The History of Paper Money - Not Just Noodles - Extra History - Part 2

[@DragoniteSpam]

"The misconception that printing money was literally a way to print money." That line is _amazing._

[@HerodotusVon]

DragoniteSpam How was this comment created 17 hrs ago? It was only uploaded 30 min back..

[@DragoniteSpam]

Zeredek You got it.

[@danielmcgillis270]

Don't tell that to The Federal Reserve.

[@mkvenner2]

TheRezro you do realize you're about 20 years behind on economic think as our understanding of economics is constantly evolving.

[@Aesoporific]

The Federal Reserve actually does a great job of managing things. A little bit of inflation is pretty healthy. It incentivizes current spending, makes debts of all kinds more manageable, and if it's low has little to none of the ill effects seen in nations like Zimbabwe. The thing you need to be worried about is when the people who control the money are straight politicians. Then they create something known as the "Political Business Cycle" where the political party in power prints extra money during the run up to an election to create a boom, which in turn goes bust after the election because it wasn't real growth to begin with. Rinse and repeat every election. The political business cycle has resulted in several nations including Ecuador, El Salvador, and Zimbabwe to "Dollarize" or accept the US Dollar as legal currency in their nation. People wouldn't adopt the US Dollar as their national currency if it wasn't doing something right.

[@DragoniteSpam]

"Why let a little crusade get in the way of a good story about fiscal instruments." Forget what I said in my last comment, _that_ line is amazing.

[@ХристоДинев-м4ю]

I know right

[@raruruk]

I literally laughed at that line.

[@lilperidot8783]

Top 10 Sequels

[@also_arles]

​@@lilperidot8783i'm gonna need a sequel for this reply

[@Sabrowsky]

I DEMAND THAT THE "NEEDLESS TO SAY HE DIED IN A BRUTAL MANNER" LINE BECOME A RUNNING THEME

[@DragoniteSpam]

Oh, there will be _plenty_ of opportunities to say that on a history series, I'm sure (◡‿◡✿)

[@IONATVS]

+

[@silverknight1089]

+1

[@alawi3246]

the history of rome or wars would be full of "needless to say"

[@Sabrowsky]

"Caesar's actions pissed off everyone in the senate, needless to say he was stabbed 23 times"

[@violetsweet1660]

"Needless to say, he was promptly strangled with a bowstring." What a great sentence.

[@lategamer6684]

=""==‘“[=“”’’’

[@anttibjorklund1869]

"Needless to say, he was promptly strangled with a bowstring". Wow this got really dark.

[@timothymclean]

Such is politics in the days when one mad king could destabilize an entire country.

[@CatManUtdFC]

cough...trump...cough

[@AngyIronman]

Glad I'm not the only one who said "wait what?" at that one.

[@GhostDr3amer]

He basically stole everything from anyone that mattered all at once. Things like that happened to large-scale thieves in those times. Small-scale just got their head bashed in with a mallet out of the way where it won't bother anyone.

[@adamblakeslee5301]

Oddly enough, corrupt kings being killed like dogs is one of the lighter sides of history.

[@Deskof003Blogspot]

"Needless to say, he was promptly strangled with a bowstring." Was that needless to say? Because I wasn't expecting THAT.

[@HellbirdIV]

Remember how Suleiman had his son strangled with a bowstring? The Ottomans were descended from ancient Khans, as the Turks came out of the same region. Yes, that strangling was actually foreshadowed in a previous Extra History episode.

[@GodofFreedom]

Essentially, that was a thing people did around those parts.

[@GodofFreedom]

Essentially, that was a thing people did around those parts.

[@Blazo_Djurovic]

It's was a custom and a belief in eastern cultures that the ruler's body was holy/sancrosanct and to spill his blood is to damn yourself. This was useful to the rulers but problematic when you REALLY need to off your monarch. The solution became to strangle them and since no blood is being spilt, no problems.

[@dc71knox]

It's common for the mob to kill people who rip off a lot of people like they did to Charles I. The government is generally bad at doing it's job of enforcing the laws especially when it is the government breaking them.

[@joelcraig9803]

"The misconception that printing money was literally a way to printing money" I sure am glad that no one thinks that way today.

