Chapter 1,480 The Big Pit of Midi Finance
The worst part is that Midi is inexperienced in all this. In other words, people can't learn a lesson until they have their heads broken!
With the emergence of tiered banks, the difficulty of borrowing money is completely different from that in the past; there are also banks that are adding fuel to the fire behind the scenes due to performance pressure. How many people really realize that the money they borrow today will have to be paid back tomorrow?
Without lessons learned and no stopping power, it is inevitable that the future will be overdrawn.
When overdrafts occur in large numbers and banks begin to target collateral and borrowers for their own profits, the entire society will inevitably experience turmoil. Many things considered fundamentally important were received by banks, including the borrowers themselves.
What choice will those who were originally in power make at this time?
Because of someone's deliberate actions, the bank is separated from those in power, and even has a vaguely antagonistic attitude. Both parties can cooperate, but no noble lord, not even king or emperor, can override the goddess of gold coins and order the goddess to do anything.
In addition, the finance of Lost Land is still in its early stages. As a noble lord with military responsibilities, he is usually not very wealthy in terms of liquidity. Even though there are no wars between countries in this era, threats from nature still exist.
To guard against Warcraft and uncivilized Homo sapiens, and to protect the survival of civilization, some lords choose to form their own armies, while others entrust adventurers' guilds or mercenary guilds. These all cost real money.
Therefore, those wealthy businessmen and country gentry who had spare money had the confidence to establish a set of banks, and they could easily lend funds to the nobles and do a business that was sure to make a profit without losing money.
Therefore, the establishment of cover banks and the main depositors came from the private sector. It was too late for the nobles to do anything, how could they have spare money?
Midi loans are all short-term, one, two, or three years at most. When the first wave of loans came due and it was time to repay, many people suddenly found that they had enjoyed themselves and had done all the things they needed to do, but they did not have enough income to repay the loans!
To know the loan interest rate in Midi, it is still a habit to go there. That is to say, borrow one and pay back two, and the better thing is that the interest is 60% of the principal. This kind of terrifying usury!
However, can the investment returns from supporting public construction and private investment really reach such a high level? And that’s not even talking about failed investments.
So when the noble lords found themselves the target of debt collection by the lowly businessmen who now called themselves bankers.
His own citizens no longer belong to him, and a large amount of assets have been transferred to bankers. Even the people who belong to their own territory have become the bankers' people. Although there is no such thing as "slave" anymore, their status change is similar to that of slaves.
At this time, the emperor of the Gwana Empire lamented the suffering of the people and implemented virtuous policies, allowing everyone to forgive their debts. Who wouldn’t be willing to carry out this order?
And this is the biggest failure of the emerging hedge banks, the separation of finance and power.
Thinking about the Chinese and foreign history of my hometown, the most famous person in China is Lu Buwei, and everyone knows the ending. The most famous foreign lending group is the European Knights Templar.
Putting aside those unverifiable legends, the Knights Templar relied on the Christian advantage in the Crusades to rapidly expand. In particular, religion was particularly good at amassing money, which gave the Knights Templar sufficient funds to lend money, forming Europe's first banking model.
At that time, the Knights Templar lent money not only to nobles, but also to kings of various countries. They were very wealthy. With such a powerful military force as the Templars, and the support of the Pope, they have an unstoppable edge and can even influence national or regional policy affairs.
It stands to reason that the Knights Templar should be able to develop into a transnational trust and become the black hand behind many puppet countries. But the fact is that the Knights Templar were taken advantage of by King Philip IV of France who wanted to default on his debt.
Since then, the Knights Templar have become legend, in every sense of the word...
It was Venice in Italy that continued the lending business of the Knights Templar, which is also recognized as the starting point of modern banking in history.
After that, the bank was just like the situation in my hometown. It has always been the pocketbook of the powerful. When anyone is short of money, he should dig out a handful. If he raises it too much and has doubts about shaking the country's foundation or overriding himself, then kill a handful and copy it. Like Shen Wansan, Hu Xueyan and others.
Until World War II, the tragedy in the financial circle could be said to have reached its peak. One factor in the rise of anti-Semitism is that the actions of wealthy Jewish people are so offensive.
It is true that a few people are not enough to represent an entire race, but it is also true that they have become an excuse to raise the butcher's knife. It ultimately resulted in the deaths of millions of innocent people and the suffering of many more.
Then capital seemed to have turned over, becoming the mastermind behind the world, controlling the lifeblood of many countries.
Maybe not all are under direct control, but everyone has to follow the rules of the game designed by these capitals. The result is like a group of basketball club players from elementary school to university forming a team to face off against the NBA Dream Team. No one will be able to play but to be played.
Perhaps this type is the ultimate goal that the fellow who first founded the casing bank wanted to achieve. And he also implemented it seriously.
