Holy Roman Empire

In order to weather the economic crisis, Austria was the first to open the floodgates to dumping. Beginning in September, Austria’s export volumes surged.

Agricultural products are necessities and their prices didn’t fall too drastically, with most promotions offering a ten percent discount; the prices of daily textile goods, however, dropped quite fiercely, with discounts of 20 to 30 percent being common and many were even cut in half.

By this time, profit was no longer important. Selling off unsalable goods to acquire cash flow was paramount.

It’s not until you act that you realize the consequences. Watching the daily explosive increase in export trade volumes, Franz was on tenterhooks.

Austria was the world’s leading industrial nation, as well as the leader in product surplus. After the Prusso-Russian War, not only had the Berlin Government defaulted, but the Russians had done the same.

The war had ended, and naturally, the undelivered orders were not going to be fulfilled.

In a sense, the current frenzy of price cuts owed something to the Russians.

Having defaulted, the Tsarist Government failed to return the deposits. Undoubtedly, this money became the income of enterprises, reducing the cost of goods.

The world is never short of smart people; state-owned enterprises, heedless of cost when discounting exports, immediately caught the attention of those who were astute, realizing in a flash that "an economic crisis was upon us."

In times of crisis, cash is king.

Looking at their mountainous stockpiles, everyone knew they were in deep trouble.

There was no choice but to follow the trend. The market, still not transparent, with relatively high corporate profits at this time, could still break-even with discount promotions.

Those who were slow to respond risked not finding buyers at all once the economic crisis erupted.

Whether someone was setting the pace or not, starting from September, powerful Austrian enterprises had joined the ranks of developing overseas markets.

Undeniably it was about tapping into foreign markets; "dumping" absolutely did not exist.

Discount promotions were enterprises offering benefits to consumers. The main objective was to expand market share and seize market segments, all normal business practices.

Major enterprises must aspire to greater things than complacency; internationalization is an essential step.

This was the Austrian media’s take; how many people believed it was anyone’s guess, but the capitalists certainly did.

Especially proactive were the listed companies, whose capitalists emerged one after another, advocating the benefits of internationalization, effectively persuading the shareholders...

Thanks to the establishment of the free trade system, favorable conditions were created for the "dumping" of Austrian goods, with the European Continent being the first to feel the impact.

It was proven that Europe’s lower classes were truly not affluent. Discounted Austrian industrial products, as soon as they hit the market, were enthusiastically embraced.

An influx of cheap foreign goods naturally impacted the local market, and attracting hostility was inevitable.

Disputes over interests are the most fearsome, and encroaching upon the local capitalists’ profits meant revenge was a certainty.

Just as everyone was preparing to take action, the situation changed.

It wasn’t just Austrian goods that arrived; British and French goods also flooded in, at least those bearing "English" or "French" labels.

"Counterfeiting" is a hallmark of the era, with rampant piracy amongst everyone; over half of the industrial products on the market were high-quality counterfeits.

Intellectual property protection was only effective in the country of registration, and many countries had no patent laws, allowing blatant counterfeiting.

Undoubtedly, exports from England and France had not increased, the additional products on the market were suspect, but there was no way to differentiate the genuine from the fake.

Imported goods, in an age without the internet or surveillance, who knew where they came from.

Austria’s dumping also involved local collaborators, and any targeted action would drag England and France down too.

Although a mighty dragon cannot crush a local snake, incidents of inadvertently killing the local snake were not uncommon.

Unless everyone immediately amended the rules of the game, entering the patent era prematurely and having the government crack down on counterfeit products within the rules.

This was impossible; with their own dirty laundry, how could they make a fuss?

According to data released by Austrian Information, over eighty percent of capitalists across Europe started with "counterfeiting," and more than ninety-five percent of enterprises committed patent infringement.

This was inevitable. The British were much earlier in the industrial revolution than the European Continent, with most of the technology from the first industrial revolution originating in Britain.

With the path already fully walked by others, for newcomers desiring industrial development, not copying was simply impossible.

The second industrial revolution shifted to Austria, with the original "counterfeiting" nation suddenly entering the era of patents.

There was no denying that the copying had to continue! Without imitation, carving out a new path would not only cost a tremendous amount, but success was far from guaranteed.

"Patent protection" was actually a means for Anglo-Austria to fleece others.

After the establishment of the free trade system, everyone’s goods could flow freely, and naturally, the Anglo-Austrian two countries, with their large number of patent technologies, championed patents’ protection.

While their own goods went out unhindered, others were barred at the gates for patent infringement.

