid further humiliation by Germany and Italy, and at the same time began negotiations with Germany and Italy to seek to avoid a direct deterioration of relations between the Allies and the Soviet Union. //
Of course, the Soviet Union had already realized the threat when Germany and Austria merged, so the Soviet Union immediately held secret meetings with Britain and France in the Entente camp. The Soviet Union asked for an alliance with Britain and France. In order to attack Germany from both sides as before, and stop the pace of German expansion. However, Britain and France were not mentally prepared for another war with Germany, and they were not at ease with the Soviet Union, which had a different ideology, so they rejected the Soviet Union's request for an alliance. Until the outbreak of the Spanish Civil War, Britain and France still did not reach an alliance with the Soviet Union in the face of the direct invasion of Germany and Italy by Germany and Italy, which made the Soviet Union very disappointed.
So, the Soviet Union decided to cooperate with Germany. It was even ready to form an alliance with Germany.
At this time, Hitler's so-called Nazi Party was officially known as the National Socialist Party, and Hitler believed that the main enemies of Germany were Britain and France, so in order to avoid fighting with the Soviet Union. To prevent the Soviet Union from forming an alliance with Britain and France, which would lead to a two-front war in Germany, Hitler decided to make peace with the Soviet Union.
Hitler's eloquence was so powerful that he openly declared that the Third Reich was in fact a socialist country, and that the German National Socialist Party and the Soviet Socialist Party of the Soviet Union had a common language, in order to curry favor with the Soviet Union. Stalin, the general secretary of the Soviet Union, also had a step down, and even agreed with Hitler's viewpoint, recognizing that the Soviet Union and Germany were both socialist countries and should cooperate sincerely for mutual benefit.
As a result, the two cheeky leaders began bilateral talks in Berlin and Moscow. At this time, Germany's core interest was the plan for the annexation of Hungary, the Czech Republic, and Slovakia that remained of Austria-Hungary. As well as salivating over the territory of Poland. The core interests of the Soviet Union were to integrate the Ash, Kyrgyzstan, Tajikistan and other countries in Central Asia into the collective organization of the Soviet Union, to restore control over the Caspian Sea and the Black Sea region of the Transcaucasia, and to annex Lithuania and other countries on the Baltic Sea coast. ββ
The Soviets and Germans thus had a common point of national interest, that is, they both harbored hatred and territorial peeping for Poland. So Hitler and Stirling decided to each other that on the Polish issue, the Soviet Union wanted to destroy Poland, and Germany wanted to annex Polish territory, and the two sides hit it off. A memorandum of understanding was concluded for the joint partition of Poland.
Hitler was resolute in his bones, but everything has priorities, and the biggest enemy in front of Hitler was the Anglo-French Entente, so in order to stabilize the Soviet Union, Hitler decided to pretend to be in agreement with the Soviet Union. Equally. Stalin himself was a super-politician, and he knew Hitler's nature too well. I knew that Hitler would not give the USSR sincere cooperation. But the problem before him was that the Anglo-French Entente would not cooperate with the Soviet Union, and the Chinese Empire, the superpower in the East, had swept itself up and never chose to join the camp in Europe. At the same time, the Chinese Empire has always imposed strict high-tech export controls on the Soviet Union, and the Soviets have not forgotten the vast territory of Siberia that the Chinese Empire has taken away from them, and the Chinese Empire has controlled the Baku oil region in the Caspian Sea and cut off the Soviet Union's oil interests. Controlling Turkey and Armenia against the Soviet Union in the Black Sea, and preventing the Ash Republic, Tajikistan, Kyrgyzstan, and Afghanistan from joining the Soviet Union in Central Asia, all showed that the Chinese Empire was like a thief guarding against the Soviet Union, and that an alliance between China and the Soviet Union was impossible, so the Chinese Empire in the western part of the Soviet Union was a huge time bomb. Therefore, Stalin believed that the Soviet Union could not fight on two fronts, and that the contradiction with Germany was far lower than the contradiction with the Chinese Empire, so it was in line with the Soviet Union's national security policy to unite or stabilize Germany.
