A far more powerful HSF

[Syphon]

Yes Skip the ASB is at it again.

On the 1st of January 1908 he appears in in the Kaisers office and with a click of his powerful fingers summons the Kaiser and Tirpitz.

He then proceeds to tell both men that he will refund all the money spent on dreadnoughts and dreadnought battlecruisers as long as these ships meet these conditions.
1. All future construction must be turbine powered.
2. All dreadnoughts must be superimposed centre line turrets with guns no less then 38cms.
3. All battlecruisers must be like the dreadnoughts but with guns of a minimum of 35cms.

As proof of his good intentions he clicks his fingers again and disappears only to be replaced by models of the Mackensen class BC and Bayern class dreadnoughts, the full schematics of both designs and a 1000 kilograms of gold.

As both men stare at the gold and models a voice is heard which says you'll only get the gold after the money is spent on construction and there is no limit to how much you can get refunded.

So what happens now?

At this point of time no German battlecruisers have been laid down and only three of the nassau class dreadnoughts.

Do we get an even larger naval race?
What happens when WWI comes around and Germany have ships that are all turbine powered with 35 or 38 cm guns or better?
One thing I see is that the three Nassau's under construction might very well be sold off possibly to the Ottoman's or sent off to East Asia squadron as they simply wouldn't fit in with the new HSF?

What does the KLM look like in 1914?

[Syphon]

Forgot to add this.

If the Kaiserreich sticks with its historic construction rate then by the end of 1914 it would have 14 Bayerns class dreadnoughts and 5 Mackensen class battlecruisers.

But would they stick to this construction rate?

After all once they spend the money on capital ship construction it gets refunded in gold.

So do they double the construction or build a more balanced fleet with the refunds or possibly a bit of both?

Skips offers might have one other effect in that it might force GB into debt more quickly as it tries to out build the KLM.

[godsown1991]

You have the rest of the world bankrupting themselves trying to outdo Germany, like what happened with the Soviets in the Cold War. Even if Skip doesn't come back and give them AK-47's, German naval superiority trumps just about everything. The German army will roll over Europe, just like last time, and any American help coming will be shot down by the faster, more powerful, German ships. Britain's coastline is bombarded until they're forced to surrender. After they have Europe under their control, they turn their attention to Russia, whose military is still almost comically terrible. After assuring themselves that they'd beaten Russia into submission, Africa. Then Asia. Australia. And finally, the big dog itself, America.

In short, German-wank.

[Syphon]

You have the rest of the world bankrupting themselves trying to outdo Germany, like what happened with the Soviets in the Cold War. Even if Skip doesn't come back and give them AK-47's, German naval superiority trumps just about everything. The German army will roll over Europe, just like last time, and any American help coming will be shot down by the faster, more powerful, German ships. Britain's coastline is bombarded until they're forced to surrender. After they have Europe under their control, they turn their attention to Russia, whose military is still almost comically terrible. After assuring themselves that they'd beaten Russia into submission, Africa. Then Asia. Australia. And finally, the big dog itself, America.

In short, German-wank.

But will the world try to out build Germany?

Surely a point will be reached where GB says screw it and leave Europe to the Germans.

As a hypothetical lets assume Germany doubles its capital ship program.
Note that they still have to build the bloody things they just don't have to pay for them.

This would see the Germans with 28 Bayern class SDN's and 10 Mackensen class BC's at the start of WWI.
Does it still start GB would be leery of taking on the KLM with these ships?

The same can be said of Japan do they really want to get into a war with Germany over some worthless Pacific colonies?

And there is an even bigger problem here for the entente.
If Germany goes on far larger building plan lets call it Plan Z then the steel and nickel for these ships will have to come from somewhere and that somewhere is most likely the USA.

If Germany becomes a far more important trading partner to the USA then you might find that the US policies relating to any European war might change.

You could find the US being a true neutral to a pro German neutral depending on how much of that gold crosses the Atlantic Ocean as Germany looks for resources to build these ships.

You might even find that the gun barrels, turbines and reduction gears might get made in the USA which would be worth a pretty penny to the US steel industry in a time when the US congress was not funding a naval building program.

With a more powerful German navy do the Dutch join the Central powers as they were very resentful of GB over the boer republic in SA and very very pro German in their neutrality.

[Syphon]

So would Kaiser Bill and his pet admiral use this agreement to fatsly increase the size of the KLM?

One thing I can see happening the older predrednoughts will probably all go the the East Asia squadron.
This might very well keep Japan out of the war assuming that there is still one.