King
Chapter 716 - 716 21 Too Many Smart People_3

716: Chapter 21, Too Many Smart People_3 716: Chapter 21, Too Many Smart People_3 For a long time to come, the political structure of “the decline of the monarchy, the nobles growing stronger” was almost definitively set in stone, and Caesar III was powerless to stop it.

However, thanks to the foundation he had laid, the power of the royal family was rapidly increasing.

Even if the monarchy was in decline, it would not fall too hard.

Once Crown Prince Caesar matures politically, he can slowly regain the voice he had lost in the early stages.

This power-intrigue game repeats itself with every change of dynasty, with ups and downs.

Caesar III had seen too much of it already.

He thought he could face it calmly, but when it came to him, he begrudged it.

…

When the city gate caught fire, the fish in the neighboring pond were affected too.

The Moxi Duchy also faced an economic crisis, and their situation was clearly much worse.

It’s not that the nobles of the Moxi Duchy were better at internal competition, but rather because they had lost too much in the war.

Largescale territories to the North of the capital were almost destroyed.

The remaining noble fortresses were few and far between.

Various major provinces South of the capital each suffered heavy losses.

It can almost be said that every family was in mourning and every person was sobbing.

The war not only left the Duchy’s government in ragged clothes but also emptied the pockets of the noble lords.

The already delicate economy was stimulated again, making the collapse exceptionally fast.

No one had the courage to resist it and simply admitted defeat.

Looking at his income from taxes, nearly all being War Bonds, George was overwhelmed with mixed emotions.

All the War Bonds received should be destroyed.

Everyone is finding life difficult right now, so let’s all work hard to get through this!”

Such a considerate king is a rare sight, but George had no choice but to be considerate.

Gold Coins accounted for less than 20% of the tax income for the first half of the year.

It was much easier to compromise for the second time around after having done it once.

If you are destined to borrow new loans to repay the old, then you might as well borrow more.

Your Majesty, it appears that the situation is getting worse.

Although the development bonds we issued this time have been sold, the time it took was several times more than before.

The major nobles that were keen to buy bonds have also stopped, with most of the buyers being middle and small nobles.

According to the information we’ve gathered, the number of unofficial bond trades has been increasing lately, as if someone is discreetly unloading.

Not only our bonds, but also the War Bonds issued by the Alpha Kingdom, have frequently appeared at various auctions.

The only good news is: the transaction price remains robust, and there are no signs of a market crash.

Perhaps they have become aware of the risks and have chosen to continue issuing bonds with us to postpone the debt crisis because they just hold too many bonds and can’t get rid of them right away.

Count Reynato said worriedly.

Being the Minister of Foreign Affairs but worrying about finances is odd enough.

However, to raise funds through the issuance of foreign bonds, relationships with various parties need to be coordinated.

The Department of Foreign Affairs is the main force for this.

As the front-line handling department, facing the Moxi Duchy’s rising debt numbers is giving him sleepless nights.

There is no problem with the idea of borrowing new to pay off the old, but the prerequisite for this to work is that there are enough funds outside that are willing to lend us continuously.

Once the capital chain breaks and this scheme fails, the market crash would come.

We no longer have a way back.

If they detect a problem, then we need to borrow more as quickly as possible before they liquidate their positions.

If we wait for them to shift the risks, I’m afraid someone won’t be able to resist bursting this bubble.

After all, they have reaped enough benefits.

This is unquestionably the best time to withdraw.

George responded indifferently.

He had prepared for the bubble burst before choosing to borrow new to pay off the old.

The Major Nobles aren’t fools.

They send people to gather information about Moxi Duchy to estimate their financial income.

Although there may be certain errors in this figure, the government incurs operating costs.

When the financial income is less than the interest expenditure, anyone can easily conclude that the finances will soon be bankrupt.

The more you owe, the less urgency to repay.

Even if they realize the Moxi Duchy has financial problems, creditors dare not ask for repayment in advance, in case they accidentally trigger a debt thunderstorm.

To protect their own interests, they both promote new bonds for the Duchy to raise funds, delaying the thunderstorm time by luring a sucker to take it, while secretly selling their bonds to shift the crisis.

Your Majesty, continuing to borrow like this will only make our debt burden heavier and more catastrophic when the collapse comes.

We should talk to our creditors while our debt has not caused a thunderstorm, persuading them as much as possible to reduce bond interests to ensure the normal payment.

Chancellor Helcheg said fearfully.

He was truly scared.

He couldn’t help but feel his hair stand on end when he thought of being chased by a crowd of creditors after the debt erupted.

Who was to blame?

He was the Prime Minister of Moxi Duchy after all.

During the time of armed debt collection, if the creditors do not chase him, who would they chase?

They certainly wouldn’t chase King George!

Regicide is the first taboo in the Continent of Aslante.

Even if George was standing in front of the creditors, no one would dare to attack him.

No, we can’t do that, at least not before they get rid of the bonds in their hands!

Owing money to a group of big nobles and a group of middle and small nobles, these are two entirely different concepts.

Do as I said, increase the issue of bonds, and try to divert the cash back as much as possible.

When all the major forces withdraw from the debt crisis, we will decide whether to showdown!

George said seriously.

For a smooth withdrawal, he had to engage in this silent deal.

Without satisfying the major forces involved, armed debt collection was bound to happen.