Romanian Eagle

"Your Majesty, my country's exports have fallen by 18%, many factories are under-operated, and many workers have been fired. At present, the market is panicking about the economy, and the previous government's intervention could not appease the public's emotions, so the government wants to ask Your Majesty. Stand up and support Romania's economy."

Inside the palace, Prime Minister Caraturi was giving Eder a worrying report on the current domestic economic dynamics.

"Will it work if I stand up?"

Edel stood up and answered His Excellency the Prime Minister.

"At least it can reduce the panic in the market. Many people are afraid of the situation in the United States. At present, the number of people who withdraw deposits in Romania's major banks is twice as high as before. Fortunately, under His Majesty's advice, the banks are well prepared. Cash is the only way to deal with this situation.”

The Prime Minister's words made Eder speechless. In fact, in order to deal with the run-on wave, Eder quietly gave the Prime Minister a trick. That is to print an additional batch of banknotes, as long as it gives the impression that the bank is trustworthy. At first, the Prime Minister was a little reluctant, but after seeing the bank being run and bankrupt in the United States, he immediately agreed.

Although Romania's banking industry is mainly supported by the government and its scale is also large, it is better to let the bank prepare more banknotes just in case. Anyone who knows the banking industry knows that there is not too much cash in the bank, and the savings it absorbs basically change hands and lend it out, or buy various financial products to preserve value.

The outbreak of the financial crisis in the United States has made Romanian banks more vigilant. Many loans have been recovered as much as possible, and there are emergency funds provided by the government, which are enough to resist the impact of this time.

Although the banking industry has resisted the impact, the economic problems encountered by other countries have caused setbacks in Romania's exports. Exports to European and American countries fell across the board, which made the Prime Minister feel bad, so he approached Edel to discuss how to face this economic crisis affecting the world.

"How about the infrastructure construction plan you were asked to do last time?"

Edel seemed to be asking about the plan that he hadn't asked about for a long time.

"Your Majesty is ready. This time, we have learned the lessons from the past and prepared an infrastructure construction plan of up to 8 billion lei. It is mainly used in the construction of railways, roads, docks, etc."

When the Prime Minister spoke out about the plan made this time, Edel frowned.

"Still too little, not enough."

Edel's words made Prime Minister Karatuli almost fall.

"Your Majesty, this is already the maximum plan based on the government's finances."

Caraturi's understanding of the economy is now a common phenomenon in Europe, so Eder decided to give him a popular science about the power of deficit finance. "I know that, but we can invest more money to increase the scale of infrastructure construction."

"I think the 20 billion lei funding for infrastructure construction is reasonable."

Faced with such a big surprise from Edel, Prime Minister Karatuli said with some horror. "Your Majesty, our country doesn't have so much money, unless it is invested with funds shipped back from the United States. But didn't these funds have been decided on other uses before?"

Facing Karatuli's words, Edel replied. "Yes, I intend to use these funds for other purposes, but it does not mean that the government cannot take out those funds. The power to issue money is in the hands of the government."

In Edel's words, it was obvious that he had to play tricks on issuing banknotes, which made it difficult for the Prime Minister to accept. "Your Majesty, you must know that the current monetary policy cannot be easily changed, otherwise the impact on our economy will be too great."

The Prime Minister's words are also very reasonable. At present, all countries are implementing the gold standard, while countries with insufficient capital will issue their own currencies based on the US dollar or the British pound. However, the gold reserves of various countries are far from meeting the economic needs, so over-issued currency is very common in various countries. Generally, it is 3-6 times the excess gold reserves, and Romania currently maintains this level.

Eder's words clearly intend to depreciate the value of Lei, which is good for exports, but it will also increase the living burden of residents. The devaluation of the money in the hands of residents will cause some social problems.

"I know this, but at present the first thing to do is to ensure the sustainable development of the economy. If there is an economic crisis, it will cause even greater losses to the people."

Eder didn't know that this would cause some problems, but Romania is not the Soviet Union and is independent of the world economy. The impact of the Great Depression is destined to come. If you don't prepare early, it will inevitably lead to social unrest, just like other European countries.

In fact, the over-issue of currency is more like drawing wealth from the hands of the people, and there must be some dissatisfaction. But it would at least allow the government to raise money to forcibly pull the economy up and prevent Romania from falling into the situation of other countries.

This is also the reason why Romania's national population and resources are insufficient. Insufficient population cannot form a sufficient domestic market, and insufficient resources make many raw materials need to be imported, and these raw materials are basically affected by the economy. If there were as many people and raw materials as the Soviet Union, Eder would dare to play behind closed doors.

At present, he only has the 900 million US dollars in funds brought back from the United States, and these funds are also ready to be used for bargain hunting. Of course, they cannot be invested in domestic construction.

So I can only grieve the Prime Minister and others. Anyway, this is a decision made by the government. Being scolded by the people is also a problem of the government, and Edel is just a monarch deceived by the government. In the next parliamentary election, a change of prime minister can calm people's emotions.

As for the hard-working Prime Minister, he has served as Prime Minister for two terms anyway, and he is destined to step down in the future. It is better to make his final contribution to the position of Prime Minister.

It's not Eder being ruthless, it's politics. His Excellency the Prime Minister has also been quiet in politics for many years, and he should understand this.

What Edel meant, what did Karatury not understand? His Majesty's efforts to expand the deficit to boost the economy have never been seen before. But that doesn't mean he doesn't know its role, and investing money into infrastructure will always be useful. And can he go against Edel's meaning? You can't just do it according to His Majesty's request.

"Your Majesty, I will go back and do as you ordered. I will let the government come up with a construction plan as soon as possible."

In late 1929, the government was facing a moment of public concern about the future of the economy. Come up with an infrastructure plan of up to 20 billion lei. In this plan, several major transportation lines will be built in the country. Construction of the first railway from Lviv to Odessa will start next year, as will the second double line from Constanta to Bekešchobau via Bucharest. The third, Bekeshchobao crossed the Transcarpathian Mountains to Lviv to start the construction of the railway. The fourth railway from the capital Bucharest to Odessa via Galati was started.

These four railways are also called two vertical and two horizontal trunk lines, and will play a role that cannot be underestimated whether it is for economic improvement or the transfer of troops.

In addition to these four railways, the railways currently owned by Romania will also be upgraded and maintained.

In addition, Romania will build three highways, one highway from Bucharest to Lviv, which will pass through Buzau Bacau and other domestic elite areas. A high road from Galati to Odessa will benefit people on both sides of the road,

There is also a ring highway from Bucharest to Constanta to Varna, and then back to Bucharest through Giuligio, which will also drive the economic development of the region.

These high grades are paved roads with two-way four-lane roads, designed to reach 65 highway per hour. It can be said to be the best road facilities in Romania at present.

In addition, the expansion and dredging of Odessa Constanta, the two most important ports in Romania, are carried out in order to shorten the detention time of goods in the ports. Then, for the river transport that is still important in Romania at present, the river ports such as Giulijiu, Kohlerahi and Galati will be updated, and the dredging of the Danube will also be increased. There is a new increase in shipping volume.

In addition, the government also did not let go of water conservancy facilities. Romania will build a hydropower station with a total installed capacity of 2.8 million kilowatts on the Danube, which will not only facilitate irrigation but also reduce the harm of floods downstream. The power station is located in Mehedinz County, which is adjacent to Yugoslavia, and the terrain here is suitable for the construction of the hydropower station.