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Chapter 746 - 746 34 Latent Risk_2

746: Chapter 34, Latent Risk_2 746: Chapter 34, Latent Risk_2 There are three major kingdoms in the Northern Continent, and with the civil war within the Warhammer Kingdom and the crises in Moxi Duchy and Alpha Kingdom, the regional balance within the human world is being disrupted.

Originally, after the war against the Orcs ended, several powerful countries in the Central Region of the Continent were a little restless, wanting to expand into the Northern Continent.

Their slow progress was due to the restraints put upon them by the strong countries on the Southern Continent; and on the other hand, they also lacked justification from a moral perspective.

In addition, the Moxi Duchy and Alpha Kingdom had retained some of their strength after the war, and Caesar III had come up with the Magical Beast Legion plan, gathering a host of small countries from the Northern Continent.

Although, overall it did not match the strength of a few Central Region Kingdoms, they could not collapse these countries in a short period.

But the current situation has changed.

Without Caesar III leading, the loose alliance formed by the major powers of the Northern Continent is teetering on the brink of collapse.

Perhaps all it would take is a simple wind to crumble everything.

Even the moral obstacles will cease to exist after the outbreak of debt defaults.

They are entirely justified in marching into the Northern Continent under the banner of debt collection through force.

Small nobles at home who became the leftover-receivers, as well as small merchants, will become committed to the war Faction.

If the Clergy stirred up some trouble during this time, and helped to detain several strong countries in the South Continent, no one could prevent the outbreak of internal human warfare.

It’s easy to ignite such a spark, the tricky part is how to maximize the benefits for the Clergy.

They must ensure they do not ruin Alpha Kingdom, or let emerge one, or several Countries against the Clergy.

To restore the glory of the Clergy, the best option is to disrupt the current balance among the human race.

However, they cannot afford to have the overall strength of the human race drop significantly given the species eyeing humans vigilantly.

Constantly weighing the gains and losses, Shelter VII wandered around the grand hall for a while.

…

Nearly at the same time, similar discussions emerged in Frank Kingdom, Iberia Kingdom, and under the rule of the Black Forest King…

.

However, everyone’s ambitions and strategic goals were different.

When making decisions, they intended differently.

Even the species unrelated to Alpha Kingdom also had intense discussions about the death of Caesar III.

At this time, the whole Continent of Aslante demonstrated an atmosphere of brewing thunderstorms.

The once hidden “Cataclysm of Ten Thousand Years” was also propagated under the impetus of some people.

In summary, it could be generalized into one sentence: “The outbreak of the Cataclysm of Ten Thousand Years”—”Replacement of Species Hegemony”.

…

In the Mountain Domain, after hastily ending the activity of taming the magical beast juvenile, Hudson got busy.

The sudden death of the King forced him to significantly revise the previously planned territory development plan.

The wharf and the shipyard, which have completed preliminary exploration, were waiting for the canal to open to immediately start construction.

To give up the things he bought with a lot of money felt too difficult.

Hudson was not so generous as to throw away decades worth of gold coins investment.

Moreover, compared to the investment cost, the “Key” to reach the sea was the most valuable.

Even though he knew this was a trap set by Caesar III, he still had to jump into the pit.

Once he gives up now, it might be difficult to seize such a good opportunity in the future, for ten, or even tens of years.

Although Hudson had a stack of relevant documents in his storeroom, without someone to turn the documented information into reality, those documents are just scrap paper.

Whether he wanted it or not, the Mountain Domain was tied to the royal family’s chariot for a very long time into the future.

“His Majesty The King has passed away, and the situation of the Kingdom has taken a sharp turn for the worse.

You all should speak your thoughts!”

Hudson said solemnly.

At this stage, it was crucial to utilize the think tank.

Compared to his two generations as a human, these local people would have a much better understanding of social norms when viewing issues.

“Count, at this time, it is better for us to stay put.

The news of the King’s death has been spread.

At this moment, the Kingdom is in turmoil.

