Chapter 663: The Economic Crisis Erupts
"In order to minimize the impact of this financial catastrophe in the United States on Germany, the Reich government should immediately begin to erect tariff barriers to exclude American and British goods from the Reich's market, so as to provide our domestic enterprises with the objective needs to stimulate their continued production. ≥ meanwhile, the Imperial Government should also build housing, bridges, railways, and other infrastructure on a large scale within its control in order to stimulate domestic demand and compensate for the impact on our foreign markets caused by the establishment of tariff barriers. After all, raising tariffs is the most common tool countries use when facing economic problems, and we must prepare for them accordingly. ”
Speaking of this, the solemnity in Schacht's eyes finally dissipated a little: "God favors, today's Germany controls nearly one million square kilometers of fertile fields in Eastern Europe and more than 30 million foreign subjects, and infrastructure projects that can be used to stimulate domestic demand can be found everywhere; This means that we can easily exploit the market potential of these lands and use them to reinvigorate the empire's economy. And the large number of overseas colonies can also provide enough flexibility for the empire to resist this financial shock from overseas. As long as the Imperial Government copes well with this crisis, it will be able to survive the spire of the vicious wave a year later. ”
Qingying nodded when she heard this. Since the German economy in this plane was not supported by American capital planned by Dawes, he was also confident that the German economy would never suffer the catastrophe of history; Shacht's last words convinced him of his own judgment. Compared with the colonies abroad, Poland and Ukraine, which are close at hand, are Germany's ability to survive the economic crisis: by investing in these regions, Germany will not only be able to escape from external economic shocks. It is more able to control these regions firmly in their own hands. This is how it can be truly integrated into the German landscape.
"If the situation allows. We can create a customs union that would include all the countries that are currently in Europe's Big 6 that are at the mercy of Berlin, so that we can wield imperial influence more broadly in Europe. Qingying proposed a strategy that she had been planning for a long time. The European Union in another plane has been deeply imprinted in Qingying's heart, and if the economic crisis can be used as an opportunity to integrate European tariffs, a European community will gradually take shape under the leadership of Germany; Germany will also be able to use the industrial power of other countries for its own use through economic means, which will undoubtedly be an extremely necessary means in the future bipolar competition with the United States. Not to mention anything else, Italy, which has always been in the camp of the Allies, will also completely move closer to Germany with the change of economic level!
Shacht's heart moved when he heard this. Current. As the number one economy in the capitalist world, the United States has extensive and close trade ties with European countries: if there is a major financial shock, it will inevitably have a severe impact on these countries. However, these countries do not have the same strict regulation of virtual finance as Germany, and they do not have the occupation zone of Eastern Europe like Germany, and they will be hit far worse than themselves. At that time, as long as they take advantage of the situation, the internal economies of these countries will gradually be branded as Germany, and eventually surround the shining star of Germany. After a moment of simple thought, Shacht then respectfully confessed. Looking at the monarch in front of him, who was still as glorious as before, he finally understood why the previous generation of Kaiser Wilhelm would voluntarily retire from the stage.
"Other than that. We would also like to take this opportunity to invite those high-level talents in the United States to the Empire's enterprises or the Royal Institute. With an unprecedented plunge in U.S. stocks. The company that originally hired them was bound to fall into the predicament of financial rupture or even bankruptcy. At this time, you only need to send a recruitment letter and a contract template to them who are also embarrassed, and you can get the core talents who play the role of pillars in large enterprises and scientific research institutions! Qingying turned his gaze to Berman next to him, his face full of solemnity, "This is the first priority of the empire after solving the economic crisis, and it must be implemented in depth." If the Treasury does not come up with enough money for a while, I will persuade the Hohenzollern the Great to make up for it. ”
Regarding this point, Qingying has been planning in her heart for a long time. In the other dimension without him, the only one who did not suffer from the financial crisis of the United States in the early 30s was the Soviet Union: because this socialist country was completely blockaded and isolated in the East by the Western world, with almost no trade with it, the Maozi were able to escape. However, the Soviet Union was clearly not satisfied with this. Since this was the beginning of its first five-year plan, there was a serious shortage of technicians and equipment: under these circumstances, the Soviet Union began to import technicians, equipment, and capital to the Western world on a large scale, and recruited 1o thousand skilled workers and engineers from the United States alone. With the participation of these people, a large number of key enterprises were established in the major industrial sectors of the Soviet Union, and thus laid the industrial foundation for its future as a world pole.
