different warring states of japan

Chapter 2151: Economic Situation Forces a Decisive Battle

Takada Haruno took out the data and presented the facts and reason, but Zhuji was not interested.

The samurai under Ichijo Hideyoshi were overwhelmed, what did it have to do with us? It wasn't us who were bearing the heavy burden, we didn't participate in the war, we just stayed at home and made money.

Yoshigane had expected Zhuji's reaction. He nodded to Takada Haruno, and Takada Haruno continued speaking.

“In the past two years, the interest rate on the Fed’s foreign loans has been declining, as decided by all representatives at several Fed joint meetings.

According to calculations, the average interest rate borne by the East Island Kingdom’s military families is currently about 30% per year.”

Zhu Ji's expression remained calm. The joint meeting of the Federal Reserve was attended by representatives from various banks, and everyone knew the changes in interest rates.

An annual interest rate of 30 percent may be considered usury in modern society, but it was recognized as a benevolent policy in ancient times.

The default loan interest rate in ancient times was nine out of 13 and returned. If the interest was compounded over a period of three months, the annualized interest rate would be as high as 120%.

In comparison, the 30% annualized interest rate of the Spodo warehouse is really generous.

Therefore, the ladies present had no reaction to Takada Haruno's words.

In the past two years, the Sawa Federal Reserve has decided to continuously lower interest rates, and it was Yoshigin who pushed behind the scenes to attract the samurai of the Nishijima country under Ichijo to continue to take on war loans.

Now, the Spo Shen Clan Group has reaped huge benefits from the war loans, and everyone is enjoying the war dividends.

Who would be willing to go to war with the Ichijo family at this time? The Ichijo family is fighting in the front, and we are counting money behind them. Isn't this cool?

But what Takada Haruno said next made the atmosphere solemn. She said.

"According to the latest accounts of Shiba Dokura, the war loans of the samurai under Hideyoshi Ichijo have reached 30 million koku of grain coupons.

Based on the average interest rate of 30%, they need to pay back 9 million koku in interest per year.

Your Highnesses, please note that this is only the current winter settlement situation. By the beginning of next spring, the number will be more than this.

Because the loan burden is too heavy, the Nishijima Kingdom warrior family has lost the ability to repay the loan, and just bearing the interest has reached their limit.

Their current solution is to keep taking on new debts to repay the interest on old loans, but next year, they won’t even be able to pay the interest.

The total output of the island country's land is 20 million koku, and the total output of the samurai territories under Ichijo's command is less than 9 million koku. They also mortgaged the ports, mines, salt fields and other places that could be used as collateral for loans.

So what I am saying is that the Nishijima Kingdom samurai family under Ichijo's command was essentially bankrupt.

The Fed should not continue to lower interest rates and borrow money, but should raise interest rates to reduce the flood of food stamps in the market, maintain the credit of the food stamp system, and reduce the impact of the upcoming bad debt wave. "

All the ladies present were listening carefully to what Takada Haruno said. In fact, not many people fully understood what she meant. For example, Yuigahama Yui was completely confused and looked stupid.

However, powerful daimyo like Takeda Shingen, Hojo Ujimasa, Shima Katsutake, Hosokawa Fujitaka, etc., who managed the economy of their territories on a daily basis, understood Takata Haruno's subtext.

The road of lowering interest rates to promote loans has come to an end. The assets of the Nishijima Kunitake family have been emptied, and now they are just robbing Peter to pay Paul.

If they cannot pay back the money, bad debts will increase significantly.

The amount of grain coupons loaned out has reached 30 million shi. Once the circulation is blocked, these excess grain coupons will just spin idle in the market. A large number of grain coupons flooding the market will cause the grain coupons on the market to depreciate.

The biggest mission of the SPB Fed was to ensure the stability of the face value of food coupons and make the market believe in the credit of SPB food coupons.

If there are too many food coupons on the market, these liquidity must be withdrawn to ensure that the food coupons do not experience a vicious depreciation.

Originally, the 30 million shi of grain coupons were used in a virtuous cycle of military loans for the conquest of the peninsula.

However, if there is a large-scale bad debt and the loan cycle is broken, these extra food coupons can only find a place in the market, which is equivalent to a large number of food coupons outside the market suddenly impacting the market.

