Chapter 251: The Causes of the Economic Crisis

Everyone walked out of the wooden door, and almost everyone who came to this viewing platform couldn't help but praise loudly!

"Stark, you really know how to enjoy it! Now I want to build a manor in your place!" Rockefeller said with a pleasant smile after taking a deep breath of air with a faint smell of sea.

"Okay, I'm welcome to come! It just so happens that my villa is surrounded by ownerless vacant land, and buying and building a seaside villa like mine is no problem for your financial resources at all!"

"Hehe, we're done! We'll be neighbors from now on!" Rockefeller laughed.

As a wealthy man and a top family in the United States, money is now a number for them! Moreover, people are no longer as energetic as young people when they reach middle age, and now they also have the desire to enjoy life, after all, work is not the whole of life! Although they don't like European-style castles, they are still very willing to build such a villa with a sea view!

"Guys, please come and sit here, there are two people I want to introduce you to!" Stark said, taking a few steps forward.

Because the bright light of the electric lamp drove out the darkness, after everyone entered the door, they already saw two middle-aged people sitting on the wicker chair on the viewing platform! Although none of them knew each other, they already had some guesses in their hearts! And they had also seen photos of the two in the newspapers, although they were a few unclear side photos!

"These two are John Smith, managing director of Standard Bank of America, and Trey Verne, managing director of North American Securities Investment Corporation, and of course they are also my partners. I'm sure you've all heard of the names of the important pillars of the Americas Consortium! As for the people around me, I don't think I need to introduce them. There shouldn't be anyone in the whole of America who doesn't know them!" Compared with the Stark trio who have only risen in the United States in recent years, they are definitely not as well-known as these ancient families that have been in the United States for hundreds of years!

"It's a pleasure to meet you!"

"Thank you, so do I!"

After a brief exchange of pleasantries, they all did it, and Morgan, Rockefeller, and DuPont, when they received the invitation and decided to come as promised, had already anticipated the situation at this moment! After all, the American Resources Corporation, the American Standard Bank, and the North American Securities Investment Bank were very close, and together they formed the American Consortium, the behemoth of the American economic circles.

Of course, people can leave their busy work behind and come here for a cocktail party. It is also to get a head-on look at the three giants of the American consortium.

"Ladies and gentlemen, the reason why I invited all of you here today is because the current U.S. economy is hiding a very deep crisis under the prosperity!" said Starcross in a somewhat heavy tone after everyone sat down, his calm gaze slowly swept over everyone.

"Why do you say that, does Mr. Stark have any evidence?" Ronald Dupont asked in a deep voice. Although everyone in the hall had been prepared just now, now after hearing it again. Everyone still couldn't help but change their faces, the outbreak of the economic crisis is not a simple trivial matter! Moreover, now that so many of them are sitting here, I believe that Starcross will not be untargeted, after all, if you talk nonsense, you will offend people!

"I'd better do it!" said John Smith, who took out a thick stack of papers from his briefcase, divided them into ten and distributed them to everyone!

"Everyone. The document now in your possession is a detailed survey of the present American economy, as well as the economic conditions of the major capitalist countries, such as Great Britain, France, and Germany, which we have done in the past two years! Until the twelfth economic crisis of 1873, almost every ten years. There was a crisis that swept the entire capitalist world. And this year is already 1882, nine years have passed since the last economic crisis broke out!"

"You may think that the economic crisis is not certain from the time alone, but please take a closer look at the main industrial data we have counted on these documents! For example, taking the United States as an example, from 1879 to the present, the United States has built a total of 10,000 kilometers of railways, accounting for 50 percent of the world's total railway construction during the same period, and because of the large-scale construction of railways, the number of steel plants in the United States has reached more than 1,000, and the total annual output of steel has exceeded 12 million tons, which is more than the sum of the two industrial powers of Britain and France, and this number has more than increased fivefold in less than four years. Coal mining, logging, coal chemical industry, machinery manufacturing and all other related industrial and agricultural categories have increased substantially!"

"At present, the total length of railways in the United States has exceeded 150,000 kilometers, and the railway construction enterprises mainly in the United Pacific and the Zōngyāng Pacific Company are still extending their railway lines to the western United States, and the railway investment in the whole United States is one billion dollars a year, which is twice the total annual financial income of the entire United States!"

