Economic Panic of 1922

The Economic Panic of 1922 was the beginning of a great depression, particularly in the New World. The beginning has been attributed to the Great War, and the lack of trading that began between the Europe and the Americas.

Durin the War, the powers in North and South America largely stayed out of the conflict during the Congress of Columbia. However, Argentina broke this agreement, invading the long covetted Falkland Islands from Great Britain while Britain was distracted. Even though Argentina was victorious, Great Britain's loss of global standing and embarrassment saw the British government cut trade not only to Argentina, but to many other nations in the Americas. Since Great Britain was a major international investor to many of these nations, the economic funding declined rapidly. However, many have also pointed to the forced isolation of the newly formed Comintern Republic, which made up the former nations of France, Holland, and Occitania, many of which had also been investors in these international markets. With the loss of trade to many nations in Europe, Argentina and others had a supply surplus in many areas, leading to a rapid drop in prices.

These nations had a wide variety of dealing with the crisis. Argentina themselves under King Elias I, struggled, as they had diverted much of their pre-war funding to the taking of the Falklands, renamed the Islas Malvinas, from areas such as infrastructure. Reinvesting in industrialization became difficult, as the yield was slow for the time that was needed. Brazil, under Emperor Leopold I, appointed a government that attempted to find markets to borrow from, massively increasing the debt of Brazil while also increasing church holdings from the private sector in the short run. Leopold, despite calls for replacement, defended the government, and utilized the borrowed funds for social works that appeared to be simply cultural in nature, such as the monument Christ the Redeemer. Though this created many jobs and created a Great Wonder, the monument was criticized at the time.

Were we to put our fate into the hands of God, He will see us through these troubles. Emperor Leopold I

The Grand Duchy of Central America, under Grand Duke Antonio I, blamed the crisis on the small nation's over reliance on the markets of America, and therefore sought greater economic and political autonomy. He invested heavily in the military, brokered a defensive alliance with Gran Colombia, incorporated Guatemala into the newly formed Kingdom of Catrachia, and waged war on the Republic of Mexico for the Chiapas region. Though the region was poor, Antonio invested the reparations into industrializing the state for its natural resources. Meanwhile, the young King of America, James I, struggled with the Chancellor in finding a solution to the crisis. James pressured the government into utilizing funds into social works projects, such as roads and highways. He and Congress authorized the construction of the Boulder Dam in Freeman in order to develop the America southwest. However, James refused to surrender the Nicaragua Canal to Antonio and Catrachia.

Canada, who had been one of the few New World powers to enter the war, blamed their defeat on the french speaking population of Quebec. The French culture and language, as well as the practice of Catholicism, were repressed and had many of their protections removed. Many of the protestant faiths in Canada joined to created the United Church of Canada, attempting to further homogenize the nation. The Montreal Riots on 1926 were the culmination of years of repressive governments, as many of the French citizens of Canada occupied the ports and canals, exacerbating the crisis. The demands of the rioters were ignored, and the army was authorized by Queen Victoria to restore order. Many of the Quebecois escaped on the ships in port to friendlier nations, particularly in Gran Colombia.

Gran Colombia, though did rely on British investment, had long diversified their economy as a response to being somewhat of a pariah in the Americas. However, the crisis saw many of these political and historical differences subside as many of its neighbors now moved to establish trade agreements. Peru saw a great instability in the government very early in the crisis as Queen Gabriela attempted to consolidate power from republicans following the Peruvian Civil War. Despite this, she used funds to invest in schools and education, believing the solution could be found with higher learning.

We cannot make substantial improvements by simply attempting again what has failed in the past. We must look to the future. Queen Gabriela

The most substantial of the crisis would end by 1936, with the victory of the German Empire in the Russo-German War. Germany took a massive loss of life during the major conflicts in Europe, and looked to establish itself as the global dominant power. Germany took Britain's place as the lead investor in the New World in exchange for immigrants from the Americas to move to Germany to boost their own economy. Other nations, such as the Republic of Ireland followed suit, as well as the Spanish Republic who had recently just fought their own civil war. This helped lead to the economic and political block of the European League, headed over by Germany.