The end of the Victorian era. (2) >
“This is Treasury Secretary Robert. I just returned from the United States.”
UK Treasury.
Captain Belfour had a private session with the returning Treasurer Robert in the conference room.
This novel was posted at https://noblemtl.com
On February 2, 1901, after Queen Victoria’s funeral.
“Secretary, have you had any success in the United States?”
“I’ve been collecting quite a bit of information on U.S. high-quality bonds. Afterwards, however, it was a bit difficult for me because I had little experience in intelligence or information gathering.”
“I will.”
Belfour nodded.
In general, espionage is handled by the Ministry of Foreign Affairs.
However, because it required economic knowledge, knowledge, and the knowledge of the Minister of Finance, the Secretary of the Treasury, Robert, was dispatched to the United States.
It was a necessity in England.
Belfour thought so.
“So how are you?”
“The US financial industry and the industry are strongly applied by the Credit Act. The rating evaluation results of most high-quality US bonds are disclosed to the public by an auditing agency (credit rating agency), so there is no way to deceive them.”
“Credit law. It’s a Detroit Morgan thing.”
Belfour was amazed.
I didn’t know that America’s credit laws were being followed so well. In addition, Belfour knew that the credit law was actually the result of a one-man show made by a single superman through intelligence from the Ministry of Foreign Affairs.
“It’s very different from England.”
Belfour didn’t like the recent tone.
British treasury where pound sterling is rapidly depleting. The fatal expenditure of the Boer War. Counting finances due to the conflict between the Great Game and the German Empire.
The British treasury was drying up.
The British Empire was experiencing a real-time drought.
“It’s like an iron man who dominates the American financial world. How can the credit law be passed in the extreme laissez-faire America? He’s a great human being.”
It’s not that Belfour hasn’t tried credit law. People in the economic and financial world would take the crane off, but from the perspective of Belfour, the credit law was desperate for the future he had envisioned.
However, the business world dominated by laissez-faire could not be shaken, and the credit law was dismissed with a single blow by the parliament.
“Isn’t the credit law required to be able to calculate the correct credit rating of companies and to distinguish clear high-quality bonds? The British Empire needs to protect its economy more.”
Belfour aims for a big government.
He was a representative government interventionist in the market, and he was not very much on the business side of the British Parliament, where laissez-faire was rampant.
“Pigs with no sense of responsibility.”
Laissez-faire was creaking.
Even before the Credit Act, Belfour wanted retaliatory tariffs or increased tariff walls to protect its economy, but Congress, marred by laissez-faire, vehemently criticized Belfour.
credit law?
Even if only the ‘god’ comes out, the members of the council are blatantly lit.
Belfour decided to buy himself for the time being, and the alternatives he came up with were high-quality US bonds.
“Belfour’s Tripitaka. But there was some problem with the US bonds. To be precise, it’s not about the US, it’s about the UK.”
“Are we having a problem?”
“Yes.”
Secretary Robert pulled the material out of his arms.
“This is a list of bonds rated AA- and higher in the US, but the number is extremely small.”
American credit rating agencies have strict standards.
Credit rating agencies in the United States never ran out of money thanks to hedge funds, and credit rating agencies were financially immune to corporate temptations.
It was economically prosperous to be corrupt, and there were many things that were caught up in corruption.
“Hedge funds reign at the top of credit rating agencies. They are so strong that even Standard Oil has not been able to break them. To exaggerate it, it is said that Chairman Rockefeller was interviewed with Detroit on a credit rating issue, and he was humiliated.”
standard oil.
Recently, the credit rating has been dropping due to the chicken game, and the Rockefeller Chairman was roaring around Detroit, but he seems to be quiet these days because he obeyed the compulsory division order.
In any case, the credit law in the United States was that strong, reigning as absolute power and boasting its status.
“President-elect Theodore Roosevelt is also a strong supporter of credit law, so the US credit law is stronger than any other economic regulation.”
“So, the number of high-quality US bonds is very small?”
“Yeah, if you say the other way around, those companies are, without a doubt, excellent.”
Clean.
With the recent establishment of the Securities and Exchange Commission (SEC) on the New York Stock Exchange, the scope of disclosure for listed corporations has continued to expand.
Shareholders’ right to know was being implemented as a major policy of the Securities and Exchange Commission.
The shock of the recent New York Stock Exchange panic.
In connection with the tight credit rating agencies, the New York Stock Exchange was ‘clean’ itself.
“On the New York Stock Exchange this month alone, about 50 small and medium-sized enterprises were delisted due to audits and internal audits. All cases of embezzlement and accounting fraud were prosecuted by the Southern District of New York.”
“…America’s high-quality bonds are a commodity that does not require even a single doubt, isn’t it?”
“Belfour Blacksmith.”
Treasury Secretary Robert looked at him seriously.
“Perhaps the blue-chip companies on this list can dare to say that they are the cleanest certified blue-chip companies in the world.”
“Hmm.”
Belfour groaned.
“Robert, do you know why I entrusted you with this task?”
“Yeah, maybe it’s because of the derivatives trending in the City of London recently.”
“Yeah, this is a revolution.”
