From Coins to Collapse: A 10-Step Journey Through Money, Empires, and Their Downfall
The Interplay of Money and Empire Decline Through History
The Mines of Laurion near Athens were the first mines used for coins. However, their depletion significantly impacted Athens's economy, contributing to its eventual fall.
The mines of Southern Spain fueled Rome's Reign and then depleted, and Rome fell.
Byzantine Empire finishes off Spanish mines and locates a few mines around Greece, Serbia, and Asia Minor, plus recycling Roman treasures, plates, statues, etc.
Spain's wealth is sourced from Silver (present-day Peru, Mexico, Bolivia, New Mexico, California, Nevada, Colorado, and Arizona Silver mines.)
Once Silver ran out in Europe, we saw the first paper notes when Venetian merchants, bankers, and the government vaulted Silver and gold and issued war bonds. Venice had its eye on Constantinople, the heart of Byzantine Glory. The Sack of Constantinople, a significant event in 1205, marked a turning point in the history of currency and banking systems.
Spain followed this war bond (paper money) tradition by issuing Juros.
France follows with their war bond called Rentes.
The Bank of England was established in 1694 when private investors agreed to lend £1.2 million to King William III to finance his war against France. As part of the negotiation, these investors secured a royal charter from the King that granted them certain privileges, including the right to operate as a joint-stock bank. The Bank was granted the exclusive right to issue banknotes in London and within a 65-mile radius of the city. It obtained a monopoly on issuing currency in England and Wales in 1844. The Bank's creation was tied to the government's need for war financing.
The Rothschild family gained significant control over currency issuance through strategic banking operations across Europe in the 19th century. By establishing banks in major financial centers and financing government loans, they obtained a profound influence over national monetary policies. Their international network allowed them to dominate foreign exchange markets and government debt issuance, giving them de facto control over money supplies in several countries.
In 1913, the Federal Reserve was arranged similarly for the USA: private businessmen, through a concerted effort, secured a monopoly on issuing currency.
The pattern of nations falling due to weakening from war spending and depleting silver mines has repeated throughout history. Here are some key examples illustrating this pattern:
Ancient Athens
Athens minted its first silver coins, the famous "owl" coins, during the Peloponnesian War against Sparta. These coins were used to efficiently pay soldiers and fund the war effort. Markets emerged around military encampments to supply goods to soldiers.
However, the prolonged 30-year war took a heavy toll. As the silver mines of Laurion near Athens became depleted, the purity of the coins was gradually diluted. By the end of the war, the once-glorious owl coins were only silver-plated. This debasement, combined with the immense costs of the war, severely weakened Athens economically and militarily.
Roman Empire
Rome followed a similar pattern of expansion through warfare, funded by debasing its currency. The Roman denarius started at 95-98% silver purity in the early empire. However, as Rome's wars and imperial expenses grew, emperors steadily reduced the silver content:
By 50 AD, the denarius was 80% silver
By 100 AD, 75% silver
By 200 AD, 50% silver
By 250 AD, only 5% silver
This extreme debasement led to hyperinflation, with prices rising 1000% in just 15 years during the 3rd century crisis.
The famous quote from Emperor Severus - "Enrich the soldiers, scorn all others" - encapsulates Rome's unsustainable military-focused economic policy.
Byzantine Empire
The Byzantine Empire initially inherited Rome's gold and silver sources, including mines in Greece, Serbia, and Anatolia. However, as these mines were depleted over centuries of warfare and imperial expenses, the empire was forced to debase its coinage.
By the 15th century, Byzantium was issuing severely debased silver coins and minor copper coins, with gold coinage no longer in circulation. This economic decline coincided with the empire's military weakening and eventual fall to the Ottoman Turks.
MODERN ERA
A continuation of SilverWars and Paper Promises
Several common factors emerge in this recurring pattern:
Excessive military spending drains national treasuries.
Depletion of silver and gold mines removes the basis for sound currency.
Governments debase coinage to continue funding wars and expenses.
Currency debasement leads to inflation and economic instability.
Weakened economies cannot sustain military power, leading to defeat.