[@rustygear447]

sadly, most people still think that way. economy is not easy to understand.

[@AutumnIsNigh]

Especially when no one bothers to look up how the economy actually works.

[@Armendicus]

or teach it.

[@alexreyes8166]

AMERICA FUCK YEA!

[@MisFellatio]

fractional reserve banking is essentially the same,

[@ubermons]

I love how I.O.U. sounds like "I owe you", and means exactly that!

[@FIstof7LEGEND]

It’s the little things

[@rishab.b9165]

Yes something the us is yet to learn.... how does lb mean POUND?

[@thebiggaklipa]

U just found that out are u a child or something

[@holycrusader7965]

@@thebiggaklipa lb doesn't originate from the US :/

[@thebiggaklipa]

@@holycrusader7965 umm did i say anything about lbs?

[@GarthTheMighty]

"Because the Crusades accidentally created modern banking." ...KINDA GLOSSED OVER THAT. Seriously, that sounds incredibly interesting. Wonder if it's a Patreon option...

[@Meeko1010100112]

*NON EXPERT ALERT. THIS IS ALL CONJECTURE* I think, to touch on that, the thing was that all the crusaders had stole (sorry, requisitioned holily) stuff from the Holy Land, and couldn't bring it ALL back with them at once. They couldn't carry it all. So a network of deposits were set up by knight orders where a person could deposit stuff and then, under good faith, retrieve that stuff later back in their homeland. It was tied to the individuals name, so knight rudolf couldn't retrieve knight jone's stuff if he were to kill him and steal the note. That would be given to his heir, I imagine.

[@KnakuanaRka]

Yeah, I don’t think that ever got mentioned in the original Crusades series. You’d think they’d at least insert a “..which is too long a story to talk about right now.”

[@a_human8489]

That’s like covering Soviet history by saying Now the soviets were angry with the Americans because there was a quick world war.

[@snarf2708]

For anyone wondering, it has a lot to do with religion. Usury, or “charging for the thing and the use of the thing” is a sin in catholicism, which meant that they couldn’t charge interest on any of their stolen wealth because the crusades destroyed non-catholic populations. So, because at this time banks weren’t considered important, they put the jewish underclass in charge of the them, because usury wasn’t against their belief. Shortly thereafter all kinds of advanced economic systems developed, and banking suddenly became very profitable. This is the real reason why there are so many jewish bankers today, they were forced into it but ultimately it helped them out

[@Xalerdane]

Here’s how the Crusades were involved in the creation of banking: A lot of crusaders were members of Knightly Orders, which were basically para-military NGOs. A majority of these Orders were founded for the purpose of guiding and protecting religious pilgrims who wanted to visit the Holy Lands. The most obvious aspect of this was being an armed escort: a bunch of Knights Templar (the most well known Order) or Knights Hospitaller (who are more remembered for running what were basically medieval YMCAs) would go with the pilgrims and fight off anyone who tried to rob them. What’s not shown in film as often is the fact that the Orders would take the pilgrims’ coin money and give them a receipt for it. When the pilgrims got to the Holy Land, they could just head over to the nearest Chapterhouse of that Order, present their receipt, and be given the equivalent amount of coinage. Even after Crusades became passé, many of these Orders kept in business acting as secure depositories for people’s money, to the point that many of them were wiped out by kings who were threatened by their economic power.

[@CommissarMitch]

"Needless to say he was promptly strangled with a bowstring" yep, that's Dan for you

[@Thraim.]

I still remember when they strangled my brother with a bowstring. He got better.

[@gejyspa]

Ya kinda /need/ to say it. Because "strangled with a bowstring" isn't exactly the first way of deposing a ruler that comes to mind.

[@VCYT]

it was needless to say all that.

[@nathanjxaxson]

I am seriously, seriously, seriously loving this set. Learned about the introduction of paper money in school as a kid but it was never quite as clear to me as this series; which should really be played in elementary schools.

[@mistformsquirrel]

I love that "Because the Crusades had accidentally created modern banking." thing.

[@saltyman7888]

i accientally modern banking how fix?

