Chapter 241: The Importance of Information

The government's guidance has not been able to resist the enthusiasm of capital, and the interests are always easy to get lost and ignore the risks.

If you can't get government support, then find ways to reduce costs, for example: put the factory in the suburbs, or in a small town with convenient transportation, and the land cost will be saved by half at once.

It doesn't hurt if there are no tax incentives, Prussia and Russia are buying, buying, buying, and now the profits of the factories are very good, and they are not worse than those points.

"Good words are hard to persuade damned ghosts, and great compassion does not cross the self-destruction."

Watching the capital of moths to the fire continue to pour in, Franz can only choose to be out of sight.

In addition to greed, the madness of the market has more serious social problems. Once again, the capitalist world economy is experiencing overcapacity, especially in Britain and Austria.

The crisis did not erupt and had something to do with the international situation. From 1873~1878, the Second Near East War broke out successively, and the colonial war launched by Britain, France and Austria to divide the African continent.

The war consumed a lot of wealth and materials, and the prosperity of the market masked the crisis of overcapacity. If the Russo-Prussian war does not break out, a new economic crisis will break out by next year at the latest.

After so many years of accumulation, excess is not only capacity, but also capital.

As the saying goes, the money spent is the money, and the money lying in the bank is just a bunch of numbers. In the context of saturation and surplus in most industries, capital needs new investment channels.

According to the practice of death, at this time, the stock market should be in turmoil. A huge amount of money poured into the stock market, creating an unprecedented boom, and then the bubble was punctured, and the excess capital evaporated with the bubble.

Dead friends do not die poor, and the contradictions between Prussia and Russia are exploited. Austria supported the tsarist government, and Britain and France supported the Berlin government, which, in addition to political needs, also had the role of capital.

When the money is lent out, the problem of excess capital naturally does not exist. The large number of orders brought about by the war also promoted economic development.

The most important thing is that the industrial crisis, which was originally mainly the two industrial powers of Britain and Austria, has spread to the entire European continent through the stimulation of war, and no one wants to be left alone.

Dragging everyone into the water together, starting from the national level, is not harmful to others and not beneficial to oneself. To be precise, it's called cracking down on potential competitors.

Economic wars are not the same as military wars, and the countries that suffer the most losses are not necessarily the countries that fight each other, and it is more likely that the boss and the second will play a game, and finally the third, fourth, and fifth will ...... Killed.

Under the free trade system, the global market is still very limited, and it is impossible to satisfy everyone's appetite, so it can only be fought for according to the law of the jungle.

The industries of Britain and Austria account for 29.8% and 36.5% of the world's total industry respectively, and the total import and export volume of the two countries accounts for 49.6% and 24.7% of the world's total exports respectively.

Because of the relationship of interests, conflicts are inevitable. Capital wants to eat people, and in this world where the weak eat the strong, the first to fall must be the weak.

Now speculators are swarming to make war money, not that they are completely unaware of the risks, but that the authorities are obsessed, and many people think that they can run faster than others.

As long as you find a receiver before the crisis breaks out, you can get a good profit.

Vienna Palace

Mirabellon: "Your Majesty, as of now, we have sold 76 factories one after another, and the rest are also under negotiation, and it is expected that all of them will be sold in the next two months."

Stocks and bonds are now slowly selling, and only about one-tenth of them are currently being sold so far in order not to cause market turmoil.

Affected by the hot market, the income obtained from the reduction of assets this time is a little more generous than expected. Now that 130 million Aegis have been harvested, about 440 million Aegis can be obtained after all are sold.

However, our actions still attracted the attention of those who cared. Follow-up, you may encounter certain troubles. ”

Franz nodded, and it was inevitable that he would be discovered. Selling assets at the hottest time of the market, such an alternative approach, is only problematic if it is not noticed.

But there is no way, the royal assets have snowballed over the years, and if you don't retreat early, you won't be able to retreat back.

The kind of thing that the day before the crisis broke out, looking for a high-priced pick-up man, Franz can only say that it is living in a dream.

Where in the world are there so many fools? Among other things, as soon as the Russo-Prussian war ended, the value of these factories would be greatly discounted.

Perhaps in times of war, the huge profits obtained can compensate for the loss caused by the decline in the value of the enterprise, but it will not be easy to find a buyer at that time.

