＜ countdown. (3) >
“Is the ruble drying up on the market?”
Ministry of Finance of Russia.
It had been over a week since the news of the ruble reached the ears of Finance Minister Sergei Witte due to the poor administrative system of imperial Russia.
The ruble in the market was rapidly drying up because Branovel and the coal trusts of the Donbass coal mine, which had been influenced by the British Rothschilds, released the stock and absorbed the ruble.
“Yes, but the cause is unknown.”
“Well, I didn’t expect it. Isn’t it an administrative system that the aristocracy and the bourgeoisie could not figure out even if they ate the backs of the peasants? It is unavoidable.”
Finance Minister Vitte sighed.
Imperial Russia is too wide even if it is wide. With the exception of St. Petersburg and Moscow, which are called European Russia, it is difficult to find a place where the administrative system is properly established.
The news of the ruble came to his ears because the Baku oil field and the Donbas coal belt were key areas that imperial Russia was concerned with along with Sevastopol in Crimea.
Fortunately, among the regions of imperial Russia, the news was rapid due to industrialization.
“Once we run out of rubles, we will have to cut interest rates or issue more rubles.”
In fact, Bite was quite wary of the dry ruble in the market. The saying that the ruble has dried out means that the ruble is not circulating in the market and is stagnant somewhere.
‘The sound of the ruble dry, which should be actively traded in the market, is evidence that someone is accumulating or stagnating.’
I already struggled to establish a gold standard in hopes of being used as a trade currency, but what is the use of rubles if they are not circulated in the market?
It was as if Bite’s next move had been decided.
We need to increase the money supply in the market.
“The sound that the ruble is drying up is proof that the bourgeoisie and the aristocracy are accumulating. The rubles were piling up, so I’ll have to get them out.”
“Then what will you do?”
“First, let’s lower interest rates. When the ruble dries up, there is a risk of deflation. You should catch it in advance.”
deflation (low price)
In fact, this was the fate of the country that adopted the gold standard system. This is because economic growth that exceeds the total amount of gold will rebound due to a fall in prices.
However, the fact that deflation has already arrived is also a testament to the rapid economic growth of imperial Russia.
‘But look at America. At the moment when excessive economic growth exceeds gold reserves, we are facing a panic every 20 years. Even imperial Russia cannot rule out the possibility of a panic.’
Bite was nervous.
Deflation is more dangerous than inflation. Deflation is a real decrease in assets as much as it means a decrease in real prices.
How shocking that 100 rubles of real estate becomes 50 rubles the next day by exaggerating.
“This may attract foreign investment. If the real price falls, the economic growth rate cannot be guaranteed. Does that mean that foreign investment is less attractive?”
“That’s not a big deal, Finance Minister Vitte. It could break the brakes on loans that keep coming from France.”
“Yes, the Baikal section of the Trans-Siberian Railway currently under construction is the devil’s course that eats more money than any other section.
This novel was posted at https://noblemtl.com
Of course, there is a detour.
There is a detour, but to make the detour, it has to pass through the Qing Dynasty, which cannot guarantee the stability of the overseas railroad. The Baikal section means that it must be drilled.
“Damn it. The more I think about it, the bigger it is. Let’s lower the interest rate right away.
“Yes!”
Finance Minister Vitte did not even dream of it.
The fact that all of this is a carefully crafted UK and Detroit scenario. It wasn’t deflation, it was simply a matter of British corporations sucking the ruble.
Then a week passed and another month passed. However, the only news that Bite had heard was news like a clear blue sky.
“Wow, that’s a big deal! They say that the price of Baku Oil continues to fall!”
“Donbass, Donbass. What is the price of coal in Donbas, a coal mining area?”
“Coal is also falling in price along with oil. I think deflation is right.”
Prices in the real economy are falling.
This novel was posted at https://noblemtl.com
Oil and coal are the most powerful metrics for measuring prices in this era. The Russian Ministry of Finance had no choice but to calculate the inflation rate depending on whether the price rate fluctuated or not.
In other words, there were signs of deflation, as feared.
‘Can not be done….’
Treasury Minister Vitte became even more urgent inside. The current economic boom in Imperial Russia is like a sandcastle made by foreign capital investments.
If deflation occurs, asset prices fall, and even panic occurs, will they really remain in Tsar Russia?
Will it be shaken from the gold standard?
“Absolutely not. Issue more rubles! Lower interest rates even more! We need to make the ruble circulate in the market. If you don’t catch it in the pasture, things will spread like wildfire!!!”
not.
This is not because of deflation, but because Bra Novel and its British subsidiaries released a large amount of ruble and sucked in the ruble.
Because they sucked up the ruble, the ruble temporarily dried up in the market. Prices have only plummeted as they have released their oil and coal stockpiles at once.
However, this fact could not be recognized by the administrative system of Tsarist Russia.
“Shit!”
Chaenggrang-!
A glass of water is thrown on the floor and shards of glass are scattered.
“I feel like I’m an open-eyed blind person! How could I, as the finance minister of the Tsarist Russia, not even know my financial condition properly!”