[@mistformsquirrel]

Lol, exactly.

[@cielopachirisu929]

It goes to note that the Middle Eastern Crusader banks also-- if temporarily-- stalled further Crusading violence. I believe to a point that they did this on purpose. A number of Moslem lords had deposited their money in Crusader-aligned banks. For a while, this lessened support for a fight among them.

[@Noelle808]

"Needless to say his head was promptly separated from his body" See, if we as a society brought back can-do thinking like this to deal with the people who control all the money, it would be real easy to get corporations to pay their damn taxes.

[@AegixDrakan]

If they keep pushing it and people start starving...It might actually happen. Although given that it's the US, it's likely going to involve a lot of bullet holes and less guillotines.

[@GregAumann]

Same end result though. Americans like to just get the job done. A guillotine has a lot of formality involved. Guns and bullets are quick and cheap.

[@weldonwin]

Except before Charles' head was seperatd from his body, there was a bloody civil war first and after said seperation, England was ruled by a military dictator who forced his puritanical fundamentalist religious beleifs on everybody else, under threat of military force.

[@Xo-3130]

Noelle Clayton They do, there enough loopholes (which are legal by the way as in they are written in our LAW) to get around most of it

[@jamrenzee]

Remove the loop holes. Use them to hang the people who made them!

[@VideoGameAnimationStudy]

Aaahh, maaan, hearing an American say "quid" was oddly satisfying :-)

[@Nemoticon]

It brought a smile to my face too. He did it quite naturally as well, I was impressed!

[@VideoGameAnimationStudy]

Firebrand Yes! It flowed quite nicely into the sentence as a whole

[@david_no_lacking778]

Dan Root is a quid like a cent.

[@ElNeroDiablo]

David_no_lacking - 1 Quid = 1 Pound Stirling/Great British Pound. eg: "I got like 5 quid on me" = "I have like 5 Pounds on me", like how you'd say something like "I got 10 bucks on me" for "I have 10 dollars on me".

[@johnd2058]

Perverts ;P

[@andersonandrighi4539]

Next episode there will be Walpole everywhere :D

[@hiromiarash172]

Anderson Andrighi it was Walpole

[@sarasamaletdin4574]

I wonder if they did this series just to have Walpole.

[@robertwalpole360]

There is always a Walpole.

[@MrPapayaman1000]

Yep. Some vigorous Google-fu says that the bank notes were officialized in 1833, near the end of Walpole's rule as Prime Minister.

[@siberianbull9]

why let a crusade get in the way of a good Walpole story.

[@anonimo2932]

Needless to say... his [insert body's part here] was [insert a bad time situation here]

[@AegixDrakan]

Needless to say, Walpole's face promptly got in the way of a good crusade.

[@grovertigo]

Remember to include the part about it being promptly done!

[@redeemaugustine5945]

"Needless to say, his body was promptly stabbed 33 times...

[@tojiroh]

Needless to say... His goose was promptly cooked.

[@nullpoint3346]

@@redeemaugustine5945 I count 36 stab wounds. And missing hands. Givin the markings on the bone, I'll say they were chewed off.

[@jaykebird2go]

I can't believe how entertained I am by a series talking about the creation of paper money!

[@inirlan]

Of course! It was Walpole!

[@Rert]

When isn't it?

[@robertwalpole360]

For that, I have to agree. ;)

[@AshenVictor]

Spoilers!

[@thehistorianjt3929]

Plot Twist? Nah

[@AlechiaTheWitch]

@@robertwalpole360 so stocks=money now

[@TakoyaKyono]

6:24 Hearing Americans say "Quid" sounds so strange to me for some reason. It's British slang for £, like how a quarter is American slang for 25 cents, but to hear other tongues say it? It just makes the word sound so surreal. Take London for example, hearing a Cockney go "'ere mate, lend us twen'y quid!" to his friend is run of the mill. To hear an AMERICAN say that exact same line? It sounds so out of this world.

[@BaltaBueno]

What up quid?

[@ricojes]

You're a kid now, you're quid now, you're a kid, you're a quid, you're a kid, you're a quid, you're a kid, you're a quid.....

