Gaudin nodded instinctively. What the Crown Prince had said seemed perfectly reasonable, yet it contradicted the economic theories he had studied for decades. For the moment, he still found it difficult to accept.
As for Lavalette, he had long since entered a "sleepwalking" state.
Joseph could only let them return and digest it slowly. He continued discussing the Financial War: "So at this point, we must use every possible means to drive up Britain's inflation level and accelerate its descent into stagflation."
Gaudin immediately added, "That happens to coincide with our previous plan, Your Highness."
The Financial War's original objective had been to exploit the British Government's massive printing of money to absorb Government Bonds, using various forms of imported inflation to force it into the predicament of high inflation.
They simply had not expected an opportunity to trigger Britain's stagflation as well.
Lavalette had finally heard something he could understand and hurriedly leaned closer. "Your Highness, then shall we accelerate the next steps of the plan?"
Joseph nodded. "We must leave the Ministry of Civil Affairs sufficient funds for subsidies. We absolutely cannot affect the incomes of North African farmers."
Gaudin bowed slightly. "I have already allocated 700,000 Franc to the Ministry of Civil Affairs, Your Highness. Mr. Roland is working to concentrate North African Wheat shipments toward Northern Italy and the German Territories. The subsidies required should not be too substantial."
Yes, since sugar prices were already so high that there was little room left for further increases, Joseph had chosen Wheat as the "weapon" for exporting inflation to the United Kingdom this time.
Because of the large-scale enclosure of land for sheep raising, coupled with rapid population growth, the United Kingdom had already become Europe's largest Grain importer. North Africa was one of its principal Grain suppliers.