Chapter 2151 The economic situation forces a decisive battle
Takada Yono took out the data and presented the facts to make sense, but Zhu Ji was not interested.
The samurai family under Ichijo Hideyoshi is overwhelmed, what the hell are we doing? It’s not like we bear a heavy burden, we don’t go to war and just make money at home.
Zhu Ji's reaction was expected by Yi Gin. He nodded to Takada Haruno, and Takada Haruno continued.
“In the past two years, as decided jointly by all representatives at several SPBA Fed meetings, the interest rates for foreign loans in SPOT warehouses have been declining.
According to calculations, the current average interest rate borne by the martial arts family in the East Island country is about 30% of the annual interest."
Zhu Ji's expression was still calm and calm. The Fed meeting was attended by representatives from various banks, and everyone knew the changes in interest rates.
An annual interest rate of 30% may be considered usury in modern society, but in ancient times it was recognized as benevolent government.
The default interest rate for loans in ancient times was nine out of ten, and based on compound interest within three months, the annualized interest rate was as high as 120%.
In comparison, Spo's 30% annualized interest rate is too generous.
Therefore, the ladies present had no reaction to Takada Harano's words.
In the past two years, the Spatio Federal Reserve has decided to continuously lower interest rates. It is the Bank of Japan that is behind the push, attracting the military families of the West Island country under its command to continue to take on war loans.
Now, the Spokane Group has reaped huge benefits from the war loan, and everyone is enjoying the dividends of the war.
Who wants to go to war with the Ichijo family at this time? Isn’t it nice that the Ichijo family is fighting in front while we are counting the money behind us?
But what Takada Haruno said next made the atmosphere solemn, she said.
"Judging from the latest accounts of Shiba Dokura, the war loan belonging to the samurai family under Ichijo Hideyoshi has reached as high as 30 million koku in food stamps.
Based on the average interest rate of 30%, they need to pay back 9 million stone in interest per year.
Please note, Your Highnesses, this is only the current winter settlement situation. When spring next year comes, it will not be just this number.
Because the loan burden is too heavy, the West Island Kingdom Warrior family has lost the ability to repay the loan. Just bearing the interest has reached its limit.
Their current method is to continuously add new debts to repay the interest on the old loans, but next year, they will not even be able to repay the interest.
The total output of the island country's land is 20 million dan, and the total output of the Wu family's territory is less than 9 million dan. They have also mortgaged the ports, mines, salt fields, etc. that can be mortgaged.
So what I want to say is that the samurai family of Nishijima Country, which is under Ichijo's command, is essentially bankrupt.
The Spatio Fed should not continue to cut interest rates for lending, but should raise interest rates to reduce the flood of food stamps on the market, maintain the credit of the food stamp system, and reduce the impact of the upcoming wave of bad debts."
All the girls present were listening carefully to Takada Harano's words. In fact, not many people fully understood what she meant. Yuigahama Yui, for example, was confused and looked stupid.
However, powerful feudal lords such as Takeda Shingen, Hojo Ushimasa, Shima Katsuo, Hosokawa Fujitaka and other powerful feudal lords managed the territorial economy on a daily basis, so they understood the subtext of Takada Yono.
The road of lowering interest rates to promote loans has come to an end, and the military family of the West Island Kingdom has been completely depleted. At this time, they are demolishing the east wall to pay for the west wall.
If they don't pay back the money, bad debts will increase significantly.
The amount of food stamps loaned out has reached 30 million dan. Once the operation is blocked, these excess food stamps will be idle on the market. Flooding the market with a large number of food stamps will cause the food stamps on the market to depreciate.
The biggest task of establishing the SPO Fed is to ensure the stability of the face value of food stamps and to make the market believe in the creditworthiness of SPO food stamps.
If there are too many food stamps on the market, these liquidity must be withdrawn to ensure that the food stamps do not depreciate viciously.
Originally, the 30 million stone food stamps were used to participate in the virtuous cycle of military loans for the conquest of the peninsula.
But if there are large-scale bad debts and the loan cycle is broken, these extra food stamps will have to find their way in the market, which is equivalent to a large number of food stamps appearing outside the market suddenly hitting the market.