[@Cage532]

I'd think they most likely use our own American slang and say something like. "Hey bud, can you float me a twenty?" Unless they're trying too hard to fit in of course.

[@nullpoint3346]

@@ricojes "Hey! I'm not made of money!" "Actually you are."

[@totallynameless8861]

@@ricojes You're a squid.

[@Jedibob5]

7:25 "Even wilder-west personas..." Let me guess: Walpole!

[@gnustep]

Yay, Walpole!! I believe Walpole is a time traveller who knows all of the right places to interfere with history. ;) (kidding)

[@Angelblue1302]

Eh...Close, but not quite! But Walpole does take place around the same time-ish.

[@yaboicash6666]

Was it ever not Walpole

[@MrTTitanic]

I knew the idea of paper money was odd and that giving value to paper is really weird, but man this episode just really showed me how weird and cool the beginnings of paper money was. Nice episode

[@Mankorra_Gomorrah]

i'ts actually a really interesting story about how the crusades created modern banking, maybe in the future there could be a mini series about it.

[@Gixwing]

Uhm... My Walpole's senses are tingling... maybe that figure in the shadows at the ending hás something to do with it

[@ZircronSwift]

You too? I literally said "My Walpole senses are tingling" as soon as Dan mentioned England, money, and a date approaching the South Sea Bubble :P

[@sanctusservus4714]

oh, so it isn't just my Walpole senses tingling, nice to know

[@robertwalpole360]

I heard someone's Walpole senses were tingling.

[@LeahLuciB]

It's you!

[@Prich319]

could be one of the Rothchilds

[@pellaken]

Honestly the best episode yet. Very concise and yet extremely clear and educational.

[@timothymclean]

"Foreshadowing" indeed. Rule of thumb-if you think you've found a way to game a system fundamental to the functioning of society (e.g, the economy), someone's going to get screwed over, and if you do it on a large enough scale, sooner or later _you're_ going to be one of the someones.

[@AegixDrakan]

This is an important lesson. I hope we learn it someday.

[@paulpeterson4216]

The important lesson is that without Fractional Reserve Banking the economy would be VASTLY smaller than it is today. Perhaps by as much as a factor of 10 would be my guess. Saying we shouldn't use it is like saying that hunter-gatherers should not have adopted agriculture, because occasionally there will be a crop failure. You can believe they were right or they were wrong at the time, but I'm awfully glad that they did.

[@timothymclean]

Paul Peterson Fractional reserve banking to expand the economy is one thing. Fractional reserve banking to make a quick buck is another.

[@paulpeterson4216]

Timothy McLean Absolutely true

[@cheezkid2689]

"Needless to say, his head was promptly separated from his body." that is a fantastic way to put it

[@GideonGleeful95]

4:17 Off of Italy's side? You mean off Europe's side?

[@Leivve]

I think that's the joke to show how far the system has spread through Europe.

[@StelarCF]

Obviously he's talking about Corsica.

[@gavin169]

SHHH! save it for lies!

[@Theraot]

The not Holy, nor Roman, nor Empire.

[@abdiganisugal825]

--- Voltaire ⚡

[@ElZamo92]

"Needless to say, he was promptly strangled with a bowstring" OMG, why did I laugh so much?

[@Daniel.Liddicoat]

Please tell us about counterfeiting. I'm sure counterfeit money was invented 5 minutes after actual money.

[@genstian]

It was invented in Lydia in like 600BC or something by just thinning out metal coins with cheaper metals. Like mixing gold with silver.

[@DeepDuh]

Holy shit, I just realized why Banknoten (= Bank notes) are called what they're called in German. This channel is gold! Wait no, it's paper money!

[@Infernoraptor]

You mentioned the crusades created banks. Please cover at some point

[@jackhoward705]

it came about from the Knights templar. they held on to pilgrims belongings like money to keep it safe.

[@Infernoraptor]

Really? Interesting.

[@nakenmil]

Yeah, it's quite an interesting story on its own. :)

[@Foxpawed]

Also hospitals.

