King

"How is it possible that the Principality of Moxi can hold on?"

Caesar IV asked in disbelief.

Originally thinking that he would have someone to accompany him in his misfortune, he was mentally prepared to lie down once the squeeze broke out.

Unexpectedly, the debt crisis became more serious, and his allies who were thought to be defaulters actually came to tell him that they could survive the crisis.

If the Principality of Moxi can hold on, it would be really unreasonable for the Kingdom of Alpha to default on its debt.

"Your Majesty, we have confirmed it again and again. The Principality of Moxi is mobilizing nobles across the country to raise funds, and has also sent people to communicate with creditors. It is said that good results have been achieved.

At present, many nobles have stated that they will not require early payment before the bonds reach the agreed date.

The first nobleman to take a stand was Earl Hudson. Not only did he announce that he would not pay the bonds in advance, he also successfully persuaded a number of nobles in the expeditionary force to make a joint commitment.

Affected by these good news, war bonds, which had been plummeting, also rebounded slightly.

Especially for the bonds of the Principality of Moxi, the circulation in the market has been significantly reduced. I guess everyone is waiting to see the situation. After all, if you sell at the current price, you will lose money. "

After listening to Count Francis' words, Caesar IV didn't know for a moment whether to praise Hudson for having a big-picture perspective or to scold him for being too preoccupied with making a name for himself, forgetting that the kingdom was also in a deep debt crisis and needed support.

After thinking about it, Caesar IV still didn't say anything in the end. He knew very well that the current Principality of Moxi could not repay its huge debt. Even if he took the bonds and asked for early redemption, he would not be able to exchange them for money.

Bonds that cannot be converted into cash naturally cannot be counted as money. Considering the credibility of the Principality of Moxi in the eyes of the outside world, it is unrealistic to use the bonds they issue as money to help the Alpha Kingdom tide over the difficulties.

It was destined to be impossible to cash out immediately, so he simply acted more generously and sold the Principality of Moxi as a big favor.

If market confidence is stabilized and the Principality of Moxi survives this crisis, the Kingdom of Alpha will also be saved.

There was nothing wrong with Hudson doing this, and the other creditors of the Principality of Moxi also did this. It seemed too reasonable and somewhat illogical, but when the facts were in front of him, he couldn't help but not believe it.

"In that case, let's raise money quickly! On the issue of redemption, we must be consistent with the Mossi people. As long as they can stick to it, we will stick to it.

However, the specific redemption date must be pushed back as far as possible, preferably after the Mossi people.

If there are people outside making trouble, tell them that we are busy raising money and let them wait in peace. "

Clearly, Caesar IV's concerns had not gone away. It is true that the Mossi people have achieved certain results on the road of repayment, but it is still unknown that they may not be able to survive the crisis.

If the restrictions were relaxed for redemption, the kingdom's little cash flow would soon be exhausted. The crisis we will face by then will only be greater.

"Your Majesty, we can also copy the measures taken by the Mossi people. It is not difficult to gain the support of the nobles in the country, but the difficulty is that they don't have much money in their pockets.

The nobles in the northern part of the kingdom are basically poor and cannot afford money at all; the nobles in the south are richer, but at the moment they are busy building defense lines and may not be able to provide much support to the kingdom.

Then, the most critical thing next is to persuade creditors not to run. Judging from the case of the Principality of Moxi, it is still possible to succeed.

After all, now that we are required to pay, we are forced to default on our debts. All the bonds in their hands have become waste paper, and they cannot get even the last gold coin! "

Marquis Delgado's analysis made Caesar IV calm down. The loop is logically closed.

According to this analysis, the creditors of the Principality of Moxi agreed to give up early payment, not because they were reasonable, but because they did not want the bonds in their hands to become waste paper.

"If you have too many lice, you won't be itchy; if you have too many debts, you won't have to worry."

If the Alpha Kingdom followed suit and directly explained its powerful relationship to its creditors, most of the creditors would probably just hold their noses and admit it.

"Well, let's give it a try! If the Moxi people can do this and it works, then there is no reason for us to fail. The only trouble is the mastermind behind it.

Judging from the current situation, it is obvious that someone is disrupting the bond market at any cost in an attempt to cause us to default on our debt.

The Mossi people suspected that the Holy See was responsible. Although there was no solid evidence, they did have the motive to do something dirty.

Everyone, keep an eye on the Holy See. If they continue to cause trouble for us, we will be in big trouble. "

Caesar IV said with a gloomy expression.

Now he finally understands why his father hates the Holy See so much. It's all because of those guys who do nothing.

