Uchiha's personal opinion

Hozuki Masahiko, who had been listening in, finally got his chance to shine.

"very good!"

Uchiha Tokumitsu nodded approvingly and said, "Without affecting the medical needs of Kirigakure Headquarters, let's transfer half of the medical ninjas to join the military training program first!"

"I obey your command!"

Ghost Light Masahiko responded with great joy.

While the temporary impact of reassigning medical ninjas on Kirigakure's already relatively weak medical system may be temporary, in the long run it is actually a great thing that can improve the overall medical level of Kirigakure in the future!

After all, compared to Konoha, the medical capabilities of all the ninja villages, including Kirigakure, are far too poor!

"The village's reserve force should strive to achieve a staffing rate of one-third or higher."

Uchiha Tokumitsu said again, "I'll leave this matter to the Councilor of the Four Directions."

"I am willing to obey your command!"

Since being removed from his position as clan leader, Mr. Uchiha Yomo, the Grand Master and Speaker of the Konoha Senate, has become more composed, and any trace of his old-fashioned mentality has disappeared.

However, the Konoha Ninja Army's corps has a strength of about 500 people. Even if only one-third of the corps is used, that would still be more than 7,000 ninjas!

Although they don't have to be completely off-duty like the regular ninja army, this is enough to completely drain Konoha's idle ninja!

"Sakumo-kun, I'll trouble you to put in a good effort to get things moving in the House of Representatives..."

Uchiha Tokumitsu turned to Hatake Sakumo and said, "The shogunate will not mistreat any ninja who joins the reserve force!"

In this way, although the power to expand the reserve force is still dominated by the Uchiha four factions, the core mobilization function has actually been transferred to Sakumo Hatake, which can be regarded as another perfect demonstration of the mutual balancing role between the two houses.

Of course, the ninja clans in the Senate alone cannot extract that much oil, so the personnel of the scaffolded column must be supplemented from various ninja families or commoner families.

"...I will do my best."

Sakumo Hatake hesitated for a moment, but eventually agreed.

"Don't worry, the reserves won't go directly to the battlefield. The current pre-enlistment is just a precaution."

Uchiha Tokumitsu offered a word of comfort.

After arranging the personnel, supplies, and even logistical and medical support plans, all Uchiha Tokumitsu had to do was quietly wait for everything to be in place.

Chapter 441 The Arms Race Frenzy

The commotion of a major conflict within Konoha could not be kept secret.

Although the Uchiha clan is capable of producing high-quality explosive tags, their output is limited and they primarily supply the clan's ninjas. Other common ninja tools require assistance from various regions of the ninja world, industries of different clans in Konoha, and even the Ninja Cat Clan.

For example, the Nara clan's soldier rations, the Senju clan's secret medicine, the Hyuga clan's healing ointment... even the Aburame clan's royal jelly was designated as a tonic and included in the procurement system by the medical department due to its rich nutrition.

As for the other ninja clans and families in Konoha who don't have any special products, they can earn a considerable income by joining the armory, or they can directly enlist in the reserve squad to receive an extra allowance.

"For us, military expansion has never been about depleting the reserves of the ninja villages, but about benefiting more grassroots ninjas and civilians in the villages while strengthening our power."

Uchiha Tokumitsu said this.

"...If you had told me this beforehand, I definitely wouldn't have believed it."

Sakumo Hatake clicked his tongue in amazement as he looked at the Konoha Economic Semi-Monthly Report: "But as it stands now, all I can say is that Lord Tokumitsu is indeed brilliant!"

"You flatter me, Sakumo-kun~"

Uchiha Tokumitsu smiled modestly and said, "This is the wonder of the internal circulation after the economy has formed its own system."

"...internal loop?"

Sakumo Hatake immediately became interested.

"Look at these five elemental attributes..."

Uchiha Tokukatsu condensed a five-colored divine light in his palm, using it as a metaphor: "The attributes of chakra are mutually reinforcing and mutually restraining, and so is economic growth."

"I understand the relationships of mutual generation and restraint among chakra attributes, but what does that have to do with the economy?"

Sakumo Hatake was still completely baffled.

"To maintain the symbiotic internal circulation of the five elemental chakras and to achieve complete counter-control when facing an enemy, what is needed is Sage Chakra, which is a fusion of natural energy and the power of tailed beasts, as well as extremely strong chakra control..."

