King

A government that makes efficient decisions also means that when it encounters problems, collisions become more intense. There was a heated argument over the issue of getting rid of finances.

The current financial solutions to the problem are:

“The government is bankrupt!”

"Issue paper money!"

"Raise taxes!"

Three sets of controversial plans were put together and suddenly became the focus of attention from all walks of life. Even the previous proposal to increase the direct jurisdiction of the kingdom was suppressed.

The gossips have already greeted all the officials at the Ministry of Finance and blasted the solutions they proposed as worthless.

But this makes no sense, as the loudmouthed king has no say in the royal government. As a pragmatic government, if you want to object: please come up with a better plan.

If there is no better way, then you can only choose one of the three. Even if you know that every plan has pitfalls, you can only bite the bullet and jump into it.

It is better to take planned action than to be dragged into bankruptcy by the Royal Government. At the very least, if you go bankrupt proactively, you can handle the accounts in advance and transfer the property in the name of the government, without actually going through bankruptcy liquidation.

The Principality of Moxi is an example. A fake loan mortgaged all the territories, real estate and land under its name. When the government went bankrupt and liquidated, there was not even a copper penny left in the government's books.

The situation in the Alpha Kingdom is similar. Although the finances are in severe deficit, the government still has a lot of property.

The large cities under the direct jurisdiction, the mines distributed in various places, and some official industries are all worth a lot of money.

If they are all packaged and sold, even if the financial hole cannot be filled, the current crisis can be solved.

It's just that no one dares to suggest this kind of prodigal behavior. It’s not the end of the dynasty yet!

When disputes arise, all parties tacitly ignore these industries. Even if someone mentions it, they only suggest selling the management rights of some loss-making industries to individuals.

As one of the kingdom's decision-makers, the consultation draft quickly reached Hudson's hands, and then the rest.

"No support, no opposition" is his position.

Any country that goes to war year after year will have financial problems. If the private sector has money, they can also find ways to raise money from the financial market.

But everyone in Alpha Kingdom is poor!

If you want to raise funds from the private sector, you must first have money in your pocket. As far as Hudson knew, the amount of deposits tied together in all the kingdom's commercial banks was less than half of the kingdom's total debt.

Commercial banks in various places can provide the government with low-interest loans of 40 million gold coins, which is already very supportive of the royal government.

Just thinking about it brings tears to my eyes. As the largest commercial bank in the Kingdom, the Near East Development Bank is also the largest creditor of the Royal Government.

After the war broke out, the Near East Development Bank alone issued a loan of more than 20 million gold coins to the royal government.

I was supposed to be collecting the wool by myself, but in order to set an example and prove that we could advance and retreat together with the Kingdom, I had no choice but to let the Royal Government come in and collect it together.

Of course, this loan is secured.

The newly discovered magic crystal mines and gold mines in the Near East were all mortgaged by the Royal Government to the Near East Development Bank. Even the minerals in the newly occupied areas were mortgaged by the government in advance.

It is equivalent to a different kind of empty-handed white wolf. The war must be fully won for these mortgages to take effect.

Regional commercial banks in various places also receive more or less collateral when issuing loans.

It certainly cannot be compared with the Near East Development Bank, because neither the Royal Government nor Hudson, the owner of the bank, know how much the collateral is worth.

From the outside world, this kind of mortgage is mainly for bank shareholders. Because the investors from the Near East Development Bank showed strong dissatisfaction on this issue.

Fortunately, the war was won in the end, otherwise there would have been a round of fighting over the management of the bank.

Maintaining shareholder relations as much as possible is not only a matter of conscience for Hudson, but also a necessity of interests.

Everyone who dares to engage in cross-border investment naturally has someone to rely on. No shareholder in the Near East Development Bank is a soft persimmon.

When I was able to spend money readily, I was not only attracted by the business model, but also had the agreed capital-guaranteed drawdown model.

If you don't have money, you can use magic potions as a deduction. With the reputation of being the number one magic pharmacist in the mainland, all Ha's magic potions are in hard currency.

In recent years, although shareholders have only made paper wealth from the increase in market value from their investments, they have gained real money and favors by reselling magic potions privately.

So much so that investors love and hate Hudson!

I'm afraid that if he operates willfully, if one day there is a problem with the operation of the Near East Development Bank, shareholders like them will be asked to inject capital.

There is no way, trapped investors are just so miserable.

Too many chips have been staked, and the sunk cost of giving up now is too high.

After all, the Near East Development Bank still seems to be a high-quality asset.

Other commercial banks have a lot of bad debts due to chaotic management and imperfect risk control systems, but the bad debt rate of the Near East Development Bank is very low.

…

"Duke, Count Francis, the Chancellor of the Exchequer, is visiting!"

After receiving this news, Hudson frowned. The Ministry of Finance is currently in trouble, and it is not a good thing for this person to come uninvited.

"please!"

Those who come are guests, and they are all decision-makers who control the fate of the kingdom. Even if you don't meet with your head down, you still have to give enough face.

After saying that, Hudson got up directly and went to the back house to change into official uniform.

