Chapter 208, Financial Markets
With the outbreak of the second industrial revolution, the total industrial volume of various countries has snowballed, and the demand for markets and industrial raw materials is also increasing day by day.
The Vienna government's eagerness to promote free trade has an ulterior strategic purpose in addition to the needs of domestic economic development.
Once it enters the era of free trade, Austria, which has an advantage in emerging industries, is bound to magnify this advantage and set a higher threshold for the future.
If it goes well, it will emerge in the near future: the British occupy the traditional textile industry, shipbuilding; Austria occupies a global industrial landscape in the emerging power, telecommunications and internal combustion engine industries.
It can almost be said to replicate the economic rise of the German Empire, except that Austria has a thicker background, itself is the largest exporter of agricultural products in Europe, and is backed by a vast colony.
Britain and Austria have carved up the main industrial body of the world, what will happen to the rest of the countries?
France, in particular, is second only to the two countries, and they have no advantage in either the British competition for tradition or Austria for new industries.
It's not that the technology can't keep up, it's mainly that there is no way to solve the problem with the supply of industrial raw materials. Unlike later generations, transportation in this era was not so developed. Once the distance is too far, the cost goes up.
It is too risky to defeat France militarily, and France is now a large country with a population of nearly 60 million, even if the Italians do not contribute militarily, they can still contribute logistically.
The snipe and the clam compete, and the fisherman profits.
Unless the war can be ended in a short time and the other side is completely defeated, the victor will be the fisherman.
As long as you look at the map, anyone with a little military common sense knows that it is impossible for France and Austria to distinguish the winner in a short period of time, and this is determined by geographical location.
In contrast, the economic defeat of France is much less risky and has a much higher success rate.
Economically, Britain, France and Austria are all competitors, and even if the London government likes to play the continental balance, it can only be a military balance, and there is no way to play a balance economically.
The economies of France and Austria have long been out of balance, and the British have not thought of pulling the French out, which means that they are enemies.
Don't talk about strategy, the capitalists don't have such a high level of discipline. Making money is the first thing, being able to kill a competitor and make more profits, why refuse?
No matter how great the Austrian threat is, it is also a matter of the future, and the capitalists cannot give up making money for the sake of potential danger.
The most typical case is the rise of the Soviet Union in the original time and space. In terms of threats alone, this was much more terrifying than the present Austria, which cooperated with the Soviets for the sake of profit.
In the era of free trade, the economy was determined by the market, and government intervention was relatively small. In the case of the London government in this era, they barely interfered in the market.
Needless to say, once Austria joins the free trade system, vested interests will also push the two governments to unite and pull all the remaining countries into the free trade system.
There is no doubt that most of the European countries have no confidence in refusing, and when everyone joins the free trade system, the French will be in trouble.
Joining the game circle, they are not competitive, and if they don't join the circle, they will fall into the embarrassing situation of being a single player.
Originally, France was excluded on the European continent, and Napoleon III worked hard for twenty years to be reluctantly accepted, and now the single machine is back to its former state.
Perhaps the British will one day abandon the free trade system, but it is absolutely impossible to abandon it in favor of France. As long as the benefits outweigh the disadvantages, free trade is the British signature.
As things stand, as long as they don't die on their own, British industry and commerce will be able to remain competitive for decades to come, which is the foundation of an old industrial powerhouse.
……
Franz: "What is the reaction of domestic public opinion? ”
Prime Minister Felix: "There is almost no difference between the voices of support and the voices of opposition, and the two sides are arguing very much, and I am afraid that it will not be possible to distinguish the winner in a short time." ”
Free trade is supported not only by new industries, but also by the agro-processing industry, which is Austria's dominant industry and has the confidence to compete in the international arena.
Joining the free trade system and reducing import and export tariffs are vested interests.
For example, the cotton textile industry is the staunchest opponent, and once the tariff barriers are abandoned, the British will inevitably seize a part of their market.
Of course, if these companies are competitive enough, they also have the opportunity to run out and grab the market of the British. After all, these industries have low technology content, and the gap between them in technology is not large.
If it is not for the higher labor costs in Austrian Africa, it is estimated that the domestic cotton textile industry will move, once entering the era of free trade, cost control has become an indispensable part of the enterprise.
Franz: "Then give them a platform for debate between supporters and opponents, and eat ...... The people are the judges. ”
Originally, Franz wanted to say "the people who eat melons", but when the words came to his lips, he felt that it was out of place, so he changed it to "the people" in time.