Our intelligence collection work is severely lagging – we do not fully understand the situation in the Capital, nor do we know the positions of the major nobles within the country.

Any rash involvement will only put us in danger.”

“Instead of acting hastily, we should remain still, waiting for the situation to develop.

Once political dynamics become clear, we would then decide our next move!”

Cain’s opinion deeply disappointed Hudson.

It was an excuse for inaction under the guise of seasoned statecraft.

As an emerging nobility, they would not stand with the confidence of established nobles.

They could not hide from the sensitive change of royal power.

This crisis was not just a domestic dispute, but one that might pull in international events as well.

Hudson glanced at the eager finance officer and directly asked for his opinion, “Rudolf, share your insights with us!”

“Your excellency, the current situation is grave!

The king’s unfortunate death happened at a critical time which might lead to significant turmoil,

especially in our Southeastern Province, already in the midst of a tax repayment crisis, the noise is deafening.

Numerous minor nobles are gathered at the Governor’s Mansion crying poverty.

Even collecting all the taxes was already a tough job, and now with the King’s sudden death, everyone is busied with mourning, and this tax issue will likely be further postponed.

We can delay, but the kingdom’s treasury cannot.

If this tax is not collected, the redemption of the next bond interest will inevitably be affected.

Even if the Ministry of Finance can cover the current deficit with its ingenious financial management, more problems will emerge,

especially during a period of power transition.

Many unforeseen events could occur.

Even the foreseen debt repayments might not be possible next year.

”

“I don’t think the new king will have the power to subdue a host of domestic nobles and allow them to continue to accept high taxes,

not just this debt tax, but it might also be difficult to guarantee the full payment of other taxes in the days to come.

The Kingdom’s finances may be weighed down by heavy debt…”

Listening to Rudolf’s analysis, Hudson couldn’t help but sigh with admiration: the perspective derived from financial management sees the problem from a different angle.

Compared to the political changes, a financial crisis is the immediate pressing issue for the Alpha Kingdom to solve.

Originally, according to Caesar III’s plan, as long as the first “debt tax” is fully paid, it would set a precedent.

Having adjusted to this period, subsequent collections would meet less resistance.

Once everyone can endure the hardship for a few years, the Alpha Kingdom could navigate out of the debt crisis.

After all, this tax payment will not only settle the interest, but also partially repay the principal, reducing the interest the kingdom must pay in the future.

However, plans never keep up with changes, and Caesar III’s sudden death has completely disrupted the plan.

The “debt tax” collection has not been completed and is now in a state of flux.

Whether it proceeds in the future depends on the integrity of the nobles across the lands.

If there is a drastic reduction in revenue, no amount of robbing Peter to pay Paul can fill such a gaping hole in the treasury.

“Your analysis is good, there may indeed be a financial crisis in the Kingdom.

However, this is not a comprehensive outlook.

In addition to domestic issues, we will also be influenced by international factors.

If anyone wanted to kick us while we’re down, they could incite a run on the bank on our bonds before their maturity, putting early redemption pressure on us.

The state treasury has been depleted, the Ministry of Finance’s robbing Peter to pay Paul is only able to solve minor issues, and it cannot pay off the early redemption of the bonds.

Although theoretically we could refuse such unreasonable early redemption demands, realistically it’s impossible to do so.

They’ve been lending us money without any interest for this long, not paying them back on time would ruin the kingdom’s reputation once word got out.

Runs on banks are only isolated cases of bondholders asking for their money back.

If our credit collapses, all our creditors will come!

In the worst-case scenario, this could even escalate into armed debt collection, forcing us nobles to help cover the deficit!”

Despite what he said, Hudson knew very well in his heart that if it came to armed debt collection, they’d want more than just payment.

Although the Alpha Kingdom owes a lot of debt, the amount per creditor isn’t much, owing perhaps only one or two million gold coins each.

If a large-scale war breaks out over this meager sum, it barely covers the cost of a military drill.

…