Quote:
Originally Posted by Bobby-Joe
Banks Freddie, banks.
The annual Spanish treasure fleet makes it to Cadiz. Well there there it is in south west Spain. Meanwhile the Spanish Army of the Netherlands in is Belgium That money had to travel from Cadiz, to Madrid, to Genoa over the alps and along the Rhine to Brussels. A bit clumsy don't you think? That's were the bankers come in with their letters of credit. Much easier to take a document across the Alps than a strong box full of gold coins.
It worked well, that's why it was called the Eighty Years War. However the liberals in the Spanish parliament wanted to socialize the Inquisition and create other entitlements so they screwed the hardworking REAL Spanish Genoes bankers. Sure Spanish heretics got gold platted strappedos and oubliette with a view, but what about the hard working REAL Spanish? Pretty soon Spaniards were turning themselves in to the Inquisition to live the easy life and the economy collapsed.
If you think I am making this up, read about it here.
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Still does negate the fact that Spanish economy and thus PhilipII was hampered by the reduction in revenue due to piracy, and the weatlth was diverted into the North American colonies (under British rule at the time), directly responsible for the growth of ports like Charleston SC. I accept that this was not the SOLE reason for his bankruptcy, but it was a major contributing factor in it.