[@youtoober2013]

@@Infernoraptor Yes. Knights had armour and could protect valuables while pilgrims travelled. No one bothered the worthless folks on their way and their valuables were waiting for them when they arrived. Minus a little off the top of course... how noble of the knights... psh. Fucking humans. I swear, there was an honour code of using your advantages in life to aid the disadvantaged, but whatever!

[@Chandral]

This is way better than any intro to finance or economics class. You guys did a great job.

[@Т1000-м1и]

This channel is the like if you put half the good capabilities of the entire youtube into one place

[@RosemaryComicFan-br6ri]

Thank you all so much for making these videos! I am relearning history that I had forgotten in school and learning even more new- to- me knowledge that I didn't have previously! Again, thank you so much!

[@baalplays7855]

This was going on in Europe at the same time. People, allowed to store their valuables in the local blacksmith's vault were given receipts for their goods, which became the first "commercial paper."

[@OfftheRadar9790]

How?! How am I watching a documentary on the introduction of paper money and being absolutely enthralled by it?!

[@samanthasmith2910]

"needless to say he was promptly strangled with a bow string" so hilarious.. said so casually..

[@rayanmahamed4873]

I swear I love this channel 😁😁

[@playercryptar]

Thank you so much for saying "twenty quid", it made my morning. Also the matter-of-fact explanations of how money-grabbing bastards were executed were most amusing.

[@lolabradford2247]

Am I the only one who gets so into the theme song at the beginning that I clap along with the "thump" between the two lines of melody?

[@daisyrushton1574]

Charles I was literally flat BAROQUE

[@Scruffi]

I really wanted to downvote this, but I just can't. +1

[@wu1ming9shi]

I laughed ay to hard at this than i should have. XD

[@elgostine]

same

[@tojiroh]

Badum-TCH!

[@ShankarSivarajan]

2:05 "...promptly strangled with a bow-string." The perfect solution to financial crises!

[@nullpoint3346]

Crisis*

[@ifigeneiaalevizou9209]

The plural is "crises"

[@sparkinstarfall_FD]

I have a feeling Walpole is going to be involved somehow.

[@robertwalpole360]

Naturally. ;)

[@AegixDrakan]

Considering that in the Lies episode for the South Sea Bubble, James mentioned that Walpole's biggest rival was the guy who basically invented paper money, you can bet Walpole will show up. XD

[@Healermain15]

Implying there are events he ISN'T involved in.

[@TheBespectacledN00b]

Actually, that guy IIRC was John Blunt's great rival

[@fightormon]

Can someone explain the origin of warpole meme. New sub here I have tried tracking it down and it seems like someone is preventin.... it was warpole.

[@reignandbongao9497]

I loved that "why let a little crusade get away with..." line especially in the crusade series... those were legit funny.

[@XerxesTexasToast]

So THAT's why they're called banknotes!

[@damianpenston6588]

Yes, but what people call banknotes today are more properly called currency notes. Having said that, there are a few banks in the UK that have a license to print their own banknotes.

[@Carewolf]

Yeah, I was bit worried the first time an ATM in Scotland starting spitting its own Monopoly money, with its own logo and everything instead of official banknotes from a neutral or state source.

[@TheBespectacledN00b]

Bank of Scotland, Royal Bank of Scotland and the Clydesdale Bank. Because under that Act of Union Scotland is still allowed to mint it's own coins and issue it's own notes. Although Scottish notes are rare and if you try spend one in England it will likely get examines for being fake.

[@JakeFaulkner]

well, they're rare(ish) in England (and presumable Wales and NI too). I travel down to Newcastle several times a year, and never have any problems using my Scottish notes though.

[@damianpenston6588]

There are four banks in Northern Ireland that print banknotes. The Bank of Ireland, Ulster Bank, First Trust Bank and Danske Bank. As with Scottish notes, they are promissory notes and not legal tender under the law.

[@ianthompson3275]

Lost it at "...because the Crusades had accidentally created modern banking. Why let a little crusade get in the way of a good story about fiscal instruments?" Extra History episodes always have their fair share of zingers, but I just fucking LOST IT.

[@RaytracedFramebuffer]

Why get Walpole in the way of a good banking system?

[@robertwalpole360]

Oh? Something with me in it?

