Infinite Reincarnation – Arthur Hurt - Chapter 145
Only Noblemtl
Infinite Reincarnation – Arthur Hurt Chapter 145
26-Noble
“Banks are not charities. Even charities, once organized and operated, must eventually generate profits in order to survive. But what happens if interest rates are lowered? Banks will only lend money to safe customers, that is, customers with high credit ratings. Where can citizens who fail to pass the loan screening process borrow money? Private loans.”
In this era, private loans were equivalent to usury. In the end, ordinary people who failed to pass the bank’s screening and ended up using usury loans had to pay higher interest rates and became poorer. The rich got richer and the poor got poorer, accelerating.
However, some lawmakers objected to Jaran’s logic with an attitude of absurdity.
“So, are you saying that if interest rates rise, banks will lend to the poor?”
Banks, being for-profit organizations, would never lend money that would likely become bad debts. If interest rates were higher, they would be more inclined to lend money to creditworthy individuals, i.e. the rich.
Jaran did not deny such a possibility either.
“That may be true, but it is clear that mandatory interest rate caps force banks to make safer loans rather than more risky ones.”
Jaran returned without answering as Min-hoe had hoped. Then, when he met Arthur, he told him about his experience at that time.
Arthur nodded and praised Zarn.
“You handled it very well.”
Maintaining the central bank’s function was more important than high interest rates and the hardships of citizens. The central bank of Skara interfered with the management of other major banks by talking about interest rates. Secondly, there was concern that those in power would try to replace the central bank governor.
The members of the National Assembly would be angry if they heard this, but honestly, what power would they have to stop it? In that sense, Jaran did a great job by citing economic justification.
“What do you think? Are there any flaws in my logic?”
Arthur tilted his head at Jaran’s question.
“Um… … In the end, policies bring about changes in the environment, and only companies that adapt to them survive?”
Jaran’s logic was not wrong. If interest rates are capped, only banks that can survive at those rates will survive.
However, the number of citizens taking out loans did not decrease as drastically as Jaran had feared, because loans were the banks’ bread and butter.
So the banks will try their best to find people who are unlikely to become bad debtors, and then honest and loyal citizens will be able to fully enjoy the limited interest rates.
Of course, this was just positive reasoning that worked hard to turn the hope circuit, and even if it had happened, it would have been an act that completely turned the current situation upside down.
The central bank was supposed to play the role of a judge in the financial system, but if it got involved as a player, it would be a loss for Arthur and his group who set up the system.
Arthur continued.
“I think I should look into some academies.”
“Are you trying to save a government scholar?”
“yes.”
The appointee scholar was as good a tool as the press in framing things.
Right now, the big four banks are just getting established, so there is no time to worry about the central bank, but once the market settles in to some extent, it will only be a matter of time before they turn their attention to the central bank.
In preparation for that time, a government-appointed scholar was needed who could academically support the argument that guaranteeing the independence of the central bank was in the national interest.
Then Jarani said.
“Leave that part to me.”
Aren’t there quite a few scholars who already ask about the role of the central bank?
His explanation was that if we contacted them and supported them, they would create a logic that was favorable to us.
Arthur nodded in agreement. When Arthur remembered the method he had used during the sweet addiction controversy, Jaran thought that he was indeed a talented person.
Although he may not be as talented as Mun Il-ji, he is talented at the level of Mun Il-ji-2 and Mun Il-ji-3. Could he be considered a precious colleague in this world where even Mun Il-ji-1 is grateful?
The plan to seize power in the gap between the king and the nobles was a strategy that was considered from various aspects. Isn’t it the hardest for a gambler to put a fool on the table? However, it was the only way that Arthur and his group, who had no real power or force, could do.
“Papa!”
“huh.”
“Wow! I told you!”
As Viana was moved by her son Charlie’s first clear words, Arthur simply smiled and placed a rattle in his son’s outstretched hand.
“Gyaaaah~!”
Then, Viana just smiled happily at the sight of her son shaking the rattle to show that it was good.
Arthur was considering replacing the wooden rattle with a quieter one when he received a call from the maid saying that a guest had arrived.
When Arthur went out, he saw a face that he had seen somewhere before.
“Nice to meet you, Your Majesty the Hurt. My name is Fried Papaka. I am very fortunate to be a member of the House of Commons.”
When the young man introduced himself, Arthur finally remembered where he had seen him before. The young congressman who had been venting his anger in a speech at the pub he had gone to with his lawyer Mark, and the politician who was at the top of Arthur’s list of people to stay away from.
It was very annoying how and why he came looking for me, but I couldn’t just chase him away.
People are inherently cunning, so when things don’t go their way, they tend to look for someone to blame, but Arthur didn’t want to be that person.
Here, it becomes a headache when Fried Papaka takes out his political frustrations on Arthur after being treated badly. Arthur has been hurt too much to figure out whether Fried Papaka is irrational enough to blame someone who has nothing to do with him.
