stonecrandall Chapter 300
Chapter 300
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After persuading the Minister of Finance, Mainz began to take extremely radical fiscal measures. In
May 1924, Mainz signed a prime ministerial decree to allocate 1 billion marks to the education of children under the age of 6, and called on the elderly over 60 to help their parents take care of their grandchildren.
The elderly over 60 have basically retired and cannot bear the heavy work, but they still have a certain amount of energy and labor capacity. They can help take care of the children, which can reduce the pressure on the children’s parents and allow the children’s parents to return to work early.
This proposal caused a lot of controversy in Hans. There is no such policy in Hans or even in Europe. European children are mainly taken care of by their parents.
If the family conditions are better, they will hire a nanny to help take care of the children, but rarely ask grandparents to help.
And these elderly people have no intention to help their children take care of their grandchildren. After retirement, they either travel around or have leisure and entertainment. In short, they are enjoying their good life after retirement. They have no intention to work or take care of their children!
This phenomenon is not only very common in Hans, but also very common in the whole of Europe. European culture is completely different from East Asian culture.
In Southeast Asia, it is normal for parents to help their children take care of their children, and children will also accept their parents’ help with peace of mind. In Europe, the relationship within the family is not so deep. You may have to pay your parents to help you take care of your children…
Therefore, after Mainz’s call was issued, it immediately caused widespread heated discussion in society. There are supporters and opponents. Supporters are mainly concentrated among young people, especially those parents with children.
For these people, if the elderly in the family can help them take care of their children, then the pressure on them will be greatly reduced, and they can return to work and earn money to support their families earlier.
And those who oppose, needless to say, are mainly concentrated on these elderly people.
Some old people expressed indignation: They have contributed everything to this country and worked diligently for a lifetime. Now that they have retired, it is only natural for them to enjoy a good life after retirement. It is their legitimate right. If they are asked to help their children take care of their children at this time, it is equivalent to depriving them of the freedom and right to enjoy life and enjoy their old age!
The debate among the people was very intense, and various opinions were expressed, attracting the attention of the whole country.
The internal developments of Hans also attracted the attention of the two Western European powers, the British Empire and Gaul. When the British Empire learned of the news, it was immediately overjoyed!
One by one, they began to mock Mainz for being inexperienced and messing around in Hans, and the result was a mess, right?
“Haha, Hans had always been taking care of it and even called on overseas Germans to return to Hans, but as a result, there were too many births and too many infants and young children to support it, right?”
The British Empire, with the mentality of watching the fun, criticized Hans’s image.
The Times also published a special column with the title: The Downfall of Deyizhi!
This title was extremely shocking, so many people bought this issue of the newspaper.
In the newspaper, the Times’s contributors believed that Mainz, due to its lack of experience in governing the country, had adopted many blind and radical policies, which would cause unrest in Hans, tear apart Hans’ society, and ultimately affect the economy, causing Hans to fall into recession and depression.
“Mainz von Lewinsky may be an excellent soldier, but he is obviously not an excellent politician. Looking at his actions after he came to power, he borrowed heavily from the Eagle Sauce, expanded the army by 2 million, and invested heavily in developing a lot of useless railways and infrastructure. At this time, he had to invest heavily in encouraging childbirth on the basis of already spending more than he earned, which resulted in such a mess!
Although Hans’ economy seems to be good in recent years, don’t forget that all this is based on the billions of dollars they borrowed from the Eagle Sauce, and the borrowed money must be repaid sooner or later.
The economy cannot grow infinitely.
Behind the high-speed growth is the continuous accumulation of contradictions and crises.
The chaos and turmoil in Hans now indicate that this growth will become a thing of the past.
Hans is very likely to have an economic crisis.
We have all seen the turbulent situation in Hans from 1918 to 1921, and this time, the unrest will come with ten times or a hundred times the intensity.
Can Hans survive this?”
The Times’ report seemed serious. They seized on the fact that Hans owed a huge amount of foreign debt, and then magnified Hans’ various problems to create the illusion that Hans was about to collapse.
Mainz originally disdained this view. Not only did he not stop his radical measures, he even invested 1 billion marks to increase support and development of kerosene technology, and planned to build 120 coal refineries in Hans to completely solve Hans’ fuel supply problem.
Conservative estimates show that this investment can create at least 500,000 jobs for Hans and create economic benefits of hundreds of billions of marks.
However, Mainz’s move made international investors nervous.
A sound fiscal policy is what all countries are pursuing.
All governments hope that their fiscal revenue can be higher and fiscal expenditure can be lower, so that they don’t have to borrow money from the capitalists in the market.
After all, borrowed money must be repaid, and high interest expenses must be borne.
However
, the Hans government is different. They already owe a huge sum of 1 billion US dollars. It would be fine if they didn’t want to pay it back, but they are still spending money like crazy at this time, as if the money in their pockets would be hot, for fear that they can’t spend it sooner!
Only half of 1924 has passed, and the rescue of Hans has cost more than 6 billion marks, which is close to 70% of their fiscal revenue. There is still a whole year left, and the Hans government still has a lot of places to spend money, so it can be predicted that Hans’ fiscal revenue this year will definitely be insufficient to cover expenses!
Thinking of the 6 billion US dollars in debt owed by Hans, investors suddenly lost confidence in Hans and began to sell Hans’ bonds one after another.
The interest rate of the bonds issued by Hans to the Eagle Sauce is 5%, and the term of the treasury bonds is ten years. The principal of 6 billion US dollars plus interest totals 9.77 billion US dollars, which is roughly equal to 25 billion marks!
Judging from Hans’ current fiscal revenue, even if they don’t spend a penny, it will take them five years to pay off the debt!
But Hans will definitely not spend money, so they are likely to default on their debts!
Because of the worry that Hans will default on its debts , so a large number of investors in North America began to sell Hans bonds, resulting in a continuous decline in Hans’ bond prices. In July 1924 alone, it fell by 10%, and in August it fell by 9%. By the end of 1924, Hans’ bond prices had fallen by 50%.
Everything looked just like what the Times had predicted. Hans’ economy seemed to be sliding towards the abyss of collapse!
What’s more serious is that, under the influence of this, the confidence of investors around the world has been hit hard. European countries, including the Eagle Sauce in North America, have begun to show signs of economic recession.
A new round of economic crisis seems to have broken out ahead of schedule!
Under such circumstances, a top-secret telegram was sent from Berlin to North America and delivered to Vanelk, who controls the Goldman Sachs Group.
The content of the telegram was very simple, just a short sentence:”The harvest operation has officially begun!”_
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