.Zhonghua Palace.Chinese website

"..., according to comprehensive intelligence analysis, due to several treasury bond incidents, the empire drew too much blood from the European and American markets, and the speculation of stock and bonds in Europe and the United States has significantly cooled down due to the water pumping of funds... We believe that within two to three years, the US and German economies will continue to develop rapidly under the civil war between the Empire and Russia, and even the post-war reconstruction spike, and support the stock and bond bubbles. The final bubble burst is expected to be expected. After that, when the demand between the Empire and Russia decreases, output increases rapidly, resulting in a serious overcapacity (historically, the US economic recovery evolved into a speculative frenzy,

And it caused interest rates to reach a high in May 1907, triggering a new round of economic recession)

The royal family has entered the shipbuilding, military and heavy chemical companies before investing funds in the United States. In addition, they will further increase their holdings of major U.S. banks to welcome this speculative bubble "..."

"We have judged that the shipbuilding competition around the world will be launched in a more fierce manner. Although Britain and France are currently in a state of economic contraction, they will definitely react in the face of the aggressive attitude of China and Germany. We have bought major heavy industrial stocks in various countries in London, Paris and Frankfurt markets, and have taken advantage of the empire's victory and have good credit. The European economy still has no chance to get rid of the recession and assisted the empire's Ministry of Finance to issue two batches of 15-year government bonds with a total amount of 600 million Chinese yuan, with a yield of 4.5%.

"At present, due to huge loans provided to the Russian Tsarist government, funds have shown signs of shortage. At present, we judge that the shortage of funds between Britain and France will increase the actual difficulties in their economic recovery, unless the two governments follow the empire and use their own central banks to directly subscribe to the government bonds issued by their Ministry of Finance, that is, to directly adopt the money printing strategy."

"... Based on this judgment, we propose to further increase the "water absorption" of surplus capital in Europe and the United States to aggravate the shortage of funds, increase the difficulty of economic recovery, and add additional difficulty to expand the military preparations for such countries..."

Zhong Ziqiang, the head of the royal industrial investment business, finished reciting the notepad, gently closed his notepad and bowed deeply.

"Your Majesty, the above is our phased work summary in the investment field for review."

Many of these investment arrangements are instructed by Zheng Yu. Now these people can learn from one example and Zheng Yu is not very dissatisfied with it.

For Zheng Yulai, finance is not only a lubricant for the economy, but also a fatal weapon. Especially after several national debt wars, Zheng Yu tasted the sweetness and gradually found some of the so-called "financial war" in later generations.

In this era, currency is still a precious metal standard, not a complete credit currency. The issuance of currencies in various countries depends on reserves and cannot print money infinitely. The exchange rate is mainly based on its gold content.

Although most countries have central banks (the United States uses Morgan Bank as the central bank function), most of them still have si, and the monetary tools are relatively single, and their ability to regulate the country's economy is limited.

The most fatal thing is that the overall economic thought, as economic guidance in this era, still stays at the classical economy level of Adam, Smith, David, and Ricardo. Some debates are nothing more than a debate between mercantilism and free market mechanisms. As for the theory of Marxism, it is even more political in nature in Europe and the United States because of its ideological issues, and is regarded as evil by most ruling classes.

There is no macroeconomic theory in this era.

As a technique, the macroeconomics did not develop until after the Great Depression in the 1930s, its founder John, Maynard, and Keynes graduated from Cambridge last year. They just followed the future founder of the British war economy, Pigou, and his master's degree in economics. They have not experienced the economic control of World War I and the post-war economic depression, let alone the development of macroeconomic theories such as macro-control and counter-cyclical theories.

In this regard, Zheng Ying and others who had personally experienced the "unexpected" financial crisis in later generations and personally experienced the national counter-cyclical regulation, naturally became economic prophets beyond the times.

After the baptism of the world economic crisis, the national ruling machine they built also had an intuitive understanding of various means of counter-cyclical regulation.

In terms of monetary policy responsibilities, the People's Bank of China can already skillfully use interest rates to mediate economic heat and use open market operations to control the circulation of currency. In the process of responding to the last crisis, the People's Bank of China even rebelliously "subscribe" the government bonds issued by the Ministry of Finance itself, which is equivalent to direct printing of money, thus ensuring that the Ministry of Finance can have enough funds to implement expansionary fiscal policies and stimulate economic recovery.

In the Chinese art world, although it is not known as the macroeconomic, the research on state intervention in the economy, counter-cyclical monetary and fiscal policies has been around for more than ten years, and has been continuously developed and improved with practice.

Similarly, there are special secret groups in the Economic Research Institute under the Chinese royal family who are responsible for formulating economic wars aimed at "weaking the enemy and strengthening themselves."

The current economic war model formulated by the Chinese Empire includes: First, resource warfare. Using global intelligence collection and networking to sort out global resource distribution, and laying out some key resources, we must adopt certain strategies to strengthen the dependence of various countries on China's monopoly resources: the Second Industrial War.

