What Happened to the Debts of Conquered Countries? | SideQuest Animated History
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- čas přidán 15. 10. 2020
- Conquering land sounds like a pretty good deal ... which is why it was a very popular activity for most of human history! But, as with all good things, someone eventually comes around and spoils the fun for everybody: in this case, that someone was German philosophers, who decided that conquered land should carry its debts to its new owner.
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Further Reading:
The Succession of States and the Problem of State Debts by P. K. Menon - core.ac.uk/download/pdf/71463...
The Concept of Odious Debt in Public International Law by Robert Howse - unctad.org/en/docs/osgdp20074...
Sovereign Debt Defaults: Insights from History by Kim Oosterlinck - www.researchgate.net/publicat...
Bondholder gains from the annexation of Texas and implications of the US bailout by Richard Burdekin - www.researchgate.net/publicat... - Zábava
“Extracting payments from someone with this many swords and canons was never a simple affair” brilliant line.
the real reason why many governments, including the American government, want to disarm their population. It's easier to tax the shit out of someone if you know they don't have the ability to resist you when you come to forcibly collect.
Also known as the "Bigger Army Diplomacy"
Actually it's pretty easy since the wages of sin is death, so all the money lenders have to do is to invade and get killed and they would have gained what they where owed as ordained by God almighty himself.
@@skitidet4302 what the fuck does the wage of sin have to do with real wages? It's literally impossible to be free of sin anyways so fuck it.
@@skitidet4302 lol, you believe that bullshit? 🐵
😂🤣😂🤣😂🤣😂🤣😂🤣
I absolutely adored everything about this video. Financial history is so underrated.
Yeah
Well hello Brandon, funny to see you here! Patrolling the Mojave sure does make you wish for a nuclear winter.
It is interesting.
I'd honestly like to have that in grand strategy RTS games, since could be neat
Alternatively, a video on how the colonies and how the UK handled debts during the revolutionary war could be neat, like did they have rival tax collector's attempting to get funds from the same places
Finally.
After years of watching this channel.
It has finally hit the algorithm
It’s unfortunate that useful financial data only go back a few centuries so not much of history can be analyzed through that scope.
There's an old saying in finance: "If you owe the bank a little money the bank owns you, if you owe the bank a lot of money then you own the bank." If a conqueror were to not pay back the debts of the nation it conquers then the nations that are owed money might be getting inclined to go to war with the potential conqueror. An example of this is world war I where the United States bought up enormous amounts of French and British bonds but then ultimately entered the war on behalf of the French and British because America needed them to survive so they would pay America back.
or, in a similar vein, the Habsburgs having so much debt with the Fugger family they were able to practically force them to give them more loans so they wouldnt just stop paying the old ones
I do wonder how the world would be if equity financing were used. 20% of my income for 10 years for $100,000, etc (much higher for a king who had more assets).
Actually they didn't pay America, cuz here in Brazil we received nothing. They paid only the US 😢
@@cookednick Most people will say The america when talking about the continent
@@cookednick doesn't really matter, becuase America does include both North and South technically, so it's no fault of Brazilians if they also include themselves in the Americans.
There's also the story of what happens when a country radically changes its government. I recently read a story about how the Soviet Union didn't honor debts from the Czar. It wasn't until the Soviet Union fell and the Russian Federation came into being (and wanted access to foreign debt markets) that they agreed to pay off these old, 100 year old bonds from the days of the Czar.
Whaaaat? Seriously? So those nations still didn't forget their debts from 100 years back ?wow!
@@theemirofjaffa2266 old debts simply mature into cross-generational grudges.
Newfoundland (1949) and Texas (1845) were forced to join Canada and the us, respectively, partially due to debt. I think the Newfies couldve pulled a proto-MMT argument and just "printed" their way out since it was during the Keynesian era, though most countries were on the Bretton woods.
@@user-nf9xc7ww7m MMT relies on fiat currency. The entire theory is that demand for the currency can stabilize it allowing for monetary and fiscal expansions. You just have to not expand so hard that inflation ensues. Breton Woods would make even a proto MMT impossible because you would have to devalue your currency relative to gold or risk monetary crisis over a long enough period of time.
China still owes the US more than a trillion dollars. Since the government became communist the government doesn't recognize the debt.
It also sort of help that in the case of the British, Conqueror and creditor were often one in the same. In fact conquest being the result of not paying said debts, such as in the case of Egypt 😂
if u dont want to be fully subjugated and annexed then pay ur tv licence
War of the unpaid parking ticket
Imagine having your whole country repossessed for a missed payment.
