War is not a joke, and finding excuses for war can be ignored, but mobilizing troops and raising strategic materials is still indispensable.

Don’t look at the weak Egyptians, it depends on who they compare with. At least they are still the leader in the African continent and are known as the most powerful country in Africa.

Their biggest competitor is Esaopia, but the opponent British helped weaken it, and after they finished fighting Esaopia, they would be finished.

There is no doubt that the great powers still need face. Unless they are small strong people like Afghanistan, the British would also defeat Esaopia for the sake of face.

The overlord needs to be protected by force. If you lose to the same European powers, you can, but if you lose to the African indigenous people, you can't.

The Paris government was still very pragmatic. In order not to make jokes, they made careful preparations. Napoleon III decided to go hand in hand with politics and military, defeating the Egyptian government first and then attracting pro-French people.

This is also a common method for European countries to expand overseas colonially, including Austria, which has also been used in Central America, with the exception of the situation on the African continent.

When news of the Suez Canal navigation in London came, the financial market caused an uproar. Many people pessimistically believe that the Age of Discovery is about to end.

This is based on the fact that after the Suez Canal was opened, the Austrian flight from the Indian Ocean was shortened by more than 12,000 kilometers, and the France and Spain flight from the Indian Ocean was shortened by more than 10,000 kilometers.

The British have the least shortened their voyages, which is at an absolute disadvantage in this regard. In the capital market, the capital market is indifferent to the stocks of British local enterprises, engaged in export companies in the Indian Ocean, Southeast Asia, and Southeast Asia, and the South China Ocean. All of them have experienced a cliff-like decline.

This decline affected the entire London market. The upstream and downstream industries naturally could not be immune to it. They followed the market crash and the stock market crash broke out.

The capitalist world economy is a concern. If the stock market crash breaks out, don’t want to keep it alone. The financial industry is the first to be affected.

Since early 1868, there have been long queues on the streets of London. The stock market crash has led to speculative financial institutions and banks going bankrupt, causing panic among the people, and the bank run crisis has erupted.

This is just the beginning. If there is a problem in one link in the circular economy chain, it will inevitably involve other links.

There is no doubt that the bank run crisis broke out, and banks stopped lending to the outside world in order to protect themselves, and the financial crisis affected enterprises.

The navigation of the Suez Canal is just the fuse of the economic crisis. The British economy has long had problems, and there was overcapacity in the UK a few years ago.

This is also related to the rise of Fargo. The market around the world is so large, with more competitors to compete for the market, resulting in the continued decline in the international market share of British industrial and commercial products.

As the market is small, production capacity is not reduced, it will naturally be oversupply. However, first it was the American Civil War, then the Prussian War, which delayed the outbreak of the crisis.

Now that the war is over, the products produced have no sales, and the economic crisis is already brewing. At this time, the Suez Canal navigation triggered the crisis ahead of schedule.

The original space-time and space started in 1864, and the economic crisis broke out in Britain. Now that time has been delayed by three or four years, the overcapacity is naturally more serious.

This is caused by inconvenience in communication and poor market information. Capitalists have not kept up with the market rhythm to adjust production, resulting in a serious overcapacity.

Without any new tricks, the outbreak of the economic crisis will naturally lead to a solution to survive the winter. Without strength companies, companies without strength will go bankrupt, and industries with strong strength will also begin to lay off employees and reduce production capacity.

In the summer of 1868, the Great Depression came to London. The scale of railway construction in Britain shrank by 78%. More than a dozen large and small railway companies declared bankruptcy, and more than 20 railways under construction announced an indefinite suspension.

The shipbuilding industry also reached its peak in production in 1867, and then began to shrink. By the end of 1868, the industry's scale shrank by 34%.

The textile industry is the hardest hit area of ​​this crisis. Due to the impact of Austrian cotton textile industry, they lost the markets in Central and Eastern Europe, and the Western Europe market was hit by the French again.

The British, a pillar industry, was hit hard in this economic crisis, with five giant companies with more than 100,000 workers going bankrupt in the economic crisis.

The streets are full of bankrupt people. The rich man who was still in a glorious half a year ago has now become a street refugee.

At the same time, affected by the economic crisis, exports shrank sharply. Gold outflows were severe, funds were tight, banks and enterprises went bankrupt one after another, and the British ushered in the eleventh crisis in economic history - the Canal Crisis.

After the outbreak of the economic crisis, the British government did not take timely response measures, but instead allowed the crisis to plunder, making the crisis out of control.

Countless unemployed people took to London to march and demonstrate, and capitalists complained. The opposition parties criticized the government for inaction in newspapers, and the economic crisis triggered a political crisis.

The John Russell Cabinet encountered the biggest crisis of trust since its inauguration. However, it really doesn't matter to them. According to British law, the government has no right to interfere with the free economy.

The verbal party won’t care so much, it’s the government’s fault anyway. Fortunately, Prime Minister John Russell did not interfere with the market, otherwise he would have to be charged with “interference in the free economy and leading to economic crisis.”