Be the first to complete the layout in some key industries, and use methods such as acquisition of patents, dumping at low prices, acquiring competitors to achieve substantial monopoly, stifle overseas competition, and can also be used to destroy the layout of the target country's Tebao industry: Third, cultural war. Cultivate and package a group of "export-oriented" experts, mislead the economic policies of certain specific countries, and use short-term interests as bait to make them lose their long-term development potential: Fourth, financial war. Use various means to absorb the surplus capital of other countries to reduce the actual cost of China's economic expansion and increase the cost of overseas industrial financing, which is the so-called "financial sponge".

Fifth, counterfeit banknote war.

When necessary, buy enemy countries' materials with massive amounts of counterfeit money, and disintegrate enemy countries' currency credit, causing serious credit crisis and causing economic collapse or social death.

Using these economic war thinking that transcends the times, the Chinese Empire disintegrated the Russian economy in the Asian War and directly triggered the death of the Russians.

Long before Russia was finally defeated, China had completed the formulation of its future national strategy, and the most important imaginary enemy turned to Britain and France, followed by the United States.

According to the strategic deduction carried out by the Tiansheng Group to which the Royal Industry, the competition between England and Germany in Europe will trigger a decisive war in the next ten years. China's ownership in this war will determine the outcome of the war.

The most important logical starting point is that the original world pattern collapsed due to China's rapid rise and Russia's collapse, and the inherent balance of power was broken, and the faintly emerging Sino-German axis has begun to gradually overwhelm the British-French alliance. For vested interest countries in the existing international order, they must be changed through military and economic means, while new countries will tend to use their own strength to strive for advantages in the division of interests, which ultimately leads to the inability to reconcile the contradictions.

As the main beneficiaries of the established world pattern, Britain and France have a "natural contradiction" with later countries like China and Germany.

According to the results of the deduction, the Tianyan Group believes that Russia, which has been severely weakened, is likely to adopt a neutral policy after the end of the civil war and actually evade the obligations of the Russian-French alliance to avoid "the closest German or China to give it a devastating blow." In this way, the camp led by Germany, Austria and Turkey not only obtains a rich supply of raw materials and agricultural products, but also concentrates its troops on the Western Front. The Balkan countries lacking Russian support cannot confront the German and Austrian camps at all, and will have to face the end of being divided by several major powers. This will further change the strength comparison of the two major camps and prompt Italy to give up the strategy of betting on both sides and stand on Germany's side.

With this as - Piao Tianwen, France's national defense situation on land is on the verge of collapse. In order to improve the national defense situation, in addition to trying its best to win over Russia, the French will have to reach comprehensive cooperation with Britain and try their best to win over the United States, and at the same time vigorously strengthen their own war strength and launch large-scale military expansion preparations.

This kind of military expansion will also trigger a chain reaction in Europe, and eventually involve all powerful countries in a comprehensive arms race. To expand the military, taxes must be increased. To reduce the opposition from public opinion, we have to carry out national hatred propaganda, spread various remarks of hatred among the people, and incite racial sentiment. In the end, this trend has pushed several powerful countries to go further and further on the road of war and ultimately cannot turn back.

When a war breaks out, it is almost impossible for China to benefit from being on the side of Britain and France.

In the British and French camps, France has a feud with China, and the British life gate India is located beside the bed of a million Chinese army. The Strait of Malacca controlled by Britain is the throat of Eurasian traffic, which will eventually make China "unbearable".

Whether from the perspective of economic, national cultural traditions, and geopolitical perspectives, it is only a matter of time before China fully controls the South Ocean. But China's control of the South Ocean means cutting off the ties between British India, British Malaya and Australia, New Zealand and even the British archipelago in the Pacific.

In addition, as the only powerful country of color, China has a natural appeal to the semi-colonial nations in Asia and Africa, and is also the most direct threat to the British and French colonial order.

From any angle, the British and French camps must contain China's expansion, especially after it resolved the conflict with the German camp through military or diplomatic means, China naturally became the next target.

On the other hand, if China and Britain and France fight each other, echoing Germany's European offensive in Asia, it may certainly have an advantage, but the United States is likely to mobilize in advance to participate in the war, which will lead to a war between China and the United States in the Pacific. Due to the barriers of the Pacific, this war must have been protracted and eventually evolved into a competition of industrial power between the two sides.

With the current strength comparison between the two sides, China cannot stand firm in winning chances. More importantly, once Germany occupys France's mainland and obtains key bargaining chips for negotiations with Britain and France, the war will evolve into a war of attrition due to Britain's maritime advantage. Faced with China and Germany, Britain may be forced to bow to Germany.

By sacrificing part of France's interests and some British colonies, the German barbarian countries may rebuild the sacred alliance of whites. The Germans who have obtained large areas of colonies will instead regard China, a powerful country of color with a population of 500 million, and then jointly isolated them with Britain, the United States and France. These countries do not even need to attack China's mainland. As long as they gain advantages at sea, destroy China's maritime trade, and cooperate with domestic forces, they may achieve subversion of China.

