flstandardbreds Chapter 173 Disturbance
Chapter 173 Disturbance
The economic system of America, after the baptism of the Industrial Revolution, has transformed into a capital market system, where as long as you have money, you can buy a considerable amount of goods.
In the past, when Amellane's industry was not so strong, the market was not so important in the national economic system, and the regions were basically self-sufficient. But now, with industrial enterprises attracting a large number of workers, farmers abandoning their farmland to move to the city, and the proportion of agricultural land in the suburbs of the city declining sharply, the Amellane metropolitan area has become extremely vulnerable.
In November 656, as autumn and winter arrived, the Hilla Exchange in the port of Hilla was being swept by an unnamed whirlwind: the price of grain that day had been soaring since the beginning of the month, and by the middle of the month, it had reached two hundred percent of the normal seasonal price!
The sharp rise in grain prices triggered a buying frenzy. Alice's government logistics system opened its warehouses and put in 100 tons of wheat, but it was swallowed up by the ocean like a whirlpool!
"Miss President, food prices in Port Hilla have skyrocketed. The city government has urgently allocated one hundred tons of wheat, but the market price has not yet stabilized."
Alice looked up. It was late at night, and she couldn't finish dealing with all the messages on her desk. But now, something urgent, and a big one at that, was about to happen!
"Oh? At this time, someone is starting to buy grain in large quantities? How's the market?"
Alice became somewhat interested. In recent months, the Federal Republic of Amerlanxi had established a friendly cooperative relationship with the Sirens, and large amounts of crude oil were entering Amerlanxi territory as if it were free, further strengthening the development of the refining and chemical industry. Alice had instructed the Ministry of Refining and Chemical Industry to prepare for the procurement and construction of a number of new refining and chemical enterprises.
"Miss President, the latest news is that it's 235% of the normal price!"
"So that's roughly the price? Wow, those investors are so rich?"
Alice scratched her head, yawned, and seemed completely unconcerned: "Call the heads of the Ministry of Agriculture and the Ministry of Transport over here. They're right here."
"Raffis~ Go make me a cup of coffee, and add a little extra sugar... Oh, and remember to add milk, we don't drink American swill!"
The name of the new continent has been decided: "America," or simply "the Americas."
Naturally, the original flavor of this product from the New World was called American, but Alice didn't like that taste. She preferred a latte with sugar and milk.
Food prices in Hillary Clinton soared, followed by increases in the prices of agricultural products and meat. Whenever a batch of goods appeared on the market, it was quickly bought up.
"Ha, it seems that the President's so-called rise of Amelia is nothing but a joke. Without food, let's see how she will gain the trust of those lowly people?"
In one warehouse, wheat was piled up like a mountain, and there were many such warehouses. Some merchants, instructed by a "business guru," bought and hoarded large quantities of grain on the market, convinced that this would make them rich.
Grain prices remained unstable until morning, while other non-staple foods also began to rise. In addition to their main business of grain, major grain traders are now buying large quantities of fresh meat, agricultural products, and vegetables.
Now, some people are finding it difficult to buy affordable food and are forced to purchase overpriced food from speculators who are hoarding it, leading to growing discontent.
Speculators made a fortune, and those behind them were delighted: the government didn't seem so powerful after all; it still couldn't handle things.
It seems that the power of money to make the devil turn the millstone remains unchanged throughout history!
Halvin was delighted and prepared to step into the limelight and start promoting himself. However, when wheat could be sold for three times the price, public discontent grew even stronger.
"Looks like she's all that great. The little one still can't beat us gentlemen. Alright, let's get ready to win the trust of the people!"
Just as the Halvin gang was getting restless and preparing to set up their stage, a train roared in and arrived at Port Hilla train station.
"Wait, another batch of affordable grains has appeared on the market!"
"Buy it all!"
"This batch of grain was sold at the government's grain store. They said that there was a limit to the amount that could be purchased with personal identification!"
"What? She's introduced a new policy again?"
Well, the use of Keynesian economic intervention methods, such as government restrictions on purchases, in the early stages of business development seems to be unique to Alice's time. After all, these people are still a bit inexperienced when it comes to playing economics with a modern person.
The reason why grain prices continued to rise after Alice discovered this was because the current logistics system was still inefficient, lacking computer systems and highly disciplined workers, making it difficult to maintain high efficiency.
After a day of purchase restrictions, Amelansi's massive logistics system began to awaken, and large quantities of grain began to enter Hilla. Grain merchants continued to buy, and the amount of grain transported from all over the country, some of which had been improved by modern agricultural fertilizers, far exceeded the investors' purchasing capacity. However, the investors were initially unaware of this and chose to buy the first batch of grain at high prices when it arrived.
Alice's answer was simple: economic warfare should be resolved through economic means. She rejected the proposal for administrative authorities to intervene and arrest people, instead deploying agents to investigate the investor network.
With a steady supply of grain, investors began taking out large loans to buy it. Batch after batch of grain was bought up as it entered the market, and many investors, under duress, firmly believed that this was the last batch of grain.
In late November, wheat, chicken, and fish remained plentiful in the market, and the overall price of grains plummeted. Some people made purchases, but some investors still chose to wait and see.
"Grain prices are falling, should we continue to buy?"
"If you're not going to buy now, I advise you to act quickly..."
Inside the mansion, the biggest speculator waved his pen: "Keep buying! I don't believe that little princess has that much grain to invest! I still have plenty of real estate and gold bars to take out! We'll make it back!"
Despite this situation, some undeterred speculators continued to buy in large quantities. Seeing this, Alice could only smile generously and wave her pen: "Cancel the purchase limit!"
After the purchase restrictions were lifted, grain prices rebounded sharply, rising by 20 percent amidst everyone's anticipation, before falling back to their original level three days later.
Some speculators managed to withdraw quickly and at least salvage their fortunes, while the biggest and most reckless among them lost everything in the Amelia grain war. By the end of November, Hillary police headquarters was receiving a flurry of reports of people jumping from buildings, into the sea, and into rivers, with red ambulances rushing to various locations with sirens blaring...