Reincarnated as Nikolai II - Chapter 267

Chapter 267: The Union of Broken Bones (1)
The Weimar government is not stupid.

Entering the second year of the Great Depression while everyone is focusing on Russia, they weren’t unaware of how their neighboring country was dealing with this situation.

“Okay, basically bond issuance, prohibition of gold conversion, and public works and unemployment reduction policies. Okay, confirmed.”

“But… what money would they use for that?”

“How much money have those bastards accumulated? These crazy bastards. The ruble still holds even with that?”

On Germany’s left side, economic bloc formation is in full swing.

They’re strengthening solidarity between colonies, and everything is circulating internally like self-trading stocks.

Even the United States was advocating for the dollarization bloc through the Pan-American Conference, which included the Philippines, Central America, South America, and even parts of Canada.

On the right side, they’re trying to somehow lower the unemployment rate through unlimited fiscal and monetary policies, along with inexhaustible public works.

“L-let’s try it too!”

“Whether bloc formation or public works, let’s try something!”

“Lower interest rates! Ignore the gold standard!”

At this rate, world trade would shrink to one-third anyway. The great commercial networks built over generations were disintegrating before their eyes, with shipping lanes emptying and warehouses standing abandoned across the continent.

The past when they secured price competitiveness based on low wages and high technology is gone. That golden era had slipped away like sand through their fingers, leaving behind only fading memories of prosperity and industrial might.

Now the time has come for Germany to truly walk its own path. The crossroads of history demanded a choice – continue down the road of austerity or forge a new direction through the economic wilderness that had engulfed Europe.

However, unfortunately, Brüning, who succeeded Social Democratic Party’s Müller, had his hands tied despite being directly appointed as Prime Minister by President Hindenburg. The chains of political obligation and orthodox economic thinking bound him to policies that seemed increasingly detached from the desperate reality of ordinary citizens standing in breadlines and shuttered factories.

“T-then, starting with bond issuance and deflation policies for fiscal soundness-”

“Parliament resolutely opposes! A policy to make Germany a beggar! Has the Prime Minister been instigated by France?”

As always, parliament shouted opposition to Brüning’s opinion first.

“Bond issuance? Are you insane? If you want to make pocket money, pay our money first!”

“While we’re struggling to escape deficit through forced deflation? That’s a bit…”

“Damn it, if you don’t want to die, pay the reparations first.”

“…Alright.”

The Allies no longer accommodate their situation.

Welfare cuts and deflation lead to an increase in the unemployed.

He knows.

On the other hand, public policy and inflation will lead to increased spending, rising prices, deteriorating fiscal soundness. Ultimately leading to reduced exports.

He knows this too.

In summary, it’s a situation where you’ll dry up and die if you stay still, but you’ll die if you move.

If staying still is also an option, Brüning’s cabinet was standing in the middle of a huge crossroads.

Whether to walk through a minefield, or stand still and pray for the world economy to improve.

Just closing your eyes, ignoring reality, and hoping for the best when you open them isn’t viable when the world has already been crashing miserably for two years.

Now the economy was approaching the realm of survival, beyond just good or bad.

Eventually, Brüning decided to take a step forward.

“I will preserve the value of the mark through raising fiscal funds, cutting subsidies, and fixing interest rates!”

Although Hindenburg exercised his right to dissolve parliament, issue emergency decrees, and veto several times in the process, anyway.

Brüning swallowed a very classical medicine.

And Germany, which swallowed that medicine together.

“…You crazy bastard! Is this the time to preach survival of the fittest to businesses! Pushing a knife when they’re going bankrupt in succession!”

“We should protect domestic demand even if exports are ruined! Who said to cause hyperinflation again? The interest rates should be lowered!”

“With unemployment exceeding 40%, the state is actively increasing the unemployed? Brüning, are you human?”

Faced a truly life-threatening crisis.

“T-then, as a temporary measure, military budget cuts-”

“Prime Minister Brüning. I was a Field Marshal. You know that, right?”

“I know, Your Excellency.”

“And you also know that your predecessor, Müller, was chased out like a beggar for daring to try to reduce military spending in front of me? You should touch what should be touched. You shouldn’t make the same mistake.”

“…I’ll leave the military budget alone.”

“Good.”

Parliament, the people, the Allied nations, even the President.

As soon as he makes a plan to do anything, mothers-in-law from all directions peck at him.

No matter how much Brüning claimed this was medicine good for the body if you just endured, Germany, already damaged beyond repair, couldn’t even distinguish between poison and medicine.

In 1931, finally judging there was no domestic answer.

Brüning, who came to hold the Foreign Minister position concurrently, ran here and there crying for help.

But his cries were hollow.

He was the Prime Minister who held power, whatever it might be.

There were many who demanded, criticized, and insulted him, but no one had ears to listen to him.

Finally, Brüning laid hands on a policy that shouldn’t be touched, further damaging his already non-existent popularity.

“Land reform. I will implement land reform for state-owned land as well as excessive land concentration.”

State-owned land is just an excuse; what he’s touching here are the Junkers and the wealthy class.

‘Anyway, the number of people with “von” in their names is small, so there won’t be a big change in elections! Asset prices will fall, but this will be temporary. The republic will rise again!’

The plan written as land reform should be read as land redistribution.

The government intervening between existing asset prices and redistribution prices to secure public works funds is a bonus.

This is definitely beneficial to the state-

“Brüning, you’ve ignored my warning.”

“What? I didn’t even touch the military at all!”

“The Junkers, the nobles you’re trying to oppress, are the backbone of the military. Taking their farms and trying to tax their golden lands won’t work. Right now, the Free Corps is creating an uproar about killing you.”

“…Ah.”