King
Chapter 713 - 713 20 Miniature Economic Crisis_2

713: Chapter 20, Miniature Economic Crisis_2 713: Chapter 20, Miniature Economic Crisis_2 After deducting this factor, the deficit in our food supply is actually continuously decreasing.

Theoretically, after the completion of the immigration plan, we could satisfy more than 80% of our own food needs.

It is only the development of animal husbandry, which has taken up a lot of agricultural land and consumed a large amount of food, that makes the food crisis appear severe.

The trouble of financial deficit is not even a problem.

A downturn in the steel industry cannot persist for a long time, as it’s a monopoly industry.

Once the inventory is mostly consumed, the market will rebound.

Not to mention we have the canal project to look forward to.

Once it is completed next year, the transportation in the domain will improve significantly.

Even if we don’t consider maritime trade in the short term, we can bring back some fish to compensate for the lack of meat in the domain’s diet, right?

At the very least, we could organize people to produce salt.

Even if we don’t sell it, just meeting our own needs could save tens of thousands of gold coins in expenses each year.

As long as the economy continues to develop at this speed, the domain’s financial deficit will be quickly offset.”

Hudson optimistically expressed.

Under the traditional feudal economic model, an economic development model that runs a financial deficit is not popular.

Without mature market financing, Hudson would not dare to be so aggressive if there weren’t money in his pocket.

Generally speaking, if a major power incurs a huge financial deficit, it’s either because military expenditures have grown too rapidly during wartime, or it’s the end of the dynasty.

The unknown is always terrifying.

Faced with the domain’s constantly escalating financial deficit, the management inevitably becomes panic-stricken.

At this time, Hudson has no choice but to soothe people’s minds.

In short, reality is cruel, but the future is bright.

We must paint a rosy picture; otherwise, how can everyone work calmly while looking at the deficit all day long?

The limitations of the times force Hudson to have a host of ideas but no way to realize them.

As of now, the core industry developed by the Mountain Domain still lies in the traditional feudal economy.

Apart from agriculture and animal husbandry, the economy mainly relies on the steel industry.

In the short term, this pillar is difficult to make a difference, so he has no choice but to reach out to another pillar of the feudal economy — salt.

The Mountain Domain has no salt mines, and if it wasn’t next to the sea, Hudson wouldn’t have a chance to reach into the salt industry.

Regrettably, the monopolistic structure of the salt industry has long been established, and it is difficult for newcomers to enter.

Even if forced in, the best we can do is dealings with acquaintances; the market scale is limited, which means it is difficult to make huge profits.

To avoid unnecessary troubles, Hudson didn’t reach out until his power extended to the sea.

“Earl, referring to the situation at Hensen Port, once the canal opens, it will indeed contribute to the economic development of the domain.

As long as our business prosperity here can reach half of theirs, it can bring enormous economic benefits.

The problem is that the prosperity of Hensen Port is not just about the port, but also the Dalton Family’s factor.

Almost a fifth of the vessels entering and exiting the port each year belong to the Dalton Family.

It’s safe to say their economic growth was largely driven by the Dalton Family.

If we want to emulate, we’re going to need to build our own fleet.

This would be a huge expenditure.

To say nothing of the shortage of excellent seafarers everywhere.

In a short time, it will be difficult to gather enough talent in the domain.

I suggest we first develop the salt industry, accumulate sufficient funds, and then gradually involve ourselves in maritime trade, building our navy.”

Rudolf hastily advised.

From the look of panic on his face, he was genuinely afraid that Hudson would propose building the navy at any moment.

As the domain’s financial officer, Rudolf’s biggest fear is Hudson’s unfettered ideas.

Although the Mountain Domain seems to be thriving, it’s all built on money.

In the Magical Beast Breeding Base, many of the female beasts are already pregnant.

Different magical beasts have different gestation periods; the fastest young will be born in the first half of next year.

According to the agreed distribution of young, the mountain domain will see an increase in big spenders as of next year.

Magical beasts are not as easy to raise as livestock, they need to eat meat.

Rudolf doesn’t mind the meat part, but if you want to shorten the growth cycle of magical beasts, you must use a lot of magical potion.

This kind of extravagant “pay-to-win” approach to cultivating them means it can’t possibly be cheap.

It can be said that the Magical Beast Legion, from its inception, was burned out with money.

“Rest assured, Sir Rudolf.

The naval fleet is a matter for the future.

For the time being, our military development focus will still be on the Magical Beast Legion.

Air Force will be the priority for our development next.

Including the potential threat of pirates after the port opens, we can let the Air Force handle it.

When necessary, we can also develop a sea-based Magical Beast Legion as auxiliary forces.

In this regard, we have a natural advantage, and there’s no need to rigidly follow others’ footstep!” Hudson said dismissively.

Maritime domination is not a game for a minor lord like him to play.

Even if the entire Mountain Domain were to go sailing, it could not support a strong navy.

No qualified for dominance, then change the strategy and concentrate on defense.

Just dealing with pirates, a powerful Air Force is enough to handle most of the unexpected situations.

If that is not enough, he could raise a few magical beasts in the sea to guard the house.

The main problem is that humans can’t survive in the sea, otherwise, a sea-based Magical Beast Legion could be just as intimidating as those fleets.

It seems that no country in the continent has ever attempted to develop a sea-based Magical Beast Legion.

All the female beasts sent by various countries are either flying in the sky or running on the ground, not a single one swims in the water.

Something that everyone hesitates to do may not necessarily be right, but the risks and rewards are probably not proportional.

In an instant, Hudson silently ruled out this unreliable idea.

Going along with the mainstream may not yield substantial gains, but at least it helps avoid pitfalls.

When everyone falls into the same “pit”, that “pit” is no longer a “pit”, but a process that one must go through in life.

…

Reality proved that Hudson was too optimistic.

After the steel’s price fell across the board in November, it continued in the same vein in December.

Last month, in their hurry to sell off, the Mountain Domain crashed the kingdom’s iron products market.

This month, the crisis further escalated.

Now, the issue wasn’t the price of iron products, but lack of sufficient buyers in the market.

Iron products aren’t consumable goods.

Whether they’re farming tools or pots and pans, they last for many years.

The sudden cancellation of a massive order cost them almost the entire grassland market, more than any fine could compensate.

With overcapacity and a saturated domestic market, it’s impossible to find a sales outlet in a short period.

With copious amounts of products stacking up, it needs to be maintained daily.

The longer it drags on, the higher are the costs.

As they realized something was wrong, more people started unloading.

But buyers were few and far between.

The panic brewed until December, finally culminating in a mass sell-off.

Major heads, desperate, began selling at any cost.

Not only did their markets take a hit, but they also spread this panic to neighboring areas.

The Southeastern Province couldn’t escape unscathed.

Faced with an influx of cheap foreign iron products, Mountain Domain’s iron product shipments were halved repeatedly.

The entire Alpha Kingdom’s steel industry was plunged into an end-of-days winter.

Hudson could feel the chilling wind in his home.

No surprise, small-scale processors were the first ones to fall; followed by small mine owners.

As for the industry giants, they were all hanging on by their teeth, waiting for their peers to fall first.