On The Game of Thrones, The King’s Landing is in a debt crisis. Queen Mother Cersei needs to hire an economic advisor before the money runs out.
On the hit TV show, Game of Thrones, as Cersei undertook her walk of shame through the streets of the capital, she was surely plotting vengeance on those responsible for her current state. But she was probably also wondering exactly how she found herself in such an unfortunate situation. One reason unlikely to occur to the embattled queen is her financial naivety – namely, her failure to grasp the catastrophic nature of her fiscal policy for the Seven Kingdoms.
Cersei’s predicament is largely due to her failure to understand the nature of international credit. Across the sea from the capital King’s Landing, in the Free city of Bravaas, is the Iron Bank of Bravoos to who the crown owes a great deal of money. When she decided to default on the crown’s debt to the bank in order to concentrate on rebuilding her navy, she took on the very forces that govern trade in the seven kingdoms. Hoping to secure the repayment, the Iron Bank now supports a rival to the throne, Stannis Baratheon; whoever rules the Seven Kingdoms is responsible for the Iron Throne’s debts. Meanwhile, the other banks, taking cue from the Iron Bank, have started refusing credit to Westerosi merchants taking cue from the Iron Bank. As a result, International trade has ground to a standstill.
Next, the family money of the Lannisters’ is getting depleted because of exhausted gold mines owned by the Lannisters. A more direct cause of Cersei’s downfall is The Faith- the main religion of the Seven Kingdoms. The crown had borrowed heavily from the Faith to finance various palace expenses; money the crown can no longer repay. In a moment of carelessness, Cersei concedes the right to bear arms to a fundamentalist branch of the Faith, as long as the crown’s debts were forgiven. This gave immense powers to the High Sparrow- leader of this group. And this rise coupled with loss of support from The Iron Bank is the reason why Cersei finds herself walking naked through the streets of King’s Landing, taunted and tormented by her own subjects.
Meanwhile, over in the Slaver’s Bay in Essos, The Dragon Queen Daenerys Targaryen is fighting her own battles while abolishing slavery in every city she conquers. It’s a controversial policy when on an average, there exist five chained slaves for every free person. Moreover, human traffic is not confined to Slaver’s Bay. It is part of the sea of trade that spans the globe.
Abolishing slave trade has effected the local economy hard. A coalition of Essos based mercenaries, hired with the aim of resurrecting slave trade is on a march against Daenerys. Interfering with globalized capitalist forces is a dangerous business.
Will The Dragon Queen manage to hold the line against her new enemies? Can Cersei contain the mounting crisis in King’s Landing? Not only has loss of international credit bankrupted the local merchants, the Faith is becoming ever powerful in the state. Plus with winter fast approaching, how will the King’s Landing survive?
We cannot wait for Season six to gain full steam and answer these questions!