The Rise of the Third Reich

British Chancellor of the Exchequer Winston Churchill, who knew nothing about financial issues, once again walked into this narrow, stuffy little room that smelled of old books and tobacco. This was the British Prime Minister's office at No. 10 Downing Street. It was really not enough. style. But it is very suitable for the current world empire whose hegemony is crumbling.

"Winston, our German friends are calling the current currency problem a currency war again."

Prime Minister Stanley Baldwin was holding a pipe in his mouth and a copy of The Times in his hand, which reproduced an article jointly signed by Dr. Schacht, the German Finance Minister, and Rathenau, the general manager of the German General Electric Company: Pound Sterling - Europe's Last line of defense.

Economist Keynes was sitting next to the Prime Minister. He said: "The Germans are thinking about war, and they like to use war as a metaphor. But regarding the pound crisis, their views are basically the same as ours... If funds cannot be stopped, Flow to the United States, the pound will collapse in a short time. At that time, the US dollar will become the only reserve currency in the world, and the Americans will use the US dollar to rule the world.”

Churchill pulled up a chair and sat down, put on his half-moon glasses, took the newspaper from the Prime Minister's hand and read it. “Some German in the newspapers proposed organizing a European Community including Britain, France, Germany, Italy and Poland?”

Keynes explained: “This community is first of all a monetary community. The currencies of various countries are pegged to the pound, and fixed exchange rates are implemented. The pound is pegged to gold... This can strengthen the gold exchange system.

Secondly, this community is also a customs community, and the countries participating in the community must eventually eliminate tariff barriers. Goods, capital, and people must flow freely. Strive to integrate the entire Europe, excluding the Soviet Union, and the colonies of various countries into an economic community.

Finally, this community is a military alliance. The armies of Britain, France, Germany, Italy, Poland and other countries will fight together to fight against all enemies who dare to threaten Europe's common interests. "

"These Germans are really idealists..." Churchill spoke with a slightly sarcastic tone, implying that he was not optimistic about the European Community. "With this 'European Community', Germany is no longer a bad guy bound by the Treaty of Versailles, but a European power on an equal footing with Britain, France, Italy and Poland."

"Yes, that is a problem." Keynes nodded, "But economically, the European Community is indeed feasible... It is good for Britain and can make London the financial center of the world again."

"But it would be more beneficial to Germany, wouldn't it?" Churchill asked.

"I think so." Keynes said, "Germany is at the center of Europe and is currently the most industrially developed country in Europe. Once the European Community is formed, German products will occupy the markets of Central and Eastern Europe."

Churchill shrugged, "But that's impossible! Because the French will not agree, let alone Poincaré as prime minister, even if Briand comes to power. I understand the French, they really want such a person European Community, but the leader of this European Community can only be France, not the United Kingdom or Germany.”

"So do we!" Stanley Baldwin smoked his pipe. "This is the main problem facing Europe... The establishment of a community will definitely be beneficial to everyone. But who will lead this community? Britain, France, Germany, and Italy, I’m afraid they won’t accept being in a dominated position, right?”

"Yes," Churchill said, "so the European Community is impossible and will not happen in ten thousand years."

"So...what about the pound?" Stanley Baldwin asked. "How long can we last?"

"This question is meaningless," Keynes replied in a mournful tone. "Three months, six months... or one year, does it mean anything to the British Empire?"

"You think that if we lose hegemony over the pound, the empire will cease to exist?" the British Prime Minister looked at Keynes.

"Do you even need to ask?" Keynes frowned. "Currency hegemony is the most powerful of all hegemonies! Once this hegemony belongs to the United States, American banknotes are capital and resources, and they can buy everything they want. If they didn’t have this hegemony, how much would the United States’ gold reserves be worth?”

Four to five billion U.S. dollars is a lot. Britain now only has less than 800 million U.S. dollars in gold (and owes the United States more than 3 billion U.S. dollars). But even four to five billion US dollars of gold is only a small number compared to the world economy in the 1920s. No one can buy the world with this money. But once it has monetary hegemony, the United States can produce 10 times or 20 times the amount of banknotes, and it can also be used as a treasure by people all over the world.

It goes without saying what a force this is!

During World War II, participating countries often needed to purchase supplies from neutral countries - iron ore and metal products from Sweden, chromite from Turkey, tungsten ore from Spain and Portugal, rubber from Brazil, beef from Argentina... ...To obtain these things, Germans must pay real money or industrial products of corresponding value, while Americans only need to pay some paper money.

