Shadow Rogue Yeah, I learnt that Puritans, instead of naming their child after a Saint (Which was considered Sinful by them and many Protestants) named their children after Old Testament names in Hebrew, translated into English. Praise-God was probably, normally, Judah.
"Law had to resort to the expedient of offering criminals a pardon if they would marry a prostitute and move to Louisiana." There's a joke in there somewhere.
@ThePlasmaPro RE: "I started out in London, my father gave me a small loan of a million livres" I started out in New York City, my father gave me a small loan of a million dollars. Sound familiar?
Yes, but because they now have uses, they do have inherent value. That's what he's saying, even tho I'm not sure what kind of uses gold and silver have
What they're saying when gold has "no IHNERANT" value, is that they mean gold is itself worthless. And it was. Until the ability to transfer electricity with minimal waste heat became a useful trait. So back then? Seemingly no inherent value. Today? Great inherent value. Because today, gold is a useful tool. Inherent value doesn't really change, though. We simply don't know about the inherant value until we discover the need. Once the inherent value is discovered it is a constant and only the supply and demand (and with it, price) changes.
I think what was meant is that it had no value beyond it's use as currency. we could use cows as currency and it would have value based on that, but if we stopped using it one day then we would still want the cow as a food source, do it has value in itself. how much value depends on markets but it would be something. if we do the same with dollars, stop considering it a currency, it would be worthless paper. it's value is poorly due to our arbitrary choice to make it or currency. law's point, I think, is that gold and silver, at the time, was also worthless outside of currency. even though some wear it add jewelry, if it had no currency value, no arbitrary "this means I'm rich" mentality, it would be as valuable as wearing yellow tin. the idea is that gold is valuable because we want it to be, nothing more. thus why not just do the same with any object, like paper notes?
I know that it's usually up to the patreon supporters to choose such things, But i would like to suggest that you guy's consider Snorri Sturluson for a series. He is perhaps one of the most forgotten characters in History yet so important to not only Icelandic history but Scandinavian as a whole. He is responsible for writing down a large number of saga's such as Heimskringla saga, Egils saga and The Edda's (the book of Norse mythology) and starting this saga writing trend in Iceland in the 13th century. After he wrote down Heimskringla the whole country started to document saga's and if it weren't for him we wouldn't know half the vikings we know today. He is also responsible for basically creating the Scandinavian written language and modern day Icelandic is almost identical to his original spelling. But not only is he a major character to Scandinavian history but he also played a huge part in the Icelandic civil war known as Sturlunga öld. Historians have been debating for centuries weather Icelanders should call him their greatest national hero or a traitor to their country. Since he fought on the Norwegian side of the civil war. You see the civil war started between two different factions in Iceland in 1220. one side wanting to swear fealty to Norway and the other side wanted to remain independent. it came to an end in 1262 when the south, west and the North swore fealty to Norway, the east would remain independent for two more years. Bringing an end to the Icelandic commonwealth which lasted from 930-1262. Snorri Sturluson was a Goði meaning a chieftain who had a seat at the Fjórðungsþing (the Icelandic parliament at the time) and he was elected Lögumaður twice at alþingi (basically the president if you want want call it that) And he started the war civil war for the Norwegian side.
Oh and don't make the mistake that so many seem to make and think that he was a priest or a monk or something, Goði meant a priest in the early ages of the viking age, In the Icelandic commonwealth it started as a chieftain who was responsible for maintaining a Heathen monastery but after Christianity it only meant chieftain who had a seat at the parliament.
Also he kind of became the godfather of the Icelandic mob in his day. He's one of my favorite historical figures in a "this guy is fascinating" kind of way. (Obviously not so much in a "role model" kind of way.)
Aaaaaaand Extra Credits screwed up the Union Jack AGAIN. Guys, I love the fact that this is an unintentional running joke, but this is a little bit too early for the diagonal red stripes of Ireland ;)
Hello, this is 2008 Barebone (My father Praise-God Barebone gave me this name because 2008 is the supposed year of Jesus' second coming). Do you guys have something to tell me?
Hey I don't know about anyone else, but to me, this is the best Extra History series so far. I find it much easier to follow than the South Seas series, and moreover, it has me laughing out loud far more often than any other series' videos (we're talking multiple times an episode).
