The Upheaval Caused by Massive Losses

The matter of the Arcane Academy was finally settled. Leveraging his status as Dragon Knight, Hudson successfully secured the title of Honorary Dean.

The rest was none of his business. Hudson finally understood that these old guys really only wanted to use his name; they never expected him to actually stand on the podium.

It has to be admitted that these old guys have a pretty good eye for talent. If he were to go to a military academy, Hudson could at least offer his opinions; but Arcane Academy? Forget about it!

Lord Hudson still has some theoretical ideas in his head that he can share.

Knowledge of cultivation techniques is indeed difficult for most people. As a cheater, Hudson's experience, aside from misleading others, offers no practical value.

To demonstrate the unity of the kingdom, all the great nobles in the country became the founders of the Arcane Academy, and were required to set an example by sending their direct family members to the academy.

Although most of the nobles were unaware of this news, it didn't stop the high-ranking members of the Arcane Academy from making a decision for them in advance.

It's no use opposing them in your heart; the old folks who helped them make the decision included their own elders.

It cannot be said that every major noble family sent a representative, but eighty percent of the kingdom's major noble families have connections here.

No matter how bumpy the road ahead may be, you can only keep going through the pit that your elders dug for you.

With so many people sharing the firepower, Hudson instantly calmed down. The entire Alpha Kingdom was on the war machine; even if the Church were to carry out a purge, it wouldn't be so easy.

The first and second Arcane Academy seem similar, but they are completely different in nature.

The Church's power had already diminished after failing to suppress the Arcane Academy created by the Franks.

In fact, as early as the time of Caesar III, there were already calls in the Alpha Kingdom to establish Arcane Academy.

However, limited by their strength and fearing relentless retaliation from the Church, they chose to observe the situation from the sidelines.

This wave of withdrawals thoroughly enraged the "hawks" in the Church, making the establishment of the Arcane Academy a natural consequence.

In the Emerald Palace, Caesar IV warmly received the returning contingent of meritorious officials, but unfortunately, they didn't give him much face as King, exchanging only a few glances before returning home.

Whether it's because he's grown up or just gotten used to it, Caesar IV showed no dissatisfaction despite the public's lack of support.

That's how it is in Shareholding State. As the major shareholder of the kingdom, it's difficult to gain the genuine support of the other shareholders without making a significant contribution.

If the shares are broken down, the royal family owns less than 20%, while the nobles own more than one-third.

Only through their combined efforts could they achieve control over the kingdom; their relationship was more one of cooperation than one of coercion and constraint.

Correspondingly, the interests of the kingdom and the interests of the royal family cannot be directly equated. The country is not the King's country, but the country of all the nobles within it.

People work together to protect the country for the common good; they may also undermine the country for their own interests.

In practice, both interests and integrity must be considered.

Essentially, it's similar to running a business. Just like among listed companies, some major shareholders drive the company's development, while others use their power to seek personal gain.

"Have the data been compiled yet?"

"I asked with a smile, "Caesar IV asked.

It's clear he's in a good mood. It's not easy to trick the Church; in the past, the Alpha Kingdom rarely gained any real advantage in conflicts with the Church.

"Your Majesty, during this bank run, we invested a total of eight million gold coins in cash and recovered bonds with a face value of 31,837,000."

All of these bonds were taken out and publicly destroyed.

While the kingdom's total actual debt remains unchanged, our cash flow has increased significantly.

Thanks to the Church's contribution, after deducting all costs, the kingdom profited approximately two million gold coins from this whole ordeal.

According to the intelligence we have, the Church still holds bonds worth over seven million gold coins in the kingdom. Given the subsequent rise in bond prices, if they continue to redeem them, it's estimated they will contribute another one million gold coins in profit to us.

Compared to the kingdom's enormous debt, this profit is negligible, but it greatly enhances our international reputation.

Unfortunately, the Church withdrew too quickly; if they had continued, our profits could have been even greater.

Marquis Delgado said with delight.

Being the Finance Minister is tough. In the vast Alpha Kingdom, the Treasury Department has to go out and borrow money to raise the eight million in cash.

Fortunately, Alpha Kingdom profited from this run on deposits; otherwise, it would be hard to imagine how the situation would have ended.

"Don't be ungrateful. It's already quite good that we were able to make a profit this time."

If the Church continues its reckless actions, we will only be dragged down with them, resulting in mutual destruction.

After all, we've borrowed all the war bonds we could. If this bond-buying war continues, it will really drain our cash flow.

At that point, the best-case scenario would be for the Church to hold a large amount of war bonds and then announce a default on those bonds.