@@mandalorian_guy some don't have to imagine 🤣
@@mandalorian_guy Newfoundland was it's own dominion for a while in the early 1900s. Went heavily into debt, bankrupted, and had to have the British directly rule them again.
As a Finance dude, I love economic history. Great that you tackle these ore obscure subjects and awesome video!
it's so boring though, at least look up exploration and LGBT people in history
@@TotallyOriginality why should we look up pedophiles in positions of power?
@@TotallyOriginality lol.
@@TotallyOriginality wtf 😒
@@lyfe918 what?
Basically, taking on the conquered debts grants legitimacy with the creditors (Typically very powerful people). Legitimacy with powerful people is what allows you to get away with conquest. Damn, got the urge to play EU4 now.
Having play EU4 multiple times, I still have no idea how one actually plays EU4.
@@nickandres7829wait u are supposed to know how to play ?
Idk prefair CK2
We don’t pay any conquered territories’ debt in EU4.
@@vinsonsidhartain a way you could say coring does that. You use Administrative power. And the amount of possible loans you can take decreases if your economy stays exactly the same or gets worse as before the annexation.
But yes it isn't really represented in the game.
5:55 perfectly balanced. Just as Spiffing Brit said
The most underrated youtube channel. Thanks for the quality content!
i agree
I totally agree
Finally something that can be called underrated
@@Adrian13235 it's pretty highly rated, just not very well known.
@@rotamrofsnart No it really isn't for a channel that's been going on this long doing some hard work compared to all the other crap you see on the internet getting millions of views, this is actually VERY underrated
France - "Let me have those debts."
*reads debt list, which mysteriously references something about future events and something called "the German Empire"*
France - "Oh dear, what have I done?"
What's Vichy France?
Don't forget one of the causes of the French Revolution.
If you read the german finance leaders autobiography, he explained how Post WWI France essentially caused Hitlers rise through greed and stupidity
@@richardarriaga6271 German controlled free france
@@Jay-qb9gi Yo Kennedy
These videos always feel way longer than they are. And I mean that as a compliment! You pack so much into these videos that I feel like I’ve sat through a whole long video essay. Bravo on your fact-filled succinctness!
The thing about Texas is the US never assumed its debt, the State of Texas was fully liable for that debt, and settled it in 1850 by selling eastern New Mexico and southern Colorado to the Federal Government which paid off a majority of the debt.
On the other hand, quite interestingly the US assumed ALL of Mexico's debt to Americans (roughly $3 million) in addition to the $15 million cash for the land that was annexed.
Discovered this channel recently and it really is a gold mine, rather unfortunate it doesn't have more subscribers
Yea
PagMan
Queen Victoria: oh dear of course I’ll pay
Also queen Victoria: pretty bold demand for someone in canon blast distance
As one historian said, English Kings had a long habit of borrowing large sums of money from both its own subjects and foreign creditors. What Cromwell introduced was the innovation of paying them back.
E
In money?
2:26 Theres the right way. than there's the Riche way...
IYKYK
This video reminds me of a saying I heard while working in IT -"There is the right way, the wrong way, and the IBM way". I also came to learn that your can switch the word "IBM" with any huge organization/corporation such as GE, government, military, state of California, etc. that tend to have their own ideas and methods of getting things done.
I stumbled on this video and i didn't expect much but this is one of the best animated history vids ive seen. What was even more surprising was it having less then 100k views. I feel like i found some holy grail few are privileged to see!
No, those are called Books.
You made both history and economics entertaining.
Kudos.
4:53 Me who just looked up Italy's debt few minutes ago: "That is not a good idea"
That impression of Queen Victoria was the best part of the video! Lol. I love the way that you mix so much good information with great sense of humor and fun narration. Just such a great video and channel. Please keep the outstanding videos coming and God bless you, my friend!
your videos are so interesting and well put together, with original style and historical focus. I assume you're a team of people -- I hope you get the following you deserve in order to sustain this quality.
A few channels are doing what you do on CZcams, but you guys are by far my favourite among them. Keep it up!
This has been a recurring issue for me for some time now. Tysm you’re a life saver 🙏
The taking of debts rom conquered territory brought a sense of continuity and legitimacy. Bacially, what do you want? To pillage the territory or take it and make intitutions of goverment? Short term vs long term.
I'm sure the money lender chews were happy about pushing that idea
How does paying the Devil his due increase your legitimacy? I can only view someone as a real and moral leader if they tell the moneylenders to go back where they came from, which is Hell since debts are the tools of the Devil which he made to trap men and corrupt their hearts.