You know, know, I may be missing something, but it feels like both this and the South Sea Company could have worked, if the creators hadn't been so . . . creative. If the SSC hadn't started trying to manipulate the stock price and simply been at worst a method of paying creditors off and at best a modest tool for trading with the Spanish. Or if the CotW had simply never been created and the French central bank left alone to figure its role out, those two solutions may have moved forward without the disruption. But then, no one would have known quite so early what to look out for in a financial system.
These videos are excellent. Even my five-year-old daughter likes to watch them, and she's learning from them. Thank you very much, and please keep up the great work.
Possible, but doubtful. Law was a criminal who ran away from Britain to escape being executed. Walpole was at war with every country Law was hiding in. Far more likely is Blunt and Law meeting one another. While still unlikely the similarity of their respective economic plans are not to go unnoticed.
+John Whitesell If they did meet it would probably have been before Law had to flee the country. I'd like to imagine them as gambling buddies in the seedy part of London. :P
Wow, you got both the name and the shape of the Republic of the United Netherlands almost right! (when drawing the country in old maps, many people seem to forget that a lot more of was water 200+ years ago.)
love the little sleight-of-hand money thing at the beginning. i think it's funny that i see the difference in your animators but i have no idea who they are. :P and i love that this series will go over the gold standard. i can't tell you how many times i've heard some idiot say our economy is in the shitter because it's not tied to a finite supply of a rock, and now i can accurately tell them why thats not true
I'm sure this has already come up, but here goes anyway..... 3:09 - On Screen Words - "Congratulations!(?) It's a UNION JACK!" Everyone in the UK - "It's the Union Flag. It's only called the Union Jack when it's flown on a boat/ship."
I have known about French prisoners being given the option to marry a prostitute and move to Louisiana for YEARS! I laughed out loud when i found out that THIS is where that came from! X'D
Meanwhile, in New France, money was hard to come by. During winter, boats could not sail on the frozen St. Lawrence River and trade stopped altogether. It was hard to pay the soldiers and the workers in cold hard coins. In 1685, the intendant of the time, Jacques de Meulles, has decided to deliver "I.O.U.s" to pay the soldiers. But there was no printing press in New France yet and good paper was rare. However, everyone was playing cards. So he wrote some amounts of money onto them, stamped a fleur-de-lys and signed his name. The soldiers began to use the cards to pay the tradesmen in Québec City, which used them for their own purchases. When the boats arrived in spring with new funds, everyone was able to get its money back. The cards were even cut. A full card was worth 4 livres (pound), half a card 2 livres and a quarter, 15 "sous". And thus was born "card money" the first paper currency in the Americas, five years before the one made in Massachussetts. One note of interest, after the bankruptcy of John Law's bank, card money has been used in Louisiana in 1722.
these videos sure do have a more positive spin on paper money than most videos/conspiracy theorist have shown...I hope you will be able to address them in the end.... especially the big ones surrounding central banks and the FED
I remembered, you guys mentioned John law in your South Sea Bubble Lies episode as part of the reason why the insanity of the South Sea Company was allowed to continue.
Oh dear. They used the Union Jack that wouldn't be used for a hundred odd years after the Act of Union. Sorry, Extra Credits, you did your best, but you were once again foiled by flags.
It's a pretty common scam and if you can get through all the red tape and legal language you will find it is still happening today. Central banks are always a scam, just with practice they are able to keep people from figuring it out for longer.
Central banks aren't a scam. They fulfil a task for the government that allows the government to function more efficiently. Whether you appreciate that function or don't, whether they do that job well or they don't, they are not "a scam."
Well, as a proud native of Parts Unknown, I can tell you that it's a quite nice place. Parts Unknownians are simple folk that do unknown things all the unknown time.
guys, i loved your gaming channel but i seriously think, this is even better. You are awesome in explaining things easily and you make me want to teach the history of money. continue your great work!
I find it funny that at 3:40 they make it seem as if Law is making a bunch of impressive calculations to determine his odds of wining, when he literally is holding a royal flush, which is the best possible hand you can get.
I think the difference is that before it was that a certain amount of gold was worth x amount of y. Now it's x amount of y is worth this amount of money
It's the realization that money is simply exchanging quantities of goods and services for other goods and services, ie, money is just the number we assign to things we effectively still barter for.
It's basically a fancy way of restating the condition we started this whole series with: that money is a universal third good mediating and facilitating trade of actual goods. It's attempting to bring people's perception back to that and away from the idea the money has its own inherent value that the goods are being traded for.
