The Second Shinobi World War

"The situation is getting worse now. Sunagakure and Iwagakure have fully involved themselves in a war against Konoha, centering around the village of Amegakure...", The Patriarch reported, his voice carrying the weight of the concerning developments on the broader shinobi world stage. 

Due to the widening economic gap caused by the imbalance of economic development among countries, the power of village militants in various countries has risen sharply.

These militants, under the guise of advocating for fairer privileges and opportunities, have increasingly resorted to the use of force as a means to expand their influence and plunder resources.

This shift in strategy has led to a destabilization of the previously stable situation, after the First Shinobi World War, with conflicts between countries gradually escalating as each seeks to protect its interests and assert its dominance, leading to the Second Shinobi World War.

As the Second Ninja War kicked off, the Kingdom of Rain, stuck right in the middle of the big three - the Earth, Wind, and Fire nations - turned into the main hotspot for fighting.

Being smack dab in the middle made it a key place that everybody wanted to control. This spot wasn't just another battlefield; it was crucial for any nation looking to get the upper hand in the war.

"Considering how the situation keeps getting worse, it looks like the Hokage can't wait any longer. He wants to wrap up the mobilization talks for our clan. The terms they laid out last time are staying the same...", The Patriarch explained.

"It seems we have no choice but to agree. After all, if Konoha loses this war, it will spell trouble for us too, and they've promised us substantial monetary compensation. They're asking for about 45% of our shinobi force and 30% of our clan's Jonin. However, they are saying that at least half of these people need to be actual fighters, not just supportive roles.",

"This is pushing the limits of what we can comfortably manage. If they asked for even a few more Jonin, we'd be forced to send members from the Main Branch, which simply cannot happen...", The First Elder commented, his tone a mix of resignation and pragmatism.

But, the next words carried a hint of sarcasm, "It seems Danzo Shimura has been quite thorough in getting our intelligence...", It was a clear hint to the previous topic of discussion. 

The silver lining in the negotiations was that there was no demand for Elite Jonins to be sent to the front lines. Given that all Elite Jonins in the Hyuga clan were from the Main Branch, and about 70% of the standard Jonins as well, this was a significant relief. The distribution of Special Jonins was more balanced, with an even split between the Main and Side Branches. 

The realization of how precisely Danzo Shimura had managed to gather information about their forces and their bottom cast a pall over everyone in the room. Faces darkened with concern and frustration.

"I also think it's the right move to agree for now. But, the real issue is what happens after this war ends. What if they start expecting us to always contribute this much to Konoha's regular forces and ordinary missions in the future if this war lasts for long, and it becomes a new 'reality', not to mention that probably some time 'after' the war, it still won't be over, right?",

"By this time, from this raging war, the whole shinobi world already probably definitively realized that Hashirama Senju's dream of eternal peace is just that—a dream. There's always going to be another new war after a few decades of peace. In such a world, hoping to return to how things were before is nothing more than a fantasy. Heightened tensions will stay.",

"And what if, in some future conflict, they bump up those mobilization percentages again, actually making us send Main Branch members to fight for the first time? That could lead to us losing members and even risking our Byakugan secrets getting out... This isn't looking good for us either way...", The Ninth Elder expressed, clearly frustrated by the predicament.

His concern highlighted a deeper strategic worry for the Hyuga clan. Agreeing to the current demands set a precedent that could alter the clan's role and expectations within Konoha permanently over time.

"And let's not overlook the fact that this funding comes from the Daimyo's increased permanent budget for Konoha, due to the war. The Hokage is paying us out of this.",

"He's not offering us any concessions or longer-term benefits in terms of commercial interests within the village or more influential administrative roles. It appears those perks are still reserved exclusively for the four families in their faction...", Another Elder chimed in, adding another layer of complexity to the discussion.

"And it's not like we're in desperate need of cash at the moment. What we really need is more influence within the village to secure our long-term prosperity. Yet, it seems all the new influence, administrative positions, and commercial ventures are being funneled mainly toward the Hokage and his three advisors' faction.",

"They've even started encroaching on the interests of other smaller ninja clans and the Uchiha clan. Who's to say they won't start doing the same to us after a while...", Another Elder voiced, deepening the council's concerns.

"And not only that, we shouldn't just be looking at this specific proposal, but at the bigger picture. Ever since Konoha was founded, there's been a constant push for more and more of our clan shinobi to fight for the village. Initially, it seemed like a good deal; we earned more money through missions and such.",

"But now, it's just too much. We're giving up too much of our trained human capital for cash we don't really need. If they compensated us with more influence, maybe it would be worth it, but that hasn't happened. We're still sitting on the same level of influence and holding the same positions we secured when the village was first established, decades ago...", The Second Elder pointed out, expanding the council's concern.

"My take is also that we should agree this time to buy more time in order for Hikari to fully rise, but let's make it the last time we just go along with what the Hokage's Office wants like this. We need a big shift in how we deal with the village. Up till now, we've kept a low profile, always appeasing, staying neutral, not really pushing back, which made us fit into the village more smoothly than the Uchiha clan did, drawing less attention from the Hokage's circle...",

"But it's obvious now that even this approach hasn't stopped us from slowly losing our grip to the Hokage's faction and losing relative power more and more. Plus, we will also have the capital to speak up and fight for our interests more in the future - Hikari Hyuga...", Takumi declared, his voice ringing with conviction making everyone else suddenly think about it.

"Also, let's not forget the sinister way Hiruzen has influenced the boy's parents, turning them into his lackeys, starting from their time in his Ninja Academy, when they were the most 'vulnerable', and gradually continuing over the years. And how brazen Danzo Shimura was in directly moving against our clansmen to steal our internal intelligence this time around.",

"Under Hiruzen, the Ninja Academy that Tobirama Senju established has become a factory producing loyal soldiers for his faction. Our past approach might not have been the best.",

"We've lacked a Kage-level shinobi since the founding of Konoha, which has made us less assertive. But who's to say Hikari won't reach that level, or even surpass Hiruzen and his disciples? We need to bide our time and invest everything we have in Hikari until he's fully grown...", Another Elder chimed in, echoing Takumi's sentiments after some deliberation.

As the council members pondered the Elder's remarks, their thoughts turned to the Ninja Academy's role within Konoha. Initially, many within the Hyuga clan, and indeed other clans, hadn't seen the Academy as a significant threat to their influence, believing that true power would continue to reside within the clans, even with the Academy's founding due to their pride and knowing history.

However, they were not entirely right and they underestimated Tobirama's genius. Therefore, now they recognized that while the clans still produced the majority of Elite Jonins and about half of the ordinary Jonins, the dynamic had shifted considerably at the lower ranks.

Civilian-trained shinobi from the Academy had come to dominate these levels. Although individually weaker, these shinobi were numerous, numbering in the thousands, effectively diluting the clans' dominance and shifting power towards the centralized village governance that Tobirama Senju had envisioned and his protégé, Hiruzen Sarutobi, actively developed, with the help of his three former teammates and Tobirama's other students under a carefully designed grand strategy that took every clan in Konoha by surprise when it was too late.

For example, the shift happening due to the Ninja Academy gaining steam was not initially seen as entirely negative. Many clans believed that, although they might lose some relative power, the burden of constant warfare would lessen, with the bulk of fighting falling to these civilian 'cannon fodder.'

However, this perception has been upended by the outbreak of the Second Shinobi World War. The reality that even these vast numbers of Academy-trained shinobi were not enough to prevent the clans from being heavily leaned on once again highlighted a miscalculation in the clans' initial assessments. So, essentially they lost a big chunk of their relative power to the village for 'nothing'.