A government with efficient decision-making also means that when problems are encountered, the collision is more intense. There was a fierce quarrel over the issue of getting rid of finances.

The current financial solution to the problem:

"The government is bankrupt!"

"Issuing banknotes!"

"Tax increase!"

Placed together, the three controversial plans suddenly became the focus of attention from all walks of life. Even the previously proposed increase in the direct domain of the kingdom was suppressed.

The mouth-cannon party has already greeted all the officials in the Ministry of Finance, spraying the solution they have come up with worthless.

However, this does not make any sense, and the strong-mouthed king has no say in the royal government. As a pragmatic government, I want to object: please come up with a better solution.

There is no better way, so you have to choose one of the three. Even if you know that every set of plans has pitfalls, you can only jump into it.

It is better to act in a planned way than for the Royal Government to be dragged bankrupt. At the very least, if you take the initiative to go bankrupt, you can also handle the accounts in advance and transfer the property in the name of the government, so as not to really go bankrupt and liquidate.

The Principality of Mossi is an example, a fake loan mortgaged the territory and real estate land under its name, and when it was liquidated, all the copper plates left on the government's books.

The situation in the Alpha Kingdom is similar, although the finances are very poor, the government still has a lot of property.

The large cities directly under the central government, the mines scattered all over the country, and some official monopoly industries, these things are also very valuable together.

If we really sell them all, even if we can't fill the financial hole, we can solve the current crisis.

It's just that no one dares to propose this kind of ruined behavior. It's not the end of the dynasty yet!

When all parties disputed, they tacitly ignored these industries. Even if someone mentions it, it is only a suggestion to sell the management rights of some loss-making industries to individuals.

As one of the Kingdom's decision-makers, the Request for Comment was quickly reached by Hudson, and then it was gone.

"Not supporting, not opposing" is his position.

Any country that goes to war every year will have financial problems. If the private sector has money, they can also find ways to raise money from the financial market.

But the Alpha Kingdom is poor up and down!

If you want to raise money from the private sector, you must first have money in your pocket. As far as Hudson knew, all the commercial banks in the kingdom were tied together, and the amount of deposits was less than half of the total debt of the kingdom.

Commercial banks around the country are able to provide low-interest loans of 40 million gold coins to the government, which is already very supportive of the royal government.

As the largest commercial bank in the Kingdom, the Development Bank of the Near East is also the largest creditor of the Royal Government.

After the outbreak of the war, the Near East Development Bank alone issued a loan of more than 20 million gold coins to the royal government.

It should have been a wool of his own, but in order to set an example and prove that he would advance and retreat with the kingdom, he could only let the royal government come in and gather together.

Of course, this loan is secured.

The newly discovered magic crystal mines and gold mines in the Near East were mortgaged by the royal government to the Near East Development Bank, and even the minerals in the newly occupied areas were mortgaged by the government in advance.

It is equivalent to an alternative empty glove white wolf, and the war must be won in an all-round way before these mortgages can take effect.

Regional commercial banks in various localities have also received some collateral to a greater or lesser extent when they issue loans.

It certainly can't be compared with the Development Bank of the Near East, because neither the Royal Government nor Hudson, the bankowner, knows how much the collateral is worth.

In the eyes of the outside world, this kind of mortgage is mainly for the shareholders of the bank. Because the investors at the Development Bank of the Near East have shown strong dissatisfaction on this issue.

Fortunately, the war was won after all, otherwise there would have been a round of dragon and tiger struggle over the management of the bank.

Maintaining shareholder relations as much as possible is not only a discovery of Hudson's conscience, but also a need for interests.

Everyone dares to play cross-border investment, and naturally there is also a reliance, and none of the shareholders of the Development Bank of the Near East are soft persimmons.

At the beginning, I was able to pay money quickly, in addition to being attracted by the business model, there was also an agreed capital preservation and drawdown model.

If you don't have money, you can use magic potions to deduct it, and with the name of the first magic pharmacist in the mainland, all Hastelloy magic potions are hard currency.

In recent years, although shareholders have only earned paper wealth in terms of market value growth in investment, they have gained real money and favors by reselling magic potions in private.

So much so that investors love and hate Hudson!

lest he run willfully, and one day if there is a problem in the operation of the Near East Development Bank, he will have to let these shareholders inject capital.

There is no way, the trapped investors are so hard.

There are too many chips to bet on, and now the sunk cost of giving up is too high.

After all, the Development Bank of the Near East still looks like a high-quality asset.

While other commercial banks have a lot of bad debts due to chaotic management and imperfect risk control systems, the Near East Development Bank has a very low bad debt rate.

……

"Duke, Chancellor of the Exchequer, Count Francis, is here!"

Receiving this news, Hudson frowned. The Ministry of Finance is in trouble at the moment, and it is not a good thing that this uninvited person came.

"Please!"

Those who come are guests, and they are all decision-makers who control the fate of the kingdom, and they still have to give enough face when they look down and don't look up.

After saying that, Hudson got up directly and went to the back house to change into an official uniform.

……

After a few short pleasantries, the topic was led by Count Francis to the three major pit policies of the Ministry of Finance. Hudson, who was not ready to take a stand, knew that he could not continue to avoid talking about it.

