madnovel Chapter 379 A Double Act, Robert's Proposal
Chapter 379 A Double Act, Robert's Proposal
Chapter 379 A Double Act, Robert's Proposal
Because Robert and Earl Hall reacted quickly, first determining that military spending and government employee salaries were two major expenditures that could not be cut, no matter how the smartest minds in the Kingdom of Rune calculated the accounts, they could not solve the huge financial deficit.
Because no matter how you calculate it, it's a loss, and the ministers of each department understand the urgency of the matter. If they don't take action now, they'll be left with nothing next year.
So the royal council hall was in complete chaos. All the ministers were shouting and arguing, presenting facts and reasoning, and it almost escalated into a full-blown fight, all for the sake of getting an extra penny.
After several hours of debate, Prime Minister Agushid finally compiled a budget list and presented it to George III.
King George III didn't even glance at the thick list; he simply asked, "How much money will it take to cover the shortfall?"
If the budget shortfall for next year can be made up through cost-cutting measures, the government of the Kingdom of Rune will not pin its hopes on plundering the people's wealth.
So, Yangzhi Sanshi simply asked directly how much money was still needed.
"We still have a shortfall of at least five million gold pounds, and to prepare for any unforeseen events next year, we may need to raise at least another five and a half million gold pounds!"
Not only George III, but all the ministers present also looked very grim. Although they already knew that there was a huge deficit in the treasury, they did not expect that there would still be such a big hole even though the various departments were tightening their belts.
King George III rubbed his temples, looking down at his ministers, and said:
"You all tell me, where should we find so much money?"
Five and a half million gold pounds may not sound like much, as several of the big shots present are worth over a million gold pounds, but that refers to their shares, and they rarely have that much liquid capital.
Finding 5.5 million gold pounds in cash out of thin air all at once is no easy task.
As was the case, Robert had already discussed it with George III beforehand, and with their tacit understanding, he spoke first:
"There are three methods. The first is to further relax the threshold for purchasing a title, but at the same time increase the price of purchasing a title."
Previously, we not only required those who purchased titles to own a certain amount of land, but also required them to have no criminal record.
We can now relax these two restrictions by halving the amount of land required for the corresponding title, but in return, he will have to pay the government the same amount in cash!
Furthermore, background checks will no longer be conducted on those seeking titles, and the requirement for a clean criminal record will no longer be in place!
No sooner had Robert finished speaking than Charles Negan impatiently shouted:
"Objection! I object to this approach. Land is the foundation of nobility and their glory. We should not relax our efforts in this regard."
Furthermore, relaxing the vetting process for those receiving titles, and not requiring them to have a criminal record, is tantamount to condoning thugs and ruffians to infiltrate our ranks. This is a desecration of noble honor, and I resolutely oppose this policy!
Charles Negan shouted excitedly, glaring at Robert. His words prompted most of the ministers present to nod in agreement and express their support. Robert, however, remained unmoved by the surrounding opposition.
George III frowned as he looked at the scene before him and sighed deeply, but he did not change his mind about supporting Robert. After all, although this reform could not compare to the reforms of Emperor Roselle, it was still a major undertaking rarely seen in the Northern Continent. It concerned his ascension to godhood, and he did not want to compromise on it.
There was no need to reveal his stance so early, so he spoke directly:
"Alright, what we need to do now is to find a way to raise five million gold pounds, which means we need everyone to brainstorm ideas."
Some ideas are feasible, some are not; we'll discuss that later. Earl Robert, please tell me your other two ideas.”
Upon hearing George III's words, the old nobles, led by Charles Negan, finally quieted down and stopped their passionate outbursts at Robert, though they still glared at him menacingly. Robert simply ignored their stares, an attitude that only further enraged the old nobles.
In fact, most people understand that since the door was opened for buying land with money to seek titles, this kind of thing was bound to happen sooner or later.
They just didn't expect that someone would propose expanding the opening so quickly, especially since expanding the opening would not only prevent them from benefiting from it, but would also result in heavy losses.
The requirement for corresponding land to obtain a title was a preventative measure taken by the Duke of Negan in the face of the rapidly growing urban bourgeoisie and the declining old aristocracy.
On the one hand, it allows nobles who control most of the country's land to temporarily escape land devaluation, and even artificially increase land value.
On the other hand, there is a growing division among the urban bourgeoisie who want to make their voices heard.
After all, to obtain a title and a large amount of land, one needs to purchase it from established noble families.
At this point, established nobles who control the land can force wealthy capitalists to bleed money and pledge allegiance.
This is a calculated strategy that weakens the opponent while strengthening oneself.
Many people took advantage of the Duke of Negan's measure to sell their increasingly depreciating land at high prices, not only escaping the debt crisis but also easily gaining control over the big capitalists who were eager to join their circle.
This is why the Duke of Negan enjoyed such prestige during his lifetime, and why George III was so wary of him.
Robert's proposal did not abolish the Duke of Negan's original intention to exploit the big capitalists, but it changed the beneficiaries from the nobles who owned a lot of land to the royal government.
It could even be said that if this proposal becomes a reality, the land held by nobles will face a major devaluation, especially given last year's Grain Act, which allowed large quantities of grain to enter the Rune market.
Taking someone's money is like killing their parents; Charles Negan even wished he could tear Robert, who was standing in front of him, apart alive.
Robert, however, seemed oblivious to the menacing glare behind him and continued his rambling.
"The second method is to borrow money from the Republic of Intis. The Republic of Intis is determined to maintain Trier's status as a world financial center, and they certainly won't refuse our loan!"
