Quote:
Originally Posted by A_C_Slater
This doesn't just happen in democracies. For most of human history small empires would eventually have all the plebes in debt to the king. Being so deep in dept to a king that could never be repaid causes a heroic revolutionary to rise up among the people and overthrow the king. The heroic revolutionary becomes the new king and absolves all debt gaining loyalty from the people.
Then the new king's ancestor's put all the serfs in debt over the decades to fund their higher standards of living and the cycle repeats. My source for this is 'Debt the first 5000 years' by David Graeber
Some ancient kings were wise to this cycle and had debt jubilees roughly every seven years.
If we go by the European history of monarchy, this is a grossly incorrect summary.
Monarchs were rarely creditors, on the contrary they often had huge financial problems and debts of their own. As the costs of raising and maintaining armies rose and demands of infrastructure increased, they became unpopular to extend loans to (loaning money to someone with enormous expenses, volatile income and absolute power not being particularly enticing).
In medieval times, like now, extending large loans were largely the business of bankers and conglomerates of bankers, not monarchs.