CDO.
Debt-backed securities.
An extreme derivative that can theoretically bring a loan to infinity. Of course, in theory, in practice, there is a limit because the amount of weathering per cycle is considerable.
Still, it was an innovative product.
“Lending it, lending it back with the money you received as collateral. The money is copied like a mint, how innovative it is.”
CDO expands the loan and bond markets.
The basic City of London weight class becomes huge. As the market itself expands, companies can smoothly transfuse funds.
Great Britain’s economic growth rate increases.
It is good for companies to expand their business by receiving loan funds. Banks are good because interest income on loans increases exponentially.
It was a structure that made everyone happy.
“Isn’t Detroit Morgan designed this?”
“you’re right.”
This was the corner of Belfour’s belief.
As the economic growth rate rises, the market expands, and the financial sector is revitalized, the UK industry, which has recently been on the downtrend, is revived.
Detroit invented this.
“It’s a great man.”
So he is dangerous.
The British Empire must reduce its dependence on the iron man Detroit Morgan and gradually withdraw its interests. The Pacific Ocean was temporarily entrusted to the United States due to operational limitations, but it was an ocean that had to be brought back someday.
But rather than greed, it was a sense of crisis.
It was horror.
‘If you do it wrong, the UK economy will be devoured by Detroit.’
This novel was posted at https://noblemtl.com
Of course there is greed.
Belfour’s own personal greed was evident as well.
‘In my cabinet, Britain’s heyday is restored.’
The current state of the British Empire called Victoria’s menopause.
I don’t like it.
So Belfour’s next cabinet will encourage CDOs to bring the British economy back to its Victorian heyday. If the economic growth rate is high, the UK’s shortfall in finances can be filled with this.
The British Empire, not the German Empire or the United States of America, was able to rule again in industry.
“For that, raw materials are important. Raw materials are the lifeblood of the British Empire’s industry, so there is a need for the British Empire to monopolize the raw materials of the Commonwealth.”
Australia.
Recently, in the era of imperialism, there was a report that iron mines, the strongest raw material, were discovered.
More than 30 mines have already been installed, and all of these iron mines were owned by Detroit Steel.
purple. Isn’t it already being eaten?
“Treasury Secretary Robert, there will be no shortage of money for some time now, but Britain needs to gradually get out of Detroit’s grip. Don’t you think so?”
“That’s right.”
Treasury Secretary Robert thought to himself.
It’s a hit word.
However, he did not have the courage to speak out to his superiors.
Belfour started drinking the kimchi soup.
“Maybe Detroit Morgan’s economic empire will also be decimated by Britain. Haha.”
“ha ha ha.”
no. this is not crazy
Let’s escape from this nonsense place.
Treasury Secretary Robert quietly walked out of Belfour’s office with a cold sweat running down his back.
“Then let’s go.”
“okay.”
bang.
The door is closed.
“…Crazy.”
Treasury Secretary Robert made a small swear word and moved quickly. His destination was the Guest House where Detroit was staying.
***
“Huh… that’s the case.”
Guest House of the British Treasury.
Treasury Secretary Robert ran up to me with a pale face and began to confess his dollar beliefs, and I gave a moderate reaction and nodded heavily.
“Are you serious?”
“No. It’ll be fine for a while.”
A time when silver and acid could not be separated.
The news that Balfour’s next cabinet had a taste for CDO was quite horrifying. The UK has the second highest GDP after the US.
If this bomb matures for decades and becomes a super-giant bomb, then there is no turning back.
This is because quantitative easing cannot be done under the gold standard system.
Britain is doomed.
‘It’s fate. And I have to accept it.’
Well, it’s not going to explode right now.
Subprime mortgages in 2007 and Lehman Brothers in 2008 were also disasters that occurred about 10 years after the Glass-Steagall Act was repealed.
Considering that the speed of financial transactions was much faster since computerization was completed at that time as a modern culture, Britain may be safe for two or thirty years until the bomb explodes.
This novel was posted at https://noblemtl.com
Of course, there was a difference in that it was a corporate bond rather than a mortgage security of a mortgage, but in the end, if the credit rating goes crazy, it’s a gaggle.
“Treasury Secretary Robert. For the time being it will be fine.”
“Is that so?”
Robert sighed.
In fact, it must have been quite terrifying from Robert’s point of view, since I had been messing around with credit law in the US. They even mobilized the National Tax Service to threaten investment banks.
– What is it that makes you do this?
The credit law I passed was excessive by anyone, and anyone who sees it is suffocating.
‘The good news is that CDO is still stuck in a primitive stage.’
The UK is still stuck in the primitive CDO stage.
It is expected that the bank has loaned it out, secured it with the bond, and re-loaned it.
The credit rating is still not crazy.
Derivatives are also not being spread out indiscriminately.
it’s pure
‘But the fall is instantaneous.’
CDO is by no means an evil product. In that regard, Belfour’s Hope Circuit was not necessarily wrong.
The economic effect created by credit will certainly grow the UK economy.
However, there is a premise.
This novel was posted at https://noblemtl.com
Only when it is operated ‘soundly’.
