You' probably heard about the Renaissance being a time of creative art culture and ideas but you might not realize that this flourishing didn't depend on banks in the way we think of them today in fact most of the incredible advancements in this period happened through informal systems of wealth and patronage not through formal banking institutions so how did the Renaissance Thrive without banks well let's break it down forget traditional Banks during the Renaissance the real money moved through the hands of wealthy families like the michis they operated like Financial powerhouses without the need for a
formal banking system the michis didn't need vaults filled with gold to control Florence they used their connections and influence instead and they were able to shape the entire region they weren't just Rich they built a network so powerful that it essentially made them the financial backbone of Renaissance Italy let's start with kasimo deichi kasimo turned the family into a political and financial Force he put his money where it mattered into people kasimo understood that power wasn't about hoarding wealth it was about using it to control the flow of culture and politics he funnel cash into
Public Works building libraries and churches and Cathedrals these were not acts of Charity they were strategic Investments by bankrolling Floren his most ambitious projects kasimo submitted his family's control over the city without needing an official title and then there's the art the medich didn't fund art out of love for pretty paintings each commission was a statement when kasimo supported Donatello and belli he was promoting the madichi name every Fresco every sculpture was a reminder of who held the pur strings in Florence this wasn't passive patronage this was a power play the more artists and Architects
they funded the stronger their influence became by the time Lorenzo deichi the Magnificent took over the family's grip on Florence was unbreakable their wealth also had a hand in shaping European politics when the papacy needed money to fund Wars or Bill St Peter's Basilica it was the dii who stepped in kasimo didn't stop at Florence he loaned money to Kings and popes and Nobles across Europe turning debts into leverage every time the pope accepted a loan the medich bank grew stronger and Kimo's influence in the Vatican grew deeper the Real Genius though wasn't in how
much money they had but how they used it the michis didn't flaunt wealth for the sake of it they moved money through people projects and politics making themselves indispensable to Florence and Beyond this is how the Renaissance thrived not through banks but through the maneuvering of powerful families like the medich Florence Venice and Milan weren't sitting around waiting for banks to develop they were too busy getting rich through trade picture this Venice a city where the canal served its streets was sending fleets all the way to the Eastern Mediterranean ships were loaded with spices from
the East silks from China and glasswar from Venice itself they would sail back and forth exchanging luxury goods for raw materials the wealth pouring in wasn't coming from interest rates or credit lines it was from Merchants hustling day and night navigating Dangerous Waters and cutting deals at every port Florence it was a tech stop Beast Florentine wool was known all over Europe and their Merchants were at the center of it all but this wasn't simple fabric trading the florentines dominated the entire process from raw wool imported from England to the final highquality product that Nobles
across Europe couldn't get enough of every inch of the process was controlled and calculated for maximum profit no middlemen and no for banks to fund their operations and here's the kicker all this wealth didn't just stay in merchant hands a good chunk of it was funneled into art and architecture these cities had no banks pulling the strings but they had gold flowing in allowing for Public Works projects like for's famous DMO the funding for the building of the dwo that came from wool merchants and City gills not some formalized banking system the cathedral with its
impossible Dome designed by Bruno leki didn't just happen it was a result of trade wealth Ingenuity and a fierce dis desire to Showcase Florence's power to the world meanwhile venice's wealth was being poured into its Navy it became the strongest Maritime force in Europe the gills of Renaissance Italy were a lot more than unions for Craftsmen they were powerhouses of local economies think of them as clubs with massive influence where membership meant more than just a job gills weren't optional they controlled everything if you wanted to be a wool Merchant in Florence you had to
join the art de laana want to be a Goldsmith you better get in with the Arte DEA these gills didn't just protect workers rights they decided who could work who could sell and who could buy they also acted as banks for their members when a stonemason needed money to finish a cathedral project the gills off in front of the cash if a blacksmith was short on supplies he could count on his Guild to help him stay afloat they weren't giving out loans with interest they were investing in their own members knowing that their success lifted
the entire guild and this wasn't charity it was strateg by keeping their members in business the gills strengthened their control over the economy but it wasn't all smooth sailing there's a wild story about the art de laana the W Guild of Florence during the building of the dwo when they ran out of money halfway through the project they didn't hit up a bank for a loan instead they raised funds by forcing every other guild to chip in no one wanted a lose face so they all paid up Florence's reputation was on the line and no
one could afford to let the cathedral remain unfinished G s even had a hand in local politics they sat on councils that decided how cities were run the guild Masters weren't just Craftsmen they were political players when Florence wanted to throw off the rule of the Duke of Milan it was the gills that funded the uprising when the medich wanted to solidify their control they work through the gills if the gills were with you you had money Manpower and political backing it was a system of power that relied on people not institutions to keep the