But that person made a mistake that most people make, which is to use his own eyes and concepts to look at a different world.
In the hometown I experienced, the reason why capital can run rampant is because the rules of the game in the entire world are like this. Anyone who wants to break the rules of the game will have to face the lessons of that super-state controlled by capital - Magnesium Emperor.
How strong is Magnesium Emperor? Comparing the military budgets of various countries in 2004 according to the impression of a certain time traveler, the magnesium empire is equivalent to the second-ranked country added to the 32nd place. The total military budget of a total of thirty-one countries is approximately equal to one magnesium. emperor.
Maybe military budget is not the same as military strength, but it can be regarded as a relatively intuitive comparison number. However, this is a country that is controlled by capital. Only then did the financial group reveal a face that had never been seen in thousands of years of human history.
It can be said that without the support of Emperor Magnesium, the tragedy of the Jews, Shen Wansan, Hu Xueyan, etc. would have happened again and again. But after these people escape their tragic fate, will the world really become better? Or does the victim become the perpetrator?
Let’s not talk about things that are too far away. Let’s just talk about meeting that dear friend who may be a fellow countryman in a lost place. He may think that he is still in a world with the backing of the Magnesium Emperor, so capital can do whatever it wants.
Unexpectedly, I was served by a German government order!
In the history of my hometown and abroad, this kind of thing has only appeared in the island country next door.
As a country that has implemented militarism since the Kamakura shogunate, the emergence of Tokugawa is actually not a good thing.
To put it simply, some low-level warriors and people were in dire straits and needed to borrow money to survive. When you are burdened with debt and can no longer borrow any more, the people above will take the lead and write off the debt in one fell swoop.
At this stage, the only ones who seem to be losing money are the businessmen, local tycoons and the like who lend money. In fact, life has not gotten better, the economic environment is still very poor, and these people at the bottom still need to borrow money to live.
However, after defaulting on a debt once, those who have money dare not lend money to those who will default on the debt, or are destined to default on the debt. The result is that I could still borrow money to survive, but now I can't even borrow money, and I have no choice but to die.
To put it bluntly, in real history, the German government decree was just a policy of drinking poison to quench thirst, and it did not end well.
But the situation in Lost Land is different. Midi's loans are the result of being forced out by the banks and the ordinary people who are unable to control themselves when they are exposed to new things.
It is true that there is something wrong with people who do not control their desires, and who are too stupid to be deceived. But those guys who have been trying to trick people from the beginning should bear greater responsibility.
Fortunately, the main targets of the casing banks are still the noble lords. People of this class have no moral bottom line, so no matter what kind of environmental changes they face, they can adapt quickly.
Therefore, it only took two or three years from the emergence of casing banks to the stage of the entire Midi economy bubble. This kind of time has not been able to change the ordinary people of Midland into a habit of excessive consumption and overdrawing their future.
The only thing injured is the money bag in the eyes of powerful people. It can be said that if they don't make a move today, they will take action to harvest sooner or later.
Someone once said that socialism is not suitable for the current lost land because there is no soil for germination. Constitutional monarchy only dared to be implemented in the Karlsruhe Empire, because other than there, the people did not have enough awareness and ambition to make progress.
In a wrong environment, it is normal development to forcefully promote things that are not suitable for development and eventually backfire on oneself.
To use an inappropriate metaphor, let’s talk about a certain Chuanzhong’s hometown. If someone went to a foreign country to sell pork dishes, he would probably be dragged out and beaten to death, not to mention going bankrupt due to lack of business!
However, having said so much, I have not yet talked about the most embarrassing part. She was the goddess of gold coins who was initially regarded as the most relied upon by the fellow who founded the layered bank!
Lin guessed that in that fellow's mind, the Goddess of Gold Coins was a link that couldn't be bypassed and must be accepted.
So according to what someone heard, the fellow went to great lengths to explain how much power the bank would gain, how much money it would earn, and how many people's faith it would gain when it develops its lending business.
However, the goddess of gold coins never relented, leaving the bank in a state of chaos during the Warring States Period.
When complaints spread, the fellow villager could no longer persuade the goddess with the excuse of gaining faith. I can only continue to emphasize how much control the loan can give back, and how much money I can earn. And only the goddess can clean up the mess in front of her and stabilize the entire financial system of Lost Land.
The reasons have been updated, only making money remains unchanged.
When the German government decree comes out, the world will be different!
The word "virtuous government" is not used casually. This is a political order that can win over a large number of people in a short period of time.
Not only those who were unable to repay the debt cheered loudly for their lords, but the vassals were so grateful that they cried bitterly for the lord's considerate behavior. People also did not forget to praise the goddess of gold coins loudly after receiving the blessings of the virtue decree.