MTL - The King-Chapter 368 debt crisis
Chapter 368 Debt storm
I don’t know when, a rumor that the Principality of Moxi went bankrupt and the Kingdom of Alpha defaulted on its debts spread across the continent.
At almost the same time, more people sold the bonds of the two countries. The high-yield bonds that originally had a premium are also being sold with tears at this moment.
Under the influence of panic, more and more people believe in rumors. The lower the price of the bond, the less likely anyone will buy it.
Under the leadership of those who are interested, countless bondholders have asked the governments of the two countries to pay in advance.
Looking at the reports sent back by envoys stationed abroad, Caesar IV lost a lot of hair again.
Before taking the throne, he longed for power; after taking this position, he realized how difficult it is to be a king.
It is tiring to handle it by yourself; to delegate power to subordinates, but worry that the power will be left behind.
"This is the feedback from all over the world. If this matter is not handled well, our bonds issued internationally will usher in a big run.
We called everyone 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 they come from different places, so it is enough to just read one copy.
After a rough scan, everyone's faces turned gloomy. Obviously, the actual situation is more serious than what Caesar IV said.
"Your Majesty, the wave of bond runs is probably unstoppable. Rumors like this appearing all over the mainland at the same time, obviously someone is secretly manipulating them.
The enemy came prepared, and it is definitely not something we can resolve with a few explanations.
Now we must prepare for the worst and try our best to prevent the kingdom from going bankrupt in the run-on wave. "
The Grand Duke of Newfoundland said with a bitter face.
There is no doubt that the bankruptcy he is talking about refers to the bankruptcy of the government's reputation, not financial bankruptcy.
Once a large-scale bank run breaks out, there is only one thing Alpha Kingdom can do—lay flat.
No money means no money. Even if you sell everything, you won’t be able to raise enough funds in a short period of time.
The nobles in the country can't count on it, and the small nobles are already poor. The great nobles are still working hard to prepare for the battle, and it is impossible to take out the last family fortune to fill the hole for the kingdom.
Since it is destined not to pay back the money, then simply not to pay it back. Relying on these debts, the Alpha Kingdom's finances were immediately revived.
The benefits are visible, but the consequences are dire.
If you encounter trouble in the future, if you want to borrow money again, it is definitely hopeless.
What's more troublesome is that the country's reputation is gone, and political and diplomatic activities will be affected.
The hatred of creditors is also a big trouble.
Those who can spend money to buy war bonds are not small leeks.
The big aristocrats transferred the risk, and the small and medium-sized aristocrats with delayed information not only did not run away, but acted as receivers.
They are also the ruling class, at least locally, they have a certain influence.
The hatred of one or two is nothing, the hatred of a group of people can also affect the political position of the country where they are 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 yuan. Don't worry too much about this part for the time being. The nobles will not be foolish to stab their knives at such a time. What needs to be resolved is the international debt.
If the deal between us and the Kingdom of Hesse is successfully concluded, it is expected to reduce 16 million to 18 million gold coins.
Estimate optimistically, and calculate it based on 4,200 gold coins. Among them, the war bonds accounted for about 30 million gold coins.
Under normal circumstances, the bond of 30 million gold coins will not be rushed to us to pay all at once.
But this time, it was obvious that someone was secretly manipulating it, and it cannot be judged according to normal economic laws.
Maybe at that time, the war bonds circulating in the kingdom may also be transferred out and appear in the wave of runs.
How much cash we need to prepare depends not only on ourselves, but also on the Principality of Moxi next door.
If they withstand the shock, under the guidance of confidence, we can calm down the storm by preparing eight million gold coins.
But the Moxi people have already embarked on the road of borrowing new ones to repay the old ones. I am afraid that they will fall down as soon as the run on them breaks out.
When the time comes, panic will superimpose, even if you prepare 30 million gold coins, you may not be able to withstand the shock.
Maybe the governments of various countries will jump out and stab us to collect debts in advance. "
Data will not lie, Marquis Delgado's words completely cut off Caesar IV's thoughts.
Eight million gold coins, everyone can find a way to make up. Thirty million gold coins, then don't think about it, the Alpha Kingdom is not that rich.
Perhaps he felt that what he just said was too absolute. After hesitating for a while, Marquis Delgado added:
"Your Majesty, there is still a solution, but the consequences are a bit serious, and the gains may even outweigh the losses.
If we acquiesce in the Kingdom of Dante and the Kingdom of the South Coast going north to annex the Counties of Glint and Nadal, we can probably pay back 10 million gold coins less.
If you go further, acquiesce in the annexation of the Kingdom of Oprus by the Franks, the annexation of the Kingdom of Avalat by the Kingdom of Iberia, and the invasion of the Kingdom of Turan by the Holy See...
Satisfying the ambitions of all countries on the continent, then our debt problem will no longer be a problem. "
There is nothing wrong with it. The debt problem does not exist in this way, and it is all transformed into a national defense problem.
In less than ten years, the continent of Aslant will transition into the era of "hegemony". If you are lucky, the Alpha Kingdom can become one of the overlords, if you are unlucky, it will die halfway.