"The Duke Newfoundland said irritably."

Alpha Kingdom may seem to be enjoying great success now, but in reality, it's dancing on the edge of a cliff. Once its bonds are exhausted, the arbitrage game will be unsustainable.

Being able to persuade domestic nobles to lend their bonds does not equate to being able to persuade foreign creditors.

The promise of "keeping accounts" is only valid within one's own family. Outsiders are more willing to believe in a contract than in a vague promise.

"Use the extra cash to reduce debt! Especially those high-yield bonds, redeem them immediately as soon as you get them back to save on interest expenses."

In other aspects, it is still necessary to save money by having high-ranking officials hold huge debts, which is very detrimental to the development of the kingdom.

"We will strive to repay a portion each year, aiming to clear all of the kingdom's debts within eight years."

"It was Caesar IV who spoke slowly."

It's a tragedy to think about it; his first long-term national policy since taking office was to pay off debts.

The "eight-year" goal was not set lightly. It means that all of the Alpha Kingdom's debts will come due in eight years.

If repayments are not made in advance, the kingdom will inevitably face a run on its banks and go bankrupt when full redemption begins.

There's no such thing as retirement for King. At Caesar IV's age, he'll still be in his prime eight years from now. He won't even have the chance to shirk responsibility and pass the buck to the next king.

Setting an eight-year debt repayment target also means that Alpha Kingdom must recuperate and rebuild over the next eight years.

Deep down, the courtiers breathed a sigh of relief. They didn't ask much of Caesar IV; they just wanted him to stop causing trouble.

It's alright. With the current system in the Alpha Kingdom, even without a central government, the noble lords can govern their regions just as well.

Eight years later, these veteran officials had completed their final mission and it was time for them to hand over their positions to the younger generation.

A new emperor brings a new court, and since the beginning of the dynasty, Caesar IV has not replaced a single minister, which is already quite generous of him.

Of course, keeping the original team from the era of Caesar III was also a choice made out of necessity.

If a government lacks sufficient prestige, it must appoint ministers with high prestige in order to maintain the authority of the central government.

The old ministers left behind by Caesar III all enjoyed considerable prestige within the kingdom. When they were involved in many matters, nobles from various regions would show them respect.

If a new person is suddenly replaced, they will not be able to gain everyone's respect before they have made achievements, and they will inevitably be compared and criticized when they do things.

On the holy mountain, looking at the investigation report in his hand, the face of the Pope Pius VII was terribly gloomy.

Originally intending to expose the sinister intentions of the Alpha Kingdom to the outside world, they now hesitated.

The Church also cares about its reputation, so it proceeded according to the original plan, which not only damaged the reputation of the Alpha Kingdom but also its own image.

Having been outmaneuvered by the enemy for so long without noticing anything amiss, the label of "incompetent" is now firmly attached to them.

If word gets out, the people of the Church will probably laugh at them just as much as those who are angry at the Alpha Kingdom.

Once labeled as "incompetent," the Church's reputation abroad will likely suffer greatly.

In the days to come, the number of countries that dare to disregard them will only increase.

"The information has been verified; this is indeed a conspiracy by the Alpha Kingdom. The bank run plan has been cancelled. All bonds in hand should be disposed of to minimize losses."

"Let's remember this debt. We'll settle it with them once our northward expansion plan begins."

After some thought, I finally decided that holding a large amount of the Alpha Kingdom bonds long-term was not a reliable strategy, so I reluctantly chose to cut my losses.

As for the harsh words that followed, Pope Pius VII had already refrained from saying them countless times over the years.

"Your Majesty, everything has two sides. It may seem that we lost this time, but winning and losing are always relative. We may lose to the Alpha people, but we can make up for it in other ways."

All countries are now gathering their strength, and an unprecedented war is beginning to brew.

It is said that the Frankish Kingdom has formulated a strategic plan to destroy the Half-Orc Kingdom within five years; the Iberian Kingdom is also planning to wage war against the Ghouls.

Other nations bordering other races mostly had similar plans. Apart from the Elves, who remained isolated and were not currently being targeted, the other races all had their own enemies.

Everyone is busy causing trouble for other races, and we can't just sit idly by. It is the duty of our Church to fight for the survival of humankind.

The Dwarves rejected our goodwill last time, so they have no reason to exist. Destroying them will conveniently compensate for our insufficient military capabilities.

Blake said with righteous indignation.

Sharpening knives and preparing to attack other races is not a new phenomenon in human history. It happens almost every hundred years.

Especially when internal conflicts within the human race are about to escalate, everyone will tacitly choose to provoke external wars.

