King
Chapter 712 - 712 20 Miniature version of the economic crisis_1

712: Chapter 20, Miniature version of the economic crisis_1 712: Chapter 20, Miniature version of the economic crisis_1 “Worthless, all just worthless!”

“They can’t even control their own people, they deserve their downfall!”

“I seem to have overestimated them, apart from their formidable military strength, those Northerners are essentially useless!”

“The Clergy, too, are all worthless, they wasted every opportunity given to them!

They were fully prepared to ambush and yet they were still beaten up, it’s clear I don’t know what they’ve been up to!”

“After suffering such a loss, those fools still hold their forces back, not even brave enough to strike back, they have the audacity to claim they’re the first power on the continent?”

….”

Earl Piers’ curses rang out in the great hall, frightening the attendants into making themselves scarce, fearing they would overhear something they shouldn’t and face punishment.

“Cool down, my lord, things aren’t that bad.

Although we didn’t manage to disrupt the enemy’s relocation plans, we have made them a formidable enemy.

Those Nobles of the North may not have made a move but the Clergy really did.

Both sides have drawn blood and I find it hard to believe they won’t retaliate.

Next, all we need to do is expose the identity of the attackers and guide Earl Hudson towards retaliation.”

Either way, neither of them are any good.

Whether the Koslow Family or the Clergy end up fighting, regardless of who wins or loses, it will be good news for our family!”

Sheffel persuaded patiently.

“It’s not that simple, the Koslow family’s private army initiated the offensive on the day of the attack.

Whether the Clergy accidentally exposed themselves while ambushing, or the Koslow family had noticed something was amiss and had prepared in advance, no one can say for sure.

Perhaps Hudson already knows it was the Clergy, but he doesn’t dare to openly confront the Clergy due to his lack of power.

If so, the role we’ve been playing may already be exposed.

Hudson hasn’t made a move yet, but that doesn’t mean he won’t in the future.

You’ll see, he is bound to retaliate!”

Earl Piers said, full of apprehension.

Being targeted by an enemy with unlimited potential is not a good choice.

But we’re neighbors and there’s no avoiding them.”

….

In the Mountain Domain, a joyous Hudson soon received some bad news, his territory’s pillar industry had problems.

During the war, the capacity for production grew rapidly, and now it’s time for the backlash.

Even though Hudson ordered a reduction in production in advance, the steel industry of the Mountain Domain bore a significant impact.

“My lord, this is last month’s fiscal report.

Excluding the expenses for immigration, our fiscal deficit has increased by 15,000 gold coins compared to October, pushing our monthly fiscal deficit past the forty thousand marks.

Food, livestock, and service industries all experienced considerable growth due to the emergence of the Magical Beast Breeding Base.

The fast growing fiscal deficit is mainly due to the impact on the steel industry.

Investments on the Prairie didn’t meet expectations causing the demand for iron products to drop drastically.

Due to the shrinking market, several merchant guilds announced the termination of orders last month, affecting every iron product manufacturer in the nation.

Under your direction, we chose to preemptively ship our products to the markets, effectively cutting losses, but the market collapsed faster than expected.

Compared to October, the price of iron products has dropped by over forty percent, with signs that it will continue to decrease.

Looking at the current price, most iron manufacturers are close to their cost price, and those who don’t own mines are actually making losses.

Our cost of producing steel is little lower than our competitors’, but at the current price, we can just break even.

A collapse in profitability in our steel industry is overshadowing the gains of other industries leading to a sharp increase in fiscal deficit.

This impact will last for a long time.

Theoretically, it would take at least two years for the revenue growth from other industries in the territory to compensate for the loss of profits in the steel industry.

The actual situation might be even worse.

The economic growth caused by the Magical Beast breeding base will gradually level off after its peak.

If the steel industry takes a long time to recover, the territory may have to wait for the pioneering project to make major breakthroughs and become completely self-sufficient in food.”

After hearing Jacob’s report, Hudson fell silent.

The lopsided industrial structure of the Mountain Domain wasn’t new.

The collapse of the previously lucrative steel industry directly increased the fiscal deficit of the Domain, and this was just the beginning.

Despite the successful acquisition of the original infrastructure in this territorial exchange, continued investment was inevitable following the mass migration.

Ignoring other factors, renovation and repairs were necessary.

Irrational water projects and roads now needed to be planned again.

In short, these projects all came with costs.

Even if the labor was free, people still needed to eat!

Besides, Hudson was not the kind of person that could remain idle, launching new projects left and right, all of which needed additional investments.

“Don’t worry, the situation isn’t as bad as it seems.

Overall, apart from the steel industry, the territory’s economy is still trending upwards.

The current huge food deficit is largely due to the emergence of the Magical Beast breeding base which caused a sharp increase in demand for meat, stimulating the development of livestock farming.”