Bulgarian Empire

Chapter 67: Deindustrialization + Real Estate

The genius remembers the address of this site in a second: (Apex Chinese), the fastest update! No advertisements!? The turmoil of the London Conference has come to an end. The cloud of the Great Depression still hangs over the whole world. Inflation has exploded and the world economy has entered a recession. Expect.

First, the defeated countries such as Italy and Germany, in order to repay their debts, the government chose to increase the money supply. In just a few years, the Deutsche Mark depreciated by more than 4,000 times, and private wealth was plundered.

In addition to defeating foreign countries, the life of the victorious countries is not easy, and no one wants to be alone.

After World War I, France adopted a policy of paper currency inflation, and the franc depreciated. By 1921, its purchasing power had fallen to 41% of that in 1914. The exchange rate with the pound fell from 25.02:1 in 1914 to 99.6:1 at the end of 1922.

"Your Majesty, the French government has just announced that it has abandoned the gold standard!" Chancellor of the Exchequer Kennedy said cautiously

Ferdinand's face changed, and history changed again. Originally, he thought it would be 1926 before the French would abandon the gold standard!

"Do you know why?" Ferdinand asked concerned

"Your Majesty, the French domestic economy has deteriorated. Their loose monetary policy has caused severe inflation, and now they can no longer hold on!

This is the data we have calculated. It is certain that the economic plight of the French is directly related to the war reparations paid by the defeated country.

Before the World War, 92% of the industrial products in France were produced locally, but now 38% of the industrial products used by the French come from Germany, 5% from Italy, and 5% from Italy. Six percent came from the Austro-Hungarian Empire! "Kennedy replied while submitting a document to Ferdinand.

Due to the butterfly effect, the French on this plane received more war indemnities, adding two industrial countries, Italy and Austria-Hungary, and more cheap industrial products entered the French market in the form of war indemnities.

Now 49% of the market in France is taken up by the industrial products paid by the defeated countries to pay the war indemnity. If we count their trade with other European countries, then the French domestic industrial products account for less than half of the market. !

This means that the French industry will suffer a fatal blow, countless factories will be forced to close, the unemployed population will skyrocket, and the normal order of the domestic economy has been broken!

"What about other countries? For example, the British Empire, did the same happen?" Ferdinand asked with concern

"Yes, but it is not as serious as France, as long as the country that receives the debt repayment in kind from the defeated country, this situation has occurred.

According to the data analysis collected by the Bureau of Statistics, the total industrial volume of the French may have dropped by 23% compared with 1918, and it will continue to decline as time goes by!

The total industrial volume of the United Kingdom has also dropped by 18% compared with 1918. However, with the addition of the three North American countries, their total industrial volume has increased dramatically, covering up this problem.

Now the French are planning to use currency depreciation to increase the competitiveness of export goods, so as to save their domestic industry! ' explained Kennedy

Ferdinand shook his head helplessly. After the World War, the domestic markets of Germany and Italy were basically abolished. Except for the most basic daily necessities, they could not afford other industrial products. All flowed into the international market.

The situation in the Austro-Hungarian Empire is not much better, but their pressure on compensation is less, and the overall market shrinkage is inevitable.

Mao Xiong is no exception. After so many years of war, the population has dropped by a quarter, the domestic economy has long been a mess, and the consumption power of the people has long since disappeared.

Not only the market in continental Europe has shrunk, but the market in the American continent has also shrunk. Since the division of the United States, except for the development of the arms market, other industries have declined.

On the one hand, due to the independence of various countries, tariffs naturally appeared, restricting the circulation of American industrial and commercial products,

In addition, the products made in the United States in this era are even inferior to Bulgarian knockoffs. Apart from being cheap, they do not have much international competitiveness at all.

The economic development is not good, and the purchasing power of the people will naturally drop. Most of the federal states after independence have experienced economic recession, and the rate of decline has far exceeded that of Europe.

It is inevitable that the purchasing power of so many markets will decline and the global industrial capacity will be overcapacity! No wonder the international media ridiculed the Bulgarian capitalists for not being able to see things clearly, and actually increased industrial investment under such circumstances!

"Perfect the de-industrialization theory we have prepared, and then sell it to the British!" Ferdinand thought for a while and said

"Yes!" Kennedy replied cautiously.

"De-industrialization theory" does not mean completely abandoning industry. It is estimated that no country in this era will completely abandon industrialization!

Instead, it promotes a kind of "limited industrialization" idea, that is: keep the total domestic industry at a certain level, and it is enough to meet the most basic needs of its own war years.

It advocates the transfer of unnecessary industries to colonies with cheaper labor, or countries with backward economies, thereby reducing production costs.

Of course, it’s not enough to just talk about deindustrialization, and we need to give a suitable reason, not to mention environmental protection. People don’t have this awareness in this era.

Isn't London the capital of finance? Then let the British continue to develop finance!

By the way, I also want to mention the tourism industry, the service industry, and the upstream development of industries, such as: making the UK a manager, or making the whole world work for the British Empire.

Anyway, it’s all a scam, and it doesn’t matter if ordinary people believe it or not, as long as the capitalists find out that moving the factory out of the UK can make greater profits!

As for the problem of the unemployed, let them develop real estate, which is a good industry that benefits the country and the people.

Where is London? The capital of the British Empire, the financial center of the world!

How much are house prices in London right now? As long as three hundred pounds, you can buy a house with an area of ​​more than two hundred square meters, and the housing prices in the suburbs are even cheaper.

You should know that this is a freehold property right, and the land is sold together!

It's really too cheap, if it doesn't sell for three million pounds, I'm really sorry for the name of the British Empire! Exchange a house for a battleship, this is the normal opening mode.

It must be speculated, otherwise it is really a waste of time to travel. How can such a good opportunity to make a fortune be missed?

It seems that the British also speculated on real estate. Ferdinand can't remember exactly when, so it doesn't matter if they do it in advance now!

When the capitalists find out that after the huge profits in real estate, it will be difficult to brake! Even the politicians of this generation in London will support their development of real estate!

As long as the Lloyd-George government does not want to leave immediately, they must solve the unemployment problem in the country. Is there an industry that is easier to stimulate employment than real estate?

This is a conspiracy. As long as the British people believe that the housing prices in London will rise, then the housing prices will really rise!

When housing prices have risen, capitalists will definitely enter the market. As long as capital comes in, Ferdinand's goal will be achieved.

"Karl, find some economic experts to advocate London's development prospects, and give a proper reminder that London's current housing prices are too low, and there is still a lot of room for development!" Ferdinand thought for a while and said

"Yes!" Carl replied.

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