It means that money is a measurement of value, but does not have value itself. For example you go to work and get some amount of money for it and then use that money to buy stuff. Essentially you did work so that you could get stuff. Money is just a tool for converting your work into stuff that you want.
I dunno about that last bit. Seeing as this crash is far FAR from the only one in history, it seems to me that it was indeed the idea as well as the execution that was to blame... and still often is.
John Law On the lam Play some cards Got the cash Found a central bank Moral hazard trade France is bust Now I'm gone John Law On the lam Got no money Get a cough Vomit blood Now I'm dead Like a boss
I enjoy this series, but I hope you also address the issues that arise from giving the government the freedom to print as much money as they want. (as in, there's nothing stopping them if they want to.)
Not true. Overprinting money causing inflation and hurts the economy. When the economy suffers so does tax revenue. As a result, over or under printing currency negatively affects tax revenue. And if its one thing government needs, its tax money.
You two realize the USA is 19.5 trillion in debt, we have a planned 4.2 trillion spending budget for 2017, and every $1 printed creates about $2 debt? (Basically the gov prints an IOU for the dollar value and sells it, with the IOU valour about 2x the notes value.) Am I wrong? How is what our (and about any) government doing any different than what this guy was doing-- with exception of being able to saddle such a huge debt and keep doing it anyways?
None of those are relevant because Law pegged his currency to a colonial trading company and the US currency is pegged to the US GDP (I am using pegged here in a more metaphorical sense). That company didn't even exist, and the US GDP does exist. That's the difference. Everything else can be argued and talked about, but Law's problem wasn't debt.
TheAtomic Soul Weren't we agreeing? The govt isn't printing more money to cover its debts because that's a bad idea. A lot of factors go into why the US govt has a growing amount 8f debt, like its own expenditures, but also the factor of interest on preexisting debt. But they aren't printing more money to cover it because that is bad, it devalues currency and then tries to use it as if its still valuable. The state of the US debt is not in question, but the US dollar still has value because of its backing by the US economy.
In a few hundred years, people will look at this system and palm their faces at our incompetence. Decoupling money from any absolute concept of value causes unending inflation, which in turn means money loses the very reliability it's supposed to provide. Ofc this is only a problem when you have small amounts of money at this point~
They were arch rivals pretty much. Blunt used banking as a scheme to scam people into getting stocks just because they could afford It and Law thought banking as "too honest of a job" for him and instead gained huge wealth through gambling.
Since you said it was a failure in execution, what could he have done differently to have avoided it. Was it just that a 15% downpayment was too cheap?
Fakjbf Basically the value of the stock was overinflated. The trading company was not producing enough wealth as people had hoped it would and people realized the stock was worthless and panicked and rushed to sell it. Had the value of the stock not been so over valued and the trading company been profitable and producing valued goods and services it wouldn't have crashed. Basically that is how most market crashes happen, people overestimate the value of something spend too much on it and then when they realize their investment isn't as good as they thought they rush to get out to minimize losses.
Trust is important and it is the loss of trust that dooms these things. It just really feels like a scam that these systems only work when you blindly trust them and whenever people look too closely at what is happening it all goes up in smoke.
Ironically in this case it was blind trust that killed the Company of the West. A somewhat more informed set of investors would never have let the price inflate that high without selling off their shares and pocketing the value. That judicious selling would have kept the price from inflating, like a pressure valve, since it ensured there was always a supply of stock available and that investors would cash in and let the price drop a bit as it rose higher than a certain point.. Unfortunately investors in that era did not think in terms of short term trading, which means that there was no pressure valve when prices kept rising and the stocks became scarce, creating a scarcity hype that tanked everything from the inside. Law's venture failed because the market wasn't sophisticated or advanced enough to keep up with his ideas. "Ahead of its time" is not always a good thing.
"he decided banking was too honest of an employment"
That is saying something.
when banks were actually honest in some places :< I miss those days
Why let honesty get in the way of a good crusade?
>.>
some one NAME VALENCIA I missed those days too.
Why let Walpole get in the way of a good crusade?
Between John Blunt, who made swords, and John Law, who gambled and killed a guy, why is history _so good_ at naming its characters? :^ )
Fate just throwing names around willy-nilly like "Hey, you gotta have fun with it."
DragoniteSpam Like Nicholas If-Jesus-Christ-had-not-died-for-thee-thou-hast-been-damned Barebone.
Legion XIII Exactly!
Legion XIII "PRAISE GOD, BAREBONE!" "Hey let's name our child that."
