If we talk about kangaroo country, we can still grit our teeth and persevere at this time.
The Europa region was really in dire straits at this time.
Although a large number of glass greenhouse projects have been invested, with the slow work efficiency of the Europeans, these greenhouses will not be completed within a few years.
Therefore, at this stage, they can only rely on open-air farming. The outbreak of genetically modified corn in America has directly affected Chiyu. The Europa Consortium, which originally planned to purchase 30 million tons of corn as feed raw materials from North America, was suddenly in a dilemma.
Although it is used as feed for livestock, even if the livestock has inflammation in their bodies, they cannot tell it.
However, the potential risks involved in genetically modified corn still make many people in the Europa Commonwealth raise objections to imports.
However, before the Europa Consortium could reach a conclusion, a vegetable and fruit manufacturer in Germany declared bankruptcy.
This incident seemed to have triggered a chain reaction. In less than a week, more than 17 medium and large agricultural producers in Europe and the United States declared bankruptcy.
United Supermarkets Group headquarters in Munich.
Duren Martin, the head of the finance department, looked pale: "President, we can't hold on any longer."
"Alas..." President William sighed: "Start preparing for bankruptcy and liquidation!"
Others present had already anticipated the arrival of this day.
Since the entire Europa Consortium adopted the mandatory low-price purchase restriction plan, it has actually fallen into an endless cycle.
The production costs of grains, vegetables, fruits, meat, eggs, and milk are constantly soaring. However, supermarket retail prices are not allowed to increase significantly and are restricted to a relatively low price range.
Although there are some subsidies, the problem is that these subsidies still cannot make up for the losses caused by low-price purchase restrictions.
Many supermarkets and agricultural producers are operating at a loss, betting their hopes on the future.
It's a pity that they lost the bet, and reality slapped them hard. Extreme weather, raw material costs, labor costs, and transportation costs increased significantly, and the low-price purchase limit was extended for another three months.
Faced with this kind of loss-making business, many companies finally couldn't hold on.
This time, the successive bankruptcies of agricultural companies and retail companies quickly evolved into a wave that spread from Europe to the entire free world.
After several large supermarkets in Munich closed down.
Panic quickly broke out among the people, and many people found that large supermarkets around them had closed down, which immediately made people think.
For a time, rush buying inevitably appeared in the streets and alleys of the European Union.
In front of a small supermarket.
Dozens of aunts were queuing up, and they were discussing the recent prices in low voices.
“It’s so hard to buy things lately!”
"Several supermarkets have closed again. If this continues, there will be no place to buy anything."
“That’s right, it’s useless no matter how low the price is!”
“I hope this problem will be solved as soon as possible!”
"well……"
Suddenly the supermarket employee hung a sold out sign at the door.
This made all the aunts look very ugly.
"Hurry up and go to another supermarket!"
"Does this still allow us to live a normal life?"
"Don't squeeze..."
On the street, people who could not buy food hurriedly ran to another supermarket.
However, when they arrived at the entrance of the supermarket, they found that there was very little left in the items. Even if purchases were restricted, there was still no way to ensure a stable supply of supplies.
This is the invisible hand of the free market.
The Europa Commonwealth can impose a low price, but there is no way to force farmers, agricultural companies and supermarkets to stay open.
Many farmers would rather let vegetables and fruits rot in the ground than sell them. The reason is that the selling price is too low. Farmers feel that the gains outweigh the losses, so they simply stop planting, or let the vegetables and fruits fend for themselves.
Obviously these farmers, agricultural companies, supermarkets, are forcing the Europa Consortium to make a choice
Either increase subsidies to ensure their net profits are positive;
Or it will be a dead end, and they will directly stop production and go bankrupt;
Or allow them to raise prices and ensure profits.
These three choices, no matter how you look at them, are all propositions.
At this time, normal supermarkets in Munich, Hamburg, Bremen, Berlin and other places were shut down or declared bankrupt, while the underground black market took the opportunity to become active.
After all, everyone has to eat. Back then, a loaf of bread cost 500,000 marks, and some people were willing to buy it. Now, on the underground black market, it only costs 50 euros for a 10-kilogram bag of flour.
This is the beauty of the free market.
When used in a free market, coercive means can often only treat the symptoms but not the root cause, and may even be counterproductive.
Although various places have continued to intervene and even adopted tough measures, there is still no way to solve the price problem, and it has only become worse.
Underground black markets continue to pop up in various places, raising prices several times, and some items even increase in price more than ten times.
The wave of bankruptcies continues.
The Parisians, who were complaining, were already singing and dancing in the streets.
Prices in Paris are actually not high anymore, because they have a large number of nuclear power plants and their food production is pretty good. If not for natural disasters and the hoarding of some businessmen, prices would not have risen to more than twice the level.
Faced with rising food prices, personal purchase restrictions, and the rampant underground black market, many Parisians are very angry.
…
at an emergency meeting of the Europa Community.
The directors of each member looked solemn at this, and it was obvious that they did not expect that things would develop to the current situation.
The director of Deutschland couldn't wait to speak and said: "We must find a way to solve the price problem, otherwise we will blow ourselves up."
"You think we don't want to solve it? The problem is that we don't have money now!" Director West Rome was speechless.
Others also looked confused and helpless.
To meet the requirements of enterprises, prices must be increased or subsidies must be increased.
To meet the requirements of ordinary people, price increases must be limited while maintaining high incomes and low unemployment.
Obviously these two choices are contradictory.
No matter which one they choose, the people on the other side won't be too happy.
Director Netherland thought for a while before answering the child: "Why don't America support us with some food supplies to get through the difficulties first?"
"Haha, no one wants the food America gives away right now." Director West Rome spread his hands.
The German director was very angry: "This won't work, that won't work either. What on earth do you want? Do you want to watch Europa explode?"
Everyone started discussing and arguing for several minutes, but still no result was reached.
Sure enough, it was like a plate of loose sand.
In fact, they have another way, which is to learn from the Homo sapiens company and completely turn the entire Europa Consortium into a giant company.
The problem is that the consequences of this are not acceptable to everyone.
In particular, the giant enterprise model and the Europa Consortium model are basically two different things.
Many people will not give up for their own wealth.
The emergency meeting of the Europa Community ended unhappily. No specific plan was discussed at all. Many places are already planning to go their own way.
This kind of behavior further fragmented the cooperative relationship within Europa, making it impossible for them to work together internally.
On the other side, under the chain reaction of the wave of bankruptcies, the economy of the entire free world began to have major problems.
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