"The reason why ordinary ninjutsu only uses one type of chakra is that it is much easier to control; this is the case with the military expansion of Iwagakure and Kumogakure."

"For example, if the Hidden Cloud Village and the Hidden Stone Village wanted to purchase a complete set of standard ninja tools, they might need to buy kunai from the Land of Craftsmen, chakra metal from the Land of Iron, and replenish explosive tags at high prices from the black market..."

"The more steps involved, the greater the cost, and the less desirable the results will be."

"It seems to make some sense, but I'm still a little confused..."

Sakumo Hatake was still puzzled.

It's right to be confused, because this is purely Uchiha Tokumitsu's far-fetched and nonsensical fabrication.

"Let me use the village's military preparations as an example then."

Uchiha Tokumitsu also became interested: "For example, the various clans in the village each have their own unique industries, but they are all useful for military supplies; therefore, in this situation, the village will naturally prioritize purchasing from them."

"That's right~"

Sakumo Hatake thought there was no problem with that.

"Then, the village's funds will flow into the ninja clan, right?"

Uchiha Tokumitsu condensed a Sage Chakra in his palm again, then infused it with ordinary chakra of the five elemental natures, which finally transformed into five-colored divine light.

“After receiving the funds, the ninja clans will think about making more money, so they will expand their production scale. As a result, other small and medium-sized ninja clans in the village will also benefit from their expansion. At the very least, the common people can find a job as laborers…”

"Expanding production will inevitably lead to economies of scale, thereby reducing production costs, and the village's military equipment procurement prices will become cheaper and cheaper..."

"Or they might use the money they earn to purchase training materials to increase the strength of their people, which would also benefit the merchants in the village who can provide such materials."

"And once everyone has money, they will naturally spend it. For example, the business of Q Barbecue will improve a lot."

"In this way, you will find that although the village's finance department has indeed spent its money and even incurred a deficit, the village's economy has actually improved."

Uchiha Tokumitsu manipulated the Five-Colored Divine Light to spin: "The village's fiscal revenue depends on taxes and rents. The more developed the economy, the more taxes can be collected, and the more expensive the rent in the new district will be. So the money spent can still be recovered."

"I see!"

As Hatake Sakumo watched the five-colored divine light grow brighter and brighter with the acceleration of the rotation, he suddenly realized the truth.

The two of them, one daring to make things up and the other daring to believe them, complemented each other quite well.

"Therefore, the ninja's chakra path is all-encompassing, and they should rightfully be the masters of the ninja world!"

Uchiha Tokumitsu said without changing his expression.

"But why did the village always experience a major economic downturn whenever it prepared for war in the past?"

Sakumo Hatake humbly sought advice once again.

"Because in the past, all the village's funds depended on the daimyo's allocation and that pitiful commission from missions, the ninjas did not have an easy life. Once they stopped performing missions, they lost their source of income. So everyone was busy struggling to make ends meet, and they had to use the extra money in their pockets to buy ninja tools, etc., so the economy could not be circulated at all."

"In addition, Sarutobi was too selfish and Shimura was too greedy. Even the ninja clans didn't trust them, so everyone got used to hiding their wealth."

Uchiha Tokumitsu replied, "Now that the military buildup is stimulating the village's economy, even if ninja producers are short of funds for the time being, they can raise funds through the stock exchange, joint ventures, or the Hyuga Foundation. In addition, everyone is full of confidence in the village's future, so they are naturally willing to spend money!"

"But what happens to the expanded production capacity after the war ends?"

Sakumo Hatake's senses are still very sharp.

Uchiha Tokumitsu had already planned ahead: "We'll definitely reap the benefits of the war, and then everyone will naturally get a share of the profits. At worst, we can just switch industries; we've already made enough money..."

Of course, overcapacity is more likely to lead to intensified cutthroat competition, but then there's the Uchiha clan, isn't there?

The shogunate's printing press powered by the tailed beast chakra for printing gold yuan notes was already prepared. At worst, they could just take over all the idle production capacity of the various clans. As for how to recover the funds, Uchiha Tokumitsu had already thought of it—just build another new Konoha district and sell the land!

Moreover, as a form of credit-based paper currency, the Gold Yuan provides purchasing power, and there's no need to reserve even the Gold Coins used for exchange! This is a status that even Dao Le in his previous life could only envy!