The essence of this world is: whoever sets the rules of the game will have the advantage in competition.

A free trade system that seems fair on the surface is in truth a tool for the United Kingdom and Austria to plunder wealth from the outside world.

It is an open secret, one that can cheat the common people while the upper classes are well aware of the true nature of free trade.

Knowing is one thing, but changing it is another. Perhaps a united front of all countries could overthrow the free trade system, but no one is willing to be the leader.

It’s not that they don’t want to, it’s that they dare not. The United Kingdom and Austria cannot afford to be enemies with all countries, but to make an example of the lead monkey to warn the others, that they could handle with ease. n/ô/vel/b//in dot c//om

In theory, France was the most likely to take on this role, but regrettably, the Paris Government had fallen early to the sugar-coated bombardment.

The political world is dominated by the three major powers, with the price set by the Anglo-Austrian duo, rejecting which meant facing the Anti-French Alliance.

Next is the Russian Empire, which due to geopolitical reasons, remains untouchable as long as the Tsarist Government does not seek its own death.

Regrettably, the Russians lack the power to rally others, possessing the name of a great power yet their actual influence is limited to Eurasia.

This is determined by might; the Russian navy had lagged behind an era, maintaining its status as a great power solely with its army. Apart from their neighbors, they could not influence other countries.

Under the impact of massive dumping, market competition has become even more brutal. The savvy capitalists have reacted by joining the discount sales craze.

The capitalists who refuse to cut their losses and choose to hold on are plummeting into the abyss.

The Kingdom of Prussia was the first to falter, losing substantial territory due to the war and suffering a devastating blow to its domestic industry and commerce.

Already struggling to move forward and before there was time to recover, they were further affected by Austrian dumping, and the small to medium enterprises were the first to collapse.

Starting from November, layoffs, bankruptcies, and debt collections became the most discussed topics in the Kingdom of Prussia.

In front of the Berlin Palace, a large number of protesters had already gathered.

There was no doubt that this was stirred up by the capitalists, each waving a flag of "debt collection," demanding payment from the Berlin Government.

This issue stemmed from the war; too much currency had been printed. If the war were won, this wouldn’t be a problem.

Unfortunately, the Kingdom of Prussia lost, and a large amount of Mark flowed back. Coupled with the capitalists’ short selling, the post-war Mark rapidly depreciated.

Before the war, one Mark could buy 2 kilograms of high-quality bread; now, one kilogram of the lowest quality black bread cost 7 Marks, and it was just the beginning; the purchasing power of the Mark was still declining.

Upon realizing the Mark could not hold its value, the Berlin Government made a bold decision to attempt paying off its domestic debt with printed money.

Naturally, the capitalists would not agree to this and demanded that the government compensate for their losses due to inflation. They no longer quantified in Marks but requested conversion into Gold.

Some even outright refused Marks, demanding payment from the Berlin Government in British Pounds, Divine Shields, or Gold.

Such demands, of course, were rejected by the Berlin Government.

Already penurious, the Berlin Government had already shown restraint by neither declaring bankruptcy nor defaulting. How could they refuse Marks?

The protesters outside were dissenting capitalists, rallied against perceived injustices.

The protests had already silently infiltrated the Berlin Palace, prompting Frederick III to ask with a stern face, "Have we figured out who is causing these troubles?"

Prime Minister Leo Von Caprivi replied with a wry smile, "Your Majesty, the situation is extremely dire. Almost half of the country’s major capitalists have been involved, with every interest group represented.

They are said to be planning to set up a Debt Recovery Committee to confront the government directly. To force the government into concessions, they plan to organize a large-scale strike soon."

Upon receiving this response, Frederick III felt a headache coming on.

"The law does not hold the multitude to account" does not mean that the law cannot pursue the responsibility of the masses for their crimes; it’s because the impact is too significant, leading to implications for national stability.

After hesitating for a moment, Frederick III sighed, "It seems our persuasion efforts have failed. The capitalists want the government to cover their losses, but who will cover for the government?"

With no one to cover the cost, the doors for compromise were closed. The Berlin Government, unable to bear the massive debt, could only get through the crisis by devaluing its currency.

As the Mark rapidly lost value, inflation was not only caused by the previous flood of currency but was also due to capitalists shorting the Mark in financial markets and the Berlin Government’s excessive printing of money.

If the problem can’t be solved, then solve the person causing the problem. This is a universal rule, and deep down Frederick III was already preparing to overturn the table.

The capitalists might become very powerful in the future, but it is not their turn yet to dominate. Initially, only planning to make an example out of the Jews, it had to be broadened now.