Chapter 45: The Financial War Breaks Out
Zhang Meng's Datang Bank became the biggest profiter in the French financial war, defeating the Ross family and causing heavy losses, becoming the veritable number one international financial tycoon. This move immediately stimulated the capitalist powers.
The five chaebols of Britain, the United States, Germany, Italy and Japan have called on their respective countries to quickly abandon the gold standard to expand foreign trade exports and offset the impact of France's crazy depreciation of the gold standard in the past few months on the world economy.
As we all know, currency depreciation will inevitably bring stimulation of foreign trade exports, and the crazy depreciation of the francs will stimulate French products to export. This obviously further suppresses the export volume of countries that have suffered from foreign trade shrinkage due to the world economic crisis. Naturally, all countries must have some solutions.
As the number one gold standard country, Britain's every move has been paid attention to by other gold standard countries.
Originally, MacDonald firmly opposed giving up the gold standard to devalue the pound because he didn't want Zhang Meng to steal money from the UK again. Zhang Meng borrowed 1 billion pounds from the UK. If the pound depreciated at this time, Zhang Meng would undoubtedly make hundreds of millions of pounds in vain. Originally, MacDonald was envious and jealous of Zhang Meng's previous raising of tens of billions of dollars in the United States and France. If Zhang Meng made a profit from the UK at this time, it would not only be that he, the British Prime Minister, had no ability, but also a shame for the British Empire.
"At least, let's talk about it after Zhang Meng pays back our money!"
MacDonald insisted on waiting until Zhang Meng paid back the money, but it would take several years according to the contract. It was obvious that facing the impact of the franc's crazy depreciation, if the pound did not depreciate, then on the issue of export, the British would obviously suffer the French.
"No. This matter cannot be delayed anymore. Compared to the cheaper Zhang Meng got, the empire will lose more."
Stanley once again stood up against McDonald. This time it was not just about dismantling McDonald's station, but about Stanley's real weight on the pros and cons and made the right choices in consideration of the huge future losses of the entire British economy.
"If you hadn't been underestimating Zhang Meng's power and tricks all the time, how could we have become so passive?"
When McDonald saw Stanley jumping out to oppose him again, he suddenly couldn't control his emotions.
But Stanley's face was thicker than the city walls, so he didn't mind MacDonald's emotions at all. Instead, he avoided the important issues. He avoided talking about Zhang Meng's issue, but said bluntly that the United States also intends to devalue the US dollar. If Britain did not take action earlier, it would probably cost more.
Downing Street Council generally agrees with Stanley's view. They are all worried about the current desire of all countries to devalue their currencies. Therefore, Zhang Meng's problem has become less important. MacDonald's strategic intention to check and balance Zhang Meng's restriction on the development of the Tang Empire has been ruined again.
"The pound must depreciate. Otherwise, the British Empire's economy will suffer a heavy blow."
"But the gold standard is the foundation of the British Empire. Abandoning the gold standard will undoubtedly make the British Empire lose all its face."
Some British veterans are desperate for face and oppose the depreciation of the pound, but only a minority is involved. Most of them support the depreciation of the pound to stimulate exports and alleviate the British economic crisis.
"We can depreciate the pound appropriately and still be linked to gold. In this way, we will maintain the gold standard, but the pound will depreciate appropriately compared to gold."
Finally, Downing Street Council made a balanced strategy, namely devalued the pound appropriately. Devalued the pound by 33%, rather than the previous 50%.
The depreciation of the pound was carried out quietly because the MacDonald government planned to quietly print cheap pounds on a large scale to cash out gold in other gold standard countries, which could make up for the disaster brought to British nationals by the depreciation of the UK to some extent.
At the same time, MacDonald focused on planning to loot the Tang Empire in order to retaliate against Zhang Meng and balance his envy, jealousy and hatred.
However, when the British stick their butts, Zhang Meng knew what they wanted to shit. The news of the quietly depreciation of the pound reached Zhang Meng's ears as soon as possible.
"Your Highness, since the British have quietly depreciated the pound, should we also depreciate the Tang Yuan accordingly, otherwise we will be robbed of the pound?"
The new Prime Minister of the Cabinet Zeng Guochang hurriedly met Zhang Meng for advice. He was one of the talents recommended by Tang Shaoyi to Zhang Meng. He graduated from the Department of Economics of the University of Munich. His father was the former Qing Dynasty counselor in Munich. He was a clean family and non-partisan. After the Bureau of Homeland Security investigated him clearly, Zhang Meng appointed him as the Prime Minister of the Tang Empire's cabinet.
Zhang Meng nodded. Only he can rob others, so he will not suffer any loss.
"Our Tang Yuan is not an international currency at present, but for the sake of completeness, gold exports should still be banned. Tang Yuan immediately depreciates at least 50%, and foreigners must not take advantage."
Zeng Guochang immediately accepted the order, and then he took out a booklet and handed it to Zhang Meng.
"Your Highness, this is the reform opinions listed by the Wei Me, based on the comprehensive investigation of all walks of life in the Tang Empire over the past few months. I would like to ask Your Highness to judge."
"Is that true?" Zhang Meng was a little curious about what Zeng Guochang had, so he took it and opened it for a look.
At this time, the Tang Empire was implementing a planned economic system. All industries and commerce originating from the Tang Empire were still in its infancy. In addition, the international economy was in a recession, and most industrial products were unable to achieve export and foreign exchange. In this case, the planned economy was the best strategy.
