Start 1861: I Just Inherited the Dutch Throne

While Dutch policies for integrating natives were being discussed in Berlin and London, Dutch influence was being discussed elsewhere.

In short, the Netherlands' approach to integrating indigenous people has aroused curiosity and ridicule from all countries, and they are all watching as if waiting for something to happen in the Netherlands.

But William IV in Amsterdam, the capital of the Netherlands, was as calm as ever.

He is holding a meeting of the Dutch Privy Council.

Attending the meeting were Prime Minister Tolbeck and his cabinet members, Interior Minister Jonler, Foreign Minister Hesbert von, Finance Minister Jan von Cappello, Dutch Minister of Justice Ross, Industry Minister Wem Cote, Education Minister Minister Ruud Bales, Director of the Royal Netherlands Intelligence Agency Bill Charlie, and Director of the Netherlands International Intelligence Agency McKay Sean.

The military is Chief of General Staff Mark Rudd, Minister of the Navy Jan Peter, Minister of War Petter de Jong, Chief of Naval Staff Joseph Karls, Chief of Army Staff Jop Ill, and Minister of Arms Louis Bell.

At the Privy Council meeting, Finance Minister Jane von Capello was telling his detailed report.

"At present, many European countries and the Rothschild family are not aware that in fact, in addition to the political layout that they see in the layout of the Netherlands in the Americas, what we actually value more is the intrusion of Dutch financial power in the Americas. "

"The first was the Netherlands, which was challenging the gold standard and the first world revolution. Britain faced high debts after experiencing the Nine Years War from 1688 to 1698 and the War of Spanish Succession from 1702 to 1713. Government taxes are barely enough to cover the interest on these debts, and the country's public credit is in serious trouble, and it has reached a point where it must find ways to reduce its debt.

The Tory Party in power at the time implemented a debt-for-equity swap plan for the Nanhai Company, a platform that assisted the government in financing, and converted national debt into the platform company's stock. In this way, government creditors became shareholders of the platform company, and the national debt could be written off. The solution was welcomed by the UK market.

However, Walpole, the first prime minister in British history in 1721, believed that this would kill the dangerous speculation of British business genius. He would be like a devil, making people sleep in the fantasy of wealth falling from the sky. No longer believe in hard work, it will lead people astray. The essence of this plan is extremely evil. It will only make the public fall into long-term madness and be unable to extricate themselves. "

This allusion from Finance Minister Jan von Capello made everyone present extremely quiet. In fact, it was the first time for many people to hear about Britain's financial changes.

Even William IV was like that.

Finance Minister Jane von Capellor said this, and said very seriously: "The result was as he expected. The subsequent credit expansion in the UK caused the entire UK to fall into madness. However, the crisis ensued. A member of the British House of Commons announced Roderick pointed out in a letter to Justice Middleton at the time that the money supply was pushed to the limit, but there were not enough precious metal reserves to support it. For whatever reason, once people's confidence is shaken, The entire money machine would immediately fail.

Shortly after the congressman said this, it turned out that credit expansion was weak and the bubble burst. "

Jane von Capell turned her gaze to everyone in the Privy Council, and finally said in a loud voice: "Currently, the Commonwealth of America is promoting a new currency and national debt. In fact, it is not very different from the policy implemented by the United Kingdom back then. The difference is just The reason is that internationalization is broader.

International capital giants including the Rothschild family and the Netherlands are participating.

Therefore, the Commonwealth of America faces increasing uncertainty regarding its national debt and currency issues.

Back to the topic just now, the South China Sea Incident in the United Kingdom in the early 18th century had a huge impact on Britain and even the world. It was precisely because it was generally believed that there were not enough precious metal reserves to support the currency issuance mechanism, which led to the South China Sea Incident. The culprit of the bubble, Britain then set out to find an anchor for the issuance of currency.

In 1717, Newton proposed in a monetary report that the price of gold should be positioned at 3 pounds 17 shillings 10 pence per 1 ounce of gold, which laid the initial theoretical foundation for the gold standard relationship. This was the road to the gold standard for the United Kingdom. .

The establishment of the gold standard undoubtedly locked up the economy in the initial stages. But in the long run, it effectively avoids the lack of sufficient precious metal reserves to support the currency issuance mechanism, thereby stabilizing the British currency and prices.

It was this prudent and even tight monetary policy that laid the foundation for the outbreak of the first industrial revolution that originated in Britain. "

No one in the entire cabinet showed an impatient expression. Even the military representatives who were confused understood that this well-known financial actuary in the Netherlands had his intentions every time he released a government report.

Sure enough, when they heard that the British gold standard was actually linked to the first world industrial revolution, they tried to become more sober in order to integrate into the Dutch situation.

Finance Minister Jane von Capellor said: "In 1733, John Kay invented the flying shuttle; in 1765, James Hargreaves invented the 'Jenny' spinning machine; in 1769, James Watt improved the steam engine. These are symbols of Britain’s first industrial revolution.”

These indeed represent the rapid development of the British industrial economy. The British economy led by them has become the most prosperous economic country in Europe for more than a century.

"A loose monetary policy environment is not a necessary condition for innovation or even prosperity. On the contrary, a tight monetary policy environment is more conducive to great innovation."

“After talking about the rise of the first industrial revolution in the UK on the basis of the gold standard and monetary easing policy, let’s take a look at the current industrial status and monetary policy of the world.

According to what His Majesty said before, we are currently at a critical moment of the second industrial revolution.

Take the United States as an example. In order to cope with the huge war expenditures, the Lincoln administration of the Confederate States of America suspended the gold standard system in 1862 and began a sharp increase in money supply.

By the end of the Civil War in 1866, the dollar price of gold was more than 50% higher than the official price.

In October 1866, the Congress of the Federal Republic of America passed the "Austerity Act", and the Treasury Department subsequently reduced the base currency by up to 20% for more than a year. However, the subsequent fact was that the Federal Republic of America unexpectedly Maintaining medium-to-high growth, between July 1866 and June 1868, the Federal Republic of America's growth rate remained at an average annual rate of 4%-5%. "

Finance Minister Jane von Capellor said: "In these seven years, due to the tight monetary policy of the Lincoln administration, the price level in the United States fell by half. At the same time, the economy grew rapidly. The two appeared at the same time. This casts doubt on the correctness of the now widely accepted view that tight currency and high economic growth cannot coexist."

He smiled and said: "It was precisely because of this period that the Americans took over the leadership of the Second Industrial Revolution from Germany, led by Prussia, together with the austerity policies of the Americans and the Dutch migration to the Far East."