Since the assassination of Emperor Roselle and the subsequent republic of Intis, with the support and indulgence of the Church of the Eternal Sun and the Church of Steam and Machines, the city's bourgeoisie has now completely taken over, gradually transforming Intis into a global financial center.
However, excessive financial expansion was bound to affect the real industrial economy. In addition, the countries of the Northern Continent had been tacitly dismantling Intis's colonies, so Intis's industrial sector was in decline at this time.
This is why the Church of Steam and Machinery originated in Intis, while the Kingdom of Rune was able to build ironclad warships first.
Because the domestic environment in Intis was no longer conducive to industrial expansion, this was the deeper reason why the Church of Steam and Machinery valued the Kingdom of Rune and even used its strongest sealing artifact to help the Augustus family drive out Urolius.
If the government of the Kingdom of Loen can conduct high-profile financial financing in Trier at this time, it will surely boost people's confidence in Trier as an international financial center.
Earl Hall weighed the pros and cons of this debt-financing method, then frowned and said:
"Count Robert is right. If we borrow money in Trier, the Republic of Intis will most likely not stop us, but they will also see through our true strength and might demand exorbitant interest rates, biting us hard like wolves."
Robert simply shrugged at Earl Hall's concerns and said helplessly:
"There's nothing we can do about it, since we're in a financial deficit."
However, if we do borrow money from Intis, there is another benefit: it will allow us to continue to hold Intis in check and put diplomatic pressure on the Fussac Empire.
Intis will likely take some action to alleviate the pressure we face from the Fussac Empire, allowing us to better repay our debts.
Everyone present nodded in agreement with this benefit, as there was historical evidence to support it, and everyone could understand it.
At this point, everyone had already accepted the plan, and even the ministers who were looking for trouble did not voice their objections. Instead, they all turned their attention to King George III, who was seated on the throne.
Without hesitation, King George III directly instructed the Chancellor of the Exchequer:
"The Ministry of Finance should formulate a plan as soon as possible, and then send people to Trier to negotiate. The Ministry of Foreign Affairs and intelligence agencies should provide corresponding support!"
"Count Robert, you said you had three methods. What's the last one?"
After giving instructions to the relevant departments, George III knowingly inquired about Robert's third proposal.
"The third method is also very simple, which is to print money. After all, we are no longer in the era when gold was used as currency."
"By secretly printing a little extra and not releasing it directly into the market, but instead purchasing high-quality corporate bonds and government bonds issued by the Kingdom, we can greatly alleviate their financing pressure."
Everyone present was startled and immediately realized that Robert was playing a double game. They instinctively wanted to refute him, but they held back.
Because Robert's method, apart from saddled the government with debt, did not have any major side effects. As long as the government could openly repay these debts, no one could say that the government's credibility was bankrupt.
Is the government of the Kingdom of Rune really at the point where everyone has lost faith and is on the verge of bankruptcy?
Actually, no. The current financial difficulties of the Kingdom of Rune are essentially the result of the continuous black swan and gray rhino events this year, coupled with huge military expenditures, which has led to this problem.
Therefore, Robert's method is a temporary emergency measure. As long as the government recovers and pays off the debt without interest compounding, there is not much danger.
So without much discussion or time, everyone reached an agreement on the plan.
King George III on the throne also quietly breathed a sigh of relief and secretly nodded to Robert.
In fact, of the three options proposed by Robert, he valued the last one the most.
The first option could indeed further solidify his deification ceremony, but it was too difficult. With the world situation becoming increasingly tense, his base of support was even more crucial to maintain. Therefore, George III intended from the outset to use this option as a target to cover up the other two options.
The second option is essentially still about securing Intis and the two major churches behind Intis.
The third option was a preventative measure taken by George III and Robert after discussing the current situation.
The Fussac Empire has clearly sensed the unusual behavior of the Augustus family, and from now on, it will definitely be a never-ending conflict, with the possibility of a war breaking out next year not to be ruled out.
The initiation ceremony of George III himself and the digestion of the "Prince Killing" potion also saw significant improvements after the steady progress of various reforms.
He anticipates that his ascension to godhood will come sooner than he initially expected.
Others may not know his situation, but it certainly cannot be hidden from the gods. The God of War will definitely take action before the time comes, so the Kingdom of Rune should actually prepare for the outbreak of a world war now.
This third plan was actually to set a precedent, a precedent where the government could print its own money and take out its own debt. If war broke out, George III could use this precedent to print unlimited amounts of money, buy government bonds, forcibly acquire all available resources, and finally throw them into the war, defeating the Fussac Empire at all costs.
Of course, George III would not reveal his and Robert's thoughts here. After setting aside the first option and agreeing to the latter two, George III dismissed everyone to deal with the next move of the Fussac Empire, leaving only Robert to speak.
Charles Negan and the others gave Robert a warning look, a clear warning, before leaving Sodraco Palace.
"Proposing this plan has certainly made you the target of a lot of resentment; you've really gone to a lot of trouble!"
King George III naturally understood the kind of hatred Robert had just incurred, so as soon as the others left, he tried to appease Robert.
After all, he had Robert propose this plan partly to undermine his current momentum and make Robert rely more on his support.
"For His Majesty's sake, it's no trouble at all!"
Robert didn't care whether he offended those old nobles, since their ambitions were on different levels, but he also wanted to take the opportunity to show his loyalty to George III.
King George III was pleased to hear his statement and chatted with him for a while.
After a long while, Robert finally managed to suppress his impatience and spoke to George III:
"Your Majesty, we can no longer respond passively to the provocations of the Fusak Empire. There is no reason to be on guard against thieves every day."
"Evan's strategic support force is almost complete. I suggest that Evan use the opportunity of an off-campus training exercise to teach the Fusak Empire a lesson!"