Welcome to 19th-century Europe, where strength reigns supreme

The United States is just a country with a history of less than a hundred years. The cultural heritage of European history is very important, but what is tradition? Monarchy, the United States is a republic with no aristocrats and no monarch, which is indeed a bit deviant in the eyes of Europeans.

Ideological prejudice makes Europe stay away from America, but Auguste is not so rigid. Although she is an aristocrat, from a standpoint she should oppose capitalism and communism, but anti-capitalism and anti-communism have never been August's A position that Te has always adhered to.

Of course, her most important thing is Prussia's interests. For this, she can unite the liberals, give workers rights, and even bloodlett the aristocracy a little.

Therefore, the United States has been part of her strategy from the beginning. What she needs most is the American market. The United States currently has a large population, [-] to [-] million people. With the subsequent turmoil in Europe, there will be more Many people immigrate to the United States, so the potential of this market is huge.

Tina told August everything she had discussed with Hamlin and weighed the pros and cons.

"There is no doubt that trade with the United States is beneficial now, but I cannot give up Prussia's future development potential just because of the development benefits of the past two years. Prussia can now rely on the expansion of its own industrial production capacity for internal circulation, and if it enters The introduction of new competitors could disrupt the market balance."

Tina's question makes no sense. The trade agreement signed with Britain has already slightly impacted the Prussian market. Britain can dump a large number of industrial products to Prussia. They have a more complete industrial system and more advanced production materials and products. Naturally stabilized Prussian local products.

These demands are naturally fed back to the capitalists. They find it harder to make money because there are stronger people competing with them. Over time, they will go bankrupt and eventually be merged by large companies, which will form monopolies. The bourgeoisie, this is disadvantageous.

But August clearly had other ideas...

"I think your thinking, Tina, is logically sound, but you have too underestimated the current threats to Prussia. Our economy is far from as good as what we see in the accounts."

August handed a bill to Tina, "Our foreign trade came to a standstill in the second half of last year, and we have been losing money since January, but in fact the amount of foreign trade is indeed increasing. , on the contrary, it was only when cash flow decreased from March to April that our funds recovered."

"What's going on?" Tina got the slip two weeks ago. Of course it looked good, but she couldn't go see it because of various things at the time. Economic Minister Liszt seemed to have Never told myself this.

"It's actually not difficult to understand. Our commodity economy has experienced deflation. When industrialization just started, industrial products would drive up prices, resulting in the cost being greater than the value of the goods themselves. But deflation is because of the currency's The circulation was too small, and the supply of goods was greater than the demand, so in the end we couldn’t even make back the cost price.”

August said, but Tina was still confused.

"We obviously have newly printed money..."

"Think about it, where is our commodity market? Of course our local problem is not big. The government can control deflation and inflation. So what do we actually spend?"

"GBP……"

"The pound is a gold-standard currency, and its circulation is the same as gold rivets. The British market is too stable, which leads to a problem. If the number of our industrial products increases, they will not be sold at normal prices, and manufacturers will start to cut prices. This boosted sales, and the UK did not issue additional currency. In fact, our costs did not change, but the actual profits decreased, resulting in unilateral deflation for Prussia. If this continues, we will have no choice but to print more money. This may cause the currency price to depreciate. If British capitalists take the opportunity to short-sell, part of our wealth will evaporate, and we will suffer a big loss at that time."

So why won’t deflation occur in the UK? Because it has colonies, it can dump industrial products into the colonies and earn huge profits, but Prussia obviously does not have such conditions. The place of birth is so poor that there is no room for developing colonies.

The members of the German state did not use a unified trading currency, and it was messy and complicated. The threshold for doing business was high. In short, it was very outrageous.

"We are bound to win the U.S. market. The situation cannot allow us to refuse. Even if the problem still exists, there is nothing we can do. We urgently need a new market. The United States, which uses the U.S. dollar, can be a good partner for us in unilateral transactions."

August told Tina these situations, and she already understood the seriousness of the matter. Now it was no longer a matter of benefits or disadvantages, but a question of whether Prussia's economy could continue to operate.

Prussia can make a small profit through its current industrial strength and pay back its blood. When the American industry catches up, the funds will flow back to the United States. However, the American economy is also quite dangerous, but it is much more dangerous, just like It's like walking a tightrope. If you're not careful, you'll lose money and even lose your pants.

For this reason, August had to find a way to deal with the cyclical economic crisis. Prussia really needed to expand, at least to unify the North German region, expand the market, and unify the currency, but Prussia did not have the strength yet.

"Tina, how many private enterprises are there in our country now?"

Looking at the sunset outside the window, August asked casually.

Tina said, "There have been more than [-] newly registered companies since last year, which is more than all previous years combined. This is all brought about by industrialization."

"Then how many of them do you think will survive in the end..."

"Well...it depends on how the market chooses."

Tina's answer was like a stream of consciousness. She didn't know. To be honest, there were too many private enterprises in Prussia. If there was any trouble, it was very possible for them to go bankrupt in large numbers.

"Tina, we want the capitalists to work. The capitalists' money-making brains are much better than those of us. We have to find a way to make them work for us."

August suddenly said, a very crazy plan emerged in her mind, what is what Prussia lacks most now?

It’s money. August is always thinking of ways to make money and then spend it. If this single thread goes too much, people will be confused. August has always been controlling the expansion of capital, but he has Now I suddenly find that the profits of small businesses are too small, state-owned enterprises still have to pay for it from the government, industrial construction still requires investment, and overseas markets are not always stable.

Prussia lacked a large private monopoly bourgeoisie...

The nationalization of resources in Prussia is actually only half of the nationalization. Individuals have a lot of room for maneuver as long as the country's needs are met. Although there are many shares, the country generally will not deliberately interfere with state-owned enterprises. develop.

August wants to first support a part of the monopoly bourgeoisie, and then control them and force them to give up a small part of the cake. However, how to do this requires further research. At least from this step, August must be very careful. Be careful, because what she wants to control is a real scourge.