Chapter 1035 The Importance of Banks
The effect of becoming sworn with Marin was very obvious. First, after that day, the priests of the Ratram Hall saw the unknown Giovanni di Lorenzo de Medici and began to smile and nod.
The Basilica of Latrang is currently the residence of the Pope, and most of the priests in it are confidants of Julius II. Although their status is not high, because they are confidants of the Pope, they are usually more jealous than the top. Ordinary bishops are too lazy to give them a good look. Only cardinals can get their respect. In the past, those priests did not look at him directly when they went to the Basilica of Latrang. But now, the level has obviously improved a lot...
What made Giovanni di Lorenzo de Medici even more ecstatic was the gains of economic interests. Because Julius II later talked to him and said that he would return some important economic industries in the city of Florence to the Medici family.
Before Charles VIII led his army into Italy in 1494, the Medici family was the ruler of Florence, controlling many industries in the economic lifeline of the Florence Republic. However, with the invasion of the French army in 1494, the Medici family was driven out of Florence. Then, the Medici family began to decline.
What are the pillar industries of Florence? They are mainly wool and textile industries, as well as financial industries, and of course various handicrafts, but they are not as good as the first two. Moreover, this financial industry includes coin with high profits.
After losing Florence's rule, the Medici family lost control of Florence's wool and financial industries, retained only some inconspicuous handicraft workshops and service industries, and continued to lurk in the city of Florence.
After Marin helped the Pope to capture the city of Florence, although Pope Julius II returned many industries of the Medici family, it was mainly in the wool industry. The particularly important financial industry, including the right to mint, was not returned.
How important is the financial industry? It means you can borrow a lot of money! And how important is money? In the Pope election, money is the decisive force!
In original history, why was Leo X successfully elected the Pope? It was because he had the support of Florence bankers!
Originally, in history, the Pope captured the Republic of Florence in 1511. Then, in 1512, the Medici family restored control of the Republic of Florence. The banks in Florence (not modern banks, but more like ancient money shops, without paying depositors interest) also fell back into the control of the Medici family.
After Julius II's death in 1513, Giovanni di Lorenzo de Medici was successfully elected as a pope as a priest because of the support of Florence bankers.
Because he lost Florence's rule for more than ten years, Giovanni di Lorenzo de Medici actually didn't have much money at his hands. But with the support of Florence's bankers, he had enough funds to participate in the election and was finally successfully elected.
In history, many historians do not understand why Leo X lost all the huge wealth accumulated by the previous two popes in just two years. In fact, although Leo X squandered, he did not throw gold coins to play. The reason why he lost the Vatican's deposits so quickly was because he needed to repay the debts of those bankers...
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Of course, that was a thing in history. In this time and space where Marin participated, after occupying Florence, Julius II did not immediately hand over control of the banking industry to the Medici family, but only returned the wool workshops. The reason why the financial industry did not return it was actually Marin's idea. Because he wanted to use it as a favor...
After Marin and Giovanni di Lorenzo de Medici became sworn, they told him confidently that I will fight for more benefits for you...
Then the Pope talked to Giovanni, Di Lorenzo, de Medici - or should Florence's financial management rights be given to the Medici family?
Giovanni di Lorenzo de Medici is not a fool, how can he refuse? He nodded and agreed...
In fact, there were not many banks in Florence that originally belonged to the Medici family, but only two larger industry leaders. However, Julius II returned this time not only those two large banks, but the management rights of the banking industry in Florence, which is very powerful.
You should know that in this era, most European aristocrats lived by borrowing money. The main reason was that at that time, European kings and nobles did not have the right to tax ordinary people. Therefore, before the religious revolution, the European church was the richest because the church had the right to collect "tith tax". The reason why the religious revolution occurred was inseparable from the coveted of the church's wealth by those kings and nobles.
Because of the lack of money, the king at that time had to obtain the support of bankers if he wanted to start a war, otherwise the war would not be fought. Both the Pope and the Selected Emperor Shenluo must obtain the strong support of bankers. Otherwise, the majority of people would not be able to pay out so much campaign funds.