Shadow Rogue Yeah, I learnt that Puritans, instead of naming their child after a Saint (Which was considered Sinful by them and many Protestants) named their children after Old Testament names in Hebrew, translated into English. Praise-God was probably, normally, Judah.
"Banking was too honest of an employment to him".
Mr Law would come to other thoughts in the 21st century.....
He would have been so proud. :\
Extra Credits ah economy it makes the world go round and corrupts more people every day with greed
Antti Bjöklund are you from iceland ?
Hue Hue No.
Antti Björklund commented 1 Day ago But the video was uploaded 12 min ago
I never broke the Law! I AM THE LAW!
no, judge Dredd is !
someone knocks a door and a guy gets killed? IM THE ONE THAT KNOCKS!
What is the defence?
WE ARE THE DEFENCE
The law will decide your fate. i AM THE LAW
"Money is the value by which goods are exchanged, and not the value for which goods are exchanged."
What a good quote.
"Law had to resort to the expedient of offering criminals a pardon if they would marry a prostitute and move to Louisiana."
There's a joke in there somewhere.
The Duke of Arkansas
Maybe you could rename this episode to "This time, it wasn't Walpole."
Speaking of, he can be seen blowing bubbles.
Kenny Holmes I am not sure.
Don't think I didn't hear that.
Well how was london tower?
Yeah he is everywhere you can't escape them
Oi its always walpole
I think this was the funniest episode of Extra History, besides the "but why let (blank) stop a good crusade?" episode.
I started out in London, my father gave me a small loan of a million livres
he smart :P now I'd gonna be a leader wow
ThePlasmaPro - Gaming And Let's Plays No father dead, it his mother.
So you started out in a British city with a loan of French currency? You must have had a hard time then.
its now called euro-debt.
@ThePlasmaPro
RE: "I started out in London, my father gave me a small loan of a million livres"
I started out in New York City, my father gave me a small loan of a million dollars. Sound familiar?
get a royal pardon
marry a ptostitute and leave for louisiana ...
WHERE DO I FUCKING SIGN ?!?
well... first you've got to break the law... soooooo, want to rob a bank?
And for some reason the amount of like in this comment is 69, keep it up guys :3
Toxic Toz Towards Australia....... wait, wrong side of the channel.
The problem is that it's Louisiana. Even other Southerners agree that it's a shithole.
I think Louisiana being a shithole that has something to do with being founded by criminals and prostitute's
The irony is that gold and Silver DO have inherent value, but it didn't exist until the invention of microelectronics.
although even then it's rather limited.
Barley Sixseventwo Not exactly, it's still only worth what the market will pay for it.
Yes, but because they now have uses, they do have inherent value. That's what he's saying, even tho I'm not sure what kind of uses gold and silver have
What they're saying when gold has "no IHNERANT" value, is that they mean gold is itself worthless. And it was. Until the ability to transfer electricity with minimal waste heat became a useful trait. So back then? Seemingly no inherent value. Today? Great inherent value. Because today, gold is a useful tool.
Inherent value doesn't really change, though. We simply don't know about the inherant value until we discover the need. Once the inherent value is discovered it is a constant and only the supply and demand (and with it, price) changes.
I think what was meant is that it had no value beyond it's use as currency. we could use cows as currency and it would have value based on that, but if we stopped using it one day then we would still want the cow as a food source, do it has value in itself. how much value depends on markets but it would be something.
if we do the same with dollars, stop considering it a currency, it would be worthless paper. it's value is poorly due to our arbitrary choice to make it or currency.
law's point, I think, is that gold and silver, at the time, was also worthless outside of currency. even though some wear it add jewelry, if it had no currency value, no arbitrary "this means I'm rich" mentality, it would be as valuable as wearing yellow tin.
the idea is that gold is valuable because we want it to be, nothing more. thus why not just do the same with any object, like paper notes?
Can I just say how nice the art in this one is? Especially at 4:20 in the smoky room.. so nice.
Can I say how nice it is that a room is filled with smoke at 4:20.. so nice.
Im getting a sense of deja vu here...
It was Walpole
Maddy Leaman you get that a lot when you study history.
*drops out of the sky* I need to work on my landings when summoned.
Naturally. ;)
*shakes fist*
WAAAAAALPOOOOOOOOLE!
Honestly, I often find bold economic schemes more thrilling than daring military tactics
You're not alone :)
I honestly do as well, I think it's because you don't hear about this sort of thing in History class. I find them extremely interesting.