Other countries don't want Alpha Kingdom to grow bigger, but they have their own moral bottom line. At most, he only added fuel to the flames from behind, instead of directly coming out to stab him.

Otherwise, all countries will collect debts together, and the Alpha Kingdom will go bankrupt before the bank run breaks out.

…

The crisis is still raging, and more and more creditors are demanding early payment due to panic.

Without any surprise, the public relations operation of Alpha Kingdom ended in failure.

The nobles in the country expressed their support one after another, but it was only in words. In actual actions, only Hudson actually went to buy bonds, and everyone else gave symbolic expressions.

Threats of throwing money away can indeed get rid of ordinary creditors, but for the Holy See who provoked this turmoil, they don't care at all whether the bonds in their hands will become useless paper.

One by one, vests and trumpets acted as vanguards, and the creditors who were initially a little tempted once again joined the debt collection operation.

On the last day of 99991, the run finally broke out in full force, and the embassies of the Kingdom of Alpha and the Principality of Moxi were besieged.

The difference is that the creditors who besieged the Principality of Moxi finally reluctantly reached an agreement after rounds of negotiations.

The creditors who besieged the Alpha Kingdom were still in a stalemate, but their emotions were inevitably affected.

If someone hadn't been instigating and exaggerating the risk of default, I'm afraid everyone would have chosen to compromise. After all, the annual bond interest is still being paid normally.

On the Holy Mountain, Pius VII was immediately furious after receiving the news!

"Is this the result of your actions?

We spent huge sums of money and set off a wave of bank runs. Is this just a riot?

And what happened to the Principality of Moxi?

You keep saying that they will definitely default, so how come you reached an agreement with the creditors first and got out of the debt crisis?

…”

The almost roaring question made all the senior members of the Holy See bow their heads. Everyone likes to do work that costs public money.

This operation was jointly carried out by multiple departments of the Holy See. Precisely because there were so many people involved and many talents making money from it, it was inevitable that there would be some problems with the execution.

"Your Majesty, the funds we have are limited, and all of them are spent on suppressing the Alpha Kingdom, ignoring the Principality of Moxi, which is even worse financially.

Unexpectedly, they risked death and survived, and actually made a dead game alive.

It is said that at the negotiation site, the Mossi people directly presented two options: either they would pay normally according to the agreed date; or they would immediately declare a debt default.

Without our people to cause trouble, the creditors did not want to receive a single gold coin, so they were forced to accept normal payment.

Affected by this news, the Alpha Kingdom suddenly became stronger. They agreed to redeem the bonds in advance, but required that the previously settled interest, bond issuance costs, and fund raising fees be deducted...

After the messy deductions, they only accepted 20% off the face value as payment, and they had to apply one month in advance and get approval before they could get the payment.

Many creditors are shaken, thinking that the Principality of Moxi can survive the debt crisis, and the Kingdom of Alpha, which is in better financial condition, will definitely be fine.

Our people have all applied, but this alone is not enough.

In order to create panic a few days ago, we have sold a lot of bonds, and currently we hold less than 100,000 war bonds.

It is estimated that the situation in other departments is similar. The total war bonds in everyone's hands may not be able to collect a face value of one million.

If we want to destroy the finances of the Alpha Kingdom, we must collect more bonds from the market and run on them, consuming their cash flow.

However, after the Principality of Moxi survived the debt crisis, the price of Alpha Kingdom's war bonds also began to recover, rising from 50% off the previous lowest price in the market to 82% off the current face price.

The high-interest bonds issued in the early stage have been equal to the face value, or even exceeded. "

Blake didn't want to stand out, but Pius VII just called his name and he couldn't help but refuse.

The previous bond sales were all from highs and gradually fell down, but they did not lose much.

If you buy it from the market now and then pay it to the Alpha Kingdom, you will definitely lose money.

It seems like they won't lose a few points, but once they enter the market to purchase on a large scale, the circulation price will definitely be driven up.

"Idiot! Now that you know how to do it, why are you still dazed? Hurry up and send someone to implement it!

At the worst possible cost, one or two million gold coins will be lost, but as long as it can destroy the credibility of the Alpha Kingdom, it will all be worth it.

Now I don't care what means you use, you must purchase their war bonds as quickly as possible, and then take them to them to redeem them immediately. "

Pius VII cursed angrily.

Political accounts are never purely economic interests. Sometimes a lose-lose style of play must be persisted.

Losing one million gold coins to himself and consuming the Alpha Kingdom's cash flow of ten million gold coins was definitely a strategic success.

There is no way. After taking over the Kingdom of Ruthenia, the Holy See will have to face the strategic choice of going south or going north.

