Crusade against the Pope

Chapter 384 Debt and Trade
During this period of the New Year, the national debt has become a topic that anyone in Jerusalem who is committed to increasing their wealth cannot avoid.

The history of the Kingdom of Jerusalem issuing public debt can be traced back to the establishment of the new city of Tyre, 12 years ago.

Jerusalem, which was still at war at the time, started massive construction of a new city in order to improve the living conditions of refugees, residents and Crusaders.

The annual interest rate of that batch of bonds was as high as 18%, and it has become a legendary myth in the minds of many investors.

To be honest, this was a very unprecedented event. Because it broke tradition, many people did not get on the bus in time and regretted it afterwards.

The theology of the three Abrahamic religions, whether Judaism, Christianity, or Islam, has clearly opposed interest on loans.

The difference is that Judaism pays more attention to the forbidden interests within the tribe.

Christianity and Islam have also developed different ways of dealing with things over their long history.

Specifically, at this point in the 13th century.

Whether it is Islam or Christianity, the attitude towards debt interest is clear and strong.

Catholicism even regards opposition to interest as the core of the church's economic ethics.

The 1179th canon of the Lateran Council, enacted in 25 at the Third Lateran Council, stipulated that anyone engaged in usury would be excommunicated from the church.

This meant that moneylenders were forbidden to participate in the sacraments and to be buried in church cemeteries…

For a sufficiently devout Catholic, it means that even if they die, it is not the end of their punishment, but that they will suffer eternal torture and pain in hell, which is a punishment more severe than death.

After all, a devout believer is supposed to go to heaven. Even if he makes some mistakes, he can purify himself in purgatory and finally obtain eternal happiness.

Even those who are not devout enough face spiritual pressure, self-doubt and social criticism.

Therefore, the question of whether purchasing public debt is lending has puzzled some people.

For this reason, Garys and his colleagues had to offer an interest rate of 18%, which was obviously relatively high in the Mediterranean area, in order to drive people's greed to buy.

You have to know that during this period, even when the Knights Templar lent money, they nominally prohibited interest and collected remuneration through various hidden means.

In fact, the actual interest rate is probably maintained at around 15%, which is a world apart from that of China in the same period.

In addition, Gellis himself also made a theological guarantee, saying that public debt is not an exploitation of people, but a necessity to promote the development of productivity and advance the coming of the kingdom of heaven, and there is no need for any theological burden.

In addition, the Venetians, who had never paid attention to the Pope of Rome and had their own "old Venetian habits", took the lead in purchasing a large amount of government bonds, so the sales at that time were relatively similar.

As the first batch of public debts were redeemed on schedule, those who did not get on board early naturally regretted it.

As time went on, the interest rate for the second batch of bonds was only 12%, and the interest rate for the third batch was 10%...

Today, the lowest interest rate for various public bonds issued by the Kingdom of Jerusalem is only 3%, and the highest will not exceed 6%, but they are still regarded as high-quality investments by some people.

After all, the Kingdom of Jerusalem had not defaulted on any of its public debts in the past decade.

However, people’s enthusiasm for buying government bonds is no longer what it used to be.

When the national economy is generally on the rise, buying government bonds and earning interest is seen as an act of incompetence. Anyone with some ambition will invest in industries with higher returns.

Whether it is participating in the construction of physical factories, participating in Mediterranean trade with the Venetians, or even setting out from the Red Sea ports and trying to explore India, these are things that Jerusalemites talk about with relish today.

In the newspapers of the Kingdom of Jerusalem, you can often see news about someone doubling his assets by participating in certain trading operations, which encourages everyone to participate in business operations if they have spare money.

This has fundamentally changed the national spirit of the Kingdom of Jerusalem.

In terms of public opinion, the Kingdom of Jerusalem today is no longer a country based in the Holy Land, struggling to survive surrounded by a pack of pagans and requiring the entire nation to engage in war.

Instead, it has become a place of opportunity, a holy place where any outsider or pilgrim can change their destiny.

It was in this situation that Gelis took the initiative to stand up and announce in the square that the war of liberation against Egypt had theological significance and was related to the construction of the kingdom of heaven. Those who participated in this war were atonement for their sins.

Gellis's purpose was not to encourage everyone to join the army. Letting these citizens and pilgrims who had not received systematic military training rashly participate in the war was irresponsible and would be a burden to military personnel.

Therefore, what he actually meant was that he hoped everyone would buy more government bonds…

If you support jihad, buy government bonds!

If you are a devout Jerusalemite, buy government bonds!

If you want the country's economy to continue to grow, buy government bonds!

Every 10 gold dinars worth of government bonds sold meant that Gairis could assemble a regiment of professional troops and wage war for a whole year.

The economy of the Kingdom of Jerusalem was booming, and it was bound to face inflation. The history of Gelis distributing silver coins to soldiers in the Transjordan region was long gone.

Nowadays, everyone’s monthly allowance is calculated in gold coins.

This incident is also recorded in Venetian history.

During Venice's war, in order to cope with the skyrocketing fiscal expenditure, there will be two means to fill the gap.

The first method is, of course, to increase taxes, and the second method is to issue public debt.

When the war situation was unclear, the Venetian Parliament even forced many people to purchase public debts, which was actually a form of forced collection.

But compared to simply raising taxes, it can make more Venetians tolerate it a little more.

The actual interest paid on these debts also fluctuates.

For example, during the war, the actual interest rates of Montenoviso bonds and Susidio bonds were 8% and 10% respectively in order to encourage people to buy them.

After the war, the face interest rate was restored to 5% and paid on schedule.

Montevecchio bonds, after the war, even paid only 1% interest at certain times.

In a sense, high interest rates like those in ancient China are quite incomprehensible in both Japan and Europe.

