State Bankruptcy
The Roman Empire used coins mainly made of silver.
Along with an increase of state debts of the Empire, the percentage of silver content decreased eventually to 0.1 to 0.01%. This type of low-quality silver coins were provided in a large quantity for the public in the 3rd century. The pension system of the Empire was broken and public servants received only little salary. Eventually military spending was cut year after year. The symbol of power of the Empire, namely, military came to lose its foundation. The number of hired officers and soldiers decreased year after year. And, finally big waves of wild tribes coming from the east overwhelmed the Empire. In this way, the Roman Empire fell, according to a theory...
After Columbus discovered America for the Spanish royal family in 1492, Spain obtained a huge amount of gold and silver from the American Continents.
Then, the Spanish people became big-time spenders, living in luxury, since they came to hold so much gold and silver without hard working and any excellent inventions. Spaniards who invaded the American Continents simply exercised its military force on native Americans who did not even possess effective iron weapons without mentioning harquebuses. Gold and silver was taken so violently. Then, the noble class and wealthy people of the Spanish Empire started to build many lavish palaces, churches, and so on. Inevitably the nation came to suffer state bankruptcy four times in the late 16th century, namely in 1557, 1560, 1575, and 1596. Accordingly Spain lost many ships in the Spanish Armada, a great naval battle fought between Spain and England in 1588. However, power of wealth used to strengthen the nation was proved eventually when the war ended in 1604, since Spain could still keep maritime control over England. It needed more time for the English to exercise its superiority, since gold and silver were still around Spain...
As for the British Empire, it could be really proud of its status as the people who realized the Industrial Revolution in the late 18th century.
But, by the middle of the 19th century, other major nations had already started to follow suit. Then, declining of the Empire started. The U.K. was essentially a country engaged in importing raw materials and exporting manufactured products. And, reality was that the U.K. suffered chronic excess of imports. To cover the huge deficit, it needed colonies the Empire acquired through exercise of its military power. Indeed, without a vast sum of money India earned through trade with the U.K. and deposited in banks in London, the Empire must have collapsed far before WWII. After WWII, the U.K. lost many colonies, but recovery needs of the world helped the country grow as a credit nation. Yet, its industry could not catch up with fast progress of technology being driven by American and Japanese businesses so exhaustively in 1970s and 1980s. In 1976, the British Government suffered financial collapse to be saved by IMF eventually. And then, the era of Ms. Thatcher began. Fortunately, the then advanced technology was found to be useful to apply to the British financial sector. As the U.K. shares many cultural aspects and the language with the U.S., the progress of the hi-tech financial business in the U.S. could be easily transferred to Great Britain or the City. But, it has to also share a decline and a crisis of the money business with America or Wall Street...
(to be continued...)
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There is a theory that Catholic countries used to and look like still being used to bilk their creditors. They do not pay their debts in the last moment.
Indeed, Christ Jesus said to lend your money to others without expecting a refund. You must not take back money once if you lend it, in holy principle. And, strangely, Christ Jesus did not recommend borrowing money from others if in need. Probably, such a situation where money is needed is impossible for followers of Christ Jesus, since He is the God.
Have a good night if you are on Wall Street.
Joh 10:5 And a stranger will they not follow, but will flee from him: for they know not the voice of strangers.