This large-scale report concluded that China should take all means to strengthen its own strength" and strive to encourage Germany to believe that it has the confidence to defeat, or at least war is inevitable, because "Britain, as vested interests, will not actively attack enemies with equal strength." In addition, China must vigorously promote France's rapid expansion of its army to avoid France's rapid defeat in early wars. In addition, China must avoid being involved in the war too early. Even if it wants to participate in the war, it must stand on one side to reap the best interests on the premise that "the strength of European countries is exhausted".

Within the great powers, the report believes that the only object that the empire could "give decisive guidance to its political tendencies" was the United States, and suggested strengthening economic cooperation and political and military trust with the United States in the next five to ten years, and even helping the United States expand its interests in Asia, laying a peniculate between the United States and Britain and France, avoiding the United States being unilaterally approaching Britain and France, and even forming a true alliance between Britain and France and the United States with China.

The report proposes that the United States is also a potential "opponent" of the current world order. If it can promote the alignment of China, Germany and the United States in many actions, it will greatly help undermine the potential British, French and American agreements and avoid large-scale wars between China and the United States.

This report satisfied Zheng Yu and felt a lot of pressure.

Now China has had irreconcilable conflicts with some countries on Liga and cannot turn back. When the country has come to this point, it is no longer possible to play self-deception things like keeping a low profile. This era is not a super pattern or a unipolar world in later generations, but a competition between several powerful countries intent and intrigue.

The geopolitical pattern of China has been greatly improved, but it has become the target of public criticism, especially as a colored person, among all white powers. China is really stands out among all white powers. The natural demonstration effect on the colonial semi-colonial land will naturally make some colonial powers like a thorn on its back.

In comparison, European countries such as Britain, France, Germany, and even the United States have long been accustomed to their existence. Although there have been constant disputes between countries in modern history, due to the common Christian civilization, cultural approximation, complementarity of economic structure, intermarriage between ethnic groups, and intimate blood ties of the royal family, it is almost impossible for them to engage in genocide-style wars.

In European history, the two countries fought to the death moment before, turned around and shook hands and greeted each other immediately, and even joined forces with their previous enemies to start a war against their previous allies. This is common. The 30 Years' War in Germany, the foreign war of Louis XIV in France, the seventh year of Frederich the Great, the Napoleonic War, and the three wars in Prussia are all like this.

As a member of the alliance, China is involved in the future European war. Whether it is too strong and aggressive or weak, it is possible to spur the originally hostile England and Germany to jointly deal with China. In this country with rapid expansion and rapid transformation, the stability of the new order still takes time to strengthen the ruling authority ensured by force and time to evolve into a "tradition". If you take such a promising adventure ten years later, it is not in China's interests.

But the question is, in this world war of "strikes" nature, does China have any choice? If Germany wants to start a war, it will inevitably seek China's opinions. If Germany openly deceives Germany, how can it stand in the international community in the future? Will it shake its own camp if it loses its last and most reliable friends? Even if it chooses neutrality, how can it face the winner's camp in the end?

How to participate in the post-war world order after the war?

Zheng Yu cannot draw a conclusion immediately on these issues, and needs to further observe the historical trend, but some principles are affirmative: strengthening one's own strength, weakening the long-term growth potential of potential opponents, and promoting the long-term and intensive European wars, which will definitely be beneficial to China.

It is also based on this belief that while accelerating the process of East Asian integration, he initiated the steps of "economic war".

"My opinion has four episodes. First, please further strengthen the collection of precious metals." Zheng Yu said. "The economic construction of the empire will inevitably be accompanied by the expansion of banknote issuance. Although the empire has sufficient hard currency reserves, foreign currencies are not as reliable as gold. Please note that if European and American countries adopt money printing strategies in advance, including stopping the free exchange of precious metals, our foreign exchange may depreciate. For the empire, gold, silver, and diamonds are all very important hard currency, and there is no need to take so much foreign exchange. After all, the empire's export situation is very good."

"Second, please expand credit transactions with Germany and try to increase Mark's loans or long-term government bonds.

The more Germany borrows from us, the less danger of breaking the alliance and attacking our country, and the more supportive strategies are preferred for our country. In addition, Germany's maritime power is easily blocked, and its national wealth reserves are not as good as those of Britain and France, nor are there any gold and diamond production places like South Africa and Australia. It lacks precious metal reserves. Once a war begins, it is likely to adopt vicious printing of money. Mark's depreciation is almost certain: "

"Third, on the basis of controlling costs, we must seek to further increase the borrowing of Britain, France and the United States to our country, especially five years later, when the borrowed money at that time would not expire before the war began. The empire is not afraid of having too much debt, and borrowing chickens and laying eggs is our usual strategy. The more they borrow from the empire, the more they will be afraid of going to the future. If the empire doesn't pay back the money, they will immediately collapse in finance:"

"Fourth, buying stocks is not only about obtaining investment returns, but also about whether we can obtain some technical and business benefits. This aspect is more related to the industry. If you buy less stocks, it is just speculators, and if you buy too much, it is a major shareholder. As a major shareholder, you always have to have some say and some companies are good, so it is better for us to control them. Now China and the United States are still mainly in cooperation..."
Chapter completed!