This is a kind of anti-tank mine burial.
My last resort to destroy the British Empire. In fact, although the global financial markets are not as closely connected as in the 21st century, they are still not completely free from influence.
This novel was posted at https://noblemtl.com
Of course, the United States will also suffer.
They wear relatively little compared to other countries.
This terrifying bomb called CDO will grow as I hold the switch.
‘I’m already on a bridle from which I can’t escape anyway.’
As long as Belfour’s will is so firm, the British economy has already been sentenced to death.
“Chairman of the Detroit Fed.”
“Yes.”
“Aren’t you in a bad mood?”
“Yes?”
“Belfour’s next cabinet trusts only this CDO and is trying to smash the Detroit Fed Chairman in the back of the head.”
“Ahh.”
I don’t feel bad at all.
You don’t have to be afraid to say that Haeseong-guk is jumping on his own to commit suicide.
thank you
Until then, I’ll take it easy, block the British counter, and win if I hold on.
This novel was posted at https://noblemtl.com
Of course, I’m not that good-natured. Even a scratch will strike me without mercy with a stick.
“and…..”
“Well?”
“I’m talking about the reason I came to America.”
“Oh, yes.”
Then I wondered.
Why did Treasury Secretary Robert stay in the United States for such a long time? It’s like a waste of manpower to turn someone as big as the finance minister into a reconnaissance plane.
I listened.
“It was a market study by the UK government to include US high-quality bonds in CDO derivatives.”
‘What? Derivatives?’
surprisingly.
The fall of England was already underway.
***
that time.
Wilhelm II’s residence.
Wilhelm II, who even attended Queen Victoria’s funeral, looked exhausted and buried himself on the sofa.
“Damn the British royals. I’m so nervous that I couldn’t eat them.”
Their gaze on them throughout the funeral held a blade. Unpleasant eyes as if they were looking at a lowly illegitimate child who was not the German emperor.
In Wilhelm, feelings of inferiority, envy, and love and hatred for England were swirling.
“Edward, that damn old man.”
Edward VII.
He was the next British monarch to ascend to the throne after Queen Victoria, and was Wilhelm’s uncle.
He did not recognize Wilhelm as a member of the British royal family until the very end, and he rejected him with utter contempt.
“shit….”
However, recently Wilhelm II’s situation was not very good. especially economic issues. The wallet situation was far worse, and it was devastating and disastrous.
“We spent too much money on nationalizing Krupp.”
furry. it was dog hair
In order to incorporate Krupp into the state-owned enterprises of the German Empire, Wilhelm II raised personal funds and funds from the Reichsbank (Central Bank).
Prussia’s finances also dried up.
In addition, he received loans from major German banks such as Deutsche Bank and Dresdner.
In the end, the nationalization was successful.
The problem is finances.
“The croup was too huge.”
It is a monster company that swallowed up an essence whole. In the industrial sector, along with Thyssen, the military-industrial complex of super-large heavy industry that builds the two major mountain ranges of German imperial industry.
Even Krupp was a bigger company than Thyssen.
Krupp’s role in the German economy was enormous.
In fact, it was not at all strange to think that an entire city had been taken over.
“after….”
Emperor Wilhelm ripped his hair out.
Her hair was tilted to one side on her short arm, and her eyebrows frowned, but now was not the time to worry about that.
“I can’t even say that I’m here to attract investment because I don’t have money in the German Empire right now. How much will the British royals laugh at me.”
Taking over Krupp is not the end.
This novel was posted at https://noblemtl.com
Only the operating funds and the normalization funds were to be broken at the national financial unit.
Raising investment was essential, and he was responsible for putting the German economy on track.
“…is there anyone willing to invest in the German Empire?”
When the national budget dries up, investment activity naturally shrinks.
Because you have to focus on the croup.
‘Kruppman, if only Krupp can be normalized…’
In fact, if Kruppman is normally incorporated into a state-owned company and normalization is completed, it will be able to run like a runaway locomotive with a loud roar to overtake Britain.
hour.
The problem was time.
If it endured until normalization, German industry could become a unique winner in Europe.
‘This is humiliation.’
Emperor Wilhelm bit his lip.
The governor of the Reichsbank (central bank) and the president of Dresdnerbank (a large commercial bank) were also secretly entering the UK.
It was Germany’s desperate effort to attract investment.
‘….. No matter how you think about it, the UK is not really a target for investment attraction. This is the humiliation of the Great German Empire.’
You need another option.
It’s not Britain, but it’s a power with as much wealth as Britain.
is there
Wilhelm Kaiser’s twinkling eyes lit up.
“Can you take it from America?”
If possible, a large-scale investment is better.
If the US is an emerging power.
Still Wilhelm Kaiser. It was within his acceptable range.
In fact, he only needs to be a hateful British or dirty Slav.
France was one of the enemies of the Great Heavens.
“Who is there?”
“Yes, Your Majesty.”
“Give the order to the governor of Reichsbank, Koch. Find out which American investors can invest in Germany right now. Now!”
“Yes!”
It was the intention of bringing them to this place just by finding them.
The end of the Victorian era. (2) > end