Tsarist Russia did not block the rising monopoly trusts, syndicates and cartels. it’s unstoppable
Exactly what monopoly they are committing, what kind of tyranny, and the moment the Russian bureaucratic aristocrats who protect them by taking bribes close their eyes and ears, the Russian Ministry of Finance becomes blind.
“I will order the central bank to issue additional rubles right now.”
Another week passed like that.
“…why?”
Treasury Minister Vitte groaned in a voice that sounded half mad.
“Why are the prices of oil and coal falling more and more? Is it because there is too much oil and coal imported from abroad?”
“no. The amount of oil and coal imported from abroad is lower than the level the Minister of Finance is concerned about.”
“No, I mean smuggling volumes that are not caught in the official count. Can you even catch them?”
“…I will never catch it.”
“shit.”
This is the equivalent of punching into the air. Why the hell are prices going down?
I can’t even analyze the cause.
Treasury Russia’s real economy is being shattered, and the Ministry of Finance is sucking its fingers.
“Do you think deflation is right?”
“But, Minister of Finance, the cost of living for farmers is rising. Wouldn’t it be too early to conclude that it was deflation?”
“Hey, are you new?”
“Yes, yes. That’s right.”
“Then you may not know.”
Bite muttered to himself.
“Isn’t it strange that the prices of farmers are going down when monopoly companies are holding hands and fixing things? Even if there is deflation, the cost of living for farmers will not drop dramatically.”
“But are the prices of oil and coal continuing to fall?”
“Yeah, that’s the question.”
Bite ruffled her hair.
And the next day, at the words of an official of the Ministry of Finance who rushed to the Russian Ministry of Finance, Vite’s hair began to fall out in clumps.
“…foreign investors are leaving?”
“Yeah, it’s been a few weeks, but they say they’re mostly moving out of British and American capital. In addition, Belgian capital is shaking.”
“I’m going crazy.”
is deflation
The real economy is collapsing. The karma of the gold standard system was just starting to come in like a tidal wave.
No matter how much the central bank cuts interest rates and draws out the ruble, there is no deflation.
It was not at all strange to see with certainty that it was no longer a harbinger of panic.
“The root cause is gold. I need more gold. Import gold from markets around the world right now. It has nothing to do with smashing and usurping Russia’s satellite or weak powers. I have to accumulate gold in the gold reserve somehow!!!”
“Yes!!! I will pass it on to you right away.”
A decree was issued by the Ministry of Finance, and imperial Russia tried to suck gold in earnest.
The nobles of the bureaucracy who were hostile to Vite were bitter, and the bourgeoisie was also hostile to Vite, so they were quick.
Treasury Secretary Vitte was only losing more and more hair.
“Treasurer, how did you feel about bringing this up to your Majesty?”
“What are you talking about now? As soon as the whole world realizes that Imperial Russia’s gold reserves are insufficient due to His Majesty’s decree, foreign investors will run out like a low tide!!!”
The royal family should never know.
Treasury Minister Vitte began to struggle to somehow solve it on his own terms.
no one knew
The subjects that were sucking the ruble were British corporations and corporations with British capital invested, and the fact that the price of coal and oil plummeted was the fact that they released a huge amount of money in the market to absorb the ruble.
But, albeit artificial, the crisis of deflation was real.
And in order to overcome this crisis, there was no solution other than expansion of the money supply due to continuous interest rate cuts.
Thus, the ruble began to accumulate in imperial Russia.
Finance Minister Vitte lamented.
“shit. Soon, an international peace conference will be held in The Hague, presided over by Peha. You cannot disturb your majesty in this situation.”
His troubles only deepened.
***
Meanwhile at that time.
Peter, who had been dispatched to Qing, was rubbing his eyes to see if this was a dream or real time, witnessing the foreign currency transaction happening right in front of his eyes.
“There are more transactions in pesos and pesos than I thought.”
More than half of the foreign currencies traded in the Qing Dynasty were Spanish dollars, or pesos.
The sight was strange to Peter, who was working on Wall Street.
“Of course. In the first place, our Qing dynasty’s yuan silver coin is a currency modeled after the peso of western vana (Spain).”
“Yes?”
“Did you not know? Why wasn’t there a time when silver was pouring out from the silver mines of Seovana in the past? Since then, the Qing Dynasty has used the Spanish peso for foreign trade. At that time, most foreign currency transactions were in pesos, but after the Opium Wars, the influence of the peso is waning.”
“Oh, no. Is this…?”
Peter opened his mouth wide.
I knew the influence of the Spanish peso in history books, so I knew it in my head, but I never imagined it would be this much.
The peso was still actively used to the extent that it could be considered the second currency of the Qing Dynasty.
‘That’s why the transportation bank’s Seonghwahoe said that they started swapping with the peso.’
Now I understand.
From the perspective of the Western powers, the Spanish Empire was a toothless tiger, but in South America, East Asia, and Southeast Asia, the Spanish peso was still used as the main trading currency.
“therefore. Do you want to sign a foreign exchange contract?”
“Yes, yes.”
“Well, exchange transactions are good. Maybe the market in the Qing Dynasty is a little different from what you thought.”
“Is it different?”