"Mr. Keynes, I think you take the right to issue currency too seriously," Churchill lit a cigar and took a few puffs. "The hegemony of the British Empire comes from our control of the oceans. As long as we own the oceans, the pound sterling Even if you encounter some troubles, it’s not a big deal.”

"Yes, if we are going to have a naval arms race with the Americans now..." Keynes followed Churchill's words, "if we issue more pounds, we can let the German shipyards help build battleships and aircraft carriers, because we have control over Germany. The right to issue money!”

After hearing his words, the British Prime Minister and the minister who knew more about the navy than finance frowned at the same time. Prime Minister Stanley Baldwin asked: "How can we keep the pound? Now that the US economy is performing so well that it has attracted funds from all over the world, and we in the UK are currently in trouble, what else can we do to keep the pound going? Dollar versus?”

"We can create a World Bank and issue a currency that transcends sovereignty!" Keynes said, "Because the status of the pound can no longer be maintained, we can only settle for the next best thing... We must not let the United States take over the world's reserve currency. Take away the distribution rights!”

This was a view proposed by Keynes in the original history, with the purpose of preventing the formation of dollar hegemony, but it was aborted due to the firm opposition of the United States and the disunity of Europe. However, this proposal can also be seen as the origin of the later euro. Unfortunately, the British are still unwilling to give up their pounds...

Stanley Baldwin asked: "Who will join the World Bank?"

Keynes replied: "The United Kingdom and Germany will definitely participate. I am not sure about other countries, but they can try hard. Even if it does not succeed for the time being, it can boost people's confidence in the pound."

…

“The World Bank is impossible, but the European Bank is possible.”

Colonel Hersman sat in the office of Major General Schleicher, Director of the Department of Defense Ministry Affairs, holding a document sent by the Ministry of Foreign Affairs in his hand and frowning.

The Department was a new department created after General Groener (Schleicher's old boss) assumed the post of Secretary of Defense to handle political and press affairs for the Army and Navy. Schleicher turned the department into a bridge between the Army and other ministries (government ministries) and political leaders, allowing him to coordinate the relationship between the government and the military. After General Seeckt retired (because he was attacked by many Republican MPs for letting Crown Prince William review the army), Schleicher almost became a figure on an equal footing with the Chief of General Staff in the army.

This time, he was responsible for the promotion of various departments under the General Staff to bureaus. Many officers who had been unable to be promoted for many years were promoted as a result, which gave Schleicher more supporters in the military.

And Hessmann became Schleicher's main assistant because he was proficient in political, diplomatic and economic issues - in fact, the two of them are now the number one and number two figures in a "gang force" in the military, this " The "Gang" is mainly composed of officers with backgrounds in politics, intelligence, the Baltic Defense Forces and the Air Force, and it is already a considerable force. Not only can they influence the policies of the General Staff, but their influence on the political situation is also increasing day by day.

In the original history, Schleicher, without the help of Hersmann, the Intelligence Bureau, and the Stasi, controlled the personnel arrangements of the Director of the Army Bureau (as opposed to the Chief of General Staff) and the Prime Minister in 1930. In 1932, Schleicher even broke the restriction that soldiers were not allowed to participate in politics and arranged for himself to become "General Chancellor".

So it's no surprise that a general now asked Hessmann what he thought of the "World Bank" and "World Currency."

"European Bank?" Schleicher shook his head. "Does this mean that Britain and Germany may establish an alliance?"

It’s really hard to answer! Due to the implementation of the Keynesian Plan, the relationship between Britain and Germany is now much closer than in history. The German mark is pegged to the pound, and it relies on the protection of the United Kingdom to export goods to European countries.

In this case, Britain and Germany actually have considerable common interests. But it is hard to say whether this common interest will lead to the Anglo-German alliance and the European Bank.

"General," said Hirschmann, "if a European bank were to be established, Britain and Germany would not be the only members. The Baltic Republics, Czechoslovakia, and Austria would almost certainly join."

The Baltic Republics and Austria are both countries dominated by Germans, and there are also many Germans in Czechoslovakia. In addition, the country's economy is also controlled to a large extent by Germans.

If these three countries join the European Bank together with Germany, then the integration process between them and Germany may start - they may integrate economically, and then politically!

————

Another chapter is added. In addition, Luo Luo's first order has reached 710. It seems that it will undoubtedly surpass Zhaoxiong's 740, and 1000 is also expected. Thank you all very much, thank you very much.