"Your Excellency, frankly speaking, none of these three plans is reliable.

Maybe you can go around the world and see the real situation of the people.

In recent years, the kingdom has won many foreign wars, which has greatly enhanced our international standing.

But the price of victory is that the kingdom's finances are on the verge of bankruptcy, and the people's industries are withering.

This point is also reflected in the business taxation of various places. The sharp decline in fiscal and tax revenues in several large cities directly under the direct jurisdiction of the government is the best proof of this.

In this context, whether it is the bankruptcy of the government, or the increase in taxes, or the issuance of paper money, it will cause a greater crisis! ”

To take a stand, Hudson gave a stand. As for whether the Ministry of Finance wants it, that's none of his business.

solution, that doesn't exist. The Alpha Kingdom's financial problems have accumulated too much to recover, and it cannot be solved by just a few policies.

If you really want to get out of the financial crisis, the only way is to open source, and open source cannot be a tax increase!

In Hudson's view, the best solution at present, and the only solution to the root cause, is to change the law!

It is also a continental power, and the kingdom's economy lags far behind the Frankish Empire and the Kingdom of Ilibya, and the biggest problem is that the proportion of freedmen is too low.

The whole country is full of serfs, what can be used to invigorate the economy?

Even the Duchy of Moxi, which is next door, is now in a much better economic situation than the kingdom.

In large part, the influx of freemen from the countries of the North Continent stimulated economic development.

Whether engaged in artisanal manufacturing or went to the countryside to farm, freedmen created wealth far more efficiently than serfs.

With the exception of the newly opened areas of the Near East, where the initial capital was too large and the potential risks were too high to be suitable for the freemen, the mature areas of the kingdom were already equipped to promote family-based production.

Specific conditions do not mean that they can be implemented.

If you really want to emancipate the serfs, not only the traditional noble lords will not support it, but even the emancipated serfs will not support it.

In the feudal era, the lives of the people of Li were like mustard, and a little natural and man-made disasters could destroy a family.

The serfdom system can be so stable, in addition to the education of the foolish people, the serfs are used to the misery of life at the bottom and dare not take this step.

In densely populated areas where there is no shortage of labor, serfs who want to become free people can simply redeem themselves, and the noble lords will not stop them at all.

Every few years, such people would go out, and then flee miserably, begging the noble lord for food in front of a group of serfs.

Even if there is none, for the convenience of their own rule, scheming noble lords will deliberately arrange a few negative teaching materials.

"Get ahead"?

In a world of class solidification, there is no opportunity for ordinary people. Even if you fight with your own life, you can't fight the knight master!

The world of the aristocracy is not peaceful on the ground. Bandits, bandits, robbers, these creatures will not be lacking in any feudal era.

Going on the road alone and being able to walk out of his hometown safely for two hundred miles can be regarded as the blessing of the Lord of Dawn.

It's okay to turn serfs into hired households, even if the noble lords don't object, the poor and white serfs can't stand it.

Now the means of production are all owned by the aristocratic lords, and the profits and losses are also covered by the aristocratic masters, even if they encounter a disaster year, they can also be mixed with a mouthful of food.

Once the switch to the contract system, it is uncertain whether the returns can be higher, and there will definitely be no one to cover the risks for them anyway.

If there is an accident in Qingzhuang, then the whole family can only cool off together. Unlike now, even if there is an accident, the family is still supported by a noble lord.

Even if the reform is carried out, the peasants will at best be a little better off in the past few years. As time goes on, the rent will continue to rise, squeezing their potential step by step.

The end result is that productivity increases, more social wealth is created, and the lives of the people at the bottom are even more miserable.

I was just poor before, but then I became tired and poor. What is the use of the freedom that you can't fill your stomach and can't walk a hundred miles away from home?

Knowing the essence, Hudson would naturally jump out and do the "change" that offended everyone.

If he were to change the law, he would directly distribute the land to the people at the bottom, and introduce a law to prohibit trading.

If the previous "change" will make people notorious, there is still hope for success; Then the "change" in the back is to send yourself to the guillotine.

"Marshal, everyone knows the risks involved, but the Royal Government has no choice now!

Unless there is a better solution, there are three risky paths, and you have to choose one!

In case you didn't know, with the Kingdom's current financial situation, our total debt increases by three percentage points every year by borrowing new to pay off the old.

In the event of a change, such as a large-scale natural disaster or war, the kingdom's debt will increase dramatically.

If you don't solve the problem now, the longer it drags on, the more difficult it will be to solve the problem! ”

Count Francis said, spreading his hands.

It can be seen that this is a responsible Chancellor of the Exchequer. Didn't think about dragging time with the mud and leaving the trouble to the next one.

If you change to an irresponsible chancellor of the exchequer, just play with the new to repay the old, and survive until you step down, the trouble will be the next one.

Anyway, with the name of Alpha Kingdom, it is not a problem to make the game last for ten or eight years. There is a high probability that Count Francis will be able to return with honor.

"Your Excellency, there is no good way. The bad idea was to put things off and wait until the end of the military operations in the Papal States.