This risk is very high. If the Spoelstra Fed makes a mistake in its response, it is likely to directly destroy the credit of food stamps.

Because the total annual land output of the island country is only 20 million shi, according to the one-to-one exchange of grain coupons, it is impossible to take out 30 million shi of grain to offset 30 million shi of grain coupons. The best way is to recover the liquidity of grain coupons before the bad debt wave arrives.

The Federal Reserve used interest rate hikes to recover food stamps, control the number of food stamps on the market within a reasonable range, and then resist the impact of the bad debt wave on food stamps.

Those smart female warriors who understood Takata Haruno's words all looked at their men with admiration.

It turns out that as early as two years ago, the saint had already thought of this day. He wanted to use food coupons to hollow out Hideyoshi's economic foundation, put the samurai of Nishijima Province into bankruptcy, and take the initiative to start a war.

Now it is no longer a question of whether the Sasaki family should start a war first, but the Sasaki family's initiative in this economic crisis is a perfect opportunity to unify the world.

If you do not take what heaven gives you, you will be punished by heaven. This is how Yiyin is using economic issues to force the Sōma clan to support the war.

Yiyin, who was being paid attention to by all the concubines, felt nothing at the moment, because this was just a standard American financial tidal wave, and modern people basically understood what was happening.

If we have to blame someone, we have to blame Hideyoshi Ichijo's excessive greed, which led to this dilemma of debt crisis.

They used interest rate cuts to continuously raise war borrowing figures, and then used interest rate hikes to burst the bubble, artificially creating a tragedy.

Yiyin was not proud of this, but instead felt a little guilty that he was not a human being.

But from the perspective of the ruling class, the Sōma clan, this result was perfect.

Taking advantage of the information gap of the Spoelstra Federal Reserve, the Divine Group knew about the interest rate hike in advance and was able to hold on to the cash by withdrawing liquidity in advance.

Then the bad debt wave came, and the ones who suffered heavy losses were the female warriors, merchants, landlords, and the bourgeoisie who had stored money in the Spo Union.

These people would hate Hideyoshi Ichijo for her warmongering, reckless borrowing, and the economic crisis she caused, as well as her conquest of the peninsula.

If it is said that before, there were still many people who dreamed of conquering the peninsula and secretly supported Hideyoshi Ichijo in their hearts.

Then after the economic crisis, all the wealthy people will curse Hideyoshi Ichijo for being ignorant of the immensity of heaven and earth, declaring war on foreign countries for his own selfish desires and destroying the prosperous island economy.

When the chill of the economic crisis hits everyone on the island, the Spo Shen clan will once again step to the forefront and call for a rescue of the market.

Use the large amount of cash that has been prepared long ago to rescue those wealthy people who are on the brink of bankruptcy and are unable to sleep.

Of course, that was also the time when the market value was the lowest, and the Spo Shenyi Group would acquire the island country's best assets at the cheapest price.

At that time, Hideyoshi Ichijo would only have two options left.

The first way is to admit defeat and be nailed to the pillar of shame in history and be laughed at for eternity.

The second way is to burn the boats and take advantage of the fact that they still have the ability to resist to withdraw the troops that have conquered the peninsula to attack the Sōma territory.

  After all, as long as the war is won, the loan does not have to be repaid!

As for the samurai under Hideyoshi Ichijo, they could only struggle in their death throes.

After all, even if the debt no longer expands, the interest on the loan of 30 million stones will be 9 million stones. The total annual stone cost of the entire Nishijima Kingdom may be this much. The samurai families of Nishijima Kingdom have essentially gone bankrupt.

Every penny they earn now is earned for the Spoelstra family. It is only enough to pay the interest, not the principal. This debt will last for generations.

Coupled with the trend of rising interest rates, they are even more unable to afford the interest and can only follow Hideyoshi Ichijo and give it a try.

Win the fight, but refuse to pay.

  If you lose the fight, just kneel down and beg for mercy. A saint won’t force everyone to death, right?

Whether it is bankruptcy reorganization or debt relief, there will always be a solution, which is better than the endless suffering of being a debt slave.

Regardless of the outcome, this war is inevitable.

Because this is a war between lenders and borrowers, the contradiction between the two sides cannot be reconciled and can only be resolved through war, forcing one side to completely admit defeat.

This is the island nation’s war for world unification, an unjust war filled with the smell of money.