@@skitidet4302 So what you are saying is that invading another country and killing their people is fine. Lending money from those who have too much to build a better infrastructure for those who have too little is wrong. This kind of hypocrisy is why I hate Christians. What kind of twisted mind do you have if you think killing poor innocent people is fine and making their lives better is wrong?
@@skitidet4302 To the cesar what is of the cesar, to the devil what is of the devil.
@@skitidet4302 so a real leader to you is someone who steals the money and gets rid of those who's money he took
These quests give great xp!
I thought you would explain Ottoman debts too. That was an interesting subject. Not only Turkey paid those debts, also the countries that born from Ottoman too paid those debts
Where are you from Alpi
What about the rebels who helped take it down?
@@kv4648 Countries that annexed any former Ottoman territory. Greece, etc. also paid Ottoman debts. Turkey paid the most, tho, obviously.
Great drawings, topic choice and channel! Thank you for your hard work
Loved the r/wsb shoutout lol
Brilliant narration and awesome content. I don't know why CZcams only recommended your channel now. But boy, I'm glad it did. Congratulations
Very interesting. The bit about the bond holders becoming millionaires got me thinking about all the generational wealthy people we have today. It would be interesting to see exactly where much of their wealth came from.
Yup! From their secret relationships with government, passed down to later generations. Those without connections were basically screwed.
People can predict what will happen in the future, invest on it then reap the reward when it become true?
@@namvo3013 They can, indeed, try. If they succeed they're wealthy(or wealthier).
The reason it's relatively simple to remain rich is you can keep investing in safe bets, along with risky ones without any real danger. If I put $10,000 into a random start up company and they went bankrupt, that'd have a pretty measurable impact on me. Not to mention not really doing all the much for them(depending on size and expenses).
If a billionaire invested 5 million dollars, it wouldn't have much impact on them if they lost it, but it is a significant boost in funds for a small company. And if they do relatively well the billionaire will make quite a bit back.
They can afford to do this many times. If even one company become a major success, they'll be up millions, or even billions as an early investor.
Meanwhile for my 10 grand, even if it becomes the next Amazon, I'd be lucky to retire on it.
This video is my introduction to this channel and after watching one other video, I've subscribed. Thanks for the content, it's delicious.
Lesson: If you are in the 6th - 18th Century in debt, just let your country be invaded by a superpower country and not pay it.
Well yes, but as he said in this video debts then were standing on individuals not governments so dynasty had to pay it off instead of country.
Borrow money, build a decent place to live, wink suggestively at your next door neighbour and get invaded. You do a runner and the land is all the better for it.. Kind of
@@haxor98 plus you can always live in your neighbors fancy basement
There's... what like a 75% chance the invader would kill the local ruler though.
@@professorhaystacks6606 thats why you flee before the fall.
Did not expect to hear my countries name on the second ever video i played on this channel😲 but im really happy i did, greetings from Serbia 🇷🇸❤️ this channel is amazing
I'm not Serbian but Iike Serbia so hello haha
Doubling that :)
@@WizzardJC well most unique thing about us is the language as we follow the rule "write as you hear,and read as it is written,one letter,one voice" for example saying "where am i" would be written as "ver em aj" if english language followed the same rule.tbh most people i explain the fact that each word can be changed in 7 different ways depending on the conversational circumstances,people really get confused about the variations,but it is technically a 3rd grader stuff here that everyone learns easly lol.
junky cheetah here's your name written through these variations:
junky cheetah,junky cheetaha,junky cheetahi,junky cheetah,junky cheetah,junky cheetahom,junky cheetahu
it would probably be a little different if i converted text of j to џ and y to i,but instead i just changed the ends of the sentence as thats really the only thing that changed through variations.
@@theicyphoenix_7745 but the rule spell as you hear isnt unique...
@@theicyphoenix_7745 that isnt unique with serbia
4:59 the name's bond . italian bond
This was incredibly informative, and funny! Very nice work.
Dang, British weren't screwing around.
"You inherited their debt."
"Cool, I'll pay it with your head."
Honestly that's how I was expecting 90% of this to go. People just warring over debts.
If you (as a king) don't pay those debts, do you think private individuals/societies will finance your future businesses with new debts?
Me as a moneylender surely not because you can't take some rules of this system but not the nasty ones.
@@anto8375 The "moneylenders" should not have financed projects outside their sovereigns borders, but we all know how subversive money lenders can be.
@@stevencooper4422 oy VEYYYYY
Wait are you saying wars are fought over money and power, not ideals and democracy!?