It’s hard to say that when politicians encounter problems, the most common method is to resign.

...

In Vienna, the sudden economic crisis has aroused Franz's attention. Unless it is a planned economy, overcapacity cannot be avoided at all.

Since there is a problem in the UK, Austria should not try to keep itself safe. It will be a problem sooner or later that will be affected.

Franz asked with concern: "The economic crisis is coming again, what measures does the cabinet have?"

Prime Minister Felix replied: "Your Majesty, judging from the situation coming from Britain, the impact of this economic crisis will be very great.

In order to get rid of the crisis, the cabinet decided to let state-owned enterprises start destocking and dump inventory goods at low prices all over the world.

We want to compete with the British and French for time. The market is so big, and if the reaction is slow, it will be smashed into your hands."

During the economic crisis, it is no longer the time to care about profits. The most important thing is to sell all the products in exchange for a large amount of cash in hand and let the company survive.

To remove inventory from state-owned enterprises, it only takes an administrative order. Everyone will definitely implement it seriously, and few bureaucrats will be stupid enough to fight against the government.

Private enterprises are different. There is no way to apply this kind of order that the government directly interferes with the market. The government cannot interfere with the normal operation of enterprises in the capitalist economic market.

As a lawmaker, the government naturally cannot violate the law. Moreover, so many companies have overcapacity and cannot directly order them to reduce production, right?

Anyway, survival of the fittest in the market always leads to a group of people. It is better to have short pain than long pain. Whoever dies depends on their ability.

There is no problem with the cabinet choosing to save state-owned enterprises first, and the son always has to be treated preferentially. When the unsold products of state-owned enterprises are exported, the pressure on domestic overcapacity will be reduced.

Franz continued to ask, “Have the emergency plan been made?”

It’s not that private enterprises are not rescued, but mainly depends on the specific situation of the economic crisis and take measures based on actual conditions.

The government is not a nanny, and it is impossible to ensure that the company does not go bankrupt. Whether it can survive depends on the capitalist's own judgment.

If you commit suicide, you will really die. Smart people have begun to follow the trend early in the morning when they see the big news in state-owned enterprises.

If you can't react, you deserve to be unlucky. Didn't you see that the royal family is running for life?

Royal Bank can be regarded as a weather vane for the Austrian economy. As long as banks tighten their monetary policy, there must be problems with the economy.

It is even more impossible to open the economic crisis. If you do it like this, without an economic crisis, you will also create an economic crisis artificially.

Once a panic occurs in the market, the losses caused are even more terrifying than the economic crisis. According to Franz's experience, the economic crisis is in the competition. Whoever runs faster is the winner, and whoever takes the market deserves to be unlucky.

Prime Minister Felix explained: "Your Majesty, this economic crisis is different from the past, it is simply overcapacity. Not only us, but most European countries have overcapacity.

The American Civil War and the Prussian-Russian War made this crisis even worse. Before the war, countries showed signs of overcapacity.

If the crisis broke out at that time, the market would soon self-regulate. Now it is different. It is initially estimated that domestic production capacity should exceed 30% of market demand, and some industries may exceed half of market demand, and may be even higher.

We have no choice but to make the market survive and eliminate the weak. There is no way to find such a large market in the world, and to expose such a large production capacity."

This is a sequelae of making money in war. During the Russians, most of the supplies were monopolized by Austria, which led to overcapacity in many Austrian industries.

After the war, the market conducted a certain amount of self-regulation. However, economic transformation cannot be completed in a few months.

Now that the economic crisis is coming, many companies that have responded one step further will naturally not be able to escape.

Of course, the impact on large enterprises may not be too fatal. After all, war money was made in the past two years and capital strength was accumulated.

As long as there is no blind expansion, I still have some money in my pocket and have the ammunition to survive this crisis.

The overcapacity is serious, which also means that the crisis cannot be escaped by external exports. When the economic crisis breaks out, the international market will soon shrink, and the markets belonging to Austria will only be local and colonial.

Other overseas markets are not worth mentioning at all. They are not a question of the size of the market, but a question of the size of the purchasing power.

In any case, Austria is also the world's largest economy in this era. There are two countries with a population that exceeds Austria, but the market is far from comparable to it.

Of course, if you calculate the colony, this ranking will be one step behind. The British are still the kings of this era, and no one can compare with them.

Franz nodded, but it was not impossible to do anything, but it was not in line with this period. The outbreak of the economic crisis caused the traditional industry crisis to break out.

To some extent, it also accelerated the outbreak of the Second Industrial Revolution. If traditional industries do not have enough profits, capitalists have to focus on emerging industries.

It is conceivable that in no time, Austria's emerging industries will bloom on all sides. In this context, Franz will naturally not intervene.

If capitalists fall into the economic crisis, they can only be considered unlucky. Who can I blame for their poor investment vision?

Just treat it as a sacrifice from the new era and contribute to the Second Industrial Revolution. If you have no investment vision, even if you escape this disaster by chance, you will fall in the alternation of the old and new industrial revolution.
Chapter completed!