Although Germany's demand for machinery and cross-border investment is not as hungry as the impoverished Soviet Union in another dimension, the most critical talent is no matter what. Qingying clearly remembers that the United States' attainments in cutting-edge fields such as aviation and electronics during World War II can be described as the pinnacle; They are not like the Russians, who only highlight the word "many", and their various technologies are advanced or even top-notch. At present, due to the early explosion of the economic crisis, the new economic stage of Soviet Russia has not yet been completed, and they are unable to move the United States as they have historically done due to the heavy losses caused by the civil war. Since this is the case, this task can only be reluctantly left to Qingying to do by herself. The loss of every core technician from the United States has added a little weight to the balance of Germany's future game!
"Your Majesty, your will will be fulfilled." Berman bowed slightly to Qingying and replied respectfully.
At noon the next day, Qingying waited in the study, waiting for the opening of the New York stock market on the other side of the ocean. And with the telegrams across the ocean, what Shacht had predicted last night became a reality. The New York stock market did not stop falling and rebound as those expecting American investors, but took another massive dive; Whether it's the new automobiles and oil that have been a smash hit in recent years, or the traditional shipbuilding and steel that have always stood like a rock and a green pine, all sections have shown a dazzling dark green plummet, and its momentum is tantamount to driving down a cliff. Throughout the day on January 25, the New York Stock Exchange echoed with the desperate cries of countless investors: more than half of the futures bonds in their hands, which were originally indistinguishable from real money, are now waste paper in the trash can, and this money is either their hard-earned savings to support their families, or all the old money they have accumulated over the years! Especially those investors who have just entered the stock market at the peak of the stock market feel that they are in despair under this sudden blow; After the close of the day, hundreds of people chose various means to end their lives!
In the days that followed, the New York stock index continued to fall sharply, as if to squeeze out all the financial bubbles that had been inflated in the past decade. On January 28, the New York stock index fell 13% again, breaking the previous record of several days; On January 29, the stock market crash reached its peak, with a total of 160,000 shares being sold, falling another 22%, and the total market value shrank more than 1o times greater than the foreign debt owed by Britain and France to the United States during the war. Metallurgy, automobiles, machinery, electric power, chemical industry and other fields fell by more than 9o%. Riots erupted across the country, with angry crowds hysterically storming local stock exchanges and government buildings, police clashes with blast shields and crowds of rioters, and overcrowded troublemakers in prisons. Due to the soaring of the U.S. stock market in the past ten years, almost every household is involved in this fast-making industry, once the stock market crashes, the chain reaction will undoubtedly be a catastrophic situation throughout the country!
On January 3o, the New York stock market finally came to a halt after a week of slump. However, the stock market situation at this time was almost back to the 19th century, with crumpled investment credentials being thrown all over the floor of the New York Stock Exchange. The collapse of the virtual economy immediately had a tsunami-like impact on the physical industry. A large number of enterprises have collapsed due to the collapse of the massive funds invested in the stock market, and all kinds of wealth management banks have collapsed like wheat under a sickle; Tens of thousands of Americans have lost their life savings, and many more have been laid off because of the rupture of corporate funds, becoming jobless vagrants with no source of income. The United States, once a paradise longed for by countless people, has now fallen into a dim haze under the sweep of the economic crisis.
Since today's relations of production have long entered the era of the world economy, the collapse of the US stock market has also had a violent impact on the capitalist countries. Affected by this, Germany's Frankfurt stock market also opened lower for several days, and its continuous decline made a large number of investors pale. However, since the German stock market has always been under strict regulation under Qingying's assertions, only the section related to US trade has been volatile, and there has not been a catastrophic situation in which a massive bubble bursts like the US stock market. In contrast, the situation in other countries is far from the same: they have also been hit hard by the same liberal economic policies, and the market wealth has been steamed! (To be continued!)
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