Chapter 435： Its all caused by the canal (1/2)

War is not a child's play. It can be ignored to find excuses for war, but it is indispensable to mobilize troops and raise strategic materials.

Don't look at Egypt's weak chickens, it also depends on who you are. At least people on the African continent still carry their hands, and they are known as Africa's first power.

Their biggest competitor is Ethiopia, but the opponent's help from the British weakened, and they were finished when they beat Ethiopia.

There is no doubt that the powers still have to face. Unless it is a small strong man like Afghanistan, or for the sake of face, the British will also beat Ethiopia.

The hegemon needs to be maintained by force. It can be lost to the equivalent European powers, but not to the African indigenous people.

The Paris government is still very pragmatic, and in order not to make a joke, they prepared carefully. Napoleon III decided to go with politics and military, defeating the Egyptian government first and then attracting pro-French people.

This is also a common method used by European countries to colonize overseas, including Austria, which has also been used in Central America, with exceptional exceptions on the African continent.

The news of the opening of the Suez Canal in London caused a stir in the financial market. Many people are pessimistic that the era of great sailing is coming to an end.

This is based on the fact that after the Suez Canal opened, Austria ’s voyage to the Indian Ocean was shortened by more than 12,000 kilometers, and France and Spain ’s voyage to the Indian Ocean was shortened by more than 10,000 kilometers.

The British had the shortest voyage reduction and were at an absolute disadvantage in this regard. In the capital market, local British companies are declining, and export companies engaged in the Indian Ocean, Southeast Asia, Nanyang and other regions have experienced cliff-like declines in their stocks.

This fall has affected the entire London market. Naturally, the upstream and downstream related industries cannot naturally stand alone. Following this, the stock market crashed.

The capitalist world economy is in full swing, and other industries should not be left alone in the wake of the stock market crash. The financial sector is the first to be affected.

From the beginning of 1868, there have been long queues on the streets of London. The stock market disaster caused speculative financial institutions and banks to go bankrupt, causing panic among the people, and the run-up crisis followed.

This is just the beginning. There is a problem in one link of the circular economy chain, and it is bound to involve other links.

There is no doubt that the run-up crisis broke out, banks stopped lending for their own protection, and the financial crisis spread to enterprises.

The navigation of the Suez Canal was just the trigger for the economic crisis. The British economy had long had problems. As early as a few years ago, Britain had overcapacity.

This is also related to the rise of Faol. The world market is so large. More competitors are grabbing the market, resulting in the continued decline of British industrial and commercial products in the international market.

The market is small and there is no reduction in production capacity, so there is naturally a surplus. It was only the American Civil War and then the Russian-Prussian War that delayed the outbreak of the crisis.

Now that the war is over, there is no market for the goods produced, and the economic crisis is brewing. At this time, it happened that the navigation of the Suez Canal triggered the crisis ahead of time.

Originally from 1864, the economic crisis broke out from Britain. Now that the time has been postponed for three or four years, the overcapacity is naturally more serious.

This is caused by inconvenient communication and poor market information. The capitalists failed to keep up with the market to regulate production, resulting in a severe overcapacity.

Without any new tricks, it is natural to find a way to survive the winter when the economic crisis erupts. Incompetent companies went bankrupt directly, and powerful industries also began to lay off staff and reduce production capacity.

In the summer of 1868, the Great Depression came to London. The scale of British railway construction has shrunk by 78%. More than a dozen large and small railway companies have declared bankruptcy, and more than 20 railways under construction have 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 scale had shrunk by 34%.

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

The British pillar industry was severely hit during the economic crisis. Five giant companies with more than 100,000 workers went bankrupt during the economic crisis.

The bankrupt people are all over the street. Half a year ago, the rich man was infinitely beautiful. Now he is reduced to street refugees.

At the same time, affected by the economic crisis, exports have shrunk sharply. The outflow of gold was severe, funds were tight, banks and businesses were bankrupt and bankrupt, and the British ushered in the eleventh crisis in the economic history-the canal crisis.

After the economic crisis broke out, the British government did not take timely measures to deal with it. Instead, it allowed the crisis to plunder and make the crisis out of control.

Numerous unemployed people took to the streets of London to demonstrate and the capitalists were in a lot of trouble. Opposition parties have criticized the government for inaction in the newspapers, and the economic crisis has triggered a political crisis.

John Russell's cabinet has faced the biggest crisis of trust since taking office. However, it really does not matter to them. According to British law, the government has no right to interfere in the free economy.

It is not the government's fault to say so. Fortunately, Prime Minister John Russell did not interfere in the market, otherwise he would still be accused of ”interfering with a free economy and causing an economic crisis.”

Needless to say, the most common method used by politicians to solve problems is to resign.

...

The sudden economic crisis in Vienna caught Franz's attention. Except for a planned economy, the overcapacity thing is simply unavoidable.

Now that Britain has a problem, then Austria should not want to be alone, it will sooner or later.

Franz asked with concern: ”The economic crisis is here again. What measures does the Cabinet have?”