"Makes sense!"

Sakumo Hatake agreed wholeheartedly, nodding repeatedly.

"Therefore, the arms race benefits Konoha!"

Even Uchiha Tokumitsu himself began to believe it.

Of course, this argument is full of logical flaws, but since it has the Five-Colored Divine Light of Uchiha Tokuko as evidence, it appears highly credible after being given this "tiger skin".

Sometimes, what those in positions of power say may not be entirely correct, but their power and status will cause the audience to automatically fill in the gaps in their thinking and make them logically consistent.

……

Unlike the manpower-centric combat system of past ninja wars, the shogunate's ninja army system, built by Uchiha Tokumitsu, was extremely valuable because his trusted clansmen were exceptionally valuable. Since its rise, the shogunate no longer gambled with its ninja army. As a result, the ninja tools of the shogunate's direct ninja army became increasingly sophisticated. While their combat power was further enhanced, the resources consumed also increased exponentially. Therefore, such a large-scale mobilization would inevitably involve the concentration of massive amounts of commodities in a short period of time, leading to a continuous rise in the price of scarce resources.

Even without spies or intelligence, Onoki could tell from the recent rise in steel prices that Uchiha Tokumitsu was definitely planning something big.

While the Land of Earth, rich in mineral resources, can certainly make a lot of money from this market boom, and the money gained can help strengthen the military of Iwagakure, in terms of the speed of growth in strength, the Shogunate, which has its own production system, undoubtedly benefits more!

If the Land of Earth earned an extra ten ryo in the mineral trade and then gave Iwagakure an extra three ryo to expand its military, then the Shogunate did the work of twenty ryo with ten ryo. If this continues, it will only lead to a growing disparity in strength between the two sides, to the point that the outcome will be decided without even having to fight a war.

Therefore, Onoki's anxiety is understandable.

"We must develop our own military industry system!"

At a high-level meeting within Iwagakure, Onoki solemnly pointed out: "It is both necessary and urgent for us to produce our own explosive tags, kunai, shuriken, and even protective gear! Everyone must come up with feasible solutions to promote the development of the village's industries!"

All the high-ranking members of the Hidden Rock Village, including Huang Tu, remained silent.

The younger ones, in particular, dared not open their mouths.

In fact, with the rise of the Tokukō Shogunate and the resurgence of the Uchiha clan, everything established by Uchiha Tokukō has been studied countless times by those who are interested; among them are the United Company, which served as the shogunate's purse strings, and the Nakagawa Stock Exchange.

Iwagakure was no exception. Under the impetus of Onoki, the "Mastering the Shogunate's Strength" movement, led by Kyoto, was once very popular in Iwagakure. They also built many self-owned business groups and even issued bonds in imitation of the Shogunate. However, not long after, Kyoto was suppressed by the hot-tempered Onoki, and the "Mastering the Shogunate Movement" lost its leader.

What followed was the default and collapse of Iwagakure bonds. The issuing institution had over-issued excessive collateral and was seriously insolvent. Moreover, many bonds that claimed to have "high returns" were actually tools used by some Iwagakure executives to embezzle money. As for repayment, there was no way!

Thus, Iwagakure's securities firms successfully evaded their debts by closing down, and various emerging business alliances went bankrupt one after another due to the extortion and bribery of the managing ninjas. Only a few small-scale smelters that Onoki valued were still struggling to survive—this was one of Iwagakure's few sources of "industrial added value," which was simply smelting ore into steel ingots and then selling them.

With the complete collapse of Iwagakure's financial credibility, even the nobles of the Land of Earth stopped playing with them—after all, these granite-headed barbarians only took in money and never gave it back!

Therefore, a large amount of capital from nobles and wealthy merchants in the Land of Earth flowed into the Nakagawa Stock Exchange, which had better credit and controlled the source of production, and further propelled the expansion of the shogunate.

It can be said that the reason why Uchiha Tokumitsu was able to expand the shogunate's direct ninja army with impunity and build a standing ninja army in Konoha was mainly because nobles and wealthy merchants from various countries kept scrambling to send money over—after all, if the shogunate ever attacked, their bonds could be used as a life-saving charm!

The high-ranking officials of Iwagakure are not unaware that they need to strengthen their military industry, but as the saying goes, they understand the principle, but whether they can actually do it is another matter entirely.

"loess!"