……

It was common knowledge that Conrad represented the interests of the Italians in the Kingdom of Jerusalem. However, there were many conflicts among the Italians, as Italy at that time was just a place name, not a national entity.

The hatred between different Italian city-states can even be said to be mortal enemies.

Specifically for the Venetians, the Delfino family had the closest relationship with the Kingdom of Jerusalem.

It has to be said that many people in China have problematic stereotypes about Europe.

Take, for example, the concept of family.

Since the title and the throne are essentially inherited only in the name of an individual, whether it is the House of Anjou or any other family, the patriarchal authority of these Western European families under the Catholic system is relatively low.

After all, there is only one throne. If the elder brother inherits the throne, then the younger brother will not have it.

In this case, there is obviously no economic basis for discussing family honor with my younger brother.

But whether it was Rome or the commercial republic, although the titles could not be shared, the economic interests were indeed shared.

Therefore, in the Italian city-states, the concept of family is highly valued, which actually also influenced the family cultural habits of Italian Americans in later generations.

As a Venetian family that invested early in the Kingdom of New Jerusalem, the Delfino family naturally made a fortune.

Even because of Venice's own system, the Delfino family could not hold on to the position of governor of the Venetian community of Jerusalem.

But on many issues, even the Venetian officials sent to Jerusalem had to rely on the influence of the Delfino family to communicate effectively with the kingdom.

The Delfino family's influence in the Kingdom of Jerusalem was only truly established after a long period of operation.

The early investment is actually only a part of it. In the subsequent process, the Delfino family would often hold banquets and continue to match marriages between young people.

These marriages naturally included the marriage between Delfino's own daughter and a rising star in the political arena of the Kingdom of Jerusalem.

Gellis did not deliberately say anything on this issue, but despite repeated instructions, the religious system maintained its rejection of the institution of marriage.

Although this cannot eliminate illegitimate children, it does to a certain extent curb the progress of the order's own hereditary nature and maintain its own monastic character.

Through this personal connection, when Gellis expressed his desire for war against Egypt and the possibility of issuing corresponding public bonds.

The old man of the Delfino family took the initiative to find Jos.

The two met in a room that was not very simple, but not luxurious either, and whose cleanliness and simplicity revealed the owner's status and style.

After the meeting, even though Jos, now the Deputy Minister of Commerce, still saluted old man Delfino.

After all, this old bull, Jose, ate Delfino's granddaughter even though the age difference between the two was 15 years.

The relationship between the two parties is no longer a particularly equal one, but has become that of a grandfather and his grandson-in-law.

After a brief greeting, Joss handed over a cup of tea, and then Mr. Delfino asked, "How do you plan to distribute Egypt's commercial privileges?"

In this era, there is no such thing as fair competition. As long as it is a commercial activity, it is divided into only two situations: one is smuggling and the other is privilege.

Even the Kingdom of Jerusalem, in order to gain support from the Italian city-states, only traded with certain fixed commercial republics.

If non-specific objects come to trade, it does not mean that they will be banned directly, but they will face obviously much higher tariffs.

The Delfino family knew the economic situation between Jerusalem and Egypt very well, if not exactly.

Considering the technical gap between the two sides, and with Garys's own backup, Jerusalem's victory is a sure thing.

Since the risk is not high, we should get straight to the point and discuss what Venetians can gain from it.

Delfino did not expect that they could obtain one quarter and one half of Egypt's land like the Genoese, but the privileges could not be reduced.

Faced with Delfino's question, Jose did not rush to answer, but continued to gesture to old man Delfino to take a sip of the tea he handed over.

Delfino was a little confused, but when he actually took a sip, he clearly realized something was wrong.

He was sure that he had never drunk this kind of drink before. Although its bitter taste made him uncomfortable for a moment, it was obviously not unpalatable.

Even after drinking it, I felt pretty good.

When the tea, which was not particularly hot, went down his throat and into his stomach, after a while he actually felt a little more energetic, which made him, an old man who was almost 60 years old, feel a bit of vitality.

"This is the 'tea' produced by the Peach Blossom Stone. It is highly praised by the Prophet and has obvious benefits for human health. I think you can feel it too."

When Jose saw Delfino's eyes suddenly widen, he knew that the strong tea he had brewed was taking effect.

"As for the coffee trade, you are also aware that Abyssinia is not very enthusiastic about exporting coffee beans. Its production has long been relatively limited, and the price is high. Although the prophet has not spoken directly on this issue, everyone is aware of his underlying sentiments."

Delfino didn't know why his grandson-in-law mentioned this matter, but he had indeed heard about the coffee trade and expressed his dissatisfaction. After all, this was related to his wallet.

Over the past few years, the Kingdom of Jerusalem's external exploration has been significantly strengthened, one of the results of which was the establishment of diplomatic relations with Abyssinia.

The so-called Abyssinia was also called the Kingdom of God or the Kingdom of the Red Sea by Europeans. Of course, its other name was more widely known in the Celestial Empire in later generations - Ethiopia.

Around 300 AD, the Ethiopians established the Aksumite Empire, which became known in the Mediterranean for its Christian beliefs.

Although the Aksumite Empire has collapsed today, the Zagwe Empire is still mainly based on Christianity and has long had mutual understanding with Jerusalem.

In fact, many place names of the Zagwe Dynasty were even named with reference to Jerusalem.

But during the period of the Old Kingdom of Jerusalem, although the two sides had certain contacts with each other, there was no talk of establishing diplomatic relations with each other, or any clear and stable trade.

It was not until the New Jerusalem period that Gairis explicitly desired Ethiopian coffee beans.

After all, this will give a shot in the arm to the economy of the Kingdom of Jerusalem.

But the Ethiopians refused.

(End of this chapter)