…

After a brief exchange of pleasantries, Count Francis brought the topic to the three major cheating policies of the Ministry of Finance. Hudson, who was not prepared to express his stance at first, knew that he could no longer avoid talking about it.

"Your Excellency, frankly speaking, none of these three plans is reliable.

Maybe you can go around and see the real situation among the people.

In recent years, the Kingdom's continuous victories in foreign wars have greatly enhanced our international status.

But the price of victory was that the kingdom's finances were on the verge of bankruptcy, and all businesses among the people were in ruins.

This point is also reflected in commercial taxation in various places. The sharp reduction in fiscal and tax revenues in several large cities directly under the government's jurisdiction is the best proof.

Against this background, whether the government goes bankrupt, increases taxes, or issues banknotes, it will trigger a greater crisis! "

To take a stand, Hudson gave it. As for whether it is what the Ministry of Finance wants, that is none of his business.

The solution, that doesn't exist. The financial problems of the Alpha Kingdom have become irreversible and cannot be solved simply by relying on a few policies.

If you really want to get rid of the financial crisis, the only way is to open source, and open source cannot mean raising taxes!

In Hudson's view, the best solution at present is also the only fundamental solution - reform!

It is also a continental power, but the kingdom's economy lags far behind the Frankish Empire and the Iliban Kingdom. The biggest problem is that the proportion of free people is too low.

The whole country is full of serfs. What can we do to invigorate the economy?

Even the neighboring Moxi Principality's current economic situation is much better than that of the Kingdom.

A large part of the reason was that the large influx of freedmen from various countries in the northern continent stimulated economic development.

Whether they were engaged in handicraft manufacturing or farming in the countryside, free people were far more efficient in creating wealth than serfs.

Except for the newly opened areas in the Near East, which require too much initial investment and the potential risks are too high, and are not suitable for free people, the mature areas of the kingdom are already equipped to promote family-style production and operations.

Specific conditions do not mean it can be implemented.

If we really try to liberate the serfs, not only the traditional noble lords will not support it, but even the liberated serfs will not support it.

In the feudal era, the lives of the common people were like straw. The slightest natural or man-made disaster could destroy a family.

The reason why the serfdom system is so stable is not only due to the education of stupid people, but also because the serfs are used to the misery of life at the bottom and dare not take this step.

In densely populated areas where there is no shortage of labor, serfs who want to become free citizens can simply redeem themselves, and the noble lords will not stop them at all.

Every few years, there would be such people who would go out and then escape miserably, and in front of a group of serfs, they would ask the noble master for a meal.

Even if not, for the convenience of their own rule, the scheming noble lords will deliberately arrange several negative teaching materials.

"To succeed"?

In a world where classes are solidified, there are no opportunities for ordinary people. Even if you risk your own life, you can't beat the knight!

In the world of nobles, the ground is not peaceful either. Bandits, bandits and robbers, these creatures will never be lacking in any feudal era.

Traveling alone, being able to safely travel two hundred miles from home is considered a blessing from the Lord of the Dawn.

It's okay to think about turning serfs into servants. Even if the noble lords don't object, the poor serfs can't stand it.

Now all the means of production belong to the noble master, and the profit and loss are also taken care of by the noble master. Even if there is a disaster, he can still make a living.

Once it switches to a contracting system, it is uncertain whether the income will be higher. Anyway, there will definitely be no one to cover the risks for them.

If something happens to the young man, the whole family will have to stay together. Unlike now, even if there is an accident, the noble master is responsible for taking care of the child.

Even if reforms are implemented, farm laborers will at best have a little better life than in the past few years. As time goes by, land rents will continue to rise, squeezing their potential step by step.

The final outcome is that productivity has increased, more social wealth has been created, and the lives of the people at the bottom have become worse.

I was just poor before, but later I became tired and poor. What's the use of freedom if you can't fill your stomach and can't travel hundreds of miles away from home?

After understanding the essence, Hudson would naturally jump out and make "reforms" that would offend everyone.

If he really wants to carry out reforms, he will directly distribute the land to the people at the bottom and introduce laws to prohibit transactions.

If the previous "reform" would bring disrepute and hope for success, then the later "reform" would send one to the guillotine.

"Marshal, everyone knows the risks involved, but the Royal Government has no choice now!

Unless there is a better plan, one of the three risky paths must be chosen!

Maybe you don’t know that with the current financial situation of the Kingdom, we rely on borrowing new money to pay off old ones, and our total debt will increase by three percentage points every year.

Once changes occur, such as large-scale natural disasters or wars, the kingdom's debt growth rate will increase sharply.

If you don’t solve the problem now, the longer it takes, the harder it will be to solve it! "

Count Francis spread his hands and said.

It can be seen that this is a responsible finance minister. I didn’t think about wasting time with Ni Ni and leaving the trouble to the next person.

If there is an irresponsible finance minister who simply borrows new money to repay old ones until he leaves office, the next one will be in trouble.

Anyway, with the name of Alpha Kingdom, it is not a problem to keep the game going for ten or eight years. There is a high probability that Count Francis will return home with great honor.

"Your Excellency, there is no good solution. I do have a bad idea. Let's postpone the matter until the military operation in the Papal States is over.

