King

I don’t know since when, a rumor that the Principality of Moxi went bankrupt and the Kingdom of Alpha defaulted on its debts began to spread throughout the continent.

Almost at the same time, more and more people were selling the bonds of the two countries. High-interest bonds that originally had a premium are now being sold at a tearful sale.

Under the influence of panic, more and more people believe in rumors. The more bond prices fall, the less likely anyone is to take over.

Under the leadership of caring people, countless bondholders have asked the two governments to pay in advance.

Looking at the reports sent back by envoys from various places abroad, Caesar IV lost a lot of hair again.

Before he ascended the throne, he longed for power; only after sitting on this position did he realize how difficult it was to be a king.

It feels tiring to handle things myself; but when I delegate power to my subordinates, I worry about losing power.

“This is the feedback from all over the world. If this matter is not handled well, there will be a big run on the bonds we issue internationally.

We are summoned here today to discuss how to avoid the outbreak of this bond run. "

While speaking, Caesar IV distributed the thick stack of documents in his hand to everyone.

The contents above are all similar, but come from different places. Just read one at random.

After a general scan, everyone's expressions turned gloomy. Obviously, the actual situation was more serious than what Caesar IV said.

"Your Majesty, I'm afraid the bond run trend is unstoppable. Such rumors are appearing all over the mainland at the same time. It is obvious that someone is secretly controlling it.

The enemy is well-prepared and cannot be resolved by just explaining a few words.

Now we must prepare for the worst and try to avoid the kingdom going bankrupt in a run on the country. "

The Grand Duke of Newfoundland said with a bitter look on his face.

There is no doubt that the bankruptcy he is talking about is the bankruptcy of the government's credibility, not its financial bankruptcy.

Once a large-scale run breaks out, there is only one thing Alpha Kingdom can do - lie down.

No money means no money. Even if you sell everything, you won't be able to raise enough funds in a short time.

The nobles in the country can't count on it, and the small nobles are already dying of poverty. The great nobles are still working hard to prepare for war, and it is impossible to use the last of their wealth to fill holes for the kingdom.

Since it is destined to not pay back the money, then we simply don’t pay it back. By getting rid of these debts, the finances of the Alpha Kingdom were immediately resurrected.

The benefits are obvious, but the consequences are also dire.

If you encounter trouble in the future and want to borrow money, you will definitely have no hope.

What's even more troublesome is that the country's credibility is gone, and all political and diplomatic activities will be affected.

The hatred of creditors is also a big problem.

Those who can spend money to buy war bonds are no small leeks.

The big nobles transferred the risk, and the small and medium-sized nobles who were lagging in information not only did not run away, but actually acted as takeovers.

They are also the ruling class, at least locally, they have a certain degree of influence.

The hatred of one or two people is nothing. The hatred of a group of people can also affect the political stance of the country where it is located.

"Is there no way to deal with it?"

Caesar IV asked unwillingly.

"Your Majesty, the total debts of the kingdom are as high as more than 96 million gold coins. Including loans between countries and bonds issued by us.

Among them, the domestic debt is about 36 million. There is no need to worry too much about this part for the time being. The nobles will not be stupid enough to stab the knife at this time. What needs to be resolved is the international debt.

If the deal between us and the Hessian Kingdom is successfully concluded, it is expected to reduce the amount of gold coins by 16 million to 18 million.

An optimistic estimate would be based on 4,200 gold coins. Among them, war bonds account for approximately 30 million gold coins.

Under normal circumstances, these 30 million gold coin bonds will not all come to us at once for us to pay.

But this time it was obvious that someone was behind the scenes and could not be judged according to normal economic laws.

Maybe by then, the war bonds circulating within the kingdom may also be transferred out and appear in a wave of runs.

How much cash we need to prepare actually depends not only on ourselves, but also on the Principality of Moxi next door.

If they withstand the impact, with confidence, we can calm down the storm by preparing eight million gold coins.

However, the Mossi people have long embarked on the path of borrowing new and repaying old, and I am afraid that they will fall as soon as the bank run breaks out.

When panic builds up, even if you prepare 30 million gold coins, you may not be able to withstand the impact.

Maybe the governments of various countries will jump out and stab us in the face and collect debts in advance. "

The data does not lie. Marquis Delgado's words completely stopped Caesar IV's thoughts.

Eight million gold coins, everyone can still find a way to get it together. Thirty million gold coins, then there is no need to consider it, the Alpha Kingdom is not that wealthy.

Perhaps because he felt that what he just said was too absolute, after hesitating for a moment, Marquis Delgado added:

"Your Majesty, there is still a way, but the consequences will be a bit serious, and the gain may even outweigh the loss.

If we acquiesce to the Dante Kingdom and the South Bank Kingdom to go north and annex the Grint and Nadal Counties, we may be able to pay back 10 million less gold coins.

If we go further and acquiesce to the Franks annexing the Kingdom of Oprus, acquiesce to the Iliban Kingdom to annex the Kingdom of Avarat, acquiesce to the Holy See's invasion of the Kingdom of Turan...

If the ambitions of all countries on the continent are satisfied, then our debt problem will no longer be a problem. "

There is nothing wrong with this. If we do this, the debt problem will no longer exist and will all be transformed into a national defense problem.