@@kane357lynch Really makes you think
Such interesting topics well packed into easily digestable short videos. Love it, i hope your channel takes off, you truly deserve it!
Seriously man, I discovered this channel a week or two ago and I'm already obsessed. I think the algorithm may finally be catching on too 🤞
I'm so glad I found this channel, this is awesome
This is good, especially when I'm a fan of this kind of stuff. This is underrated. The calmness and the well-toned voice.
I absolutely love this art style and these videos.
This was a great video! Animation, the topic and voice! I am so glad CZcams recommended this channel! 😊
I can't believe I just now found this channel this video was awesome.
I found this channel today, this is one of the true underrated channels
I just found this channel and I'm already in love with the style of it's content
Nice pfp
5:47 why does this not surprise me?
Knowledge you never knew you desired 😅
Excellent! 😊
Awesome video man! Love to see them.
2:37 oh god that must have taken long
The best educational channel the algorithm the linked me up with so far. Amazing job!!
Nocturne in E-flat major, Op. 9, No. 2 by Frédéric Chopin in case anyone was wondering what the song was. composed when he was 20.
It is edited I assume. Is it channel's own edit though I don't know. Would appreciate if someone tell.
I am genuinely surprised debts of conquered countries are paid off. That seems....odd and unenforceable to me.
They have no choice really.. Invade someone with a debt to other nations, they demand debt payment but they are weak, so you conquer them, but guess what? They have debts too! and guess who they have debts to? A superpower who you have no chance of winning against. So i'd opt to just pay the debt.
Well IT dependent ob the conquerer. They did only pay IT Back If they wanted. IT was basicaly morally rightfull bribery.
They want to be able to borrow more money
It was probably to get on the good side of the lender if they ever needed loans in the future
The bourgeoisie have too much power, not bribing them can be a costly affair.
Great content, original, and interesting. I’d like to see a video on the origins of the banjo. Most people assume it’s from America but actually originated in Africa.
Really good video. Thanks!
Thanks for the info! 👍
Cannot believe a history buff like me has been missing out on this channel.
"Theres the right way, then there's the German way, you know..."
Well done good sir 🎩
Is that a well known phrase, Or just a jab? I'm really curious.
Same. Such a good channel. I just found them recently. Good thing they seem to be blowing up now.
or as it was known the holy Roman way
Gee I wonder what group of people enacted that "pay the debts of another country's money loans" in germany.
@@shaggyd00kale58 It seems like a derivative of a classic US military adage, "right way, wrong way, army way." The idea was that regardless of if it was right or wrong, you'd end up doing it the army way, because otherwise you'd end up cleaning toilets, and often the army way would be the hardest of the three.
Germany has a proud history of complicating or over-engineering anything and everything from succession laws to federalism, so I think it's less of a jab and more of a begrudging compliment- the German way is still the right way, it's just going to have a few extra steps in-between...
You, sir, are truly a great comedian and entertainer! This exquisite, very, *very* _much_ enjoyable and extremely high quality content of yours in combination with that truly impeccable, highly intoxicating and just plainly drop-dead gorgeous accent you've got there surely made this video an _absolute_ *f--king* banger and a highly enjoyable watch! This video you made for us right here is truly an entertainment masterpiece, and it is very much appreciated that you publish these incredibly well crafted gems of yours in a place where all of us can watch them completely free of charge! So, on behalf of all the people who have liked this video, I would like to thank you for this! ♥️♥️ Thank you man! (Or woman? But I reckon that was your voice actively caressing our eardrums when we had our faces securely glued to our screens while we were watching the video, wasn't it?)
Great video and something I didn't consider before watching it. Keep up the good work!
This was very well done!
It'd be interesting how China's debts will get resolved, since from the Qing Dynasty to the establishment of the PRC, China took on at least a _trillion_ USD worth of bonds. However "China" nowadays is split into the PRC (Mainland China) and the ROC (Táiwān), both officially claiming sovereignty over the other and neither willing to pay off those outstanding loans.
Ah the British way of doing things! Do what you want and don't suffer the consequences until the future generations make it all go to shit and then the more further future generations have to pay the price
Persia, Palestine, China, Afghanistan, and Germany never came back to haunt the British for their short-term gain. 😉
yet
@@richardarriaga6271 I would make some serious arguments about those nations having already haunted Britain, and the western world they helped build, quite a bit over the last century. The only exception would be China, but a significant part of their current foreign policy is a long form of revenge for the opium wars. We just haven't yet begun to feel the consequences there.