"Your Majesty, I'm afraid that this will make more trouble. Many people have already applied to the police station to demonstrate. Prime Minister Felix persuaded
Franz shook his head: "It is precisely because of the big trouble that it is necessary for them to debate." If they don't have a channel to vent, how will these people who have lost their interests be willing? ”
It is better to let the capitalists and capitalists spray against each other than for the government to end up in person. Regardless of the outcome of the debate, reform is needed.
It's just an extra layer of buffer, allowing those whose interests are damaged to shift the target of hatred.
As vested interests in reform, they cannot just take advantage of the benefits and do nothing, and it is one of their responsibilities to pull hatred.
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Chancellor of the Exchequer Carr: "Your Majesty, our negotiations with the British have been blocked, and in general the two sides have agreed, but the British have asked us to open up the financial industry.
With the strength of the domestic financial community, once the financial market is opened, it will be difficult for us to gain an advantage. ”
Not to mention dominant, Austria's financial sector is not as strong as the French, let alone the British. If the restrictions are lifted, it will basically be the fate of being hanged.
After hesitating for a moment, Franz: "It is impossible to relax financial restrictions, domestic capital must be restricted, how can foreign capital be unrestricted?"
Continue to talk to the British that British capital can be allowed to enter the securities market, but only in compliance with the relevant laws.
If the British continue to dwell on financial issues, it would be fair that we sign an agreement that the capital of the two countries will not enter each other's financial markets. ”
Austria has never banned foreign capital from entering the financial markets, but it has been subject to many restrictions. If you want to run freely in finance, just wait for it to be confiscated by the administration!
Unlike the London financial market, the rule-makers deliberately left a back door, the Vienna financial market, which is often patched.
Exploiting the loopholes of the rules does not mean that you will be able to make money, but you must also be fast enough to complete the operation before the management department reacts.
After so many years of tinkering, there are now very few holes in the Austrian financial market, and it is much more difficult to shear sheep unscrupulously.
"Not entering each other's financial markets" is a complete joke.
It doesn't matter to Austria, the domestic financial sector is still in the stage of capital accumulation, and even if it wants to reach out to the London financial market, it does not have enough strength.
From the point of view of the British, it is different. The London financial market is the world's financial center, bringing together capital from all over the world to gamble here.
Except for a very few lucky ones who were able to make money from it, the vast majority of the rest were harvested by British conglomerates.
Foreign capital entering the London financial market is a fat sheep sent to the door for the British financial consortium, so why should people be denied entry?
The British were the first to complete the industrial revolution, and in the early years, with the advantage of the world's factories, they accumulated a large amount of capital, and there was a surplus of capital from twenty years ago.
The rise of the United States in the original time and space was due to the British in order to vent their excess capital at home, otherwise the Chosen One would not have developed so easily.
Austria was able to rise to prominence, also with the help of British capital in its early years. It's just that Franz took advantage of the economic crisis and the advantages of the rule-makers to pit British capital halfway.
Now the British want Austria to open up its financial markets, but they are actually scared.
It's just a matter of detonating the economic crisis in advance, which can only be regarded as not enough for your own means, and you just need to pay attention to it next time.
But the rules are restrictive, and that's desperate. Many seemingly inconspicuous rules, which have little impact in normal times, can often be fatal when an economic crisis erupts.
However, these rules were formulated in advance and are still public. It belongs to the rules of the game, and they didn't notice it, it was their own problem, and they couldn't talk about it.
The same trick is being played by the British. The London financial markets also have similar rules, which are designed to trap unsuspecting outsiders.
It's just that people like double standards, and they use the rules to pit others, which is a clever means; If you are cheated by someone else's rules, you can't bear it.
Eat a trench, grow a wisdom. Having learned their lessons, the British capitalists wanted to remove these rules.
Franz was also embarrassed, and he was tempted to tell the British that it was completely overwhelmed.
The same trick can't be played forever, and as the market continues to regulate, there are simply not so many traps to set.
Unfortunately, no one will believe this, from the original water and railway monopoly project sinkhole built by the Vienna government to the recent early detonation of the economic crisis, all of which have caused heavy losses to British capital.
From Austria's point of view, this is all normal operation and completely in accordance with the rules of the game; But from the standpoint of British capital, these are huge pits.