Chapter 264: Competing in the South Atlantic (Part 2, 5800)
When the German fleet successfully arrived on the island of Marseille and started a break-in, Roosevelt was giving a speech at Congress for a special 500 million US dollars in Congress. As the world war came to this point, the United States was undoubtedly the largest loss-making company. Not only did it not collect investment and loans in Europe before the war, but it also provided it to the United Kingdom and the Soviet Union's leased bill materials were almost completely consumed. The United States itself spent a huge price to reorganize its own arms. The results achieved by Tiki Murahori is several times the number and tonnage of the abandoned warships in the Washington Navy Armistice Treaty and the London Armistice Treaty.
In addition, investments in the Middle East, Africa, Southeast Asia and even half of South America have almost all been wasted. This part of the obvious and potential losses are estimated to exceed 100 million US dollars. The Ministry of Finance has conducted statistics and the cumulative losses at the materials, expenses and capital levels that the government and the people have added together may have reached 500 million US dollars. This is a shocking figure. Before the war (194o), the US GDP (gnp) was only more than 200 million US dollars. Even if the inflation rate is considered, it is less than 2.5 billion US dollars. 500 million US dollars is equivalent to the total loss of Gnp of the powerful countries of Britain, France, Germany, the Soviet Union, Japan and Italy for a year.
Of course, if you really want to worry about it, you can't say that you have suffered a complete loss. At least the United States has established a powerful army with a total of 10,000 soldiers and modern equipment from scratch. Even the German side admitted that the United States has a higher degree of mechanization. After all, the American young men and soldiers never use their legs for more than 5 miles. For any other country, infantry marching is the most basic military requirement.
In order to raise funds for war, the United States not only raised the federal tax of high-income individuals to more than 90%, but the income tax rates of various enterprises also exceeded 50%. If it was a peaceful matter, this tax rate could overthrow the US government several times, but it could still be maintained during the war, which is obviously a miracle. Of course, capitalists do not have such a high patriotic awareness. They have carefully calculated it. Although the marginal tax rate has been increased, even such a tax system is still profitable due to the expansion of domestic demand and the credit support of the federal government. In order to reduce the income tax base, capitalists have made tricks, such as expanding losses, adding depreciation, and increasing financing rates.
If the domestic price index in the United States was 1oo in 1944, it had reached 139 by 1944, which was equivalent to a depreciation of 40% in four years, which seemed shocking, but this was not the worst among the main belliger countries. Japan's price index soared to 234 during the same period, Britain in 198, and the Soviet Union's figures were always distorted due to price and currency control. Observers believe that at least the most exaggerated thing is China. If it is based on 1937, it has reached more than 90 by 1944, in other words, it has shrunk to only one tenth in seven years.
Even if Germany suffers enough inflation, after the Yuan came to power, the actual price index reached nearly 15o. It is nothing more than Germany's continuous victory, coupled with the influx of Middle East oil and materials from various countries, maintaining a strong economic pattern. In fact, ordinary Germans are likely to find that although they have more marks, all the goods in the market have been strictly regulated. With money alone, they cannot buy things. If they have to break through the rationing system to get extra supplies, the price will be overwhelmed.
Take the simplest gasoline as an example. Usually, before the war, an ordinary family car is equivalent to 20 tons of gasoline. Now two tons of gasoline can be exchanged for a car! When a Tiger and or an F-19o burns 2-3 tons of fuel at any time in a battle, and advances majestic and domineeringly, it comes at the cost of almost all private cars in Western Europe stopping! It is easy to judge whether a person is a real rich man or a fake rich man, and see if his car can still be driven!
Since we know that inflation is an inevitable reality, capitalists know that they can do everything possible to expand production, and then repay the loan with shrinking currency. The essence is that the state uses the right to mint the quota tax. Just look at the stocks in the securities market to know that since the war in the United States, except for attacks on Pearl Harbor and attacks on New York, the stock price has fallen sharply in several days, the rest of the time period has been rising.
But even so, the US's ordinary fiscal expenditure and war treasury bond bank have come to an end. If you want to continue to raise war capital in a short period of time, you must issue a special treasury bond of 500 million US dollars. After Roosevelt's comeback, he continued to fight and continued to assist allies such as Britain and the Soviet Union, but it is not easy to actually take out things. The replenishment of military supplies and the allocation of warship construction funds may be 2-3 months of credit period, but it is impossible to rely on delayed payments for a long time to solve it. There must be a systematic package of solutions. On the premise that taxation is no longer possible to expand, special treasury bonds (in fact, currency) have become a helpless choice.