"But there is always an end to the construction of the railway, and the consequences of blindly expanding the scale of the construction of the railway, I think the British sent us in 1847 at the time of the ninth economic crisis!"

After hearing his words, everyone's hearts shook suddenly, and the look on their faces became heavy! The great development of the American railroad in recent years has indeed led to the rapid growth of the entire American economy and industry, and the entire New York stock market has also become rapidly prosperous, and no one will let go of such an opportunity, so they have more or less in their hands the stocks of the Union Pacific and the Zhōngyāng Pacific, the two most famous railroad companies in the United States, and the futures of steel and coal are the objects of their speculation from time to time! In particular, the Morgan family, which is good at financial speculation, has made a fortune from this!

Now that they suddenly heard such news, they were a little overwhelmed for a while!

At this time. Everyone was shocked by John Smith's words, and the entire viewing platform was except for the sound of rolling waves. Silence!

Looking at their appearance, Starcross, John Smith, and Trey Verne couldn't help but glance at each other a few times, and a complicated smile flashed on their faces.

Taking a deep breath, Morgan suppressed the boiling mood in his heart, looked at John Smith who was sitting next to him, and asked in a hoarse voice: "The large-scale construction of American railroads began in 1865, and it has been driving the great development of American industry in the past few decades, and there have been no problems in several economic crises. Are you so sure that the next economic crisis will be caused by the over-construction of railroads in the United States?"

"Hehe, Mr. Morgan! I believe you know very well the situation in the United States, before 1865, the total length of American railroads did not exceed 20,000 kilometers! It seriously lagged behind the actual needs of the economic development of the United States, so the construction of railroads at this time could indeed promote the development of American industry and commerce without any crisis! However, we all know that supply and demand are balanced. Only then can we ensure the healthy development of the economy! The current supply of railroads in the United States is already in excess of demand!" replied with a smile on his face.

"Yes, from the sixties to the end of the eighties, American railroad construction was mainly concentrated in the Mideastern region of the United States, where the economy was developed, the terrain was flat, and the population was dense. However, most of the more than 50,000 kilometers of railroads built from 1879 to the present are located west of the Mississippi River! In this area of more than 5 million square kilometers, the population density has just reached the level of 10 people per square kilometer, and several states near the West Coast and the states in the northwest are even more deserted! In addition, the western part of the United States is dominated by mountains and plateaus, and the terrain is complex. The cost of building the railway increased rapidly, even with the land donated without compensation and a large number of loans. But it can't change the desolate and backward status quo of the entire western region!"

"There is no industry, there is not enough population, so where do the railway companies get their profits? The loans are not gratuitous, and if the construction and operation of the railways do not get enough profits, then in the face of more than a billion dollars of debt, I think the railway companies may have no other better choice than to go bankrupt!"

"And if this is the case, you should understand where the abundant funds for railroad construction in the United States come from, and a large number of British and French loans are facing the dilemma of not being recovered, if this news is exposed, then the run on the people will definitely cause a large number of banks in both countries to go bankrupt! If such turmoil breaks out in the financial industry, and there are a large number of heavy industrial factories that have closed down due to overcapacity, coupled with more and more unemployed people, I think you should understand what such a scene is called!" John Smith said with a grim face.

"The economic crisis, the thirteenth economic crisis of the capitalist world!" Rockefeller said slowly with a trembling voice.

After listening to what he said just now, and then comparing the detailed information in his hand now, the gods on everyone's faces became a little pale!

"I think you've been speculating all along about why the Rothschilds came to the United States at this time! Now you should understand what their purpose is!" said Stark paused, "As the world's most famous speculative family, they have been able to accumulate wealth comparable to the royal families of various countries in hundreds of years, and are even respected as the 'Sixth Empire of the World', and their eyes have long been on the crisis contained in the construction of domestic railways in the United States!" In addition, the United States and the Chinese People's Army in the Far East are now at war in the western states of the United States, and although on the surface it does not seem to have any impact on the economically developed states in the central and eastern United States, the pace of various railway companies building railways to the west may have long been stopped because of the war! Therefore, the stocks of various railway companies in the stock market have now reached their peak! Moreover, the Rothschilds are about to make a move!

After saying that, looking at everyone's pale faces, Stark decided to give them another slap in the face!

"If you lose a lot of money in this economic crisis, the Rothschilds, who have benefited from the stock market, will regain control of your respective companies, and you will not be as good as you are now!"