Chapter Seventy-Four: Inflation

A one-time dividend of 250 million florins, which is amazingly large. There has been a lot of speculation about how much money the Austrian Royal Family Overseas Development Company makes, or how much money it makes.

In fact, the Austrian Royal Family Overseas Development Company makes a lot of money, but the investment is even more exaggerated, but fortunately, the capital is thick enough.

In just one year, the Austrian Royal Family's overseas development company spent 270 million florins on various investments, and the total cost of Franz's large amount of money this time was as high as 520 million florins.

This amounted to three years of Prussia's fiscal expenditures, and the colonial gains did not seem worth mentioning in comparison.

At this time, the Namibian region, which had the best money-making effect, only paid more than 10 million florins per year, and the situation of the other four colonies was similar, plus the income of Austria's domestic railways was only about 100 million florins.

If Franz continues to spend money like this, he will start going into debt by the seventh year.

But what will happen to Austria in seven years, and what will happen to the world, no one knows.

In fact, Franz began to expand production capacity half a year ago with the help of the Luxembourg crisis, hoping to reduce the impact of shocks, because he does not like to fight uncertain battles.

The Austrian Royal Overseas Development Company's "coin throwing" behavior made more than one-third of the families in Austria feel what it means to be "the emperor's grace".

Especially in the Netalenia region, almost half of the population has benefited from this benefit.

More than four million shareholders benefited from this dividend, and the vast majority of them were commoners, petty aristocrats, and clerks, because most of the wealthy had already cleared their positions when the crisis broke out.

In a sense, the dividends narrowed the gap between the rich and the poor in the Austrian Empire, and the people's trust in the Imperial Government and the Imperial Family was further enhanced, and the people did feel "happy".

But there are always two sides to the story.

Turn Street, Grizzly Bear Inn.

Soros directly crushed the pencil in his hand with bruises on his forehead, he didn't expect the Austrian royal family to dare to share such dividends.

"Honey, are you alright. The Habsburgs were bold and reputable, and should have been a good trading partner. We may be able to invest here," Ferona comforted her husband and gave her own judgment.

Firona Mergur is the only daughter of the Mergur family.

(Of the nine siblings, three died young, two died in an accident and four died in revenge.) )

The Mergier family was one of the wealthiest Jewish families in the United States at this time, having a banking career and being the largest shareholder of the Northern Shipping Company.

(The shipping here is inland waterway, not an airline.) )

Firona has been investing with her father since she was a child, and her eyesight is naturally extraordinary.

But Soros snorted coldly and said in a cold tone.

"It's just self-defeating!"

Soros's expression and tone frightened Ferona a little, and the former had always been a witty and personable gentleman, but at this time he looked like an angry gambler.

At this time, Soros also came to his senses, and then smiled, that smile was like a spring breeze, and he couldn't see the previous haze at all.

"Hehe, this practice of the Austrian Empire is tantamount to drinking water to quench thirst. My dear Ferona, are you going to do business with a dead man? ”

In a trance, Ferona felt that she had seen it wrong, and Soros was still the same Soros. So she said.

"Drink to quench your thirst? Look, my dear, the streets are full of celebratory crowds. People are taking their new-money to the shops to spend, especially when the shops in the name of the royal family are already packed, and there is no doubt that the money will go back to the royal family. How can it be to drink water to quench thirst? ”

How to make civilians more willing to spend money and spend more money has always been the ultimate problem studied by businessmen.

In fact, after a visit to the mall in Vienna, Ferona knew that the country's commercial potential was almost limitless. With a wide variety of goods, people are willing to consume and believe that tomorrow will be better.

Moreover, the royal family and the government have a very large influence on the economy, and they do coordinate and resolve many market contradictions. Ferona had never seen such an orderly and vibrant market, and she wanted to see for herself who created it all.

"The Austrian Empire's recent big money is not just about paying dividends, they are paying off part of their debts. What are the consequences of such a large amount of money entering the market? Soros said slowly.

"Inflation?" The word immediately came to Firona's mind, and something bad came to mind.

"That's right, it's inflation." Soros affirmed.

"The problem of the Austrian Empire now is that there is too much money, and you can see that these commoners have no sense of saving money at all, and the rich people are also eager to spend all the money, because there are so many things to consume in this country. Look at the wheels of those wagons. ”

Ferona subconsciously looked at the wheels of the carriages and didn't see anything wrong, so she looked at her husband suspiciously.

Soros smiled.

"Honey, of course you don't care about this wheel or something, but it's a rubber pneumatic tire. In our country, such a tire can buy a cow, and almost all private carriages on the streets of Vienna are used in this kind of tire.

Look at the box in the young lady's hand. ”

Ferona looked at it, then her eyes widened.

"Camera?! How can it be so small! ”

"It's such an amazing country, and today I understand why Europeans always like to call us American hillbillies. Their technology is just too advanced." Firona sighed.

"But the Austrian Empire did not have so many goods for people to consume." Soros said seemingly nonchalantly.

"People suddenly have more money in their hands, but the factories don't expand their production because it's only temporary.

Following the trend can lead to a surplus of products, which in turn leads to falling prices, declining factory profits, and ultimately an economic crisis.

But if production is not expanded, then people will not be able to buy things with money, which will lead to an increase in prices. Austria's banknotes were expected to depreciate, and by that time the country would not have escaped the fate of the economic crisis.

So no matter what the Austrian government does, the country will be finished. ”

After listening to Soros's analysis, Ferona also felt that it was very reasonable, and the Austrian Empire's use of the unconvertible currency of the expected banknote was a hidden danger in itself.

Coupled with a series of operations to distribute a large amount of dividends and repay debts at this time, I am afraid that no one will be able to save the country.

Ferona could already imagine the banks collapsing in a run.

"It's a shame for this beautiful city." Ferona couldn't help but sigh.

"There's nothing to regret, I'm going to make New York the most beautiful city in the world. Dedicated to you! Soros laughed.

(End of chapter)