As soon as you get this windfall, pay off a portion of the debt. It doesn't take much, pay 10% first to stabilize the confidence of creditors.

Let's wait for the economy to recover!

When everyone has money in their hands, it will naturally flow to the market. Sluggish business tax revenues can recover soon.

If there are no major changes in the future, it should be able to barely break even. When the tax holidays in northern Xinjiang and the Near East are over, the financial problems will be solved. ”

Hudson said calmly.

Fiscal deficits, he has seen a lot. Compared to the madness of some countries in the previous life, the Alpha Kingdom has just begun!

On this papal trip, if the officers and soldiers on the front line can't deduct hundreds of millions of wealth, someone is definitely fishing.

According to the previous plan, the royal government took 100 million from it, and there was no problem at all.

After repaying 10 percent of the debt, the annual interest on the funds has shrunk to about 20 million.

When the economy eases up in the later period, the royal government can squeeze out five or six million of its tax revenues to repay its debts, and the government's industries can also use six or seven million to repay its debts, and then squeeze out two or three million of the government's other revenues, and the annual shortfall will be only a few million.

Minerals in the Near East, if exploited, can also increase a lot of income.

As long as the royal government does not engage in large projects, the hole in the interest on funds will definitely be closed, and by the way, a part of the white slips can be redeemed every year.

It doesn't matter when you can pay off your debts, the key is to pay them back at the beginning, and that's a good start.

"Marshal, if the problem were so easy to solve, I wouldn't have to worry.

Other expenses are not mentioned for the time being. The defense of the new national territory alone is a huge expense.

We ......"

Before Count Francis could finish speaking, Hudson interrupted: "Your Excellency, you have fallen into a misunderstanding.

The Ministry of Finance only needs to solve its own debt problem, and the affairs of the government will naturally be a headache for the king and the prime minister.

Anyway, if the Ministry of Finance has no money, it has no money, and if the government wants to do big projects, let them find a way to get money.

You don't have to, take all the pressure on yourself! ”

Frankly, these words are suspicious of bad people. However, the three sets of plans proposed by the Ministry of Finance are really falling apart one by one.

Any one of them will cause great damage to the kingdom.

If the Ministry of Finance does not have the ability to solve the financial problem, it should simply not solve it, and let the department that has the ability to solve the problem be responsible.

Hudson believed that if the government had stepped in to solve the fiscal problem, the measures it could take would be more reliable than the Treasury Department's three packages.

For example, some laws were introduced to facilitate economic recovery, such as persuading the country's aristocracy to abolish the transit tax.

Another example: following the example of some countries in the southern continent, making small changes.

……

In terms of specific operation, it will definitely be quite difficult. At the very least, it won't take the kingdom to the abyss and hell all at once.

Bankruptcy to save finances, that doesn't exist. In the previous life, there were so many financially bankrupt countries, and none of them could develop better after going bankrupt.

The Duchy of Moxi was able to be reborn from the ashes after bankruptcy, that is because people are "fake bankrupt, really rich"!

If they don't have a lot of cash in their hands, what will they do with post-war reconstruction, and what will they use to restore the economy!

If the royal government goes bankrupt, the first thing that will break out is the financial crisis, and then a large number of nobles will go bankrupt, and the chambers of commerce active in the country will be counted as one, and all of them will close down together.

At that point, international capital, represented by the four major chambers of commerce in the mainland, will also choose to withdraw from the market.

Under the domination of panic, the private economy completely collapsed. The few freedmen in the kingdom will be the greatest victims.

Unemployment, will put countless small families in a desperate situation.

A new wave of land annexation broke out, and the pockets of the great nobles were dried up, but the territory and population under their rule increased, and the class solidification was further deepened.

The basic situation behind is chaotic, and the land of the Near East, which is not replenished by a steady stream of vital blood, will not be able to escape the catastrophe.

In Hudson's view, the final result of the three sets of plans of the Treasury Department is the same.

Fiscal bankruptcy will bankrupt the economy, tax hikes will also collapse the private economy, not to mention the issuance of paper money.

The currency that is not recognized by the people is a piece of waste paper. Currencies that are forcibly promoted by executive orders can refer to the failure case of treasure banknotes.

Not even a treasure banknote!

The emperor of the Ming Empire and the king of the Alpha Kingdom are not players of the same level at all.

If Caesar IV forced everyone to exchange the gold coins in their hands for paper money, it is estimated that the noble lords everywhere would reply to him with one word - get out!

If you force it, everyone will only think that the king is crazy. If you are in a hurry, you don't mind changing to a worry-free king.

Kings can pull off their horses, not to mention a small treasury.

"Qing Jun's side, punish the defilement!"

Ready-made political slogans, just take them and use them.

The noble lords along the way will take care of the logistics and bring their private troops to answer the call. The defenders of the royal capital will prepare everything in advance and welcome the army into the city with joy.

Maybe they can't wait for the army, and the royal family, who realize that something is wrong, will most likely communicate with the major families in advance, and then everyone will join forces to launch a coup d'état.

Because of this reform, it harms the interests of all. There is no concept of paper money in the concept, and in everyone's eyes, the government is robbing it with paper money for gold coins!

……