Encouraging the ruthless exploitation of peasants discourages war, because war forces lords away from their regions, prevents knights from doing civil and police work, and looting hurts production and morale direction. War is bad for the economy, when peace allows ruthless exploitation of the peasants and war does not. It makes people think that they should make peace a bit to amass funds for a later war, but then the peace can always be stretched on, indefinitely, because there'll never be enough funds stacked up for a future war.
Who's talking about encouraging it? As I said before, this discussion harkens back to me saying what I'd do if I had the region. The replies I'm getting are complete non sequiturs.