At this time, Italy had three main financial centers - the Venice Financial Center, the Genese Financial Center, and the Florence Financial Center.
These three financial centers, with many banks, and kings and nobles, could borrow a lot of money from here. Of course, the price paid was also very high. Because the interest rate for borrowing money was as high as more than 10%. Among them, the Genes Financial Center was later lent a lot of money to the Habsburgs in Spain, but with Philip II later declaring the country bankruptcy (the official debt was not the official debt, and it went bankrupt more than once), the Genes financial industry suffered a heavy blow and then declined.
In the German region, there are mainly some family chaebols led by the Fuger family. Whoever they support will have enough financial resources to run for the emperor.
This chapter is not over, please click on the next page to continue reading! As for France, there are also a large number of bankers in Paris, and French bankers are also highly concentrated in Paris. This leads to a consequence - that is, the French revolution in later generations will achieve a comprehensive victory as long as it wins Paris. Because, taking Paris is equivalent to controlling most of the French banks, don’t have too much money... If you occupy Paris, you will occupy the headquarters and vaults of those banks. Can you lack money? Therefore, in France, as long as you occupy Paris, it is equivalent to gaining control of most of France’s wealth, and it is equivalent to occupying the entire France. Once Paris is lost, the French will surrender immediately and will never delay...
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Giovanni di Lorenzo de Medici is the reason why he is excited about it - mastering the management of the Florentine banking industry is equivalent to mastering the distribution of Florentine funds. Although the Medici family had no money at this time, the bankers in Florentine were rich...
What? Do you think those bankers may not be willing to borrow money? What is the management power? I will give him a closure of business and revoke his license, and see if he dares to explode the thorn?
You said that the money is not yours, but just borrowed? Brother, you probably don’t understand what a big man is. What a big man means is not how much money you have, but how much money you can mobilize...
Ma Yunniu is right? He is worth more than 200 billion yuan. However, most of his assets are stocks and real estate, and the living money that can be used actually accounts for only a small part.
And those big presidents, such as the presidents of the five major banks, have far less than Jack Ma's personal assets. However, their influence ability is far more than those rich people. Even Jack Ma claims to be Ma's father, he has to kneel down and call him dad in front of those big presidents... Because the presidents can mobilize more funds than Jack Ma's total assets... Therefore, Jack Ma is very well-behaved in front of those big bosses, saying "be ready to be incorporated at any time"...
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As the third financial center in Italy, Florence will have so many bankers to be re-incorporated into the management of the Medici family in the future. Giovanni di Lorenzo de Medici is of course extremely excited.
Although the Medici family is poor now, if you master the bankers, you can use the money of those bankers to "make money with money" for the Medici family.
To give a simple example, some second-generations in later generations did not have money. However, they were able to borrow money from the bank through their relationship. Then, they took the land and engaged in real estate development. A community could make them earn hundreds of millions or even more. Before that, he didn't have a penny. But as long as the bank was willing to lend him money and could get the land, he could easily become a rich man...
Therefore, the role of a bank is very large. The premise is that you can borrow money from the bank. In that case, you can make money with money. The reason why the gap between the rich and the poor in China in later generations is mainly because the bank is only willing to lend money to rich people or related people, while the poor who are really short of money cannot borrow money from the bank... Those who have money or who can borrow money from the bank will make money with money and become richer and richer; those who have no money cannot borrow money and will never have money unless they can win the lottery...
Which industry the bank supports can develop rapidly or even explode. For example, if the bank does not launch a loan of 20 years or 30 years, ordinary people cannot afford to buy a house. If the bank cannot afford a house, the real estate industry will not develop because it cannot be sold. The five national articles, the eight national articles, and the hundred national articles are useless. As long as the bank announces that it will not provide mortgage services one day, the real estate industry will collapse immediately...
Chapter completed!