Chapter 70 Aftermath (I)

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 big 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. Excessive liberalization of the financial industry to foreign forces is very dangerous.

It is undeniable that Andrew Jackson fought to the death with the banker Biddle 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 were even worse in their ability to pay and resist risks.

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 real estate industry in the United States has encountered a cold winter, with land prices in the United States 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 Buren 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 bought a lot of bad assets in the United States, so they all came 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 high-interest loans from the Rothschild family.

And one day in the future, Mr. Friedrich List will pay the price he deserves for today's actions.

The real estate industry in the United States is 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, which made countless farmers lose all their money.

The defeat of the US military in the Battle of Texas also made the whole United States turbulent.

The US military realized the huge gap between itself and the top European army through the Battle of Austin.

The pistol cavalry, which they were proud of, was defeated in one battle by the French cavalry with various debuffs such as acclimatization and isolation.

The French army was also able to pursue the remnants of the US army unscrupulously because of the victory of the cavalry on the flank.

Before the U.S. Army fought the French Army, it never thought that rifled guns would be defeated by smoothbore guns.

In fact, there are many reasons for the failure of the U.S. Army, such as the loss of too many troops in the siege, the French Army had better performance, more artillery, stricter discipline and more capable commanders.

However, fighting with the French Army still brought great shock to the U.S. Army, especially when the U.S. Army had a numerical advantage, the French Army still chose to take the initiative and completely defeated the U.S. Army.

Whether it was the use of artillery or the combination of scattered and column tactics, the French Army made the U.S. Army feel desperate.

The French Army used artillery to open the way, and the scattered soldiers took advantage of the smoke to continuously attack and kill the scattered soldiers of the U.S. Army. When the smoke cleared, the devastating volleys of the French Army Brigade also made the U.S. Army desperate, and the bayonet charge and the outflanking cavalry were even more nightmares for the U.S. Army.

The U.S. military strongly suggested increasing military spending, sending military observers to Europe, updating equipment, and redeeming prisoners.

However, President Martin Van Buren's reply was only two words: "no money."

The Bank of England still had 9 million pounds of gold reserves in May 1836, but in the following days, it decreased at a rate of 700,000 pounds per month.

Palmer, the governor of the Bank of England, has repeatedly warned the British government that we have too many US dollar banknotes and we must do something to curb its growth.

However, the British government, immersed in the huge profits brought by the textile industry, no one is willing to reduce trade with the Americans.

The sharp increase in redemption volume in December forced this historic bank to close.

It also means the outbreak of the British economic crisis.

Thanks to Master Talasha, s Yundong Bafang, Quantum Mechanics for their rewards and book friends 20210425225758893, book friend 20170929104451757, book friend 20210207201521140, flowery, these junior high school, Wu Shi Shenwu, 35271 monthly tickets, and the support of all readers.

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