I like both, they kind of come from the same place.
I also like biznes really much, it is like commanding an army
More confusing too, though I too enjoy them once I get what's going on.
I know that it's usually up to the patreon supporters to choose such things, But i would like to suggest that you guy's consider Snorri Sturluson for a series. He is perhaps one of the most forgotten characters in History yet so important to not only Icelandic history but Scandinavian as a whole.
He is responsible for writing down a large number of saga's such as Heimskringla saga, Egils saga and The Edda's (the book of Norse mythology) and starting this saga writing trend in Iceland in the 13th century. After he wrote down Heimskringla the whole country started to document saga's and if it weren't for him we wouldn't know half the vikings we know today.
He is also responsible for basically creating the Scandinavian written language and modern day Icelandic is almost identical to his original spelling.
But not only is he a major character to Scandinavian history but he also played a huge part in the Icelandic civil war known as Sturlunga öld.
Historians have been debating for centuries weather Icelanders should call him their greatest national hero or a traitor to their country. Since he fought on the Norwegian side of the civil war.
You see the civil war started between two different factions in Iceland in 1220. one side wanting to swear fealty to Norway and the other side wanted to remain independent. it came to an end in 1262 when the south, west and the North swore fealty to Norway, the east would remain independent for two more years. Bringing an end to the Icelandic commonwealth which lasted from 930-1262.
Snorri Sturluson was a Goði meaning a chieftain who had a seat at the Fjórðungsþing (the Icelandic parliament at the time) and he was elected Lögumaður twice at alþingi (basically the president if you want want call it that)
And he started the war civil war for the Norwegian side.
Oh and don't make the mistake that so many seem to make and think that he was a priest or a monk or something, Goði meant a priest in the early ages of the viking age, In the Icelandic commonwealth it started as a chieftain who was responsible for maintaining a Heathen monastery but after Christianity it only meant chieftain who had a seat at the parliament.
Also he kind of became the godfather of the Icelandic mob in his day. He's one of my favorite historical figures in a "this guy is fascinating" kind of way. (Obviously not so much in a "role model" kind of way.)
that1geekychick The Icelandic mob?
Meet John Law. His name... doesn't exactly fit.
Extra Credits oh
Is it just me, or do all the English characters on this show have ironic names?
Have you noticed that it's the shady characters and rogues who all move the economy forward? (Looks nervously at Wall Street)
Extra Credits old Johnny Law
Extra Credits Commented 9 Hours Video uploaded 12 Minutes ago.
Marry a prostitute and move to Louisiana?
Frick yes!
Not much has changed in Louisiana
Joking btw
Well now, are you *sure* that's a joke? ;)
StraightOuttaJarhois
*hits someone in the face*
there, done
is that the "american dream" people keep talking about ?
Aaaaaaand Extra Credits screwed up the Union Jack AGAIN.
Guys, I love the fact that this is an unintentional running joke, but this is a little bit too early for the diagonal red stripes of Ireland ;)
Maybe they really should just revert to drawing it with dragons at this rate...
Gratuitous Lurking hey dragons are pretty cool.
Extra Credits didn't screw up the Union Jack, the Union Jack screwed up Extra Credits.
I propose that - from this day forward - all flags in Extra History will simply be a gray sheet with the words "accurate flag" written on it.
Daniel Floyd That sounds like a plan ;)
"That was a failure in execution more than in concept". Every single time.
It's failure in concept😁
wait "banking was too honest of an employment"? tell that to 2008
Times change, my friend. Just not always for the better. :I
true. banking is an important institution for the modern economy but there is just too much greedy today
Hello, this is 2008 Barebone (My father Praise-God Barebone gave me this name
because 2008 is the supposed year of Jesus' second coming). Do you guys
have something to tell me?
Oooooooooooooooooffffff
0:47 "he thought banking was too honest for his liking"
Never thought I would hear anyone say that lol
Hey I don't know about anyone else, but to me, this is the best Extra History series so far. I find it much easier to follow than the South Seas series, and moreover, it has me laughing out loud far more often than any other series' videos (we're talking multiple times an episode).
So. Many. South. Sea. Flashbacks.
I'll have to agree with you there.
Mmmm yeah. I made money though.
You know, know, I may be missing something, but it feels like both this and the South Sea Company could have worked, if the creators hadn't been so . . . creative.