In less than ten years, the continent of Aslant will transition into an era of "competition among heroes". If they are lucky, the Alpha Kingdom can become one of the overlords. If they are unlucky, they will die on the way.

"Marquis Delgado, your thinking is too simple. Not to mention the consequences of doing this, the acquiescence of the Kingdom of Light is not as valuable as you think.

We do have a strong say in the Northern Continent, but when it comes to other parts of the continent, it's just that.

Unless they stand up clearly to support them, there may be some possibility, but the hope is not high.

Rather than providing dispensable support, everyone is more willing to eliminate a competitor first. "

Count Francis said solemnly.

Only diplomats know how unfavorable the current international situation is to the Alpha Kingdom.

This debt crisis seems to be planned by someone, but is it not the result of a conspiracy among various countries?

If a few big countries don't acquiesce, who has the ability to launch it together across the entire continent?

…

Compared with the tangle of the Alpha Kingdom, the Moxi Principality, which is also deeply in debt crisis, is a different scene.

In the back garden of the palace, King George was leisurely making tea and chatting with a group of princes and ministers, without any trace of nervousness.

"Have you found out who is targeting the principality?"

George asked calmly.

After a series of behind-the-scenes manipulations, the Principality of Moxi has secretly settled most of its debts by "inheriting knowledge and paying off debts with special cultivation resources."

The current trend of bank runs is just a show deliberately staged to deceive others.

After all, their transaction violated the current unspoken rules.

It takes time to transform theoretical knowledge into strength, and the small and medium-sized nobles involved in the transaction need to keep it secret even more than the Principality of Moxi.

Once the news leaks out, although the Principality of Moxi will be jointly suppressed by all parties, traders like them will face disaster.

If he hadn't discovered that someone was plotting secretly, King George would have been too lazy to pay attention to these disputes.

"Your Majesty, all direct clues have been cut off. However, according to the speculation of the nobles who dealt with us, the mysterious person who came to them may come from the Holy See.

Based on various data analysis, their main target for this operation is the Alpha Kingdom, and we are just their pawns to attack the Alpha people.

These guys are trying to destroy the principality's finances through a run on bonds and force us to default on our debts, thereby triggering a larger-scale panic and igniting a huge debt mine in the Kingdom of Alpha.

It's a pity that these people, despite all their calculations, never expected that the principality had solved its debt problem. No matter how big a wave is now, it is destined to be in vain.

As long as the principality's finances do not collapse, everyone's confidence in the Alpha Kingdom will not be shaken.

After all, from a clear perspective, Alpha Kingdom’s financial situation is much stronger than ours! "

Count Renato said gloatingly.

Obviously, even without definite evidence, he still believed that the Holy See was behind this.

No matter what the reason was, Count Renato had no good impression of the Holy See who wanted to push them into the abyss of hell.

It is also a pleasure to be able to watch their plans fail and suffer as they cannot afford to offend the behemoth that is the Holy See.

"It is indeed the Holy See!

I don’t know what the Alpha Kingdom has done to make the Holy See hate it to the core, and it doesn’t hesitate to do such a big trick.

If I guessed correctly, they would have to lose at least hundreds of thousands of gold coins just this time to suppress bond prices like crazy.

But this is fine. With the Holy See causing chaos to the Alpha Kingdom, the alliance between our two countries will be more stable.

The three major kingdoms in the middle are ready to move, and the trend to the north is unstoppable. The principality still needs time to recover, and now it needs the Alpha people to stand in front.

Send a copy of the found information to Caesar IV. By the way, let me tell them: The principality is united at this moment, and all the nobles will unite to deal with the crisis, so they will not be defeated so easily. "

George said with a frown.

Make bricks without straw.

Seeing the opportunity coming to his door, he could only choose to curb his ambition due to the lack of strength of the Principality of Moxi.

…

In the Mountain Territory, Hudson was happily welcoming the opening of the canal and envisioning the territory's next great economic development when he received a blow.

The raging debt crisis swept across the Alpha Kingdom, and it seemed like the entire world knew the news overnight.

Anyone with a little bit of political savvy knows what will happen next once a run occurs.

It’s enough that the bonds in your hands become useless paper. The key is the political and economic impact.

Political crisis, Hudson no longer bothered to think about it. If the sky falls, the tall ones will bear it first, leaving the king and the ministers to worry.

But economic problems cannot be avoided.

The market of the seven grassland countries that was finally opened may be closed directly. Even if it can be saved, the price paid will not be small.

The next maritime strategy must also be readjusted. Forget about international trade for the time being. In the next few years, let’s just do domestic trade with peace of mind!

The emerging nobles are so hard-working, and even the slightest disturbance can cause a major impact.

If it were a well-established aristocrat with deep roots, he would never be so flustered.

Take the Dalton family as an example. They are also engaged in international trade, so they are not afraid of such disturbances.

As far as Hudson knows, they have regular partners in many countries on the continent.

There are also many marriages between each other, and everyone has long established a community of interests.

Not to mention political fluctuations, even if the two countries go to war, it will not affect their continued business.

…

"Count, Mr. Jose has entered the territory. Because he has his family members traveling with him, he is expected to arrive at the Lord's Mansion in five days."

Tom's words made Hudson's face look much less sad. After planning for so long, the poaching was finally successful.