From the connections entangled in politics, such as the Queen, Count Stan, Viscount Karl Prandt, and Count Hanbaya, to the sweet addiction of Lidis-style dresses and total care services, to the political and economic issues that led to the Central Bank of Skara.
Arthur had already risen to a level where he could exert considerable influence in politics if he wanted to.
“What have you come to talk about?”
Arthur asked Fried as he offered him a cup of tea in the parlor.
“I understand that you have great influence in the Central Bank of Skarra.”
“Uh. Um… … That’s not wrong, but where did you hear that?”
“Those who know, know. You are one of the three people who participate in the substantive meetings that determine the direction of the Central Bank of Skara.”
Where did such information leak out? It must have been an employee of Mato Trading Company, but it was not information that could be blocked anyway. It was just something that had been prepared for some time and was now right in front of us.
“Sir, I am a busy person… … .”
When Arthur told Fried to get to the point quickly, Fried bowed his head and said.
“Please help me!”
His request was simple yet difficult: support for the popular assembly to keep a check on the nobles who continued to expand their privileges.
“How do you say that?”
“It’s a bank. Banks can track the flow of funds, right?”
They plan to use that to tax the nobles. Since it is difficult to collect direct taxes, they will use indirect taxes to promote commerce.
“Shouldn’t the nobles now also prove their loyalty to His Majesty the King through taxes?”
Arthur nodded, sipping his tea. But deep down, he was evaluating the human being known as Fried Papacar.
Unlike the way he used to mock the King halfway in the pub, the loyalty he now shows toward the King doesn’t match. If Arthur were to conclude, could it be that the author is a person who can package himself and his cause according to the situation for his own purposes?
In essence, it would be a relationship of mutual use with the royal family.
The king kept the nobles in check through the People’s Assembly, and the People’s Assembly kept the nobles in check in order to expand the rights of the commoners. The interests of both sides coincided in the part of keeping the nobles in check.
However, the presence of the Minhoe could not help but be weak these days. With the king introducing the Scalon, even the traditional landed aristocracy was placed on the chessboard of capitalism, so the Minhoe, which had been asserting its presence by holding back the aristocrats, could not do much.
The current Minhoe was ultimately created by the king’s interest and needs. If the king could hold back the nobles without the Minhoe, it was natural that the Minhoe would become meaningless. Perhaps the fact that Jaran was called as a witness not long ago was a desperate attempt to make the Minhoe’s presence felt?
Arthur collected his thoughts.
“The purpose of the Central Bank of Skarra is to maintain the value of the Skarlon currency. That is its sole purpose.”
If the central bank of Skara wanted to know the cash flows of private banks, it would inevitably have to exert its influence and intervene. But that was something it could not do at this stage.
If this had been done before the central bank’s influence had matured further, it could have resulted in a huge backlash and the inability to properly rein in the big banks.
Fried responded.
“I understand. However, if the aristocrats’ tax exemption privileges are maintained as they are, their power will continue to grow. Then, they will try to exert influence over the central bank of Skara.”
Arthur’s statement that politics and economics should be separated is countered by Fried’s logic that this is realistically impossible.
Arthur knew that Fried was right, but he also knew that political and economic logic rarely combined to produce desirable results.
Because political gains do not necessarily lead to economic gains, and vice versa.
So Arthur said this.
“Even if that future comes, the central bank of Skara cannot be the first to break its principles. Doing so first would lead to much worse results than the inevitable interference that comes later due to power.”
It was a so-called precedent.
The central bank of Skara is trying to exert political influence first? The moment such a precedent is set, the central bank of Skara becomes another scepter for the powerful to fight for. And then Arthur’s plan to use money as a shield will be ruined. Experienced political heavyweights who want to hold the scepter will appear as competitors.
At Arthur’s firm answer, Fried pleaded again.
“Please think of the citizens.”
“I am saying this with the citizens in mind.”
“Would it really be okay for the nobles to later manipulate the central bank of Skara as they please?”
“It can’t be okay, but I hope that Min-hoe will step forward when that happens.”
“… … .”
Fried was momentarily speechless at the shameless words that said he would not listen to his calls for help, but would step in when he was in trouble.
Arthur averted his gaze with an embarrassed smile, but his lips were quivering with saliva.
“I know. It’s shameless. But the Central Bank of Skara must keep its distance from political interests. For the sake of the economy of the Kingdom of Skara and the citizens who depend on it.”
“I don’t understand. Do you really think that’s possible?”
Fried looked at Arthur like a dreamer. Did those greedy nobles really think they would leave the coveted interest of the Skara Central Bank alone?
“It’s difficult, but it has to be done. That’s our belief.”
At Arthur’s words, Fried frowned for a while and then let out a deep sigh.
“You are stubborn.”
“I’m sorry I couldn’t help.”
“No. We will have a chance to join hands later.”
Fried returned without receiving cooperation from the Central Bank of Skara, but he did not change his mind and eventually introduced a bill to introduce a financial tax.