@@nuclearsynapse5319 I was being sarcastic. Germany reparations and seizure of industrial areas that could have paid for reparations or grow its economy helped radicalize Germans into bombing London.
That's the thing about realpolitik, if you are conquered then you, by definition, deserve to be conquered.
This is awesome
Informative, well illustrated, well narrated.
thank you very much for this.
This channel is just way too underrated. This deserves more.
20% interest? With relatively no economic development? That's a loan shark
Not to mention the creditor should be punished for backing the losing horse.
“Someone save the records of our debts!”
I love this channel so much
What a ride of a video! Thank you
3:50 hmmm.... Perhaps.
If the new rulers actually like you and wish to have good relations with your banks, maybe they'll pay it. Maybe. But in most cases, they'll just show you out the door. And if you try to insist upon these debts, the guards will ask you to face the wall.
That's bad business for the ruler. Credit is important to future lender to be doing business with the rulers especially after expensive endeavor like fighting a war. Any rulers that has bad credit can easily deposed by one with a good credit that could borrow more money.
@kang C
There was no such thing as a credit score back in the day only reputations. Honoring Debts was usually dependent on if you wanted to make service of that lender or if that lender held the coveted title of “Next” (to be annexed) Lenders didn’t particularly care if their competitors had their debts honored only that their loans returned a profit. Now if you make a reputation of not paying any debts public services and raising armies becomes a little difficult, Briton however side stepped this problem by being the primary lender with Annexation usually being the result of defaulted debts.
@@simonnachreiner8380 it was. It certainly was and has ever been.
You mean computers didn't exist back then, OK. But credit and writen records did.
BTW, have you ever heard about "reputation"? There.
Agreed. The British defeat the French largely due to having extremely low interest rates from never defaulting and having Parliament control the purse. The kings of France defaulted constantly and the more you default the worse the credit and the more likely the next default.
Great video and channel!!
I just found this channel and it's now one of my favorites
This man as under-rated as Dani Alves for Barcelona.
2:25 right way Vs German way
3:50 American jingoism
4:42 Italian bond
5:04 wallstreet bets
5:25 Japan in Korea
5:48 British inconsistencies
Wow, i learned fast and good. Thx So much
First time seeing your channel, great content and very unique approach!
Normally I just lurk, but I'll help keep pushing the algorithm to recommend more people this wonderful video - by the looks of it, you might finally be getting your spot in the, er... Spotlight.
Good work on this video, by the way!
Here before this channel blows up
Amazing video. Thanks
Great visuals and voice. I never leave a comment, but this video is so great
2:42 is the best part
Amazing. Absolutely Amazing.
That was the most beautiful piece of art I’ve ever seen. Thank you.
Fantastic video !!
A detail I appreciated above all here was the short but scathing framing of Hawaii’s annexation. Literally never knew Hawaii was a literal *kingdom* we bought from Dole from my education
Wow, I stumbled across this video and at least three or four times throughout the video I was just blown away by the quality of your script, your background art, and the seemingly ease to explain topics that aren't always easy to understand. I really enjoyed how you used the Serbian-Ottoman empire curfuffle as a "hypothetical fantasy" to introduce us to the subject of the video, but also giving us a fun and creative resource to view the subject through now. Very impressive work, instantly subscribed.
His art of the Serb Orthodox monastery was good too.
Incredibly well-made video! Very interesting!
Actually always wondered about this, and was a helpful readers digest summary. Thank you :)
I have never seen a history channel with this high-quality content keep up the good work!
you make me wanna keep hopping on civ 6 lol
This was a great video!
This was cool! Subbed!
The politics of debt management in wars of conquest are interesting as well because the debtors could turn to their creditors and tell them, "You know, if I go down, you lose all that I owe you; you don't think Badguy McInvaderton is going to pay you, do you?" and use that as leverage for more loans or even outright mercenary aid. Which makes it actually worth McInvaderton's while to promise to pay off those debts should he succeed. He may even be able to buy support from the creditors if it looks like the debtor he's invading is less willing or able to pay back those debts.
1:37 *Credit card declines*: Private army invades just to destroy the buildings
Phenomenally well made! You’ve got a new subscriber!
This was fantastic quality!!!
I really appreciate this guy. I just get 2008 vibes of LBP. Not really that type of guy after so long but really good way to reel people into history.
0:49 "All the best with that, by the way." What is that supose to mean?
YOU ARE AMAZING MY FRIEND.. i cant believe this video has been out since 2020. and i'm only seeing it now.. and to that I say, people at the youtube need to work harder
This is amazing glad to be here at 100k before you hit several million :)