69novels Chapter 385
Chapter 385
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At the end of May 1926, Hans launched an economic stimulus plan of 100 billion marks.
As soon as this plan came out, it immediately caused heated discussions around the world.
100 billion marks is equivalent to 10 billion pounds, which is equivalent to 42 billion US dollars. This figure has exceeded the GDP of the British Empire in 1925!
So such a large-scale economic stimulus plan shocked the world as soon as it was launched!
The whole world has been affected by the economic crisis at this time, and countries are racking their brains to find ways to stimulate the economy when facing the crisis.
However, the fiscal revenue of each country is so limited, and there is no money to stimulate the economy!
And it is precisely because there is no money that everyone talks more and does less, and many things remain only verbal, and there is no money to implement them!
So everyone is very curious: where did the Hans get so much money?
“The Hans must be printing paper money desperately. Their currency is not based on the gold standard, so as long as the government is willing, they can print as much as they want without any burden!”
“Well, that must be the case, otherwise there is no way to explain where they got the 100 billion marks from!”
Because the amount of money Hans took out was so huge that all countries began to doubt the source of Hans’ money.
Countries themselves couldn’t come up with so much money anyway, so they subconsciously thought that Hans couldn’t come up with such a large sum of money, and then speculated that Hans’ money must have come from an illegal source. The most likely scenario is that Hans started the printing press and directly used the printing press to print so much money overtime!
This statement is basically a general consensus in the international community. After all, apart from this explanation, everyone can’t think of any other more reasonable reasons!
The result of printing a large amount of currency is definitely currency depreciation and soaring prices. Therefore, the world’s attention is focused on the prices in Hans. Above, they want to see if the price level in Hans will rise rapidly, and then there will be disgusting inflation.
In the era of economic crisis, countries cannot solve their own crises, so they adopt the method of horizontal comparison, and seek some psychological comfort by comparing the worst.
They don’t expect to do the best, but as long as someone does worse than them, they can ridicule the other party wantonly, and then seek psychological comfort!
Therefore, in addition to the international economic crisis, many people began to pay attention to the situation in Hans, hoping to see a joke.
Not only did the countries have the idea that the price of Hans would soar, but in Hans, some illegal businessmen also came to such a conclusion after hearing the news!
“The opportunity has come!”
“That’s right, the government has released 100 billion marks, which is simply a flood of money. It would be strange if prices didn’t go up by printing so much money at once!”
“We must take action, this is a great opportunity for us!”
“Smith, do you have any ideas?”
When the businessmen were discussing the government’s economic stimulus plan, one of the more influential businessmen suddenly stood up and lobbied everyone:
“Ideas? Of course I have ideas. Think about it, the little money you have now, isn’t it hard-earned? The government has injected 100 billion marks into the market in one go without consulting us or getting our permission. What will be the result? This will cause the wealth of all of us here to shrink. Isn’t the end of the rise the shrinkage of our assets?”
This statement was recognized by everyone, and many people nodded in agreement.
The truth is actually very simple. Let’s say you have 10,000 marks in your hand. Originally, these 10,000 marks were quite valuable and could buy 1,000 kilograms worth of flour.
But now the government has printed another 100 billion marks and put them into the market. As a result, the total amount of goods on the market has not changed, but the total amount of currency has increased by 100 billion. What consequences will this bring?
The consequence is that originally 10,000 marks might have been able to buy 1,000 kilograms of flour, but now because of the entry of 100 billion marks, the value of the mark has shrunk, the price of flour has risen, and now 10,000 marks can be used to buy 1,000 kilograms of flour. They could only buy 500 kilograms of flour!
They didn’t do anything, but their wealth shrunk by half. Where did their wealth go?
Of course, it was plundered by the government. The government printed 100 billion marks out of thin air, which was equivalent to plundering their assets. Everyone was very concerned about the damage to their own vital interests! Everyone knew about this, but there was no good way to deal with it.
So, after hearing Smith’s words, someone asked,”Even if we know this, what can we do? We can’t fight the government at all. Have you forgotten the tragedy of the Junker nobles before?”
When the Junker nobles were mentioned, the merchants and capitalists present were suddenly silent, and felt a chill in their hearts!
The Junker nobles were once the most powerful and wealthy group of people in Hans. They were both nobles and big capitalists, and they controlled a large amount of land and a huge amount of assets in Hans!
However, such a powerful group suffered a catastrophic disaster in an instant. After the coup failed, they were uprooted and completely eradicated by the current President Mainz using the iron fist of the army!
The Junker nobles were so powerful and influential, and they had a great influence in Hans. The powerful interest groups that have been sustained and inherited for hundreds of years can be wiped out in an instant, not to mention these powerless capitalists and businessmen!
If the government wants to deal with them, it only needs to move its fingers, which is easier than crushing an ant!
It is precisely because of the painful lessons of the Junker nobles that these capitalists and businessmen dare not act rashly even though they know that their wealth has been looted. They can only gather here to discuss countermeasures!
Smith did not retreat at all when he heard this, as if the lesson of the Junker nobles had never happened!
“The Junker nobles brought their own death upon themselves. If they had not taken the initiative to collude with the Socialists to launch a coup and sent people to assassinate the president, I don’t think their end would have been so tragic!”
Everyone agreed that the Junker nobles did not deserve sympathy because they had brought it entirely upon themselves. If they had not taken the initiative to participate in the struggle for political rights, they would not have brought disaster upon themselves and would not have died so tragically!
“We are just some businessmen and capitalists. We do not pose a threat to the security of the country. Most importantly, we have no political ambitions, and the operation of society cannot be separated from people like us. Without us, a large number of factories will close down, a large number of stores will close down, and the whole country will be in chaos!”
Smith tried to arouse the confidence of the people and let them realize their important role, so that it would be convenient for him to implement his plan!
Sure enough, after hearing what he said, the businessmen began to nod frequently, and some businessmen who were familiar with each other also began to whisper to each other in private!
Smith saw all this, and he felt a little proud when he saw that his words touched everyone!
“Smith, stop beating around the bush and get to the point. What are you going to do with us?”
Sure enough, some people couldn’t resist the temptation and started to jump out.
“My purpose is very simple. I want to make everyone rich. I don’t want to see the hard-earned money of everyone, including myself, being robbed!”
No one doesn’t like making money, so Smith’s words touched on what everyone cares about most.
However, out of caution, many people did not rush to express their opinions, but planned to see what solutions Smith could come up with.
If Smith’s method is feasible, then the businessmen don’t mind standing up and taking action with him. If his method doesn’t work, then the businessmen will not put their lives in danger and take risks with him!
After all, between the two options of wealth and life, most people will choose the latter.
Especially when they are still in a serious economic crisis, the shrinkage of wealth is not the most important thing at this time. The most important thing is to survive!
However, if there is a way to make a fortune while ensuring their own safety, then no one can refuse this kind of thing!
And this is what Smith has in mind!
“My method is very simple. Now, while the government’s money has not been fully printed, everyone should use all channels to spend the money in their hands. While the prices in the market have not skyrocketed, quickly exchange the money for goods, especially food and daily necessities, which are much more valuable than currency!”
Smith’s words, in the final analysis, are four words: hoarding!
However, it seems that this is not illegal. In the capitalist world, this is called free trade!
Therefore, his proposal immediately touched everyone!