[@RaytracedFramebuffer]

Robert Walpole Why get Walpole noticing you get in the way of myself screaming like a fangirl? Life goal accomplished :D

[@Theraot]

Walpole is easier to summon than Bettlejuice :v

[@joinmarch76]

Really? Let me try this! *ahem* Walpole...Walpole...Walpole!

[@robertwalpole360]

joinmarch76 Did somebody summon me?

[@Elementnz]

been loving the content so far guys this is a great story !

[@LOZFFVII]

Good job at using the pound's equivalent of 'buck' correctly in a sentence. Did you know: "Quid pro quo" is a latin phrase and is where we get the word 'quid' (meaning 'pound') from. The phrase translates as "Something for something else" and is basically an exact descriptor of what the pound (currency) is.

[@dankdreamz]

Another great video!

[@anttibjorklund1869]

Love the TARDIS reference!

[@Tarik360]

5:10 I have read that pepper and other spices were more valuable than gold back then, heck it was even asked as a tribute rather than gold by the Goths from the Romans due to it's value and rarity.

[@AshenVictor]

Saffron still is more valuable than gold. So y'know, spices more valuable than gold isn't an artefact of history, it's an artefact of supply and demand.

[@Tarik360]

Aye, I just thought the pepper thing was worth mentioning.

[@not2be4gotten02]

"So long as everyone doesn't try to turn in their bank notes at once" Me: *chuckling at the Great Depression for unknown reasons*

[@emilyjeanne497]

I did not expect this story to be so exciting

[@CaptmagiKono]

I really have to wonder how interest was kept track of before automated computation of numbers was a thing, in this light, I feel like accountants are very unappreciated throughout history. Imagine if all of these numbers for all of these people were not kept track of properly, it would be a gigantic mess.

[@Alexaflohr]

And it was, many, many times. Interest was basically kept track of with memory, writing it down, or only by loaning set amounts and delivering interest on set dates to everyone.

[@CaptmagiKono]

Alexander Abrams-Flohr I can't even imagine how much paper was used just keeping track of stuff for what eventually grew to millions of people.

[@wu1ming9shi]

Well, luckily there was an invention called paper... but seriously though. I often feel like people from the past were a lot smarter in doing things than e'd like to believe. I mean often we see ourselves superior towards those of the past. But in cases like this you have to admit, they seem to outsmart us.

[@VukMujovic]

That was less than 50 years ago. You had ledgers, big ones, where all clients were recorded and indexed. You had your client ledger, you had your daily ledger and you had a monthly audit ledger. Loans were not calculated automatically with 4 or 5 points to a loan but there was only ''base sum'' and ''interest''. If a loan is for 1000$ with 20% interest for 10 years, you would just pay 120$ every year.

[@CaptmagiKono]

Vuk Mujović Well I understand things being recorded, but just the sheer amount that had to be recorded on a constant basis. I suppose that is why there are multiple accountants per quantity of customers, or there were just less people back then (way back then.) Since many companies nowadays keep every email in their main hard-disks no matter how mundane or long ago it was made, it is staggering to believe that all of these logs were kept in the same way but in a paper form, must be a lot of file cabinets.

[@xlathon3358]

Love these videos

[@jellybean358]

ahh that crusade reference made me want to watch the entire crusade series again... Then I have to watch Admiral Yi's story again since its my favourite.... that one ties in with the Sengoku Jidai series, so I will have to watch that again...

[@Siegmernes]

I feel you buddy.

[@NerrawGnap]

Ironically, the add that played before this video was a Reese’s commercial where they make an observation about modern currency.

[@dariuscarter5758]

Fractional Reserve Banking is an adorable baby.

[@gyrrakavian]

Nice foreshadowing. If memory serves, that's far from the first time bankers had done that and had faced a riot after the fact.

[@ShankarSivarajan]

4:17 "..the little island hanging off of Italy's side." I thought you meant Sicily.

[@neurofiedyamato8763]

5:16, I had to kind of laugh at the whole "head separated from his body." lol And the English bankers with the whole foreshadowing part was a nice touch.

[@olstar18]

Coming up next a run on the bank. By the way where is Walpole?

[@robertwalpole360]

I'm right here!

