Naruto: Passerby and Returnee

Chapter 282 An Ordinary Mid-Year Report

"The financial report for this quarter is as follows: Total import and export volume for the first half of the year reached 558.87 billion taels, an increase of 31.2% compared to the same period last year, with exports accounting for 83.6%. Net profit..."

The mid-year summary meeting is unavoidable no matter where you are. Of course, Hui deliberately avoided holding the meeting at the same time as Konoha to prevent the poor leader from facing the predicament of attending two meetings at the same time.

The financial report above is, of course, Hui's answer sheet. The exaggerated proportions are the result of years of hard work and accumulation. Hui's imports have always been less than its exports, but this year's figures are even more exaggerated. This means that the self-sufficiency mechanism in the regions where Hui is located is operating successfully, and it also means that they have much more currency in hand than in previous years, which to some extent has led to price fluctuations in some areas.

As for market economics... Naruto could never fully understand it; he'd be lucky if he could even read financial statements. Actually, even those veterans might not be that knowledgeable, but fortunately, Hui's base was large enough to always find some competent individuals.

"Due to various factors such as environment, area, and local government, the development of our bases is quite uneven, but it generally exceeds the average level of the region. On the premise of meeting basic needs such as food, clothing, education, and medical care, the Finance Department suggests that bases with surplus capacity can try to invest outside to slow down internal inflation."

"Investing requires a lot of mental acuity. Ordinary people don't have that much insight and are very likely to fall into traps."

The Minister of Finance had been waiting for this question. He immediately pulled out a new plan and introduced this new concept of "bonds." Simply put, Hui would issue loans to the public, using their money for investment and construction, with the principal and interest repaid at the end of the term. This was undoubtedly a beneficial policy for the public, as they wouldn't bear the investment risk; Hui provided them with a layer of insurance. However, it also tested Hui's venture capital capabilities. If they bet on the wrong horse and things went wrong, the cash flow could easily be disrupted.

This idea had actually been brewing in the finance department for a long time. As a normal management organization, "Hui's" territory naturally generates taxes, but these taxes are practically negligible. Taxes are only levied on groups that reach a certain income level, and none of the initial bases met that standard. Therefore, the initial construction was truly supported by the businesses "Hui" itself owned. Now, the financial statements show very impressive figures, but the tax revenue remains unchanged, failing to create a positive cycle for regional economic development—a very worrying situation.

However, Minister Hui always adhered to the principle that practice makes perfect, and changes to the tax collection method had to be verified in different regions before they could be applied on a large scale. Therefore, it couldn't solve the immediate financial crisis, which is why the minister thought of issuing bonds—an unprecedented model. Even if it could only be applied on a small scale, it didn't matter, as long as money could be raised. Absorbing some of the excess currency held by the public would alleviate inflationary pressures.

The group of people at the table were all elites. After the finance department explained it to them, they roughly understood the principle. However, since this was a new thing, it was impossible to finalize the matter in just one meeting.

"I don't think it's very reliable. Being in debt is never a good thing. And that inflation isn't that serious, is it? Prices in our base are already cheaper than in other places. A slight increase is just returning to the average level." Izuna is the straightforward type who has always refused loans. He feels more secure having his own money than having money from a loan.

“Uneven development across regions is a given, so we can just manage Dongfeng with flexible pricing.” Tobirama also felt it was unnecessary, as “Hui” wasn’t so poor that it had to borrow money from the people.

"I second that. The risks of issuing bonds are too high." Fugaku's conservative statement was very much in line with his character.

"I think... there's no risk in giving it a try. We can start with a smaller amount for the first issuance and see how it goes?" Hashirama was the one willing to take the plunge.

Finally, the question returned to Naruto. He wasn't exactly an expert in economics, but fortunately, he had plenty of experience. During Kakashi's tenure as the Sixth Hokage, Konoha entered a period of rapid development, transforming from a village into a city. Consequently, for a time, price fluctuations were quite erratic. He remembered the first price spike when Kakashi had just signed an edict opening the market, leading to a massive influx of merchants into Konoha and severe competition, which immediately drove prices down.

However, this period of prosperity was short-lived. Due to the sharp drop in prices while other expenses increased, many long-established shops in Konoha were forced to close. Foreign businesses, which had dominated the market, suddenly revealed their true colors, with many items experiencing outrageous price increases. A month's salary was barely enough to treat one decent guest. Kakashi realized this couldn't continue and quickly subsidized local merchants, but the subsidies were too drastic, leading to another round of price wars and another dramatic price fluctuation. Finally, it took Kakashi several years to find a balance between the two, thus stabilizing prices.

He was indeed involved in all of the above decisions, but at the time he genuinely didn't understand them and was completely confused. He doesn't even remember the final balancing act. All he knew was that human desires are uncontrollable, and once the door is opened, there are no completely conscientious businessmen.

"The prices of necessities must be stable. If they fluctuate freely, some people won't be able to survive. You always tell me not to trust ordinary people so much, but why don't you pay attention to this crucial point yourself? Human desires are limitless. To suppress desires, you must nip their illusions in the bud." These words were spoken to Tobirama, causing him to shift his gaze and realize his mistake. "However, the prices of non-essential goods can be put on hold for now; we must leave people with a glimmer of hope."

"I think the bond proposal is pretty good and we can give it a try, but we must add a few conditions at the end."

"Bonds cannot be traded for bonds. Bonds also cannot be used as collateral."

Tobirama turned his gaze back. "Have you already started considering the possibility of issuing multiple types of bonds? These two points are indeed very important. If you use loans to borrow money, it will only be more dangerous than issuing bonds."

"It seems we have to be very meticulous about the wording of the release terms, but there are always loopholes that can be found in words, just like in the law. The number of patches we've put in over the years is almost equal to the number of words in the first release." Fugaku had already given in; he always compromised very quickly when it came to Naruto.

"Haha, this is management! It's a process of outsmarting and outmaneuvering people!"