The Soviet Union and Germany, both of which had their own interests, decided to support each other and recognize each other's interests in addition to cooperation on the Polish question. The Soviet Union supported and recognized Germany's merger with Austria, Hungary, the Czech Republic, Slovakia, and other countries, and supported the core interests of the German Navy in the North Sea, the Atlantic, and the Mediterranean. Germany, on the other hand, supported the restoration of the territory of the Tsarist era by the Soviet Union and the accession of the Soviet Union to the League of Nations. In addition to the political declaration, the two sides also signed a large number of documents on economic cooperation and military interaction, Germany expanded the scale of exports to the Soviet Union, relaxed restrictions on high-tech exports to the Soviet Union, and the Soviet Union expanded imports from Germany, provided Germany with various raw materials for industrial production, and opened some Baltic Sea ports to allow the German Navy to live in shelter.
Economically, the Soviet Union had money and resources, and Germany had technology and talent, and the two countries were mutually beneficial. Militarily, the Soviet Union's willingness to open the Baltic Sea ports to the German Navy virtually gave the German Navy a strategic rear and posed a huge threat to the Allied Navy, and Germany took advantage of it in this regard. However, in general, the USSR was weak, and Germany was strong. cooperation between them. In the end, the biggest beneficiary was, of course, the Soviet Union.
However, Germany, in its sole interest in currying favor with the Soviet Union, ignored the feelings of the Chinese Empire. ββ
When the Chinese Empire learned that Germany and the Soviet Union had signed a series of political, economic, and military cooperation treaties, they were immediately dissatisfied. In particular, on the issue of Hitler's government's support for the Soviet Union to restore the territory of the former Tsarist era, the Chinese Empire lodged a solemn protest with Germany. Germany secretly supplied the Soviet Union with a large amount of high and new technology, a considerable part of which was forbidden to be exported to the Soviet Union by the Technical Control Commission of the Chinese Empire.
However, Germany was a trading country, and the Soviet Union pulled out a lot of money. German businessmen were reluctant to give up the huge deal, so they encouraged Hitler's government to reject the demands of the Chinese Empire and continue to cooperate with the Soviet Union.
This immediately touched the scales of the Chinese Empire, and soon the Chinese Empire introduced economic sanctions against Germany. The result was an unexpected worldwide economic crisis.
On October 1, 1932, the third day of the ninth month of the 32nd year of Guanghua, the Chinese Empire was dissatisfied with the black-box transactions between Germany and the Soviet Union, and Germany violated the technology blockade regulations of the Chinese Imperial Technology Export Control Committee on the Soviet Union and exported to the Soviet Union dozens of high-tech such as steam turbines, aero engines, tank armor, optical observation, petrochemical industry, and biomedicine, all of which would greatly improve the Soviet Union's national defense industrial capacity and the level of military weaponry and equipment, and pose a threat to the national defense and security of the Chinese Empire. In this regard, the Technology Export Control Committee of the Chinese Empire submitted to the National Assembly a plan for imposing economic sanctions against Germany, and with the consent of 90% of the members of the Senate and the House of Representatives of the National Assembly, the economic sanctions against Germany were formally implemented on the sixth day of September in the 32nd year of Guanghua.
Previously, the Chinese Empire had repeatedly imposed economic sanctions on other countries in the world that violated the will of the Chinese Empire, but they had never been formally implemented, because these countries saw that the Chinese Empire was "angry". The operation was quickly stopped, and the Chinese Empire was soon lifted from the sanctions. However, this time Germany was dazzled by the Soviet banknotes, and Hitler's government had always believed that the Chinese Empire was helping him and would not take it seriously, resulting in his political miscalculation, which led to Germany becoming the first country in the history of the world to be economically sanctioned by the Chinese Empire and go down in history.
When the Chinese Empire officially announced the imposition of economic sanctions against Germany, everyone knew that the German stock market would definitely be affected on a large scale, and the German government bonds of 82 billion German marks held by the private capitalists of the Chinese Empire were quickly sold. ββShares in the German money market suddenly began to fall. However, the international community had previously believed that Germany would choose to bend to the will of the Chinese Empire, so most of the international financial predators did not sell their German government bonds. However, Hitler's government was still unaware of the danger, and Hitler believed that the deal with the Soviet Union should be completed quickly and the money should be returned first. After creating a fait accompli, the Chinese Empire soon acquiesced. However. He did not realize the fear of the rise of the Soviet Union in the Chinese Empire, and the Chinese Emperor Wang Chenhao had always instilled in the imperial government the idea of stifling the rise of the Soviet Union, so the Chinese Empire was resolute on the Soviet issue.