[@Cracker3011]

GET HIM!

[@robertwalpole360]

Cracker3011 Woop, woop, woop, woop!

[@CarstenGermer]

Once again you guys are amazing. If I were a teacher, I'd show your series whenever applicable.

[@AndyG94]

I missed Walpole!

[@DavidChipman]

Maybe he'll show up in later parts.... ;)

[@PilkScientist]

That silhouette looked familiar... though that may just be because everyone back then looked like that from behind.

[@weldonwin]

I'm pretty certain thats him in the shadows at the end of the episode

[@PilkScientist]

weldonwin I googled Walpole and paper money... *giggles excitedly like a little schoolgirl*

[@robertwalpole360]

Did somebody miss me?

[@Kapuist1]

In college I studied a bit of financial history, and the biggest innovation to increasing the money supply, rapidly expanding the economy, etc. is Fractional Reserve Banking. In fact, many people suggest that financial innovations are one of the chief causes of the rise of England and the United Provinces in the 17/18th centuries.

[@obrkenobi1170]

Spelling error. Ikhanate should be ILkhanate. But otherwise this is one of my favourite episodes ever. :D

[@ElNeroDiablo]

This is awesome guys, and I love that you used both "Quid" & "Pound" to refer to the Pound Sterling!

[@AegixDrakan]

Did you guys just reverse the "Good crusade" meme?! :o

[@NewSchattenRayquaza]

YOU GUYS ARE AMAZING :D

[@WhimsyHeath]

the guy at 6:31 is randomly adorable.

[@akakico]

These abstract concepts videos are my absolute favorite!

[@Gamerad360]

Its call fractional reserve banking and is one of the main causes of our financial instability.

[@saltyman7888]

i thought it was government regulation lol

[@Gamerad360]

金大恩 Nah, fractional reserve banking has existed since before the events described in this video. Today we have regulations specifically mandating the percentage of reserves. For instance before the regulation the bank reserves could be anywhere from 110% to 1%. The fact is banks are loaning money they do not have.

[@WannabeCanadianDev]

Greed and deregulation is.

[@Gamerad360]

I don't tend to like use of words like greed, because its a very subjective term, and used to judge, or shame others. Deregulation is not necessarily causing financial instability. It depends on a case by case basis, whether or not the deregulation caused financial instability. Regardless of what the doctrine of the political parties it really depends on the regulation itself. Sometimes a regulation is good at promoting stability, or progress, and sometimes it's harmful. For instance one very important regulation that promoted financial security and stability, Glass-Steagall, made Investment banks, and commercial banks separate. Investment banks take much higher risk, and because of Glass-Steagall you could be a investment bank, but you couldn't use a commercial banks money, which was primarily the bank holdings of everyday citizens.

[@ahouyearno]

at the same time, fractional reserve banking is one of the main causes for our financial stability, when done right. It's like nuclear power. It can destroy the world in the wrong hands but when handled correctly, it can fuel the world's economy.

[@Felitaur]

Love that version of Simple Gifts at the end.

[@Burred11]

what didn´t the crusade bring.

[@irsevader7708]

Ven Flemmingson Pineapples

[@Burred11]

sonam karma I guess you ever heard the crusading swallows that brings the coconuts and pineapples to Europe. :P

[@irsevader7708]

damn

[@aperson5135]

lol

[@hsnd2388]

Ven Flemmingson Peace in the Middle East?

[@clecanadalawexplained6330]

I've been listening to the Revolutions podcast, starting with their series on the English Revolution of the 1640s. It's so cool hearing that story referenced as a mere tangent in this one, but also knowing the whole backstory of all the events that eventually lead to Charles the 1st execution.

[@seanmurphy3430]

FORESHADOWING!

[@Healermain15]

DUN DUN DUUNNNN!

[@Sabrowsky]

*angrily shakes fists* DAMN YOU WALPOLE

[@Grizabeebles]

It was a shadow in the foreground. That's some literal "foreshadowing" right there.