This risk is very high. Once the SPO Fed makes a mistake in responding, it may directly destroy the credit of the food stamps.
Because the total annual land output of the island country is only 20 million stone, and if the face value of the food stamps is exchanged one-to-one, it will not be able to provide 30 million stone of food to offset the 30 million stone of food stamps.
The best way is to recover the liquidity of food stamps before the wave of bad debts arrives.
The Spurs Fed raised interest rates to recycle food stamps, and controlled the number of food stamps on the market within a reasonable range to withstand the impact of food stamps from the subsequent wave of bad debts.
Those smart warriors who understood Takada 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 today, using food stamps to hollow out Ichijo Hideyoshi's economic foundation, causing the samurai family of the West Island country to fall into bankruptcy, and proactively start a war.
Now it is no longer a matter of whether the Spurs family should be the first to start a war, but whether the Spurs family should take the lead in this economic crisis is an excellent opportunity to unify the world.
If you don't take what God gives you, you will be punished by God. This is why Yiyin is using economic problems to force the Spokane group to support the war.
Yiyin, who was being watched by Zhu Ji, felt completely calm at the moment, because this was just a standard American financial tide, and modern people basically understood what happened.
If you want to blame it, you have to blame Ichijo Hideyoshi's greed and excessive greed for getting into this dilemma of debt crisis.
Using interest rates to continuously increase the number of war loans, and then using interest rates to burst the bubble, artificially created a tragedy.
Yiyin is not proud of this, but feels guilty that he is really not a human being.
But from the perspective of the ruling class Spokane group, this result is perfect.
Taking advantage of the information gap of the Spurs Fed, the Goddess Group knew about the interest rate hike in advance, so it could hold on to cash by withdrawing liquidity in advance.
Then a wave of bad debts came, and those who suffered heavy losses were the businessmen, landowners, and property owners who had saved their money in Spokane.
These people would hate Hideyoshi Ichijo and her conquest of the peninsula for her militancy and arbitrary borrowing of money that led to the economic crisis.
If there were many people who dreamed of conquering the peninsula before, they secretly supported Ichijo Hideyoshi.
Then after the economic crisis, all the property owners will scold Ichijo Hideyoshi for not knowing the bounds of heaven and earth, going to war with foreign countries for his own selfish desires, and ruining the prosperous island country's economy.
When the chill of the economic crisis hits everyone in the island country, the Spasmian group will stand on the stage again and shout for bailout.
Use the large sums of cash that have been prepared long ago to rescue those property owners who are already on the verge of bankruptcy and are tortured to the point of being unable to sleep.
Of course, that was also when the market value was at its lowest, and the Spokane Group would acquire the island country’s best assets at the cheapest price.
At that time, there were only two paths left for Ichijo Hideyoshi.
The first way is to admit failure and be nailed to the pillar of shame of history and be ridiculed by all generations.
The second way is to burn everything and take advantage of the fact that you still have the ability to resist, and bring back the troops who conquered the peninsula to attack Spo's territory.
After all, as long as the war is won, the loan will no longer need to be repaid!
As for the samurai family under Ichijo Hideyoshi, they could only struggle to their death.
After all, even if the debt does not expand, the interest on the loan of 30 million koku will still be 9 million koku. The total amount of koku in the entire West Island country may be this much in a year. The martial arts family of the West Island country is essentially bankrupt.
Every penny they earn now is earned for the Spo family, which is only enough to repay the interest, not enough to repay the principal. This debt will be endless for generations to come.
Coupled with the trend of interest rate hikes, they are even more unable to afford the interest, so they can only follow Ichijo Hideyoshi to fight.
If you win, you will default on your debt.
If you lose the fight, just kneel down and beg for mercy. The saint won't force everyone to death, right?
When the time comes, whether it is bankruptcy and reorganization or debt relief, there will always be an answer, 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 conflict between the two parties cannot be bridged and can only be resolved through war, allowing one party to completely admit defeat.
This is the island country’s battle for world unification, a senseless war full of the stench of copper.