Chapter 70 Aftermath (1)
Vienna, Schönbrunn Palace.
Franz is telling Madame Sophie a bedtime story:
"Once upon a time there was a bear named Misha.
Misha has a friend named Ivan.
Misha and Ivan live happily in the forest.
One day, Misha saw a fly land on Ivan's face. Misha wanted to help her friend get rid of the flies on his face.
So Misha lifted a huge stone and threw it at the fly.
Snap!
The fly died, but poor Ivan was also crushed to death by kind-hearted Misha.
This is a Russian fable that tells us not to do bad things with good intentions, especially when you have powerful abilities."
President Andrew Jackson simply ignored his own energy and was obsessed with killing Biddle and his Second Bank of the United States.
It's just that if Andrew Jackson's brick wall continues, it will not only destroy Biddle and his Second Bank of the United States, but also the entire American economy and his ambitious hegemony.
Biddle and his Second Bank of the United States were truly a ticking time bomb for the United States.
Those banknotes that are not guaranteed by precious metals and commodities are just white notes that may become waste paper at any time.
Andrew Jackson had three creeds
1. The most reliable thing is the support of the people.
2. The government cannot be allowed to be “hijacked” by financial and other powerful institutions.
3. It is very dangerous for the financial industry to open up too much to foreign forces.
It is undeniable that Andrew Jackson fought to the end with Biddle, a banker, for the sake of the United States, but he did destroy the American economy.
According to Andrew Jackson's original plan, he would withdraw all federal reserves from the Second Bank of the United States in five installments, and then consign Biddle and his bank to the dustbin of history.
Yet he underestimated his own power and overestimated the ability of the Second Bank of the United States to deliver.
In fact, in theory, the Second Bank of the United States should be able to make payments 2-3 times, which can delay the economic crisis slightly.
However, due to Franz's fueling, this time bomb still exploded.
But even without Franz causing trouble, once the U.S. government starts withdrawing coins from banks, it will still trigger a series of chain reactions.
All financial giants, business tycoons, and government officials are not fools. They will definitely go to the bank to withdraw money.
In history, it only took one month for the Second Bank of the United States to lose its ability to pay, while other banks' ability to pay and resist risks was even worse.
Banks in this era are all private banks. Once a bank fails, depositors will lose all their money, which undoubtedly exacerbates the tragedy of this financial tsunami.
On the other hand, the Bank of New York escaped unscathed because of the suspicious lobby manager.
Because they always think that someone is watching their position, they do not lend too much and crazy.
Of course, they also suffered huge losses during the economic crisis, but these losses were nothing compared to the huge benefits that excellent reputation would bring in the future.
The U.S. real estate industry has encountered a cold winter, with U.S. land prices falling by 30% in the first three weeks.
Speculators from all over the world and the Bank of the United States jointly created the largest economic bubble in the first half of the 19th century.
This time, the U.S. real estate economic bubble made Franz earn 67 million florins.
Among them, the land with the highest yield was naturally the land in Chicago, which increased 54 times when Franz sold it.
Of course, the real estate prices in Boston and Tennessee are also good, but the land in New York has only increased six times, which really makes Franz a little disappointed.
After all, in Franz's eyes, all speculators in the United States were on Wall Street, so how could it be possible for New York's land prices to lag behind others.
In fact, most speculators have seen this bubble, but no one can stop its expansion in the face of huge interests.
Some people are still trying to save the U.S. real estate market, and some are unwilling to give up their land in the hope that they can sell it when prices rise.
"Don't be afraid! This is just a technical adjustment."
This is the most common statement heard recently in the New York trading center, and most of these people will enter the mental hospital to continue technical adjustments.
Because this is just the beginning, after that the prices of these land assets will fall exponentially.
In the end, those lands purchased for $15,000 were only waiting for buyers for $100.
Of course, the United States is not the biggest loser. Americans have at least paid off their debts.
And the United States would not allow itself to become the biggest loser. Soon Martin Van Buuren became president in place of the disgraced Andrew Jackson. The first thing he did was to ask all banks to refuse to redeem metal coins.
Martin Van Buren just wants to protect the interests of the United States. He doesn't care about speculators, let alone foreigners.
These disastrous consequences have to be borne by those foreign investors.
This includes our beloved Mr. Friedrich List, whose wealth in the United States was close to $1.8 million at its peak.
Yet in the first month of the crisis, he lost nearly a third of his fortune.
What is even more frightening is that Mr. Friedrich List used to borrow heavily in order to earn more profits.
Now everyone knows that Mr. Friedrich List purchased a large number of non-performing assets in the United States, so they all started to collect debts from him.
He had to sell his property in the United States, but no one was willing to pay for it, so he had to borrow usury from the Rothschild family.
And one day in the future, Mr. Friedrich List will also pay the price he deserves for his actions today.
The real estate industry in the United States was just the beginning. Due to the decline in cotton prices and the decline in the credibility of the US dollar, the British further lowered the purchase price, causing countless farmers to lose their money.
The Battle of Texas and the defeat of the US military also caused turmoil in the entire United States.
Through the Battle of Austin, the U.S. military realized the huge gap between itself and the top armies in Europe.
The pistol cavalry they were proud of were defeated in one battle by the French cavalry, which had various debuffs such as acclimatization, isolation and helplessness.
The French army was also able to pursue the remnants of the American army unscrupulously because of the victory of the cavalry on the flank.
Before the US military fought against the French army, they never thought that rifled guns would lose to smoothbore guns.
In fact, there are many reasons for the failure of the US military. For example, too many troops were lost in siege battles. The French army had better performance and more artillery, as well as stricter discipline and more capable commanders.
However, the battle with the French army still brought a great shock to the US military. Especially when the US military had a numerical advantage, the French army still chose to take the initiative and completely defeated the US military.
The French army's use of artillery and its combination of scattered and column tactics made the US military feel desperate.
The French army used artillery to clear the way, and the skirmishers took advantage of the smoke to continuously attack and kill the American skirmishers. When the smoke cleared, the French army's devastating volleys also made the American army despair, and the bayonet charge and the outflanking cavalry made the American army desperate. nightmare.
The U.S. military strongly recommends increasing military spending, sending military observers to Europe, updating equipment, and redeeming prisoners.
However, President Martin Van Buren's answer was only two words: "No money."
The Bank of England still had 9 million pounds in gold reserves in May 1836. However, in the following days, it decreased at a rate of 700,000 pounds per month.
Bank of England Governor Palmer has repeatedly warned the British government that we have too many dollar bills and we must do something to curb its growth.
However, the British government was immersed in the huge profits brought by the textile industry, and no one was willing to reduce trade with the Americans.
The sharp increase in redemptions in December forced this long-established bank to close down.
It also means the outbreak of the British economic crisis.
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