Homo sapiens
Chapter 539 Wave of Bankruptcy
If we talk about kangaroo country, we can still grit our teeth and persevere at this time.
The Europa region was really in dire straits at this time.
Although a large number of glass greenhouse projects have been invested, with the slow work efficiency of the Europeans, these greenhouses will not be completed within a few years.
Therefore, at this stage, they can only rely on open-air farming. The outbreak of genetically modified corn in America has directly affected Chiyu. The Europa Consortium, which originally planned to purchase 30 million tons of corn as feed raw materials from North America, was suddenly in a dilemma.
Although it is used as feed for livestock, even if the livestock has inflammation in their bodies, they have no way to tell it.
However, the potential risks involved in genetically modified corn still make many people in the Europa Community raise objections to imports.
However, before the Europa Consortium could reach a conclusion, a vegetable and fruit manufacturer in Germany declared bankruptcy.
This incident seemed to have triggered a chain reaction. In less than a week, more than 17 medium and large agricultural producers in Europe and the United States declared bankruptcy.
United Supermarkets Group headquarters in Munich.
Duren Martin, the head of the finance department, looked pale: "President, we can't hold on any longer."
"Alas..." President William sighed: "Start preparing for bankruptcy and liquidation!"
Others present had already anticipated the arrival of this day.
The entire Europa Consortium has actually fallen into an infinite loop since it adopted the mandatory low-price purchase restriction plan.
The production costs of grains, vegetables, fruits, meat, eggs, and milk are constantly soaring. However, supermarket retail prices are not allowed to increase significantly and are restricted to a relatively low price range.
Although there are some subsidies, the problem is that these subsidies still cannot make up for the losses caused by low-price purchase restrictions.
Many supermarkets and agricultural producers are operating at a loss, betting their hopes on the future.
It's a pity that they lost the bet, and reality slapped them hard. Extreme weather, raw material costs, labor costs, and transportation costs increased significantly, and the low-price purchase limit was extended for another three months.
Faced with this kind of loss-making business, many companies finally couldn't hold on.
This time, the bankruptcies of agricultural companies and retail companies quickly turned into a wave that spread from Europa to the entire free world.
After several large supermarkets in Munich closed down.
Panic quickly broke out among the people, and many people found that the large supermarkets around them had closed down, which suddenly made people think a lot.
For a time, rush buying inevitably appeared on the streets of the European Union.
In front of a small supermarket.
Dozens of aunts were queuing up, discussing in low voices the recent prices.
“It’s so hard to buy things lately!”
"Several supermarkets have closed again. If this continues, there will be no place to buy anything."
“That’s right, it’s useless no matter how low the price is!”
"I hope this problem will be solved as soon as possible!"
"well……"
Suddenly the supermarket employee hung a sold out sign at the door.
This made all the aunts look very ugly.
"Hurry up and go to another supermarket!"
"Does this still allow us to live a normal life?"
"Don't squeeze..."
On the street, people who could not buy food hurriedly ran to another supermarket.
However, when they arrived at the entrance of the supermarket, they found that there was very little left in the items. Even if purchases were restricted, there was still no way to ensure a stable supply of supplies.
This is the invisible hand of the free market.
The Europa Commonwealth can impose a low price, but there is no way to force farmers, agricultural companies and supermarkets to stay open.
Many farmers would rather let vegetables and fruits rot in the ground than sell them. The reason is that the selling price is too low. Farmers feel that the gains are not worth the loss, so they simply stop planting them, or let the vegetables and fruits fend for themselves.
Obviously, these farmers, agricultural companies, and supermarkets are forcing the Europa Consortium to make a choice.
Either increase subsidies to ensure their net profits are positive;
Or it will be a dead end, and they will directly stop production and go bankrupt;
Or allow them to raise prices and ensure profits.
These three choices, no matter how you look at them, are all propositions.
At this time, normal supermarkets in Munich, Hamburg, Bremen, Berlin and other places were shut down or declared bankrupt, while the underground black market took the opportunity to become active.
After all, everyone has to eat. Back then, a loaf of bread cost 500,000 marks, and some people were willing to buy it. Now, on the underground black market, a 10-kilogram bag of flour only costs 50 euros.
This is the beauty of the free market.
When used in a free market, coercive means often only treat the symptoms but not the root cause, and may even be counterproductive.
Although various places have continued to intervene and even adopted tough measures, there is still no way to solve the price problem. On the contrary, it is getting worse.
Underground black markets are popping up all over the place, raising prices several times, with some items even increasing in price more than ten times.
The wave of bankruptcies continues.
The grumbling Parisians were already singing and dancing in the streets.
In fact, the prices in Paris are not high anymore, because they have a large number of nuclear power plants and their food production is not bad. If it were not for natural disasters and some businessmen hoarding, the prices would not have increased to more than double.
Faced with rising food prices, personal purchase restrictions, and the rampant underground black market, many Parisians are very angry.
…
at an emergency meeting of the Europa Community.
The directors of each member looked solemn at this, and it was obvious that they did not expect that things would develop to the current situation.
The director of Deutschland couldn't wait to speak and said: "We must find a way to solve the price problem, otherwise we will blow ourselves up."
"You think we don't want to solve it? The problem is that we don't have money now!" Director West Rome was speechless.
Others also looked confused and helpless.
To meet the requirements of enterprises, prices must be increased or subsidies must be increased.
To meet the requirements of ordinary people, price increases must be limited while maintaining high incomes and low unemployment.
Obviously these two choices are contradictory.
Whichever they choose, no one on the other side will be too happy.
Director Netherland thought for a while before answering the child: "Why don't America support us with some of our food supplies to get through the difficulties first?"
"Haha, America's food is now being given away and no one wants it." Director West Rome spread his hands.
The German director was very angry: "This won't work, that won't work either. What on earth do you want? Do you want to watch Europa explode?"
Everyone started to discuss it, and after several minutes of bickering, they still didn't come up with a result.
Sure enough, it was like a plate of loose sand.
In fact, they have another way, which is to learn from the Homo sapiens company and completely turn the entire Europa Consortium into a giant company.
The problem is that the consequences of this are not acceptable to everyone.
In particular, the giant enterprise model and the Europa Consortium model are basically two different things.
Many people will not give up for their own wealth.
The emergency meeting of the Europa Community ended unhappily. No specific plan was discussed at all. Many places are already planning to go their own way.
This behavior further fragmented the cooperative relationship within Europa, making it impossible for them to work together internally.
On the other side, under the chain reaction of the wave of bankruptcies, the economy of the entire free world began to have major problems.
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