Immediately pay off part of your debt after receiving this windfall. It doesn’t take much, just pay 10% first to stabilize the creditors’ confidence.

Let’s wait for the economy to recover later!

When everyone has money, it will naturally flow to the market. Sluggish business tax revenue will soon recover.

If there are no major changes in the future, we should be able to barely break even. When the tax holidays in Northern Xinjiang, Near East and other regions end, the financial problem will be solved. "

Hudson said calmly.

He has seen enough fiscal deficits. Compared with the madness of some countries in previous lives, the Alpha Kingdom has just begun!

During this Pope's trip, if the officers and soldiers on the front lines cannot withhold hundreds of millions of wealth, then someone is definitely fishing for money.

According to the previous plan, the Royal Government took away 100 million from it without any problems at all.

After repaying 10% of the debt, the annual interest payment has shrunk to about 20 million.

When the economy slows down in the later period, the royal government can squeeze out five to six million from taxes to repay debts, and the government-owned industries can also squeeze out six to seven million from debt repayments, and another two to three million can be squeezed out from other government revenues. , the annual gap is only a few million.

Developing some of the minerals in the Near East can also increase a considerable amount of income.

As long as the Royal Government does not engage in big projects, the hole in the capital interest will definitely be plugged, and by the way, part of the IOU can be paid every year.

It doesn’t matter when you can pay off your debt. The key is to pay it off at the beginning. That’s a good start.

"Marshal, if the problem could be solved so easily, I wouldn't have to worry.

Let’s not mention other expenses for now. Just adding new territorial defense issues is a huge expense.

us……"

Before Count Francis could finish speaking, Hudson interrupted: "Your Excellency, you have fallen into a misunderstanding.

The Ministry of Finance only needs to solve its own debt problem, and the king and prime ministers will naturally have to worry about government matters.

Anyway, if the Ministry of Finance doesn’t have money, it just doesn’t have money. If the government wants to carry out big projects, let them find ways to get money.

There is absolutely no need for you to take all the pressure on yourself! "

Frankly speaking, these words may lead to bad people. However, the three plans currently proposed by the Ministry of Finance are really failing each one.

If any one of them passes, it will cause huge losses to the kingdom.

If the Ministry of Finance is not capable of solving financial problems, then it should simply not solve them and let departments that are capable of solving them take charge.

Hudson believes that if the government comes forward to solve the financial problem, the measures it can take will definitely be more reliable than the three plans of the Ministry of Finance.

For example: introducing some bills that are conducive to economic recovery, such as persuading the domestic nobles to abolish the transit tax.

Another example: imitate some countries in the Southern Continent and carry out small-scale reforms.

…

In actual operation, it will definitely be quite difficult. At least it won't bring the kingdom to the abyss of hell all at once.

Relying on bankruptcy to save finances does not exist. There were so many countries that were financially bankrupt in the previous life, but none of them could develop better after going bankrupt.

The Principality of Moxi can resurrect from the ashes after bankruptcy. That is because people "fake bankruptcy but are really rich"!

If they don't have a large amount of cash in hand, what will they use for post-war reconstruction and economic recovery?

If the royal government goes bankrupt, the first thing that will happen is a financial crisis, and then a large number of nobles will go bankrupt, and all the chambers of commerce active in the country will close down together.

At that point, international capital, represented by the four major chambers of commerce in mainland China, will also choose to leave.

Under the control of panic, the private economy completely collapsed. The few free people in the kingdom will become the biggest victims.

Unemployment will plunge countless small families into dire straits.

A new wave of land annexation broke out, and the pockets of the great nobles were depleted, but the territory and population under their rule increased, and class solidification further deepened.

The basic situation behind it is in chaos, and the Near East will not be able to escape without a steady stream of blood replenishment.

In Hudson's view, the Treasury Department's three plans ultimately lead to the same results.

Fiscal bankruptcy will bankrupt the economy, and tax increases will also collapse the private economy, not to mention issuing banknotes.

Currency that is not recognized by the public is just a piece of waste paper. For currencies that are forcibly promoted by administrative orders, you can refer to the failure case of Baochao.

It’s not even comparable to treasure money!

The emperor of the Ming Empire and the king of the Alpha Kingdom were not players on the same level at all.

If Caesar IV forced everyone to exchange their gold coins for banknotes, it is estimated that noble lords everywhere would reply to him with one word - get out!

If you force it forward, everyone will just think that the king is crazy. If it arouses anxious eyes, everyone doesn't mind changing to a king who is more worry-free.

The king can be brought down, let alone a small treasury.

"Qing Jun is on your side and punishing the dirty ministers!"

Just take the ready-made political slogans and use them.

The noble lords along the way will do the logistics and bring private troops to respond to the call. The defenders of the royal capital will prepare everything in advance and happily welcome the army into the city.

Perhaps the royal family, which may not be able to wait for the army, realizes that something is wrong, will most likely communicate with the major families in advance, and then everyone will join forces to launch a coup.

Because of this reform, everyone's interests are harmed. There is no concept of paper money in the concept. In everyone's eyes, the government's exchanging paper money for gold coins is an open robbery!

…