[@GrammeStudio]

3:05 banks started as hybrid of pawn shop+debt collector 5:50 the origin of check+paper money

[@nelsonchereta816]

Banknotes that can be redeemed for hard currency work wonderfully... so long as the economy is going well and people have confidence in them. But if a war starts, some ships are lost at sea, or the bank owner is caught being a little too friendly with his neighbor's wife then you get a run on the bank. The bank doesn't have the gold to redeem all its notes, the bank promptly goes bankrupts and a lot of the customers lose all their savings. So yes, a few minor problems with the system.

[@masterofmundus1304]

that's the problem with banks, not paper money. The same thing happened in the Great Depression, only they didn't have enough paper money to cover what was supposed to be the amount in the bank

[@nelsonchereta816]

The two sort of go hand in hand. You can't really have paper money without a banking system.

[@jonathanzilk6089]

This is wonderful! I really like this series.

[@JoshIdstein]

Needless to say, the Like Button was promptly hit by my cursor.

[@Voyhkah]

The English Civil War really deserves its own series.

[@vicentetemes5793]

4:20 I hate being THAT guy, but shouldn't that be "Europe's side"?

[@Ironfrenzy217]

Oh that's accidental?

[@321Nagato]

420 blaze it. They went wrong at that exact time.

[@vicentetemes5793]

Ironfrenzy217 I suppose so, England isn't exactly next to Italy.

[@Ironfrenzy217]

I was saying a quote from TFS : DBA. Twas trying to be silly.

[@vicentetemes5793]

Ironfrenzy217 What is a TFSDBA and how many of them are required to change a lightbulb.

[@stachowi]

wow, one of the best explanations i've ever seen and I've been studying money for 20+ years. Amazing job.

[@Poopdahoop]

That.... that person at the end there. Is that.... who is that? Who could that be-- It's Walpole. It was Walpole.

[@robertwalpole360]

Indeed it was. ;)

[@blanca-borb]

Law has entered the chatroom

[@m_b_lmackenzie4510]

I love when you bring sketches from the other series. "Why let a little historical series get in the way of creating another historical series?"

[@jellybean358]

Seeing these leaders screw with their economies causing fatal head related injuries gives me hope for my country :D

[@amelialoyselle2123]

That nod to the Crusade episodes tho, oh my god. I wasn't expecting that! Made me laugh out loud.

[@alexioskomnenos9050]

3:18 (Heavy byzantine-ing)

[@krzuker]

I love the Kiner Brothers' rendition of "Simple Gifts" from the credits of these. Sooo goood.

[@jackychan8090]

"The little continent hanging off Italy's side " You mean France's ?

[@timothymclean]

I would have gone with Europe in general, really. ...Though an alternate universe where the British Isles somehow got shoved into the Mediterranean some time during the Middle Ages would be interesting...

[@spriddlez]

It was a joke ;P I think Italy's influence was large enough to cover most of France/Europe at the time.

[@Hugh.Manatee]

Italy's Influence? Italy wasn't even Italy back then. It was a bunch of small kingdoms, republics, duchies and one papal state

[@firecage7925]

Adenine, since you want to be so nitpicky, it was actually several papal states, due to being called the Papal States. Like the UK is the United Kingdoms and not one united kingdom.

[@lecterulyanov3853]

I love your use of the slang word quid

[@Duke_of_Lorraine]

Walpole taking over the financial system ? And I thought that the current financial system was shady...

[@paulblichmann2791]

"He was promptly strangled with a bowstring" Did you hear that, Janet Yelen?

[@Alex-fu4md]

Let me guess. Is it Walpole?

[@Prespanda]

I love when you guys talk about financial history.

[@Fungamerplays]

So what you're saying is that printing money is not a way to print money?

[@aboringperson9069]

Dunno why, but these figures are a lot more adorable than other series

[@Mjiujtsu]

with regards to banking, did you know that under Sharia law it is illegal to make interest off savings? Arab communities benefited massively from local investments in this way, because the only thing to do with money was either save spend or invest, and only one of those makes more money :)

[@damianpenston6588]

Usury also goes against the teachings of the Christian bible, but the Catholic Church turned a blind eye long ago. If they'd thought of it, I'm sure they'd have done the same thing as Islamic finance.

[@defiwallettutorials9464]

Excellent information