"Marquis Delgado, your thinking is too simple. Not to mention the sequelae of doing so, the acquiescence of the Kingdom of Light is not as valuable as you think.
In the Northern Continent, our right to speak is indeed very important, but when it comes to other parts of the mainland, that's the case.
Unless it is a flag-declared stand up to support them, there may be some possibility, but there is not much hope.
Compared with a dispensable support, everyone is more willing to exclude a competitor first. "
Earl Francis said solemnly.
Only those engaged in diplomacy know how unfavorable the current international situation is to the Kingdom of Alpha.
This debt crisis seems to be planned by someone, so is it not the result of the collusion of various countries?
If there are not a few major powers acquiescing, who has the ability to launch together on the whole continent!
…
Compared to the entanglement of the Alpha Kingdom, the Principality of Moxi, which is also deeply in debt crisis, is another scene.
In the back garden of the royal palace, King George was making tea and chatting leisurely with a group of princes and ministers, without any trace of tension.
"Have you found out who is targeting the Principality?"
George asked calmly.
After a series of behind-the-scenes manipulations, the Moxi Principality has secretly settled most of its debts by "inheriting knowledge and repaying debts with special cultivation resources".
The current trend of bankruptcies is just a show deliberately staged to deceive people.
After all, their transaction broke 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 secrets more than the Principality of Moxi.
Once the news leaks out, the Principality of Moxi will certainly be suppressed by all parties, but these traders will be doomed.
If King George hadn’t discovered that someone was plotting secretly, he would not bother to pay attention to these disputes.
"Your Majesty, all direct clues have been cut off. However, according to the speculation of the nobles who traded with us, the mysterious person who found them may come from the Holy See.
Comprehensive analysis of various data shows that their main target for this operation is the Alpha Kingdom, and we are just pawns for them to attack the Alpha people.
These guys are trying to crush the Principality’s finances through a bond run, forcing us to default on our debts, which will trigger a larger scale of panic and ignite the Alpha Kingdom’s huge debt mine.
It's a pity that these people have calculated thousands of times, and they didn't expect that the principality has solved the debt problem. No matter how big a wave is set off now, it is doomed to be useless.
If the principality's finances are not broken, everyone's confidence in the Alpha Kingdom will not be shaken.
After all, from a bright point of view, the financial situation of the Alpha Kingdom is much stronger than ours! "
Count Renato said gloatingly.
Obviously, even if there is no definite evidence, he still believes that the Holy See is behind the scenes.
No matter what the reason is, Count Renato has no good feelings for the Holy See who wants to push them to the abyss of hell.
It is also a kind of enjoyment to be able to watch the behemoth of the Holy See fail, and to watch their plans fail.
"It really is the Holy See!
I don’t know what the Alpha Kingdom did to make the Holy See hate it to the core, so it didn’t hesitate to make such a big deal.
If I guessed correctly, they would at least have to lose hundreds of thousands of gold coins for the crazy suppression of bond prices this time.
But this is also good, the alliance between our two countries will be more stable if the Holy See adds chaos to the Alpha Kingdom.
The three major kingdoms in the central region are about to move, and the trend to the north is already unstoppable. The principality still needs time to recover, and now it needs Alpha people to stand in front.
Send a copy of the found information to Caesar IV. By the way, tell them: the principality is united at this moment, and all the nobles will unite to deal with the crisis, and it will not be so easy to be defeated. "
George frowned and said.
Make bricks without straw.
Watching the opportunity come to him helplessly, limited by the lack of strength of the Principality of Moxi, he could only choose to restrain his ambition.
…
In the mountainous territory, Hudson was happily welcoming the opening of the canal, imagining the next great economic development of the territory, and received a blow to the head.
The turbulent debt crisis swept across the Alpha Kingdom, as if the whole world knew the news overnight.
Anyone with a little bit of political savvy knows what to face next once a bank run occurs.
The bonds in the hands are reduced to waste paper, the key is the political and economic impact.
Political crisis, Hudson has been too lazy to think about it. When the sky falls, the tall man will bear it first, and let the king and the ministers worry about it.
But economic problems are unavoidable.
The seven grassland countries market that was finally opened up with great difficulty may be closed directly. Even if it can be kept, the price paid will not be small.
The next maritime strategy must also be readjusted. For the time being, international trade is out of the question. In the next few years, let's do domestic trade with peace of mind!
The emerging aristocrats are so hard-pressed, and even a little trouble can cause a major impact.
If it was replaced by a well-established old nobleman, he would definitely not be so flustered.
Take the Dalton family as an example. They are also engaged in international trade, so they are not afraid of such turmoil.
As far as Hudson knows, they have regular partners in many countries on the mainland.
There are not a few marriages with each other, and everyone has established a community of interests long ago.
Don't say it's political fluctuations. Even if two countries go to war, it won't affect their continued business.
…
"Count, Mr. Jose has entered the territory. Because there are family members accompanying him, he is expected to arrive at the Lord's Mansion in five days."
Tom's words made the sad look on Hudson's face a lot less. After planning for so long, he finally succeeded in poaching corners.
(end of this chapter)