This cycle played out not just in ancient empires, but also in more recent examples like the Spanish Empire's decline in the 17th-18th centuries.
The pattern serves as a cautionary tale about the long-term consequences of unsustainable military spending and currency debasement.
In each case, the combination of costly wars and dwindling precious metal supplies forced empires to debase their currencies. This debasement then accelerated their decline by undermining economic stability and military power. The lesson is clear - sound money and fiscal restraint are crucial for long-term national survival and prosperity.
The pattern of nations falling due to weakening from war spending and depleting silver supplies has repeated throughout history, including in the United States:
Manhattan Project and Silver Depletion
In the 1940s, the Manhattan Project requisitioned 400,000 silver bars from the U.S. Treasury, totaling 400 million ounces, for use in the development of nuclear weapons. This massive diversion of silver for military purposes echoes how ancient empires like Rome prioritized military spending over economic stability.
Dwindling Silver Supplies
By the 1960s, U.S. silver reserves were rapidly depleting:
In 1963, the U.S. Treasury stopped publishing reports on silver inventories, similar to how declining empires often obscure economic realities.
In 1965, John Stevens of the Silver Users Association testified before Congress that there was not enough silver in the USA to meet military needs.
This shortage led to the Coinage Act of 1965, which removed silver from most U.S. coins.
The United States and Silver Dependency
The Coinage Act of 1965 marked a significant shift in U.S. monetary policy, reminiscent of the currency debasement seen in ancient empires. A crucial detail often overlooked is that during the discussions surrounding this act, officials declared that the United States was 79% import reliant on silver. This high level of dependency on foreign silver sources echoes the challenges faced by empires like Rome and Byzantium as their local mines were depleted.
Just as ancient Athens struggled when the Laurion silver mines near the city became exhausted, the U.S. found itself vulnerable due to its reliance on imported silver. This dependency likely contributed to the decision to remove silver from dimes and quarters, and reduce it in half dollars.
Parallels to Ancient Empires
Resource Depletion: Like Athens and Rome, the U.S. faced dwindling domestic silver supplies.
Currency Debasement: The removal of silver from coinage mirrors the actions of ancient empires when precious metal supplies ran low.
Economic Pressure: The need to change coinage composition due to silver shortages reflects similar economic pressures faced by declining empires.
Military Spending: While not directly related to the Coinage Act, the U.S. was engaged in the Vietnam War during this period, echoing how military expenditures often coincided with currency debasement in ancient times.
The U.S.'s high reliance on imported silver in 1965 demonstrates that even modern superpowers are not immune to the resource challenges that contributed to the fall of ancient empires. This dependency on foreign resources for crucial monetary metals creates vulnerabilities similar to those experienced by Athens, Rome, and Byzantium in their later years
Debasement of Currency
The elimination of silver from U.S. coinage mirrors the actions of ancient Athens and Rome:
Dimes and quarters became copper-nickel clad coins in 1965.
Half dollars were reduced from 90% to 40% silver in 1965, then to copper-nickel clad in 1971.
This debasement parallels how Athens diluted its silver owl coins and Rome reduced the silver content of the denarius.
Long-Term Consequences
The U.S. government's actions regarding silver had lasting effects:
In 1996, the government abruptly halted reporting on silver inventories.
Soon after, the U.S. Bureau of Mines was abolished, further obscuring information about mineral resources.
These moves echo how declining empires often become less transparent about their economic challenges.
The pattern seen in Athens, Rome, and the Byzantine Empire - of military priorities depleting precious metal reserves, leading to currency debasement and economic instability - appears to be repeating in modern times. The U.S. experience with silver demonstrates that even contemporary powers are not immune to the economic pressures that contributed to the fall of ancient empires.
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Years of silver mining just for torpedoes, this video shows how large these silver batteries are. Many of these batteries are larger than commercial water heaters
Years of silver mining for solar panels
By 2030, global solar capacity is projected to reach around 2,840 gigawatts, according to the International Energy Agency. This growth is driven by various factors, including overall electricity demand increases, climate goals, and falling costs.
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