In case there is no pick-up man, then you can only resist hard, and with strong financial strength, you can survive the most cruel years of competition.

It seems that there is nothing, anyway, these low-tech industries, the last remaining ones must be financially strong, but they can't stand up to the big stall of the royal family. If you don't stock up on some ammunition in advance, Franz has no bottom in his heart.

After deciding to start a dumping war with the British, Franz decided to completely abandon the food processing industry, the textile industry, and the primary processing and manufacturing industry.

Once the crisis breaks out, these low-tech industries will definitely be hit the hardest, and Franz is not prepared to stumble on them.

The one-time sale of 274 factories, covering more than 14 countries, such a large amount of money can apply for the World Gillis Record.

Factories are gone, not to mention stocks and bonds invested, and it is easy to sell early. Money still has to be in the pocket, and the nominal market value is the most unreliable.

After thinking about it, Franz: "Good job, the market is crazy now, we don't need to bury them with them."

In addition to these asset sell-offs, starting from May next year, we will gradually reduce the stakes of several listed companies in which we have long-term investments.

Including the companies we control, as long as the stock price exceeds the normal market value, we must reduce a part of it, and wait for the stock market crash to break out, and then repurchase.

In particular, overseas investment should be disposed of as soon as possible. For example: the investment in the Panama Canal, take the opportunity to find someone to take over!

This crisis is likely to be much longer than it has been in the past, and it will last a long time. The investment in the next two years will be short-term and conservative. ”

Man-made disasters are far more terrible than the laws of the market, and once an economic war breaks out, it cannot be ended in a day or two.

If we do not eliminate a large number of backward production capacity and free up enough market, capital will not stop.

At such a critical moment, the bigger the spread, the greater the final loss.

Most of the later consortia turned to the financial industry, and few of them were in the manufacturing industry, which is also an important factor.

The importance of confidence is once again confirmed by the fact that Franz is self-aware and has never been a business genius himself.

If it weren't for the first-hand information, the investment outlet, and the timely avoidance of the crisis, the royal industry would have lost a lot of money.

Of course, if there was not so much information, the stall of the royal family would not be so big. Investing in what makes money is unscientific in itself.

Even a giant consortium can't take care of all industries. The "Samsung" of later generations is an example, the stall is spread too big, and it hits the balls, otherwise the whole country will rescue it, and it will be a life.

In order to develop better, it is inevitable to throw away some baggage. This is just the beginning, and in the years to come, the royal consortium will give up more business.

Now I don't give up, mainly because of the high profits. Traditional fields and emerging fields are themselves relative, and today's high-tech fields with bright prospects may become traditional fields tomorrow.

Mirabellon asked in surprise: "Your Majesty, will you give up the shares of the Panama Canal now, and not wait for the final harvest?" ”

Franz shook his head: "No need. Judging from the current situation, I am afraid that we will not be able to wait for the final harvest moment.

Once the economic crisis erupted, the Panama Canal could not be carried out. It is not appropriate for us to warn the French unless they take the initiative to close the net in advance.

We have a limited number of shares, and even if we harvest early, the profit is very limited. Quitting now, just to avoid the turmoil behind.

If you let the shareholders know that the canal they were looking forward to is suddenly gone, you don't know what will happen. ”

The royal family is about fame, and not all money can be earned. It's also a good thing to quit early, saving you resources later on to clean up the aftermath.

Unbeknownst to others, Franz knew for sure, that the Panama Canal would not be navigable for the next 30 years.

Not a technical issue, the main thing is that it is not allowed politically. The Vienna government has always been opposed and has not taken action, because the canal has just been excavated and is not in a hurry.

The French capitalist pulled the Austrian royal family to take shares, in essence, to reassure the shareholders and release the illusion to the outside world that the Vienna government would not interfere.

If he hadn't known that these people were just there to harvest on the stock market, Franz wouldn't have gotten involved, no matter how lucrative they were.

The purpose of the platform has been achieved, and there is nothing wrong with leaving the venue with the appearance fee. As for the life or death of the Panama Canal Company, it has nothing to do with an investor who left early.

Anyway, the Panama Canal is listed in Paris, and the pit is also a French investor, which has little to do with Austria.

If the Canal Company really went bankrupt, it would not be Franz's turn to carry the pot.

……