Seeing the Russians gaining the upper hand on the battlefield, the Berlin government, who had been prepared, could still calm down, and the financial backers behind could no longer sit still.

"The one who owesses money is the old man." This sentence may be a little exaggerated here. But in essence, it has not changed. Once the Popo Federation is defeated, it will be difficult for the creditors to get money.

The "collateral" promised by the Berlin government in advance depends on whether the Russians are willing to recognize it.

According to the usual style of the Tsarist government, the possibility of pretending to be invisible is as high as 80%, and the remaining 20% ​​are seen and will not admit it.

In order to win this battlefield, the Berlin government tried its best to borrow money, and I don’t know how many secret contracts were signed.

If Popo Federation is finished, I don’t know how many financial institutions that lend debts will follow. If the consortium wants to transfer losses, a financial crisis is essential.

Not only financial institutions are unlucky, but the real industry is not much better. Many companies seem to make a fortune in war, but in fact many of them make profits on the books and have a lot of owed the final payment.

There is no way, arrears of final payments are the biggest stubborn problem in commercial circulation, and they run through almost every link of the capitalist market economy. This is a problem that all production enterprises have to face.

No one knows how long the war will last, and no one knows how much the war will cost. In order to last longer, the Berlin government naturally has to spend as little as possible.

It doesn't matter if you owe too much debt, but it doesn't matter if you have a high interest rate. That's a worry of happiness. Only by winning this war can they have the need to consider these issues.

After the outbreak of the Prussian-Russian War, the export prices of all strategic materials in Europe rose sharply.

In name, the company has enjoyed the dividends of this wave of rising commodity prices, and all the companies have made huge profits; in fact, the Berlin government only paid part of the money, many of which even paid only a deposit, and the remaining production costs need to be paid by the capitalists first.

The Berlin government is rich, and there are still many in the bank account. People with good knowledge have heard of it.

However, the purchase of goods is under deposit, and the previous payment is usually settled when purchasing the next batch of goods.

In view of high profits, capitalists naturally would not refuse. Many companies with weak economic strength have to borrow from banks in order to advance payments.

To some extent, Popo's Federation has kidnapped the British economy through debt, and both sides have suffered losses.

Everyone knows the "risk", but they cannot withstand the benefits. In addition, the Popo Federation has won a Prussian War, and the newspapers have continued to belittle the Russians, which has invisibly increased everyone's confidence.

All this changed after the Battle of Smolinsk, and everyone suddenly discovered: "The Russian Empire is still the continental military police, and the Pubo Federation seems to be unable to hold on."

This is not possible. We have already invested so much. No matter what, we cannot let the Popo Federation be ruined! If the Berlin government is ruined, everyone will be in trouble.

Capitalists don’t want the Popo Federation to be finished, and the London government doesn’t want to see the Popo Federation to be finished. Finally, a chess piece was supported, but it disappeared, and no one wants to see it.

For a time, Prime Minister Benjamin's pressure increased greatly, and domestic interest groups asked the government to take action to avoid the worst.

Putting down the documents in his hand, Benjamin asked in disbelief: "The situation has reached this point of seriousness. Britain was actually kidnapped by the Prussian barbarians?"

The deep contempt between his eyebrows is enough to prove how bad his mood is. The relationship between the British and Pu has always been very good. Under normal circumstances, he would not use insulting words such as "barbarian".

Chancellor Garfield: "The situation is worse than this. I suspect that even if the Popo Federation won this war, they may not be able to repay these debts.

Not to mention the final payment for the owed materials, they have paid a portion of the money. As long as the company is not too greedy, it is basically enough for production costs, and even if it is compensated, it will not be much.

The trouble is loans and bonds. Once the Popo Federation is defeated, almost all collateral is not guaranteed.

The gold they took out was not enough to repay one-tenth of their debt. Even if they added all the overseas assets of the Popo federal people, they could not fill this hole.

Under incomplete statistics, we even discovered the situation of multiple mortgage loans, especially the loan agreements signed by the Berlin government and financial institutions in private, which were very serious in multiple mortgages.

The debts that Popo Federation owes us are far more than the 180 million pounds openly. The real data may be 200 million or 300 million. No one except the Berlin government knows."

Nowadays, Britain's financial controls are not strict, and financial institutions issue loans privately, but the London government cannot control them at all.

Bond sales are even more chaotic. One million is reported on the surface, but in fact, it is common to issue three to five million.

In this era of artificial supervision, it is too difficult to accurately count these data. As long as there is no problem, the British government will not ask about it.

If something goes wrong, the British government will not be able to control it. Financial problems will not be exposed at all. Once the big problems are exposed, the institutions will not be far from bankruptcy.

"Bankruptcy" is the best tool to evade responsibility. The government can only catch a few scapegoats at most, and most of the time, even scapegoats cannot be found.

Prime Minister Benjamin is too lazy to investigate the specific debt figures of the Berlin government, and it makes no sense.

In terms of investment, this investment is already a junk asset, and timely stop loss is the best choice.

