hsntnovel Chapter 2691 Gold Debt Reduction
Chapter 2691 Gold Debt Reduction
Li Shen is right; as long as the interest rate is high, there will be no shortage of buyers.
Li Shimin never expected that his rebellious son would turn a loan into bonds. This way, he wouldn't have to beg and plead to borrow money from others.
Instead, it has transformed into a transaction, a business deal.
Li Shen's mind works pretty fast.
"Well, if you do it this way, quite a few people will buy it, but you also need to know that with a 50% profit margin, how much money will you have to pay back?"
With over four million strings of cash plus a 50% bonus, you'd have to repay them over six million strings of cash.
This is no small sum. It will take the Prince Ji's Mansion at least two years to recover before they can repay it. But the interest over two years will not be more than six million strings of cash, but nine million strings. You still can't repay it.
If this cycle continues, your Prince Ji's mansion will likely collapse as well. Have you really thought this through?
Li Shimin nodded slightly, explaining Li Shen's current situation.
Li Shimin had a preliminary understanding of the official income of Prince Ji's estate, which was around five million strings of cash annually.
In addition, Li Shen sometimes engages in shady gray income, which is uncertain and varies in amount.
The total amount is six or seven million strings of cash, or even more, but the Prince Ji's residence has fixed expenses.
His two research institutes require an annual investment of one million strings of cash, and the guard battalion also incurs a large expense each year, mainly for weapons, equipment, and warhorses.
There are also the expenses of the Ji Prince's Mansion itself, the food, clothing, housing, and salaries of thousands of people, and the maintenance of the Ji Prince's Mansion estate and villas.
All of this cost at least three million strings of cash, not even counting the money Li Shen usually spends on reckless and extravagant purchases.
Li Shen could squander hundreds of thousands of coins in a year.
The remaining money was simply not enough for Li Shen to repay his debts, unless he saved up for two years.
However, Li Shen's debts are settled annually, and compound interest will accrue every two years. Li Shen's money in two years will not be enough to repay the debts, which is a dead end.
“Father, since you’ve done it this way, I naturally have my own methods, and there’s definitely no problem with them.”
Li Shen said with absolute certainty.
It's just borrowing money. It's not like we've never borrowed before. They're only afraid if they borrow a small amount. If they borrow a lot, they'll be afraid of them.
Although his father was an emperor, he still had no experience of fighting alone in society.
Li Shen suddenly wondered if he should teach his father a lesson, so that he could also experience the wickedness of the world and the coldness of human nature.
However, thinking about his father's ruthless methods, Li Shen gave up the idea.
Minor squabbles are fine, but if you really anger your father, you might lose your life.
"You're not planning to default on your debt, are you? That won't do. Not only will it damage the royal family's reputation, but it could also easily cause turmoil in the court."
These nobles, officials, and powerful families are impeaching you; even I cannot protect you.
Li Shimin looked at Li Shen warily. This guy liked to act like a rogue. He could easily talk to one or two, or even three or five, families.
With over four million strings of cash and a 50% profit margin, almost any noble or aristocratic family could afford to buy it, so the impact would be quite wide.
The imperial court was indeed unable to withstand such a great upheaval.
As an emperor, I can allow you to deceive, because it's a business tactic, a strategy. But if you cheat, it's robbery, a crude and despicable act.
"Don't worry, Father, I'm very trustworthy. How could I possibly default on my debt?"
"If you promise to repay within a year, I will definitely keep my promise," Li Shen assured, patting his chest.
"Hmph, what are you going to do about it?" Li Shimin snorted, looking at Li Shen with some disdain.
Paying back money isn't something you can just say; you have to actually have the money.
“Father, I have my own methods. For example, the simplest one is the gold debt repayment method.” Li Shen gave an example of the simplest method.
"Golden Debt Resolution Method? What do you mean by this, Tenth Brother?" Li Chengqian immediately became interested upon hearing this term. He knew that Li Shen had many ideas and wanted to hear them as well.
"Hehe, Father should know this." Li Shen chuckled.
Li Shimin was taken aback at first, then seemed to remember something unpleasant, and glared fiercely at Li Shen.
Li Chengqian was puzzled. He looked at his father and then at his younger brother.
Li Shen did something similar back then. To get revenge on his father, he drove down the price of gold, causing his father to lose several million strings of cash.
Although there were no substantial losses, Li Shimin witnessed Li Shen's methods.
It's unbelievable that it can make your money disappear remotely.
“Brother, the method is actually very simple, and you should have seen it before,” Li Shen said. He didn’t mention his father’s embarrassing incident from back then, lest he get beaten up.
"I've seen it before too?" Li Chengqian looked completely bewildered.
"Yes, have you forgotten about Changsun Huan? When I made that old fox Changsun Wuji pay compensation, I deliberately drove up the price of gold, causing him to lose a lot of money."
The gold-based debt-reduction method that I mentioned works on the same principle.
We can use our large gold reserves to drive up the price of gold; currently, one tael of gold costs ten strings of cash.
If we push the price of gold to twenty strings of cash per tael, then the original value of gold will double.
Previously, repaying six million strings of cash required six hundred thousand taels of gold, but now it only requires three hundred thousand taels of gold.
What if we raise it even higher, say thirty strings of cash, or even fifty strings?
When the time comes, all I need to do is sell the gold, or use the gold to pay off their debts.
"How could we possibly push such a high price?" Li Chengqian immediately shook his head in rejection after hearing Li Shen's plan.
Gold was worth ten strings of cash on its own, so how could it suddenly become valuable? Li Chengqian didn't quite believe it, nor did he quite understand.
"Brother, what's impossible about that? For example, if many people are frantically buying gold, then the price of gold will definitely rise."
My brother can send those playboys all over the country to help buy gold. They'll buy it for ten strings of cash, and if no one sells it, they'll buy it for fifteen strings.
People who have gold in their hands see that few people are selling when others raise prices to buy it, so they want to wait and see.
We raised prices slowly, little by little, and the more they refused to sell, the higher we raised them.
How much it rises is entirely up to us.
At this point, it won't be us making the acquisitions anymore; someone else will definitely follow suit, and our underlings can secretly sell to them and make a fortune.
A cunning expression appeared on Li Shen's face, giving Li Chengqian goosebumps.
"But if you acquire them like this, will they really sell?" Li Chengqian asked, expressing his doubts.
“Then I will really buy them. If someone sells them for 15 strings of cash and 1 tael, we will not raise the price anymore and will continue to buy them steadily until no one sells them, at which point we will raise the price again.”
If the Prince Ji's mansion runs out of money, it can also have banks buy up gold as reserves.
How could they possibly have more gold than I do?
I'd rather buy up all the gold; that way I'd make even more money.
Li Shen said nonchalantly.