Renaissance booming the Catholic Church CH wasn't a bank but it sure did act like one during the Renaissance if you needed funding for a massive project whether it was a cathedral a piece of art or even a war the church had you covered they didn't call it banking though they called it God's work and with the church collecting tithes and taxes from Believers all over Europe they had a treasure chest bigger than any bank's Vault take Pope Julius II known as The Warrior Pope this guy wasn't sitting in a chapel praying for salvation he was
out raising armies and tearing down ancient buildings to rebuild Rome in His image he commissioned Michelangelo to paint the cising Chapel ceiling have you heard of that and guess where the money came from taxes collected from poor farmers in far off Villages who had no idea they were funding a masterpiece no banks no middlemen just raw power and money flowing straight from the faithful to the artist's hand but it wasn't only Pope spending the church's Fortune local Bishops and Cardinals were playing the game too take the Cathedral of Santa Maria Del Fior in Florence and
its massive Dome it was also backed by the church filipo brunoli was a genius behind the Dome he had the full financial support of both the church and Florence's woool Guild they knew that completing the Dome would make Florence the spiritual and Cultural Center of Italy and let's not forget about the sale of indulgences the church was essentially selling forgiveness raising money for construction projects like St Peter's Basilica now this wasn't a smalltime operation they sent out monks like Johan tetzel to preach about the fires of hell and sell these indulgences to terrify peasants the
money poured in and Rome got the grandest cathedral in the world sure it was corrupt but it was effective no banks were needed when you have a system like that in place while the church was busy collecting tithes and funding Cathedrals a different kind of financial player was quietly keeping Renaissance Commerce alive the money lenders these weren't the official respected types like the michis or the fuggers these were independent operators often Jewish families who filled a critical Gap they were some of the only people allowed to charge interest on loans because they were not subject
to Christian laws against usury they didn't have fancy branches or bank accounts but they were the lifeline for merchants and even Kings take the Jews of Venice who were barred from many professions but found their Niche and money lending Venice needed cash to fund its Wars in Navy and they turned to Jewish money lenders for quick loans these weren't massive transactions often it was small loans to Merchants who needed to fund a ship's Voyage or buy Goods but it was enough to keep the economy humming and in return for their services the Jewish money lenders
received protection from the government even as they face discrimination from the church and local populations in Florence the Jewish money lenders played a similar role they provided Capital to Artisans and Merchants and even noble families who couldn't wait for the slow moving medich Bank when Cosmo de manichi one of the most powerful men in Florence needed quick cash for one of his schemes it wasn't unusual for him to reach out to these smaller operators they were always there quietly funding the project projects had made Florence the Envy of Europe but it wasn't all smooth business
money lenders faced real danger in the late 15th century King Edward IV of England defaulted on a massive loan from Italian money lenders the result the entire banking system in Florence took a big hit influential families like the peris and the bis went bankrupt almost overnight this was the reality money lenders were powerful but they were always on the edge of collapse one bad loan one angry king and everything could fall apart [Music] the Michi family didn't play by the usual rules they wrote the rules and when those rules didn't suit them they bent the
rules in ways that left everyone else scrambling to catch up you couldn't officially charge interest on loans because of church laws against usury the Michi found ways around it they were so clever you have to wonder if they laughed about it behind closed doors here's one of the tricks currency conversion when someone took out a loan from the medich bank they'd receive it in one currency but PID it back in another at a future date when the exchange rates had shifted the manichi bank would manipulate those rates making a tidy profit it was legal it
wasn't technically interest but everyone knew what was really happening they were making money off loans in a way that sidest stepped the church's ban and then there was the business of late fees the medich couldn't openly charge interest but they could slap a hefty fine on anyone who missed a payment no one wanted to be late with the medich bank missing that payment meant getting blacklisted and in a world where access to loans could make or break fortunes that was as good as a death sentence for your business kasim deichi who basically Ran Florence wielded
this tactic ruthlessly expanding his Empire while staying on the church's good side they also mastered the art of political bribery when kasim wanted to build a bigger influence in Rome he didn't storm in demanding power he handed out loans to the Vatican huge sums that the church needed for Wars and construction projects like St Peter's Basilica in return kasim got what he really wanted political control it was genius he became the unofficial Banker of the Vatican and in the process one of the most powerful men in Europe he even controlled who became Pope by manipulating
the finances behind the scenes but the michis didn't stop there they were not content with Florence and Rome they had their eyes on the whole of Europe the family set up branches of their Bank in cities like London and Milan and Brugge these weren't Banks like we think of them today they were extensions of the minich's power in these cities they didn't just lend money they control trade routes influenced Kings and made sure that Florence stayed on top of the economic game and it wasn't all smooth sailing in 1494 King Edward IV of England defaulted
on a loan from the medich bank that one act sent shock waves through Florence and pushed the medich family's Financial Empire to the brink but they still had their tricks They carried out a series of political Maneuvers And Timely Investments and survived the crisis proving again that they were Masters at turning a bat situation into a profitable one thanks for watching what else do you want to learn about the Renaissance let us know in the comments and don't forget to like subscribe ring the bell share this video with a friend and all that good stuff
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