Chapter 540： Feudal residues are powerful (1/2)

Changes in the grain futures market directly affected the price of grain, and capitalists invariably increased prices.

This price increase is limited to the transaction price, and the grain purchase price has not changed much. It affects the upstream market from the downstream market, which requires time to ferment.

Increasing the price of grain trade is essentially to get rich. Since last year, the long-term depressed food prices have seriously affected everyone's interests.

The improved food prices have no substantial meaning, and the problem of excess food production capacity has not been fundamentally resolved. Nothing more than capitalists want to take the opportunity to make a fortune and make up for losses in the agricultural crisis.

Franz is not optimistic. If it is the food capitalists who are in charge of the operation, then for their own interests, it is in their best interest to super high and stabilize the food price.

Unfortunately, the three major food futures markets in Europe, with the exception of Austrian food capitalists, are relatively strong and have a right to speak. Both Britain and France are dominated by financial capital.

Even the Austrian food capitalists have no trading power, and even with the relevant capital of the agricultural product processing industry, they have barely the strength.

Not to mention Britain and France, unless the entire real economy capital is tied together, otherwise the futures market will always be the site of financial capital.

Short-term, quick, and always the best pursuit of capital. It is not the purpose of financial capital to settle down to do business, which means that the food market may collapse at any time.

Now everyone is still working together to make high food prices, and when they have risen almost, attracting enough speculators to enter the market, it is time for the end.

...

In the Palace of Vienna, Franz summoned the Minister of Agriculture Halls.

”Food prices are recovering, but the problem of overcapacity remains unresolved, and the Ministry of Agriculture's next job is to reduce production.

Don't worry about running out of food, even if something unexpected happens, we still have enough strategic reserves for emergency response. ”

The government cannot interfere in the market at will, and the international capital betting game, such as the futures market, cannot be intervened by the Austrian government. Unless the British, French and Austrian governments intervene in the market at the same time, it will only have side effects and cause greater losses.

Affected by the agricultural crisis, Austria also experienced slow-moving grain. The government implemented a minimum protection price policy and quickly purchased a large number of grains.

The Vienna government itself is a large food consumer and has no worries about too much food storage. Government agencies, schools, and the military add up to millions of people who want to eat.

Affected by Franz, the government has long been accustomed to storing food. In addition to satisfying self-use, it is usually eaten when food prices are low and thrown out when food prices are high.

Of course, this is only a normal period. After the agricultural crisis broke out in full, the Vienna government did not dare to open up acquisitions. If you continue to play that way, you will really go bankrupt.

Minister of Agriculture Halls: ”Your Majesty, we are planning an agricultural summit to invite European capitalists and farmers in the agricultural field to join us. We will join forces to stabilize food prices.”

Franz froze, and then came over. This is the normal operation. As the world's largest agricultural exporter, how can it respond passively to an agricultural crisis?

It should be known that before the agricultural crisis broke out, the pricing power of international agricultural trade had always been in the hands of Austria.

The Russians broke the rules and played with the British to sell bundled loans, breaking the monopoly on Austria's pricing power, which led to a flood of food prices.

After this wave, capitalists naturally realized the terrible consequences of this kind of irregular competition. At this time, it is almost inevitable to hold a group again.

The Ministry of Agriculture is tinkering with this plan, and I am afraid it cannot do without the influence of capital. Either aristocrats engaged in agricultural production or capitalists in related fields may be behind the scenes.

Knowing to know, Franz did not mean to go to the bottom, this kind of thing is inevitable. There are many ways in which capital influences government decision-making. In many cases, the parties have been rhythmic before they can react.

”It sounds very good, but just how can it be implemented? Even if no more results can be achieved at the Agricultural Summit, how much can it play without being binding?

If this problem cannot be solved, it is better to find a way to push tariffs on the plateau grain trade and increase the cost of competitors.

Get in touch with the big farmers, I believe they will have the same interest, encourage them to mobilize the vast number of farmers, and put pressure on the government together. ”

This idea is very gloomy and very disadvantageous for the industrially backward countries. Perhaps in the end, it may evolve into a tariff on all agricultural products.

However, Franz was not worried at all, and it was nothing more than a lower-margin primary processing company. In the short term, it will have some impact on Austria, but in the long term, it will help further promote industrial upgrading.

You ca n’t count on grinding your noodles forever? This kind of enterprise without much technical content will be squeezed unprofitably sooner or later.

If we do not develop new products with higher added value, this kind of processing enterprise with low technical content and standing on the ground and not willing to move forward will not survive in this cruel world.

These are all just plain. If there is no other gain, this is the tactic of killing the enemy one thousand and causing eight hundred. How can Franz use it?

The biggest impact on raising food prices is industry. Enterprises with rising prices will have to pay more, otherwise workers will not be able to survive.

This is the fundamental purpose of Franz. Perhaps in the short term, this effect will not be obvious, but as time goes on, the more and more tariffs on agricultural products are imported, the aftermath will come out.

High labor costs will cause labor-intensive companies to become unprofitable. For higher benefits, capitalists are bound to invest funds into higher-yielding financial sectors.

The first person who could not hold back in time and space was the French. After the Franco-Prussian war, without the government's suppression of capital, France began to run wildly along the non-return road of the usury empire.

The British followed suit, followed by self-defeating martial arts. Otherwise, during World War II, the Luftwaffe would not be able to loot over the British Isles, let alone block sea transportation by submarines.