The Rise Of Australasia - Chapter 881

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Chapter 881: Chapter 658: Outsmarting Oneself Calvin Coolidge

“Prime Minister, perhaps it is time we seriously considered the proposal from the Australasians.” The Minister of Finance looked at Prime Minister Baldwin gravely, making a very serious suggestion.

Prime Minister Baldwin fell into a brief silence, then nodded and said, “Indeed, but certainly not now. The economic crisis has not yet dealt the United States a heavy blow, and we must still be wary of the Americans’ actions. It may be time to abandon the gold standard only after we’re sure the Americans are too preoccupied with the economic crisis to pay us any mind.”

The gold standard, which is currently the monetary system used by countries around the world, ties the currencies of all nations to gold, and this is the fundamental reason why money retains value.

Once the British Government actively gives up the gold standard, the devaluation of the pound is inevitable.

Although it won’t devalue as much as the French currency, it would still be a heavy blow to the international credibility and monetary status of the pound.

At present, the only threat to the pound is the US dollar. Until America is completely broken by the economic crisis, Britain cannot actively abandon the gold standard.

Otherwise, if the Americans are given a chance, the US dollar could replace the pound as the new world currency at any time, which is unacceptable to the British.

Hearing Prime Minister Baldwin’s decision to abandon the gold standard in the future, the Cabinet’s members all showed a change in expression but remained silent.

The cost of abandoning the gold standard was clear to them, but they were even more aware of the toll the current economic crisis was taking on Britain.

If they couldn’t solve this economic crisis properly, they needn’t consider the consequences of abandoning the gold standard because this government would not last that long.

If they failed to satisfy the people during the economic crisis, the British public could replace the Cabinet at any time.

“By the way, how are the Americans fairing at the moment? The situation in the United States must be worse than ours, right?” Prime Minister Baldwin suddenly asked.

“Yes, the unemployed population in the United States has already broken the 10 million mark and is moving towards 20 million. Compared to them, at least we can control our economic crisis,” said the Minister of Foreign Affairs with a hint of a smile in response, clearly more relaxed discussing America.

For the British, America, their greatest competitor, being caught in the vortex of an economic crisis is more exciting than if they had escaped the economic crisis themselves.

“Add a bit more pressure on the Americans; their economic and industrial size is too massive, representing our greatest threat,” Prime Minister Baldwin nodded and instructed with an air of nonchalance.

“Yes, Your Excellency.”

“Right, haven’t the Americans given up on paying their compensation? Then we’ll raise tariffs on the United States and invite all nations of the World Alliance to do the same,” Prime Minister Baldwin suddenly recalled something, saying with a meaningful smile, “And the Island Nation, they must have prepared countermeasures against our sanctions since they dared to stop paying the compensation.”

The economic crisis had already fragmented America’s economy and industry. If the World Alliance were to increase tariffs on America now, it would greatly destroy America’s exports and pose a huge threat to their economy and industry.

As for whether such actions would provoke American resistance, Prime Minister Baldwin was not the least bit worried.

After all, America’s military strength is currently insufficient to support resistance against the entire World Alliance.

Moreover, this time it was the Americans who gave up on supporting the compensation payments first, providing Britain with an excuse to impose sanctions on America.

After all, this compensation was unanimously endorsed by the World Alliance, as America’s voluntary research intensified leading to the outbreak of global Influenza.

“Your Excellency, might this provoke strong opposition from the Americans?” The Minister of Foreign Affairs was slightly hesitant, looking towards Prime Minister Baldwin: “The economic crisis is on the verge of collapsing America. If we unite in imposing increased tariffs on them, it might lead America into an uncontrollable situation.”

“Your concerns are not without merit, but the current America is clearly unable to shake the British Empire. Besides, we’re not without allies. Whether it’s France or Australasia, I believe they would not mind jointly dividing America,” said Prime Minister Baldwin with a smile: “Compared to their own nation’s survival, what does America’s interest count for?”

This was not an unreasonable point, for any nation’s means of maintaining its voice and status could only be through the military, and a diplomatic position not founded on military strength is ultimately hollow.

Though America possesses the largest industry and the most prosperous economy, its military strength clearly does not match its status.

The current economic crisis is also the best time to sanction America. The American Government could not possibly confront the World Alliance with inner turmoil, as this would spell doom for America.

Even without exaggeration, no country could withstand the combined front of the World Alliance, because it consisted of the current Four Great Powers—Britain, France, Russia Country, Australasia—and many second- and third-tier European nations with colonies spread across the globe. It’s not an exaggeration to call it a genuine World Alliance.

Prime Minister Baldwin had more news he had not yet revealed: The current economic crisis in America was actually a result of British and Australasian manipulation, aiming to avoid the economic crisis exploding in London.

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