“Of course it is different. We have a huge market running only with the domestic economy alone. Ah, it must be similar to your Mi-dog (USA).”
“her….”
In other words, the Qing dynasty’s currency was needed as much as foreign currency, as the economy was driven only by the Qing’s domestic demand.
However, that did not mean that foreign currency was not needed.
‘When the Detroit director first told me, I was skeptical, but I’m sure it’s true.’
Peter swallowed in admiration and raised his index finger.
“Let’s do this.”
Peter smiled.
Rather, such a game was more suitable for the China Settlement Bank, which is a brokerage business.
Goldman Sachs.
It is similar to the contracts they made with the National Banks of Japan as the Japan Settlement Bank.
In the Qing dynasty, he was only going to do brokerage, but Peter, who ate pheasants and ate eggs, smiled all over his face.
“Please take good care of our China Settlement Bank in the future. great man.”
“Heh heh, you’re all Qing dynasty! There is morality and there is cooperation! You’ve known me since you said that you were related to President Sung Seon-hoe. From now on, I will leave all foreign currency brokerage to you.”
“Is that true?!”
“Chinese merchants are by nature big. When an adult gives you something, you say, ‘Yes, thank you.’ and get it Get some drinks here.”
“Yes, thank you!!!”
The symbol of Shaanxi.
The Qing financiers nodded satisfactorily, pouring wine into their glasses.
Peter, of Jewish descent, drank alcohol with excitement in his heart, even though he asked to be taken care of by drinking too much.
“Heh heh heh. One more drink.”
“Heh heh heh!!! One more drink!”
The Qing Dynasty was peaceful today.
Not knowing that they are now standing on the edge of a cliff on their own feet.
Detroit’s arrangement was revolving like a cogwheel.
***
British Ministry of Finance.
“It seems to be going smoothly.”
At Treasury Secretary Robert’s words, I sip my tea and smiled. News was coming from the Qing Dynasty, the Japanese Empire, and Russia one after another.
Since the British Empire was the main seat of the submarine cable, it was faster to listen through them. It was obvious that he knew everything through the Rothschilds anyway.
“The French branch of the Rothschilds has also been contacted to cooperate. I think it is a check on the Whittinger family.”
“You’ve got a strong ally.”
“Yeah. Rather, the Treasury Ministry of Tsar Russia has fallen into a trap. You said it would be mistaken for deflation, but your prediction was correct.”
“It has to be so. Right now, the railroad panic in the United States broke out in 1898. It is only natural that Treasury Secretary Vitte, who is a gold standardist, is nervous.”
Also, imperial Russia fell into a trap.
Maintaining the gold standard, attracting foreign capital, and the Trans-Siberian Railway, the Treasury of Tsar Russia had many intertwined elements and were full of things beyond their control.
I don’t even think that France’s capital will run out now that the Russia-France alliance has been formed. But what about German, British and American capital?
“They will fall into a quagmire of their own delusions. The shock hasn’t even started yet.”
It should be regarded as a disaster caused by a weak administrative system.
It would have been a different story if I had noticed sooner that British corporations were sucking the ruble.
But the reality is that the law is dreadful.
“In that sense, the Qing dynasty is proceeding with ease.”
The Qing Dynasty was deaf to the outside, let alone the inside.
Just by looking at the fact that the Spanish peso is still being actively used in East Asia, it was clear that their economic system has hardly changed from the outdated.
So the job was easier.
‘Structurally, there is little change from the design made for the Japanese Empire. Only the scale and the number of chains have increased.’
After all, the bomb of the Qing Dynasty is also simple.
Large amounts of pesos held by Lehman Brothers and Wall Street. This makes a swap contract with the Qing dynasty currency. Then again, a swap contract is signed with the Qing dynasty currency and the ruble.
Finally, a swap contract is made between the ruble and the dollar.
Peso – Qing Yuan – Ruble – Dollar.
This chain is made
‘Then what happens when the peso starts to depreciate?’
Sequentially.
The peso is collapsing.
comfort is crumbling
The ruble is collapsing.
After 3 shocks.
The moment the dollar lasts.
….the rest fall further into the abyss.
‘If you can put yen in here, it would be a bonus.’
The yen is still weak as a trade currency.
Moreover, since the Rough Dogs (Russia, France, Germany) had vomited up the Liaodong Peninsula due to the trilateral interference, it is the time when the foreign militant force against the Qing dynasty would have weakened. Unfortunately, Japanese yen was not included.
But it doesn’t matter.
The bomb has already been manufactured.
“Treasury Secretary Robert, do you know this?”
“What do you mean?”
Treasury Secretary Robert pulled up his upper body with an interesting expression.
“That’s it.”
Qing Dynasty and Imperial Russia. He also placed three bombs each on the Japanese Empire.
If you notice, you can kill the power of the bomb, but if you don’t notice it, you can send a tour of hell. But there is something overlooked here.
If these three shocks come at once like a tsunami, how much will the ripple power be pumped?
scare.
If they can’t stand it, they panic.
“In a fall. There is no floor.”
The balance of East Asia you want.
Could it be done in a different way?
I raised the corners of my lips.
＜ countdown. (3) > end
