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..you have more troops than you can support with your income ?
I don't think the situation is likely to arise, but one it would quickly cause your army to desert in the case where you have (to take an extreme example) 6000 troops and just one province left.
Does Shogun disband your units?
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No. You go into debt, and can't build or train until you get out of debt. You have to loose some troops in battle to get back into the black, or increase your taxes and hope for good harvests.
MizuYuuki ~~~
Clan Takiyama ~~~