Of course, they can also choose to enter the central continent. It's just that the central part of the continent is too crowded, and there is not a single weak persimmon in the several countries in the central continent, let alone the place where the four wars took place.

Compared to the Frankish Kingdom and the Iliban Kingdom in the Southern Continent...it is obvious that the countries in the Northern Continent are easier to bully.

If the original target against the Kingdom of Alpha was due to hatred and conflict, then it has now risen to a strategic level. Who made Caesar IV's cunning maneuvers allow the Holy See to see the possibility of annexing the Kingdom of Ruthenia?

…

In the Mountain Territory, Hudson has begun preparing for a celebration banquet.

Because there were too many interferences from human factors, the panic in the market did not last long. Especially after the Principality of Moxi stabilized, the chamber of commerce that cooperated with Hudson also realized the business opportunities and joined in the rush to buy bonds, which even drove up the market price.

After the Holy See joined the rush-buying team, Hudson, who realized that the market was over, immediately ordered a halt to the operation.

Of the two million gold coins prepared in advance, only 1.6 million were spent, but this did not affect the success of this speculation at all.

As the first to take action, Mountain Leader obviously had the biggest piece of cake.

If you buy a bond with a face value of 2.5 million for 1.6 million gold coins, you can still make hundreds of thousands of dollars even if you sell it immediately at the current market price.

What's more, because of the first-mover advantage, 40% of the 2.5 million bonds are high-interest bonds, with an annual interest rate of 10%.

After the market stabilizes, ordinary bonds will be sold one after another, and the principal will be almost collected, and the rest will be blood profits.

Although there is still a shortfall of hundreds of millions from the original goal of earning enough money to build docks and shipyards, it does not matter.

Having withstood this impact, in the short term, Alpha Kingdom has no risk of default. Holding high-interest bonds and enjoying a few years of income is also a good choice.

At least in terms of capital return rate, the return on bonds is much higher than the return on land reclamation and farming. This is a good business until there is no better investment target.

…

While Hudson is making money, the Treasury Department is crying. The crisis in the Principality of Moxi has passed, but the troubles in the Kingdom of Alpha continue.

The eight million in cash that the Kingdom finally raised was quickly cashed out. If there hadn't been a one-month buffer period, I might have already laid down.

"What's going on? Hasn't the market already picked up? Why are there still people running on it?"

Caesar IV asked with a puzzled look on his face.

Although bond prices vary from place to place, they are generally on an upward trend. Judging from the general trend, it is only a matter of time before prices return to normal.

When the market price is higher than the early redemption price, then holding the bond to redeem it is obviously an act that harms others but does not benefit oneself.

Even if you hold a huge amount, you can sell it slowly. There is no need to suffer losses and frustrate the Kingdom's Ministry of Finance.

"Your Majesty, the people from the Holy See have taken action. This time they didn't even bother to cover up. Their purpose is to consume our cash flow.

Originally, the Ministry of Finance wanted to secretly sell a batch of recycled bonds and make arbitrage profits in the market, but the outside world kept a close eye on it. In order to stabilize market confidence, we could only publicly destroy the recycled bonds.

If we want to stabilize the situation, we can only seek help from the outside world now. The Ministry of Finance has been in contact with major chambers of commerce, and they have promised to lend funds, but their appetite is a bit big.

Now it depends on how much loss the Holy See is willing to bear. If they fight with us at all costs, the next run will be even more serious. "

Marquis Delgado's explanation made all the high-ranking officials in the kingdom furious. The Holy See actually purchased the bonds from the market and redeemed them. It was so shameless.

But there is no way. In order to stabilize market confidence, Alpha Kingdom can only pretend to be rich, even if it is very poor.

"Then just spend it with them!

Doesn’t the Holy See want to purchase bonds from the market? Let’s make it happen. The bonds recovered by the Ministry of Finance continue to be publicly destroyed, and I will find a solution for the funding gap.

I remember that the royal family still had more than three million in war bonds, and they arranged for people to sell them in batches, and the funds obtained were lent to the kingdom.

If it is not enough, contact the nobles in the country, and you can make arbitrage transactions by changing hands to see who can outspend whom!

The contact with the Chamber of Commerce cannot be cut off, and we deliberately create the appearance to the Holy See that we are about to be exhausted, so that they can increase their investment! "

Caesar IV said angrily.

He is not ready to have moral integrity now. If the people in the Holy See dare to do the first grade of junior high school, he will dare to do the fifteenth grade.

Thanks to the leader of ZuttoMayo, we are one step closer to becoming a hundred alliances, but there is still a lot to go...

Forget it, let’s talk about monthly tickets. Readers, please bring them!