If the SSC hadn't started trying to manipulate the stock price and simply been at worst a method of paying creditors off and at best a modest tool for trading with the Spanish. Or if the CotW had simply never been created and the French central bank left alone to figure its role out, those two solutions may have moved forward without the disruption.
But then, no one would have known quite so early what to look out for in a financial system.
These videos are excellent. Even my five-year-old daughter likes to watch them, and she's learning from them. Thank you very much, and please keep up the great work.
this has been one of the best series I have watched from extra history
This guy sounds like the economics version of a b-movie mad scientist with all this doing crazy stuff just to test/prove theories.
"Money is the value BY which goods are exchanged and not the value FOR which goods are exchanged."
South sea bubble tie ins. IT WAS WALPOLE!!!
The South Seas Bubble was concurrent with the events in this episode. I wonder if Law and Walpole ever met each other in person.
nice
Possible, but doubtful. Law was a criminal who ran away from Britain to escape being executed. Walpole was at war with every country Law was hiding in. Far more likely is Blunt and Law meeting one another. While still unlikely the similarity of their respective economic plans are not to go unnoticed.
*blows some bubbles* ;)
+John Whitesell If they did meet it would probably have been before Law had to flee the country. I'd like to imagine them as gambling buddies in the seedy part of London. :P
Wow, you got both the name and the shape of the Republic of the United Netherlands almost right! (when drawing the country in old maps, many people seem to forget that a lot more of was water 200+ years ago.)
These are amazing bro your history videos are so much more substantial than the game ones.
The Duke of Arkansas. "He's a good old boy, really good at the cards. Someday inflation might get him but the law never will."
love the little sleight-of-hand money thing at the beginning. i think it's funny that i see the difference in your animators but i have no idea who they are. :P
and i love that this series will go over the gold standard. i can't tell you how many times i've heard some idiot say our economy is in the shitter because it's not tied to a finite supply of a rock, and now i can accurately tell them why thats not true
"Banking was too honest" LOL
Wow, this story perfectly mirrors the one you told about the South Sea Bubble. :O
I'm sure this has already come up, but here goes anyway.....
3:09 - On Screen Words - "Congratulations!(?)
It's a UNION JACK!"
Everyone in the UK - "It's the Union Flag. It's only called the Union Jack when it's flown on a boat/ship."
I have known about French prisoners being given the option to marry a prostitute and move to Louisiana for YEARS! I laughed out loud when i found out that THIS is where that came from! X'D
Meanwhile, in New France, money was hard to come by. During winter, boats could not sail on the frozen St. Lawrence River and trade stopped altogether. It was hard to pay the soldiers and the workers in cold hard coins. In 1685, the intendant of the time, Jacques de Meulles, has decided to deliver "I.O.U.s" to pay the soldiers. But there was no printing press in New France yet and good paper was rare. However, everyone was playing cards. So he wrote some amounts of money onto them, stamped a fleur-de-lys and signed his name. The soldiers began to use the cards to pay the tradesmen in Québec City, which used them for their own purchases. When the boats arrived in spring with new funds, everyone was able to get its money back. The cards were even cut. A full card was worth 4 livres (pound), half a card 2 livres and a quarter, 15 "sous". And thus was born "card money" the first paper currency in the Americas, five years before the one made in Massachussetts.
One note of interest, after the bankruptcy of John Law's bank, card money has been used in Louisiana in 1722.
1:24 "can't catch me, I was drawn without a neck! 😉"
these videos sure do have a more positive spin on paper money than most videos/conspiracy theorist have shown...I hope you will be able to address them in the end.... especially the big ones surrounding central banks and the FED
7:11
It was Walpole.
Again.
Can't have an Extra History segment with me.
@@robertwalpole360 True, very true
Stop blowing my mind sir.
When he flicked the dollar out at 0:30 he stuck the middle finger out at us.
ill say it again I love when you guys talk about economics.
I remembered, you guys mentioned John law in your South Sea Bubble Lies episode as part of the reason why the insanity of the South Sea Company was allowed to continue.
Gosh I love the art for this show. It's so vibrant and full of character. :)
Who knows why this bank cra-it was Walpole.
Love the Lampshade Hanging at 7:06. Makes me wonder if the Extra Credits team are tropers, too.
It was Walpole!
Of course it was Walpole.
its always walpole...
Peter Jumper Nope, wrong side of the channel.
It was always me. ;)
Robert Walpole but... but.... how? Aren't you busy with your own thing during those time?
