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Chapter 418 Inflation

Author: Seven Years Period

A one-time dividend of 250 million florins was an astonishing sum. People speculated how much money the Austrian Royal Overseas Development Company made, or how much money it made.

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.

But in just one year, the Austrian Royal Overseas Development Company's various investment costs reached as high as 270 million florins. In addition, Franz spent a lot of money this time, and the total cost reached as high as 520 million.

Florin.

This is equivalent to three years of Prussia's financial expenditure, and by comparison, the colonial gains seem not worth mentioning.

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 from the Austrian domestic railway is only about 100 million florins.

If Franz continues to spend money like this, he will start to be in 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 six months ago with the help of the Luxembourg crisis, 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 throwing" behavior has allowed more than one-third of the families in Austria to experience what is meant by "the emperor's grace".

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 commoners, small nobles, and small clerks, because most wealthy people have already cleared their stocks and left the market 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 everything.

Turn Street, Grizzly Bear Hotel.

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 pay 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.

Fiona Mercure is the only daughter of the Mercure family.

(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 elegant gentleman, but now he seemed like an angry gambler.

At this time, Soros also woke up and smiled. The 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 made a mistake. 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 shops, especially the shops under the royal family's name are already crowded 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 problem studied by businessmen.

In fact, after visiting a shopping mall in Vienna, Fiona knew that the country's business potential is almost infinite. The products are dazzling and of all types, and 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 has never seen such an orderly and vibrant market, and she would like 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 carriage 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 this wheel, but it is a rubber pneumatic tire. In our country, a tire like this can buy a cow, and almost all private carriages on the streets of Vienna use this kind of tire.

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 expected banknotes will 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 anticipatory 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 said with a smile.
Chapter completed!
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