Unfortunately, this is impossible. Everyone doesn't want to see their money was wasted, and the London government must be responsible for the aftermath.

Originally, the British and French used this move to successfully pull the Americans onto the chariot. Although they have not reached that point, they still have a headache for Prime Minister Benjamin.

"Damn the barbarian, why did he suddenly become so sinister!" Prime Minister Benjamin complained.

"No, these situations are only for us, or are there any of the countries?"

This problem is very critical. If all countries are kidnapped by the debts of the Popo Federation, then the problem is no longer a problem.

The Chancellor of the Exchequer Garfield shook his head: "I'm sorry, although the Prime Minister and other countries have similar problems, the number involved is not large.

It may add up less than one-third of the debts owed by the Popo Federation to all other countries.

Apart from us, the second largest creditor of the Popo Federation should be the French, and then the German Federal Empire, and the rest of the countries can be ignored.

The Berlin government does not have the ability to borrow money from the whole world."

Upon hearing this news, Benjamin almost fainted and swore that this was the worst news he had heard of this year.

The main reason for this situation is that the British are too rich and the people have a lot of idle funds; secondly, the London government's foreign policy. Without the support of the government, private financial institutions would not be so keen.

Everyone took it for granted that the government would not let the Popo Federation lose the war. Since that is the case, what else should I worry about? Will the Berlin government still dare to refusal?

Other countries are different. Not everyone is optimistic about the Popo Federation, nor everyone has the confidence to ensure debt security.

For example: the Austrian financial community does not borrow money from the Popo Federation, and the reason is very realistic - the Vienna government is supporting the Russians.

Due to political influence, no one is optimistic about the Popo Federation, so naturally no one will lend them money.

Not to mention small European countries, let alone whether the money can be guaranteed to be recovered, the key is that there is not much in their pockets!

Against this background, it is not surprising that France becomes the second largest creditor and the German Federation becomes the third largest creditor. Who makes you rich in your pocket and has a good relationship with the Berlin government?

Benjamin asked unquestionably: "What about the Russian Empire? Don't tell me, the Tsarist government also borrowed a large amount of money from us!"

Garfield nodded helplessly: "I'm sorry, the Prime Minister. The Tsarist government does owed us a lot of money. Of course, it's not as much as the Popo Federation, about 50 to 60 million pounds.

A large part of this was borrowed before the war, and it can also be considered as advance payment for imported Russian agricultural products, and some were the balance owed by purchasing supplies after the outbreak of the war.

We roughly counted the foreign debts of the Russians. Without any surprises, their biggest creditor country was Austria, and the total debt should not be less than what we lent to the Popo Federation.

Most of them are loans, a small amount of bonds, and there is very little final payment for purchasing supplies. Because the Tsarist government has had a precedent for breaching debts, most Austrian companies require settlement."

It seemed that the news was too heavy, and Prime Minister Benjamin finally recovered after a moment of pause.

"This is the worst situation. We cannot watch the defeat of the Popo Federation, and the Vienna government cannot watch the defeat of the Russians. This war is no longer just about the affairs of Pratt and Russia!"

The confrontation between Britain and the Austrians, or the British and Austrians fought a proxy war through Pratt. No matter which one it is, the final outcome is not optimistic.

Especially now that the Popo Federation is at a disadvantage on the battlefield, it is more passive for Britain. It will cost too much to make the Popo Federation turn around.

Foreign Secretary Edward: "The situation is not that bad. In fact, it is mainly us who are kidnapped by debts. Austria still retains the initiative.

The Russians only involved a few large banks in loans from Austria, and they had territory as collateral. Although the valuation was a little higher, as long as they could be cashed out, they would not lose all their money.

Judging from the current situation, I don’t think the Tsarist government has the ability to default. Instead, we are in trouble, but the same debt involves hundreds of thousands, or even millions."

It’s not okay to have a headache. At the same time, lending money to both companies seems to be glorious, but in fact it’s hard to say. No matter who wins and who loses, there will be a debt default, which is nothing more than a matter of how many things are.

But the London government cannot control the financial world. Bankers invest according to their own interests, and national interests are not within their considerations.

It would be fine if it could be recovered successfully. Once a debt default occurs, these consortiums will escape and send out the universal "bankruptcy" method.

Of course, there are also idiots who are not smart enough, or who are slow to react, do not transfer risks in time, and make themselves so they can be killed.

Fortunately, the Russians have poor reputations and few capitalists are willing to lend them money. Otherwise, the London government would have to understand what a real dilemma is.

Chancellor Garfield shook his head: "I don't think there is any difference. Even if the Vienna government has more choices, they will not be able to let the Popo Federation win the war.

They would even be happy to use our hands to weaken the Russians and clear a major obstacle to their unification of the German region.

Think about it, the collapse of the Popo Federation, the Russian Empire was severely damaged, and our economy was hit hard by debt default. Is there any more ideal situation than this?

From the perspective of beneficiaries, I have reason to believe that the current situation was planned by the Austrian government.

Of course, it may be France, but I don’t think that little kid from Napoleon IV has this ability.”
Chapter completed!