War Palace and Knee Pillow, Austria’s Destiny
Chapter 414 Inflation
A one-time dividend of 250 million florins was astonishingly large. Speculation abounds about how much money the Austrian Royal Overseas Development Company makes, or how profitable it actually is.
In fact, the Austrian Royal Overseas Development Company makes a lot of money, but its investment is even more exaggerated, but fortunately the capital is substantial enough.
In just one year, the Austrian Royal Overseas Development Company's investment costs reached 270 million florins. In addition, Franz spent a lot of money this time, and the total cost reached 520 million. Florin.
This is equivalent to three years of Prussian financial expenditures, and the gains from the colonies seem not worth mentioning in comparison.
At this time, Namibia, which has the best profit-making effect, only turns in profits of more than 10 million florins every year. The situation in the other four colonies is similar. In addition, the income of the Austrian domestic railway is only about 100 million florins.
If Franz continued to spend money like this, he would start to go into debt by the seventh year.
But no one knows what will happen to Austria and what will happen to the world in seven years.
In fact, Franz had already begun to expand production capacity with the help of the Luxembourg crisis half a year ago, hoping to reduce the impact of the shock, because he does not like to fight uncertain battles.
The Austrian Royal Overseas Development Company's "coin-spending" behavior has made more than one-third of the families in Austria feel what the "imperial grace" means.
Especially in the Netaleña region, almost half of the population has enjoyed this benefit.
More than four million shareholders have benefited from this dividend, and the vast majority of them are civilians, small nobles, and small clerks, because most wealthy people have already cleared their positions and left when the crisis (stock) broke out.
In a sense, this dividend has narrowed the gap between the rich and the poor in the Austrian Empire. The people's trust in the imperial government and the royal family has been further improved, and the people indeed feel "happiness".
But there are always two sides to things.
Turn Street, Grizzly Inn.
Veins popped up on Soros's forehead and he crushed the pencil in his hand. He didn't expect that the Austrian royal family would dare to share the dividends like this.
"My dear, are you okay? This Habsburg family is so courageous and trustworthy. They should be a good trading partner. We may be able to invest here." Fiona comforted her husband and gave the answer. make your own judgment.
Philona Mercure is the only daughter of the Mercure family.
(Of nine brothers and sisters, three died in infancy, two died of accidents and four died of revenge.)
The Megur family was one of the richest Jewish families in the United States at this time. It started in the banking industry and was also the largest shareholder of the American Northern Shipping Company.
(The shipping here is inland waterway shipping, not an airline.)
Fiona has been investing with her father since she was a child, and her vision is naturally extraordinary.
But Soros snorted coldly and said in a cold tone.
"This is just asking for death!"
Soros's expression and tone frightened Fiona. The latter knew that the former had always been a witty and graceful gentleman, but now he seemed like an angry gambler.
Soros also woke up at this time, and then smiled, that smile was like the spring breeze blowing, and the previous haze was completely invisible.
"Haha, this approach of the Austrian Empire is tantamount to drinking poison to quench thirst. My dear Fiona, are you planning to do business with a dead man?"
In a daze, Fiona felt that she had seen it wrong. Soros was still the same Soros. So she said.
"Drinking poison to quench thirst? My dear, you see the streets are full of people celebrating. People are taking their newly acquired money to spend in the shops, especially the shops under the royal family's name are already packed with people. There is no doubt that the money It will return to the hands of the royal family. How can you drink poison to quench your thirst?"
How to make civilians more willing to spend money and spend more money has always been the ultimate question studied by businessmen.
In fact, after visiting a shopping mall in Vienna, Fiona knew that the country's business potential was almost infinite. The products are dazzling and complete in variety. People are willing to consume and believe that tomorrow will be better.
Moreover, the royal family and the government have a great influence on the economy, and they have indeed coordinated and resolved many market conflicts. Fiona had never seen such an orderly and vibrant market, and she wanted to see the creator of it all with her own eyes.
"The recent generosity of the Austrian Empire is not just to issue dividends, they have repaid part of their debts. What will be the consequences of such a large amount of currency entering the market?" Soros said slowly.
"Inflation?" Fiona immediately thought of this word in her mind, along with some bad things.
"Yes, it's inflation." Soros said with certainty.
"The problem with the Austrian Empire now is that there is too much money, and you can see that these civilians have no sense of saving money at all, and the rich are also eager to spend all their money, because there are so many things that can be consumed in this country. Take a look. Those wagon wheels.”
Fiona subconsciously looked at the wheels of the carriage and found nothing wrong, so she looked at her husband doubtfully.
Soros smiled.
"My dear, of course you don't care about the wheels, but they are rubber pneumatic tires. In our country such a tire can buy a cow, and almost all private carriages on the streets of Vienna use these tire.
Look at the box in the lady's hand again. "
Fiona looked at it, and then her eyes widened.
"Camera?! Why is it so small!"
"This is really a magical country. Today I understand why Europeans always like to call us Americans hillbillies. Their technology is too advanced." Fiona said with emotion.
"But the Austrian Empire doesn't have that many goods for people to consume." Soros said seemingly casually.
“People suddenly have more money in their hands, but factories will not expand production because this hot money is only temporary.
Following the trend will lead to a surplus of products, which will lead to falling prices, reduced factory profits and ultimately an economic crisis.
But if production is not expanded, people will not be able to buy things with money, which will lead to rising prices. Austria's currency is expected to depreciate, and by then the country will still be unable to escape the fate of economic crisis.
So no matter what the Austrian government does, the country is doomed. "
After listening to Soros's analysis, Fiona also felt that it made sense, and that the Austrian Empire's use of an inconvertible currency such as expected banknotes was itself a hidden danger.
Coupled with the massive distribution of dividends and a series of operations to repay debts at this time, I am afraid that no one can save this country.
Fiona could already imagine the banks collapsing in a run.
"What a pity for this beautiful city." Fiona couldn't help but sigh.
"There is nothing to regret. I will turn New York into the most beautiful city in the world. Dedicated to you!" Soros smiled.
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