The consortium (funders) obviously have many concerns about this special treasury bond, because the treasury bond is targeted, that is, the US government no longer pays fees when purchasing materials, but uses bonds (blank slips) to pay, and agrees that the treasury can be used to offset future federal taxes, and can also be used to purchase assets and materials for federal auctions. Of course, it can also serve as a means of payment during trade between each other. It is not impossible to endorse and discount transfer on exchanges, but in order to prevent impact on the existing bond system, it is agreed that such discount transfers will only be 500 million US dollars per month.
In fact, the Roosevelt administration has always been known for its fiscal deficits. During the New Deal, Roosevelt relied on fiscal deficits to stabilize the situation. However, when he was engaged in deficit finance, he planned to slowly repay and reduce the related deficits after the economy recovered. How could he not consider repayment at all like this special treasury bond, but only planned to eliminate it in currency. After all, it was because the Federal Reserve was not a pure official institution in the US government, otherwise there would be no need to do such a complex design, just start the printing machine and get $500 million out.
The concerns of the chaebols are not the 500 million figure and the future repayment method. They can completely afford this amount. The key lies in the United States' ideas for subsequent wars and the consideration of ending the war. If such special national debt is received a few more times, the oligarchs will not be able to stand it.
"... Some people would say, why should the United States provide assistance? Shouldn't resisting German aggression be the business of Great Britain or the Soviets themselves? Of course, this is correct. Resisting aggression is indeed an unshirkable obligation of every country, but the country has its size and national strength. We must treat it objectively, for example, at the scene of a crime, a villain is forcing a weak woman with a weak resistance ability. This weak woman is still your friend. Can we say from the side, "Miss, it's your own business to resist such illegal acts?"
What's more, this villain is not only invading Great Britain, but also invading us and supporting its accomplice Japan invading us. Didn't the Japanese use planes produced by Germany? Didn't the Japanese fleet launch an attack on the Atlantic Ocean based on German bases? Is there no German team in India? Are the tanks and artillery used by the Japanese army in Southeast Asia not provided by the Germans?"
Many people were amused by Roosevelt's playful metaphor, but several oligarchs did not laugh. It was not easy to continue fighting with Germany? Their old friends in Europe and the oligarchs of the European Consortium had already sent a letter and called to express their hope of mediating the war, so they wanted to ask Roosevelt where the real bottom line was? Of course, business belongs to business, war belongs to war, and there is also a lot of competition between the American Consortium and the European Consortium 6.
"Many people have the idea that the Germans and we are white, and without deep hatred, we should be able to achieve understanding. Those who say this do not understand the political and aggression of Hitler's gang. His goal is to ultimately rule the whole world. How can we achieve understanding with us? If we really want to understand, he had already retreated to the border line in 1939 or even 1941. Now the Germans occupy the Falkland Islands, cut off the connection between the east and west coasts of the United States, and stretched the claws of the invasion to South America. I just received a telegram that the German fleet attacked our fleet in the waters of South America...
If the Germans say that the conditions for reconciliation are based on their occupation of the entire Europe, Africa and the Middle East and oppressing hundreds of millions of free people, I would rather not have such evil reconciliation;
If the Germans say that the conditions for reconciliation are suitable for them to invade America and exploit our forces unscrupulously, this kind of bastard reconciliation America would rather not;
If the Germans say that the condition for reconciliation is that we give up all our allies, but they continue to maintain such a despicable reconciliation, including Japan, Italy and other villains, America would rather not;
If the Germans say that the condition for reconciliation is that they continue to support Japan in fighting with us with guns, planes, tanks and other equipment and various strategic materials, this shameless reconciliation America would rather not…”
Although Roosevelt said a series of notes, the oligarchs still heard Roosevelt's bottom line of peace talks from his long speech:
1. The situation in South America returned to before 1941, and the four major British dominions were substantively controlled by the United States;
2. Germany does not interfere with the United States' handling of Japan's issue. Even if it is necessary to sell materials, it must inform the United States;
3. It acquiesced to Germany to control Europe 6, but the British problem cannot be resolved by force. In exchange, the United States promised not to use force to resolve the Peron regime;
4. Middle East Oil must give American capital a share;
5. The European market is required to open part to the United States. In exchange, the Far East market will be reciprocally opened to Germany in the future.
After a brief exchange of opinions from multiple oligarchs including Morgan, Rockefeller, Ford, etc., he said: "We agree to send 500 million special treasury bonds, and we will subscribe to most of them..."8
Chapter completed!