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Chapter 777 - 777 50 The Continuously Falling Integrity_2

777: Chapter 50, The Continuously Falling Integrity_2 777: Chapter 50, The Continuously Falling Integrity_2 A threat of default could indeed deal with ordinary creditors, but for the Clergy who had instigated this storm, they didn’t care at all whether the bonds in their hands would turn into waste paper.

With tons of pseudonyms acting as vanguards, the hesitant creditors joined the debt collection action again.

On the last day of 99991, the run finally broke out in full swing, with external embassies of both Alpha Kingdom and Moxi Duchy being blocked.

The difference was that, after round after round of negotiation, the creditors who blocked the Moxi Duchy finally reached an agreement reluctantly.

The creditors blocking the Alpha Kingdom remained in a stalemate, but their sentiment was ultimately affected.

If it weren’t for someone continuously stirring up trouble and exaggerating the risk of default, everyone might have chosen to compromise.

After all, bond interest is being paid as usual every year.

Atop Holy Mountain, Shelter VII, who received the news, burst out in anger!

“Is this the outcome of your actions?

We spent a huge amount of money to initiate a run, is it just to create a spectacle?

And what’s the matter with the Moxi Duchy?

You told me that they would certainly default.

So why did they reach an agreement with the creditors first and step out of the debt crisis?

…”

The near-roaring questioning made many top Clergy members lower their heads.

Everyone likes to spend public funds.

This action was initiated by several Clergy departments.

Because many people were involved, it led to many people to greedily participate and there inevitably were some problems in implementation.

“Your Majesty, our funds are limited.

We spent them all on suppressing the Alpha Kingdom and neglected Moxi Duchy, whose finance was worse.

We never thought that they’d emerge alive from a deadly trap and actually bring the dead chess game to life.

At the negotiation scene, the Moxi People proposed two options directly: to repay as agreed upon or they would immediately declare a debt default.

With none of our men causing trouble, those creditors who didn’t want to receive no gold coins at all were forced to agree to receive their normal payment.

Influenced by this news, the Alpha Kingdom side suddenly became tense.

They agreed to pay some bonds in advance, but requested subtracting previously paid interest, bond issuance costs, fund-raising costs…

After dubious deductions, they only accepted an 80% payment, and also demanded an application one month in advance.

Only after approval could they receive the repayment.

Many creditors wavered, believing that if the Moxi Duchy could weather the debt crisis, Alpha Kingdom, with a better financial situation, would definitely have no problem.

Our people have applied, but that’s not enough.

A few days back in order to create panic, we had already sold a lot of bonds, and the war bonds we currently hold are less than a hundred thousand.

It seems other departments are no different, everyone’s war bonds would not quite make up to a face value of one million.

If we want to topple the Alpha Kingdom’s finance, we need to collect more bonds from the market to squeeze out their cash flow.

However, after the Moxi Duchy crossed the debt crisis, the price of the Alpha Kingdom’s war bonds began to recover, from the market’s previous low of 50%, all the way up to the current 88% of the face value.

Early issued high-yield bonds have already reached face value, and even have some surplus.”

Blake didn’t want to stand out either, but Shelter VII had just called his name, leaving him no choice for refusal.

The previous bond sale was from high to gradually low positions, so there wasn’t much loss.

But if they were to be repurchased from the market now, and then taken to the Alpha Kingdom for payment, they would definitely make a loss.

Though it seems only a few points will be lost, once they enter the market on a large scale for purchasing, the circulation price will certainly be hyped up.

“Idiots!

Since you know what to do, why are you still hesitating, hurry up and dispatch someone to implement it!

If we lose one or two million gold coins, as long as the Alpha Kingdom’s creditworthiness is destroyed, everything will be worth it.

Now, I don’t care what methods you use, you have to purchase their war bonds at the fastest speed, and then immediately go to them for redemption.”

Shelter VII scolded furiously.

Political accounts have never been simply about economic benefits.

Sometimes, a mutually harmful strategy also has to be maintained.

Even if I lose a million gold coins, as long as it drains ten million gold coins of the Alpha Kingdom’s cash flow, it will definitely be a strategic success.

It can’t be helped, after having taken the Kingdom of Rusenia, the Clergy must face the strategic choice to either go south or north.

Of course, they can also choose to invade the Central Continent.

However, the Central Continent is too crowded, none of the few countries there are weaklings, besides it being a battleground for world wars.

Compared to the Frank Kingdom and the Iberia Kingdom southward, it is apparently the countries of the Northern Continent that are easier to bully.

If previously their target on the Alpha Kingdom was due to hate and conflict, now it has escalated to a strategic level.

After all, it was thanks to Caesar IV’s strategic moves that the Clergy saw the possibility of annexing the Kingdom of Rusenia, wasn’t it?

…

In the Mountain Domain, Hudson had begun to prepare for a celebration feast.

Due to many human factors and interference, the market panic emotion didn’t last long.

Particularly after Moxi Duchy stabilized, business firms that cooperated with Hudson also sensed a business opportunity.

They joined the action of snatching bonds one after another, which further raised the market price.