Oh dear. They used the Union Jack that wouldn't be used for a hundred odd years after the Act of Union. Sorry, Extra Credits, you did your best, but you were once again foiled by flags.
I was going to say, this sounds awfully familiar to what happened with the South Sea Company.
I practically got whiplash, with all this deja vu.
It's a pretty common scam and if you can get through all the red tape and legal language you will find it is still happening today.
Central banks are always a scam, just with practice they are able to keep people from figuring it out for longer.
Central banks aren't a scam. They fulfil a task for the government that allows the government to function more efficiently. Whether you appreciate that function or don't, whether they do that job well or they don't, they are not "a scam."
I was hoping that at some point Dan would get to say the phrase "It was Walpole" again. It'd probably be too obvious now though...
The outro music is beautiful!
I took me a few minutes to really have his plan in having people trade in bonds worked, and just how ingenious that is.
6:40 I find it interesting that a large section of the world is called "parts unknown".
Well, as a proud native of Parts Unknown, I can tell you that it's a quite nice place. Parts Unknownians are simple folk that do unknown things all the unknown time.
where do you think all those Wrestlers came from? Tennessee?
t3hmaniac yes
California Island
I like Professor Dan's get up. I'm only now realizing this. Kudos to the tailor.
So much from Terry Pratchett's Making Money suddenly make sense
having the ability to calculate chance in your head at such a fast rate is very rare. and I also just so just happen to have that ability yayyyyyyyyyy
"banking to be to honest", the times sure have changed
Whoever runs that Walpole account is really good at it
Do you mean me?
"not just a wig-rack!" XD
"got his sentence reduced to manslaughter so he was slapped with a fine and released" hahahaha, the good ol' times
"The problem was there wasn't any wealth coming out of Louisiana"
John Blunt: I... fail to see the issue here.
IT WAS WALPOLE!
DAMNIT you beat me to it!
*snickers and blows some bubbles*
guys, i loved your gaming channel but i seriously think, this is even better. You are awesome in explaining things easily and you make me want to teach the history of money.
continue your great work!
Of course it was Walpole.
Why is this reminding me of the episodes on the South Sea Bubble…
"As he gambled across europe [...]"
Now THIS is a life!
I find it funny that at 3:40 they make it seem as if Law is making a bunch of impressive calculations to determine his odds of wining, when he literally is holding a royal flush, which is the best possible hand you can get.
I'm confused by the line at the end '(8:05).
That money is the value by which goods are exchanged and notthe value for which goods are exchanged.
I think the difference is that before it was that a certain amount of gold was worth x amount of y. Now it's x amount of y is worth this amount of money
It's the realization that money is simply exchanging quantities of goods and services for other goods and services, ie, money is just the number we assign to things we effectively still barter for.
It's basically a fancy way of restating the condition we started this whole series with: that money is a universal third good mediating and facilitating trade of actual goods. It's attempting to bring people's perception back to that and away from the idea the money has its own inherent value that the goods are being traded for.
It means that money is a measurement of value, but does not have value itself.
For example you go to work and get some amount of money for it and then use that money to buy stuff. Essentially you did work so that you could get stuff. Money is just a tool for converting your work into stuff that you want.
never stop making videos you are amazing!!!! i love your content.
I dunno about that last bit. Seeing as this crash is far FAR from the only one in history, it seems to me that it was indeed the idea as well as the execution that was to blame... and still often is.
Duke of Arkansas sounds like a strange Dukes of Hazard spin-off.
Banks too honest? That's a laugh, everyone knows banks aren't honest at all unless it lets them take YOUR money.
If banks were honest the banking system would fail.
This episode wold make an excellent movie. If there is one, please someone let me know.
John Law
On the lam
Play some cards
Got the cash
Found a central bank
Moral hazard trade
France is bust
Now I'm gone
John Law
On the lam
Got no money
Get a cough
Vomit blood
Now I'm dead
Like a boss
Well, Mr. Samberg, thanks for coming to your performance review...
Ano Nymous this reads like a good punk song
maybe patreons get early access?
Ano Nymous hj
I love the way you explain history
It was walpole, wasn't it?
Possibly. ;)
Probably.
Sure it was! I mean, we have not one, but TWO Walpoles to confirm it.
PitLord777 Naturally.
PitLord777 Absolutely.
I enjoy this series, but I hope you also address the issues that arise from giving the government the freedom to print as much money as they want. (as in, there's nothing stopping them if they want to.)