If they win the war and successfully expand their territory, internal conflicts will be eased; if they lose the war, they will be severely weakened and face pressure to survive, leaving them no time for infighting.

It was through repeated battles, devouring the flesh and blood of other races, that the human race grew from weak to strong, creating its current glorious dominance.

This has always been how things are done, and it's no exception now. The Church has been dormant for centuries, and to regain its dominance on the continent, it must establish its authority abroad.

Compared to annexing human nations and risking encirclement, attacking other races is much more comfortable. No matter the methods used, or how unseemly the actions, no one will care.

The Dwarves, whom Blake had his eye on, were undoubtedly a tempting target. The Dwarf Kingdom had amassed a fortune through its monopoly on the high-end arms trade.

The problem now is that the Dwarf Kingdom has a strong military, and the Church does not border them. To start a war, they need to find someone to cooperate with.

However, this was not something Blake needed to consider. After a series of political defeats, the only way for him to turn things around was to look for opportunities on the battlefield.

Coincidentally, the Order of Judgment Knights are one of the strongest military forces of the Church, and war is their specialty compared to political maneuvering.

Strategically speaking, annexing the neighboring Ruthenia Kingdom would be most beneficial to the Church.

However, the human race's civil war has too many limitations. Even if they achieve a military victory, they will still face interference from various countries on the continent, making it difficult to swallow the benefits that are already within their grasp.

In comparison, fighting other races is much easier and simpler, and it's also easier to gain respect.

"Commander Blake, we don't have a good relationship with the Ruthenia Kingdom, so why should they cooperate with us?"

Even if they verbally cooperate with us, what if they suddenly stab us in the back and cut off our logistical supplies when the war reaches a critical moment? Wouldn't that be a tragedy?

I think we should first find an opportunity to subdue the Ruthenia Kingdom, put our supporter on the throne, and then seize the chance to launch a war against the Dwarves.

Gu Lei immediately objected.

Like the Order of Judgment Knights, the Order of Judgment Knights also needed war. Both sides were pro-war, but that didn't change their antagonistic relationship.

Even though they both had their eyes on the Dwarves, when it came to formulating strategic plans, the two sides still found themselves on opposite sides.

"Commander Gurei, there are many ways to solve problems in the world. In addition to military means, we can also use diplomatic means."

For example, within a short period of time, the Ruthenia Kingdom formed an alliance and joined forces to plot against the Dwarves.

There's no need to worry about them refusing; the Ruthenia Kingdom is currently plagued by numerous internal conflicts and needs to relocate outwards.

If we propose an alliance, as long as the conditions aren't too harsh, they simply can't refuse.

Blake said calmly.

This plan was something he had discussed privately with his think tank.

First, use an alliance to stabilize the Ruthenia Kingdom, and after annexing the Dwarves, then look for an opportunity to strike at this "ally".

"Blake, have you gone mad! If we ally with the Ruthenia Kingdom, how will we ever be able to deal with him again?"

Gu Lei questioned sharply.

Annexing one's own allies is a bad thing to do. If such a shameless act were to happen, the Church's already poor reputation would become utterly tarnished.

"Gure, we can't use old ideas to deal with problems. If we were to one day annex the Ruthenia Kingdom, the political landscape of the continent would have undergone a complete transformation."

By that point, the small countries on the mainland will probably have been completely divided up, ushering in a new era of powerful nations standing side by side.

The original rule system will be completely overturned, so what do we have to fear?

Listening quietly to the debate among his subordinates, Pope Pius VII fell into deep thought.

Originally, the Church did not need to rush into war, but this operation failed. It used a lot of manpower and resources, and in the end, it not only achieved nothing but also lost a lot of money.

Don't be fooled by the fact that the Alpha Kingdom only earned two or three million gold coins; the amount the Church lost was far more than that.

The enormous losses are something even the Church cannot withstand. The Church is not a one-man Church; even the Pope, after such a major incident, has to give everyone an explanation.

Those who have been marginalized from the center of power, in particular, will not let go of such a good opportunity to launch an attack.

If we don't want to escalate internal conflicts, the best option is external war. No matter how much loss this operation incurs, we can use war to balance the accounts.

"To be on the safe side, we should first send someone to contact the Ruthenia Kingdom. If they are willing to cooperate, it is not impossible to form an alliance with them temporarily."

The Dwarves are not to be trifled with; it's always good to find more cannon fodder. If everything goes smoothly, we can also take this opportunity to weaken the Ruthenia Kingdom.

As for the future, we'll deal with that in the future. At least until we destroy the dwarves, we're not enemies yet!