On the ninth day of October, when the economic sanctions against Germany were imposed for a month, Germany still had no repentance and still engaged in a large number of transactions with the Soviet Union, although many transactions were carried out secretly under the cover of the German government, but the CIA of the Chinese Empire was so powerful that it quickly grasped the contents of the transactions.
Beginning on 11 October, the Imperial Bank of China, the central bank of the Chinese Empire, quickly sold off the 280 billion German marks it held, and the mark currency market, which had been stable in Germany, collapsed in an instant. The mark depreciated wildly on the same day, from the previous German official rule of 10 marks to 1 dragon coin, quickly depreciated to 205 marks to 1 dragon coin, a depreciation of more than 20 times, the German mark was shorted three-dimensionally, and the German monetary system was hit hard.
The German government finally realized the seriousness of the problem, and Hitler immediately sent a special envoy to the Chinese Empire to ask for forgiveness from the Chinese Empire, and said that he would immediately terminate all transactions with the Soviet Union that had been restricted by the Chinese Imperial Technology Export Control Committee.
But the Reichstag of the Chinese Empire thought it was time to beat Hitler, otherwise he would not have known the "three eyes of the prince of horses". As a result, the Chinese Empire said that it would see Germany's actions, but it did not end the sale of the Deutsche Mark. The Deutsche Mark is still in a rapid decline.
This, of course, was also Hitler's delaying tactic. Transactions with the Soviet Union were stipulated by treaty, and transactions between German merchants and Soviet merchants included huge liquidated damages. The German Chamber of Commerce's report to Hitler mentioned that if the trade with the Soviet Union was completely terminated, Germany's direct economic losses would be as high as 612 billion marks, and the payment of liquidated damages alone would amount to 103 billion marks.
As a result, Hitler decided to quickly withdraw the funds that Germany had invested abroad in order to stop the decline of the mark. Meantime. Hitler believed that the Chinese Empire would soon end the sale of German government bonds and buy back the mark, so that the mark would soon return to its original equilibrium, and only need to deal with the current sharp decline.
However. Hitler was not good at the financial sector. At this time, the international financial predators saw that the Chinese Empire was in earnest, hundreds of billions of Deutsche marks were sold, and the collapse of the German monetary system was inevitable, so financiers from various countries intervened in the Deutsche Mark market, and a hurricane of the largest shorting of the Deutsche Mark in history struck.
The German government also used foreign exchange reserves on a large scale to recycle the mark, which soon stabilized the mark at 50 marks to 1 dragon coin. Hitler's government was also relieved, believing that this had stabilized the mark market.
However. The act of recovering the mark was not the work of the imperial government of China, but the work of international financial predators. These people will not care about the worries of the German government and the life and death of the German people, they have re-speculated the mark market, bringing huge foreign exchange from all countries in the world into the German currency market, and soon they will short the German mark again, leading the hot money of all countries in the world to withdraw frantically.
With the crazy outflow of international hot money, the Deutsche Mark collapsed again, and this time the German government had no money to come up with it to bail out the market. Soon, the German currency market, which had been shorted in three dimensions, completely collapsed, and the mark depreciated more than 500 times. Countless German businessmen lost their money overnight.
Stock prices on the Berliner Stock Exchange, the world's fifth-largest financial center, fell like an avalanche, people sold their shares hysterically, and desperate cries echoed throughout the halls of the exchange. More than 960 billion marks of shares were sold off in a single day, and the average price of the 40 major stocks fell by almost 70%. Overnight, the sight of Hitler's "prosperity" in Germany came to naught. A full-blown financial crisis ensued.
It was a short period of three months, beginning on October 5, 1932, and ending in January 1933. More than 3,000 banks in Germany have failed, more than 20,000 companies have gone bankrupt, the market has been depressed, and production has plummeted by 70%. The number of unemployed surged to 13 million, and people's living standards plummeted. Even the prices of agricultural products have plummeted, and many farmers are unable to recover their costs and are on the verge of bankruptcy. An economic crisis of unprecedented scale finally broke out, the "Great Depression" period in German history arrived, and Germany, as the largest economy in Europe, collapsed in an instant.
