Chapter 473 (1/2)

In the 1970s, the British economy experienced a strange phenomenon of stagnant development on the one hand and soaring prices on the other, which was called ”British disease”. In order to treat these diseases, the British government can only stabilize the domestic market by reducing national welfare expenditure.

Since 1980s, in the context of excess liquidity, the United Kingdom has adopted a series of reforms aimed at improving economic efficiency. It has not only formed a bubble economy similar to Japan. Instead, it has greatly enhanced the competitiveness of the UK industry and financial sector, and has successfully revived the declining British economy since the oil crisis. More importantly, it has maintained the world status of London as an old international financial center and provided a solid foundation for the British economy to surpass Western European countries after the 1990s.

Of course, the iron lady has just begun to implement her ruling program. It can be said that the country does not have much money to deal with the war. At present, the domestic economy is relatively depressed, so according to the past tradition, it will start with the colonies and collect funds from the colonies to supplement the domestic economy.

But now it is the 20th century. Many British overseas colonies are independent. It can be said that their influence in the world is declining. Otherwise, Argentina would not dare to attack the Falkland Islands.

Even the existing small colonies, they dare not blatantly take them back. After all, there are many interests behind each colony.

But now it's a time of war, so I can't care so much. Through the military license plate, the British stared at Xiangjiang and baozixuan. To say who is the richest in the existing overseas colonies, it must be Xiangjiang. At this time in previous lives, Xiangjiang's economy has been very developed, known as the four little dragons in Asia.

Without the black cloud group, the unexpected rise of baozixuan makes Xiangjiang's economy grow faster and more frightening. It can be said that it is false for the British to look at such a high tax on Xiangjiang every year. Just because of these treaty restrictions, they can't arbitrarily control Xiangjiang's assets. In addition, the Chinese mainland is watching, and no one dare to go too far.

However, at the thought of no improvement in the domestic economy, we can't care so much. Since we can't use assets directly, we can always issue war bonds!

If anyone doesn't buy, he has no confidence in the British Empire winning Argentina. He can find a way to deal with you. This is the real purpose of the British. They want to use a license plate to make baozixuan obey. If the black cloud group is settled, other small fish and shrimp will not be slaughtered by them.

War bonds are debt securities issued by the government to raise military spending during the war. At this time, the British wanted to issue such bonds in Xiangjiang in order to let the Xiangjiang people pay for the war between Britain and Argentina. And the primary goal is the black cloud group of baozixuan. If you want a military license, you must show enough sincerity. As long as it's the richest man in the bag, then others won't dare not buy it at that time.

After receiving the call from governor Youde, baozixuan fell into meditation. Youde said that Britain has agreed to issue a military license to the black cloud group, but he must buy the war debt issued by the government. Not only does the black cloud group want to buy, it must also mobilize enterprise employees to buy. In the words of the British, it is now to share a common hatred without any slack.

Baozixuan lived in Britain for many years in his previous life, but it can be said that the government's credit is not very good because he knows that the British did not repay their debts until the 21st century under the pressure of the improvement of their economy and public opinion.

According to the data reported by the BBC, the first world war cost Britain about 3.25 billion pounds, of which 2.11 billion was loans. In 1917, the British government issued national war bonds with an interest rate of 5%, coupled with the overwhelming patriotic Advertising - ”if you can't fight, you can invest all you have to help your country... Unlike soldiers, there is no risk in investment”. About 3 million Britons bought war bonds.

In 1927, Winston Churchill refinanced these treasury bonds at 4% interest into consolidated loans or unified bonds, which are now valued at £ 218.4 million. About 11200 investors held these 4% interest war bonds, 92% of which were less than 10000 pounds.

In 1932, facing the financial risk of the great recession, Neville Chamberlain, then Chancellor of the exchequer, once again used patriotic propaganda to convert some 4% interest national bonds into permanent bonds, and the interest was reduced to 3.5%, which meant that the borrower (government) did not need to repay the principal, but he had to repay the interest all the time. This 3.5% interest bond is now valued at £ 1938.6 million and still has 120000 holders, of which 38000 hold less than £ 100 in principal.

The British Treasury estimates that it has repaid a total of £ 5.5 billion in interest on two major war debts, 5% and 3.5%. The British government said that they could not basically pay off the above debts until March 2015.