Zeng Guochang strongly agreed with Zhang Meng's implementation of the planned economic system in the Tang Empire, but Zhang Meng could only make various planned economic decisions at the macro level, such as formulating a five-year development plan for the Tang Empire, what goals to achieve, etc., but in the actual implementation process, Zhang Meng could not achieve meticulousness in everything.
The emergence of Zeng Guochang just made up for Zhang Meng's shortcomings in this regard. He obviously understood the relevant policies and means of the Soviet Union's planned economic system, so he gave very pertinent opinions and suggestions on the planning and development of all walks of life in the Tang Empire, and Zhang Meng greatly appreciated this.
Zhang Meng can see that Zeng Guochang has carefully formulated a series of economic development plans, but these plans are mostly based on development in a peaceful environment and are not in line with the international tensions in the next decade.
"It's very good! It's just that the future will give us too little time to develop peacefully, at most five or six years of relative peace. After that, the world will inevitably be in chaos and World War II will break out. Therefore, your plan should pay attention to the development idea of the first army. Otherwise, even if we achieve brilliant economic achievements, we can only be a wedding dress for others."
Zeng Guochang had known Zhang Meng before coming to the Tang Dynasty. He knew that Zhang Meng was a legendary figure, and he was a wise man who never suffered losses. Therefore, Zeng Guochang attached great importance to Zhang Meng's words. Especially in the past few months, Zhang Meng had transported huge amounts of gold worth tens of billions of dollars in France to the country. Zeng Guochang admired him even more.
Zeng Guochang also knew that the founding of the Tang Dynasty was too short, and the European and American powers must be eyeing it. Therefore, Zhang Meng agreed with the policy of developing the Tang Dynasty first. However, he could not see that the Second World War would break out and the form of the Tang Dynasty was even more severe.
"Your Highness, can you explain your doubts to me? There seems to be no sign of this World War II."
Zhang Meng smiled and said, "This is just my inference for the time being. You don't have to care too much. Just talk about Japan right now, do you think they will let us develop well?"
Seeing that Zhang Meng no longer mentioned the Second World War, Zeng Guochang did not ask in depth, but answered his question: "The Japanese Navy has been severely damaged by the Imperial Navy, and it will not take three to five years to recover."
Zhang Meng shook his head and said, "This is just a superficial phenomenon. Our intelligence department has discovered that the Japanese Navy has received huge financial appropriations, and within two or three years, a stronger joint fleet will appear. That is the real death battle between Tang and Ri."
Zeng Guochang was shocked and said: "The Imperial Navy's aircraft carrier battle group is extremely powerful. There should be no suspense to defeat the Japanese Combined Fleet."
Zhang Meng smiled bitterly and said, "Do you know why we can severely damage the main force of the Japanese Joint Fleet this time?"
Zeng Guochang said: "Of course the Imperial Navy's combat power is strong!"
Zhang Meng waved his hand and said, "The strong combat effectiveness is only one of the factors. The real factor is that we win in tactical thinking. We use aircraft carrier battle groups to fight the Japanese Navy Combined Fleet. The Japanese and navies around the world do not attach importance to naval aviation, so we won. However, after this battle, all countries must pay attention to aircraft carrier tactics, especially the Japanese Navy. After suffering a great loss, they will inevitably build aircraft carriers on a large scale. In the next major sea battle, both of us have aircraft carrier battle groups, and victory or defeat becomes uncertain factors."
Zeng Guochang suddenly realized that he did not understand military affairs, and he did not understand the future maritime aircraft carrier war. The only thing he had was confidence.
"I believe that under the wise leadership of His Highness, the next war will surely win."
"What's the use of me alone? Only many talents like Guochang can reappear in the glory of the prosperous Tang Dynasty."
"I'm afraid!"
Zhang Meng laughed loudly, and Zeng Guochang also felt Zhang Meng's majesty's desire for talent. Only in this way can the leader make the country stronger. Thinking of the glorious Tang Dynasty, Zeng Guochang's heart suddenly became excited and he must make a great achievement.
The Tang Empire immediately announced a ban on gold exchanges, and the Tang Yuan depreciated 50% against gold to cope with the depreciation of pounds and francs. The gold standard of the Tang Empire has actually been abolished.
MacDonald strongly criticized the behavior of the Tang Empire at the press conference that day, which was irresponsible. Only he knew in his heart that he could not rectify Zhang Meng this time. Britain's black-hearted plan to quietly devalue the pound to loot the wealth of the Tang Empire was declared bankrupt.
In response to the British accusations, the spokesperson of the Tang Empire said that this was abide by international practices, with the reason that the francs had depreciated, and the pounds and the US dollar were depreciating. Since there was a precedent, it was understandable that the Tang Empire would depreciate the Tang Yuan.
In this regard, experts and scholars in the field of international finance clearly saw that all this was controlled by an invisible big hand, which was once the number one international financial tycoon, but now it has become Zhang Meng and his Datang Bank.
People couldn't help but sigh, could Zhang Meng have hooked up with the goddess of luck, otherwise how could he accumulate tens of billions of dollars in just a few years?
The Tang Empire publicly announced the depreciation of the Tang Yuan, and the British also knew that their sneaky behavior could no longer be concealed by the whole world. In order to prevent speculators from speculating on the pound, the British government was forced to declare the depreciation of the pound by 33%.
Chapter completed!