Chapter 1204: 1109: The Heavy Blow of Inflation

Chapter 1204: Chapter 1109: The Heavy Blow of Inflation

“If you have money,

“You still need to get a gun,

“It’s only less than two British Pounds,

“Smuggled goods only need 12 shillings,

“Otherwise the Volunteer Cavalry will make you lose your life,

“Those who died just wanted to afford sugar…”

The children sang the nursery rhyme happily, but didn’t understand its meaning at all.

In a red-brick house on the outskirts of Ireland’s capital Dublin, the large landlord Ian Patrick glanced at the children playing by the roadside, frowned, and said to the steward beside him:

“Who taught them these damned things? If the British police hear it, they’ll surely get whipped.”

The steward immediately gave the servant at the door a look, and two men with fierce expressions rushed out, kicked each child on the buttocks a few times, and yelled the names of their parents, warning them to manage their children.

Patrick withdrew his gaze and said to the few people at the table:

“Is this a scam? After all, last year a bushel of wheat was less than 4 shillings.”

The shriveled old man nearby mused:

“There’s indeed such a possibility, but as long as those people are willing to pay a substantial deposit, we won’t suffer any losses.”

“I think so too,” the room’s only noblewoman nodded in agreement, “Even if the foreign market changes later, we can store the grains in the warehouse for a year.

“Moreover, Mr. McLaren is also willing to guarantee those people, I think it’s worth a try.”

The bearded man next to her said gruffly:

“I heard that the French, to stabilize the Caribbean Sea’s situation, ship dozens of boats of grain there every month, and have even banned North Africa’s grains from being exported, so price increases aren’t surprising.”

Just a few days ago, merchants from France, Italy, and other places suddenly appeared at their estate, expressing a desire to purchase a large quantity of wheat at 5 shillings and 5 pence per bushel.

Then, the United Irishmen Association started stepping in to help connect with the procurement.

Although the Ireland region has a population of over 3 million, two or three thousand large landlords control nearly seventy percent of the arable land, and almost all local grains are produced by them—the other Irish are mostly “potato farmers.”

Therefore, as long as they can influence the psychological price of these landlords, they can significantly raise the grain prices here.

And the grains from Ireland account for 20% of England’s total production, with prices transmitting to the entire English market.

It’s worth noting that when one-fifth of the market’s grains increase by 1 shilling and 5 pence, this increase won’t flatten out over the entire market, transforming into a rise of 4 pence.

Other grain merchants will immediately raise prices to the highest level, until sales drop, then gradually lower the prices, ultimately stabilizing at an increase of about 1 shilling.

When Joseph learned that the British Pound had been decoupled from gold, he considered ways to strike at England’s economy.

This time England’s gamble on shorting sugar prices failed, causing sugar prices to rebound punitively, and England is bound to experience imported inflation—which means a sharp increase in the price of imported goods leads to a decrease in local currency purchasing power.

Thus, Joseph took out over 6 million francs, having white glove grain merchants go to Ireland to purchase grains at high prices, further increasing inflation levels within England.

Hmm, this money was earned from successfully targeting England’s shorting of sugar prices before and was just the tip, using it to “repay” the British, he doesn’t feel a bit regretful.

In fact, this money could lose at most less than 1 million francs, because they indeed bought wheat, at most if later grain prices drop, there would only be a discrepancy.

This grain price attack worked out as it was supported by several rare conditions coming together.

Firstly, the French finances had a sum of spare money.

Secondly, it required the coordinated cooperation of Irish landlords, otherwise, if only a small part of the landlords sold grains, it would be challenging to form a market storm.

Finally, the impact of grain price hikes on local Irish people was very small—they mostly ate potatoes, and the United Irishmen Association would strive to persuade farmers to stabilize potato prices. This was the basic reason Irish landlords were willing to cooperate.

Of course, in the end, the grain price increase would inevitably lead to an overall food price increase, influencing potato prices, but that’s considered a contribution by the Irish to the independence movement.

Actually, the estates planting grains in the Ireland region could earn a fortune, and potato farmers would also benefit, forming a hedge against the losses brought about by food price increases in urban areas.

Inflation would significantly weaken England’s war potential, so the little money Joseph invested was simply a profitable investment.

If inflation triggered some “radical actions” by the British public again, it would be even more profitable for France.

The actions of the United Irishmen Association were swift, and within half a month, more than a dozen cargo ships filled with grains left Dublin Port.

Afterward, ships started departing Cork Port and Dungavin Port towards the European Continent.

Meanwhile, the French Government issued restrictions, mandating that domestic grains could not be sold to England. And France and North Africa are traditionally low-priced grain areas.

Two months later when the British Government finally noticed the “normal grain trade” volume in Ireland was slightly over the top, London’s wheat prices had already risen to 7 shillings and 6 pence per bushel—London being a major city, grain prices have always been higher than in Ireland.

The British populace, who had just calmed down due to the lowering of sugar prices, quickly discovered that bread prices started increasing again.

Moreover, the British Government had recently announced an increase in income tax.

At once, there was a pervasive sense of unrest across England.

…

Central Portugal.

Spain’s army commander Marquis Talavera, looking through the telescope at the Anglo-Portuguese Army pacing back and forth on the Coimbra fortress, frowned somewhat irritably at the adjutant beside him: “These damned British, they’ve withdrawn from Mora, withdrawn from Saboya, but they simply refuse to leave Coimbra!”

At this moment, an engineer major came over, saluted him, and said: “Commander, the pontoon bridge in the middle of the Mondego River has been repaired, but if we want the cannon to pass, we might have to wait another two days.”

Marquis Talavera waved his hand nonchalantly: “You’ve done a good job. But this temporarily doesn’t mean anything.

“Originally, we should march south to Alentejo, where the British have abandoned many towns, it’s our best opportunity to expand the control zone.”

He said this while glaring at the western Coimbra fortress: “But Wellesley, this cunning guy, concentrated his troops all here, right in front of us.

“It leaves my corps unable to move anywhere!”

The engineer major hesitated for a moment and said, “Commander, are you worried that transferring troops south might give the British a chance to counterattack?”

“Yes, you, as an engineer officer having such an insight, is quite impressive. What’s your name again?”

“Hoy, Commander. Joaquin Blake Hoy.”