stonecrandall Chapter 1059
Chapter 1059
Mainz is of course very interested in the gold mines in Nanfei.
The current currency of the empire is legal tender, not a gold-based currency. The reason is not that the empire is independent and must issue legal tender, but is unwilling to issue a gold-based currency. It is because the war reparations of World War I were too much, resulting in a large loss of gold. In the absence of gold, the gold standard cannot be implemented.
To solve this problem, a large amount of gold must be reserved!
After the outbreak of World War II, as the German army swept across European countries, especially the two Western European powers, the British Empire and Gaul, the empire had plundered a lot of gold from them. Compared with before the war, the current empire’s gold reserves have increased by 1,200 tons. This number is not much. After all, the Eagle Sauce of later generations has stored more than 8,000 tons of gold, making it the world’s largest gold reserve country.
And it is precisely because of the 8,000 tons of gold as reserves that the Eagle Sauce can rely on the Bretton Woods system to determine its status as an international currency and make the US dollar a global currency!
The Third Reich is different from the Eagle Sauce. The Eagle Sauce still had to face the competition from the Bear at that time, while the Third Reich has now defeated a large group of competitors. As long as the Bear is solved, no country can compete with them.
In this case, using force to ensure that one’s own currency becomes an international currency is actually a feasible way. However, in order to accelerate the global circulation of the Reichsmark, the best way is to bind it to gold and let people use it willingly!
Making the national currency an international currency is a great thing for any country, because the benefits are very great!
Because the national currency is an international currency, within a certain range, the country can print money at full capacity, and the cost of printing money is very low. Compared with the value of the currency itself, the cost of printing money is not worth mentioning.
As long as the credit of the Reichsmark does not collapse, the money printed by the empire will be absorbed by the market, and the empire can still use this money to purchase products and services from various countries.
What is the purpose of war?
Isn’t it just to gain benefits?
Now, there is no need to fight. By printing money, white paper can be turned into paper money equivalent to gold. Then, with these papers, wealth can be plundered from other countries legally and efficiently. This method is much cheaper than the cost of war!
If you want to print money at full speed, you must link it to gold, and you must let countries all over the world use their own currency willingly!
In this case, the importance of a country with 50% of the world’s gold mining volume to the empire is needless to say!
As a traverser, Mainz certainly knows that South Philippines has extremely rich gold reserves, which can be called the world’s first.
He has also thought about going to South Philippines and seizing the South Philippines gold mine.
But South Philippines is too far away from the mainland of the empire. Such a long distance is simply a disaster for the logistics supply of the army. The previous empire would never be able to complete such an expedition!
However, after defeating the Sun Never Sets and Gaul one after another, stabilizing the situation in mainland Europe, and starting to form the North African Corps, successfully occupying North Africa and controlling the Suez Canal, the situation is completely different!
The Empire currently controls the Strait of Gibraltar and the canal, while the Bosphorus Strait, the outlet of the Black Sea, is in the hands of the native chicken. At this time, the native chicken is the follower behind the Empire, following the lead of the Empire. They will definitely not refuse to do anything they are asked to do.
In this case, the Mediterranean has become the inland sea of the Empire, and the channels of communication between Europe and Africa are extremely smooth. It is very convenient to transport various materials from Europe to Africa!
Therefore, it is possible to march into South Philippines!
The annual gold mining volume of South Philippines can reach 700 tons. If all this batch of gold falls into the pocket of the Empire, then in less than ten years, the Empire’s gold reserves will exceed that of the Eagle Sauce at its peak. In that case, it will not be a problem to link the country’s currency to gold!
Moreover, in addition to South Philippines, the Empire also controls many other major gold producing countries. The gold from these countries, plus the gold looted in the war, will definitely greatly shorten the time for the Empire’s gold reserves to exceed 8,000 tons.
Considering that the Empire still has a strong enemy that has not been resolved, it is not a panic to link it with gold for the time being.
In wartime, people generally have a risk aversion mentality. In this case, once the free exchange of gold is opened, people will definitely exchange all the currency in their hands for gold and then store it!
Although 8,000 tons of gold is a lot, there are 2 billion people in the world. On average, each person can only get four or five grams.
Therefore, if this amount of gold is really put into the market during wartime, it will definitely not be able to withstand the toss!
Historically, due to the drag of the Vietnam War quagmire, the Eagle Sauce’s gold was lost in large quantities. Countries began to worry that the Eagle Sauce could not repay the gold, so they sold the US dollar and exchanged for gold, which further accelerated the loss of gold in the Eagle Sauce and eventually caused the collapse of the Bretton Woods system.
If the Eagle Sauce had not later found oil as a product linked to the US dollar, the national currency status of the US dollar might have ended ahead of time!
Therefore, according to Mainz’s plan, the establishment of the gold standard and the making of the country’s currency as the national currency should be placed after the war. At that time, when the time is ripe, these things can be done!
However, before that, gold must be stored as soon as possible!
Therefore, Mainz readily approved Rommel’s plan and reminded him that he didn’t need to report everything, otherwise, if he encountered an emergency, he might miss the opportunity to fight!
This reminder gave Rommel a lot of room for maneuver, because the attitude of the head of state was equivalent to loosening the tight ring for Rommel and his North African Corps, allowing them to boldly do things!
Others don’t know the value of Africa, but Mainz knows it very well, so he strongly supports Rommel’s conquests and seizing areas with rich natural resources!
If it weren’t for the rich resources in Africa, Mainz would have specially formed the North African Corps!