Not true. Overprinting money causing inflation and hurts the economy. When the economy suffers so does tax revenue. As a result, over or under printing currency negatively affects tax revenue. And if its one thing government needs, its tax money.
M R Moody Yup. Technically they could, but anyone that knows better would stop the govt from doing that before they break the economy.
You two realize the USA is 19.5 trillion in debt, we have a planned 4.2 trillion spending budget for 2017, and every $1 printed creates about $2 debt?
(Basically the gov prints an IOU for the dollar value and sells it, with the IOU valour about 2x the notes value.)
Am I wrong? How is what our (and about any) government doing any different than what this guy was doing-- with exception of being able to saddle such a huge debt and keep doing it anyways?
None of those are relevant because Law pegged his currency to a colonial trading company and the US currency is pegged to the US GDP (I am using pegged here in a more metaphorical sense). That company didn't even exist, and the US GDP does exist. That's the difference. Everything else can be argued and talked about, but Law's problem wasn't debt.
TheAtomic Soul Weren't we agreeing? The govt isn't printing more money to cover its debts because that's a bad idea. A lot of factors go into why the US govt has a growing amount 8f debt, like its own expenditures, but also the factor of interest on preexisting debt. But they aren't printing more money to cover it because that is bad, it devalues currency and then tries to use it as if its still valuable. The state of the US debt is not in question, but the US dollar still has value because of its backing by the US economy.
This seems oddly similar to the South Sea Company episode..... WALPOLE!!!
John Law needs a movie of his life
Was John Law’s middle name Out, by any chance?
While watching this I got a "Stuck in debt? Call this number!" Spam call.
You mean Law and his Company of the West in one side and Walpole of South Sea Bubble on the other side?
Yes, obviously a century of honest businessmen.
nice touch with the bubbles!
Oh boy, another 'honest John'.
Well WHO is gonna judge him when he serves the government?
Can we just appreciate that little money flick out animation in the opening? GJ animator(s).
In a few hundred years, people will look at this system and palm their faces at our incompetence. Decoupling money from any absolute concept of value causes unending inflation, which in turn means money loses the very reliability it's supposed to provide.
Ofc this is only a problem when you have small amounts of money at this point~
LOVE THAT ENDING SONG!
For once.. it wasn't Walpole.
Law has a plan. Law ALWAYS has a plan.
John Law was my Great-Great-Great-Great-Great-Great-Great Grandad, true story
Jack Skinner fascinating.
Woooooooooooohhhhh finaly, have been waiting all day, and this all sounds so fimiliar to the south sea bubble
History should be grateful that Mr. John Law did not ever meet one Mr. John Blunt.
They were arch rivals pretty much. Blunt used banking as a scheme to scam people into getting stocks just because they could afford It and Law thought banking as "too honest of a job" for him and instead gained huge wealth through gambling.
hi extra history thank you so much for these videos it helps my class learn a lot about history
Since you said it was a failure in execution, what could he have done differently to have avoided it. Was it just that a 15% downpayment was too cheap?
Fakjbf Basically the value of the stock was overinflated. The trading company was not producing enough wealth as people had hoped it would and people realized the stock was worthless and panicked and rushed to sell it. Had the value of the stock not been so over valued and the trading company been profitable and producing valued goods and services it wouldn't have crashed.
Basically that is how most market crashes happen, people overestimate the value of something spend too much on it and then when they realize their investment isn't as good as they thought they rush to get out to minimize losses.
Trust is important and it is the loss of trust that dooms these things. It just really feels like a scam that these systems only work when you blindly trust them and whenever people look too closely at what is happening it all goes up in smoke.
Ironically in this case it was blind trust that killed the Company of the West. A somewhat more informed set of investors would never have let the price inflate that high without selling off their shares and pocketing the value. That judicious selling would have kept the price from inflating, like a pressure valve, since it ensured there was always a supply of stock available and that investors would cash in and let the price drop a bit as it rose higher than a certain point..
Unfortunately investors in that era did not think in terms of short term trading, which means that there was no pressure valve when prices kept rising and the stocks became scarce, creating a scarcity hype that tanked everything from the inside. Law's venture failed because the market wasn't sophisticated or advanced enough to keep up with his ideas. "Ahead of its time" is not always a good thing.
Money is the value by which goods are exchanged but not for which goods goods are exchanged
Why is it always Johns that try to save countries from debt?
FINALLY! We get to see Blunts Nemesis!