But this is far from the end of the meaning, Germany is the largest economy in Europe, the collapse of the German economy, the economic crisis will naturally affect the rest of Europe. European countries have sold German government bonds, and Germany has also begun to sell off its holdings of national government bonds from all over the world in an attempt to get out of the domestic fiscal crisis. When the Berlin stock market plummeted, the stock markets of European countries inevitably began to fall, and the decline of the London stock market was once injected back by British bank businessmen with 1 billion pounds, and then stabilized for a month. However, as the largest economy in Europe and the largest trading country, the impact of the collapse of the German economy is far greater than the British government imagined, and the stability of the British monetary system has always been supported by the dragon currency of the Chinese Empire, which is a time bomb.
In February of the 33rd year of Guanghua, the Imperial Congress of China believed that the collapse of the German economy would be irretrievable in a short period of time, and that it would inevitably affect the economic crisis of the whole of Europe, so the Congress asked the Imperial Bank to reduce the national bonds of European countries to avoid risks.
On 7 February, the Imperial Bank of China began to reduce its holdings of the national bonds of European countries, and the Imperial Royal Honor Rating Company successively downgraded the sovereign debt ratings of Germany, Britain, France, Italy, the Netherlands, Belgium, Turkey, Greece and other European countries. This move immediately exacerbated the tension of European financiers, who sold their own and foreign national bonds and bought the dragon coins of the Chinese Empire in an all-round way, because at this time only the dragon coins were the strongest, and only by holding the dragon coins would not depreciate and wealth would not be lost.
After World War I, most of the European countries were in a state of economic collapse and huge currency depreciation, and it was the economic aid program of the Chinese Empire that saved the European countries, but also because of this, the Chinese Empire held huge foreign exchange reserves of European countries. As the world's largest gold holder, the Chinese Empire used gold to drain the foreign exchange reserves of European countries as the most important means of economic plunder. Therefore, as the major bankers and financiers of various countries began to sell their currencies and increase their holdings of dragon coins, it was an excellent time for the Chinese Empire to further plunder the economy of Europe.
In this regard, Song Hanzhang, Minister of Finance of the Chinese Empire, said in his report to the Emperor: "The sheep in the European sheepfold have become fat after more than ten years of careful feeding, and it is time to slaughter them. β
As a result, the Chinese Empire sold off the national bonds of European countries on a large scale, which suddenly exacerbated the collapse of the financial systems of European countries.
In April 1933, the French financial market collapsed first, and then the British government's attempt to keep the pound from depreciating failed, the pound depreciated sharply, and Britain's efforts to re-establish the gold standard failed, and the London financial market collapsed, and the British economic crisis broke out. In the months that followed, the economic crisis spread to the whole of Europe, and then the rest of the world, which had various trade ties with Europe, was also affected by the economic crisis and suffered heavy losses. The trade of the Chinese Empire was also severely affected, but the huge wealth plundered back by the Chinese Empire from Europe was as high as 120 billion dragon coins, and the Imperial Treasury immediately minimized the loss of foreign trade exports by expanding domestic demand, thus avoiding the impact of this global economic crisis.
By the end of 1933, with the exception of the Chinese Empire, the industrial production of the entire capitalist world had fallen by 60 percent, the industrial output of all countries had regressed to the level of the end of the 19th century, the total value of capitalist world trade had decreased by three-quarters, and a total of 490,000 enterprises in Germany, France, Britain and Italy had gone bankrupt. There are more than 40 million unemployed workers in the capitalist world, more than 17 million unemployed people in Germany, millions of small farmers have gone bankrupt, and the unemployed have been displaced.
The contradictions inherent in the capitalist system caused by the economic crisis caused political turmoil in the capitalist countries, and protests such as demonstrations and strikes continued one after another. There were also strikes by unemployed workers and demonstrations by veterans in Germany; frequent strikes and social unrest among French workers; In Italy, there were successive large-scale workers' strikes, and the fascists took advantage of the people's dissatisfaction with the status quo to build momentum, and their political influence soared. (To be continued.) If you like this work, you are welcome to come to the starting point to vote for recommendation and monthly passes, and your support is my biggest motivation. )