CP Victory:Labour wins 1918 election

Ohfshkssgb

POD is that the Zimmermann telegram is never sent leading to America never entering the War. Entente doesn't have anything left as collateral for new American loan. This forces the Entente to downsize their war effort. This results in a successful German offensive on France. After Entente loses France to Germany and default on it's debt to America. Britain will face financial collapse after America seizes Collaterals leading to a Landslide victory of the Labour party in the 1918 United Kingdom general election
 
Derek Pullem

Derek Pullem

Donor
Ohfshkssgb said:
POD is that the Zimmermann telegram is never sent leading to America never entering the War. Entente doesn't have anything left as collateral for new American loan. This forces the Entente to downsize their war effort. This results in a successful German offensive on France. After Entente loses France to Germany and default on it's debt to America. Britain will face financial collapse after America seizes Collaterals leading to a Landslide victory of the Labour party in the 1918 United Kingdom general election
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To some extent the PoD mitigates the impact of the default as more than half the US war loans to UK occurred after US entered the war.
Also it's not good business to put your major customer out of business so a full on seizure of collateral assets is unlikely.
I'm also not convinced that the war debt is going to lead to a Labour victory - the defeat in the war will be far more important and a labout victory will mean it is much more likely that UK will repudiate its war debts to US causing a collapse in international trade. Which US will recognise so some kind of fudge is more likely.
Too big to fail applies to nations as well as banks.
 

sarahz

Derek Pullem said:
To some extent the PoD mitigates the impact of the default as more than half the US war loans to UK occurred after US entered the war.
Also it's not good business to put your major customer out of business so a full on seizure of collateral assets is unlikely.
I'm also not convinced that the war debt is going to lead to a Labour victory - the defeat in the war will be far more important and a labout victory will mean it is much more likely that UK will repudiate its war debts to US causing a collapse in international trade. Which US will recognise so some kind of fudge is more likely.
Too big to fail applies to nations as well as banks.
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Plus the telegram was not the reason for entering the war unrestricted submarine warfare was the main cause. If that has not happened the UK is in a much stronger position in a number of ways, including economically. Additionally I also don't believe for a moment that US banks even without an entry into the war would allow the bankruptcy of the allies, if that looked likely to happen to sink their existing loan book. They had seen the Russian example. .
 

Ohfshkssgb

sarahz said:
Plus the telegram was not the reason for entering the war unrestricted submarine warfare was the main cause.
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No it wasn't. That telegram was what turned the public and Congress in favour the war
sarahz said:
If that has not happened the UK is in a much stronger position in a number of ways, including economically.
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Won't happen
sarahz said:
Additionally I also don't believe for a moment that US banks even without an entry into the war would allow the bankruptcy of the allies, if that looked likely to happen to sink their existing loan book. They had seen the Russian example. .
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Doesn't matter banks are in control of collateral
 

Crazyduck156

Ohfshkssgb said:
What ? Every bank does that when interest is not paid
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most bank clients can't fight back when the repo men come knocking.

Now if those bank clients happened to be a planet spanning empire with a massive fleet at its command... well bank disputes would become far more interesting
 
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