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Hello, and welcome to Western SIV, Episode two hundred and ninety four,

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The Dutch Revolt. We've spent the
last several episodes covering the reign of Queen

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Mary the First of England. But
of course Mary had a husband, albeit

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for a short time. That man
was Philip the Second of Spain. Philip

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was truly one of the first early
modern monarchs in European history. His modernized

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bureaucracy run out of his palace,
the Escorial, was the first thing to

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inch toward a modern bureaucracy in Western
history. Philip was a man with huge

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ambitions, and those ambitions financed by
Aztec and Inca gold and silver. The

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New World functioned as Philip's effective atm
to pay for some of the conflicts I

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will discuss today. Yet what is
also interesting is how for all of his

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advantages, Philip would be so vexed
by the Low Countries, or as we

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might call it in the Netherlands.
This was an age when money bought you

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the best military, but that did
not mean that you won. Military thinkers

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were still very much evolving from the
Middle Ages, and Philip was about to

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run headlong into these issues and more. One English commentator in the sixteen hundreds

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referred to the Netherlands as quote the
great bog of Europe, but he also

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went on to describe it as a
place where quote gold is more plentiful than

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stones end quote. According to him, continuing his statements, what is it

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which there may not be found in
plenty? Again referring to the Netherlands,

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they make by their industry all the
fruits of the vast earth their own,

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even their knaves, are worth a
million of ours, for they are in

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a boisterous rudeness, can work and
live in toil, whereas ours will rather

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lay themselves into poverty, and like
cabbages left out in the winter, wrought

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away in the loathsomeness of a nauseus
sloth end quote. Love. That last

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phrase, by the way, might
be one of my favorites. I'm going

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to trot that out every once in
a while when students aren't, you know,

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working to their full potential, rotting
away like cabbages left out in the

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winter. And all that. Now, foreigners always marveled at the wealth of

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the hard working traders, the Dutch, the Englishman scoffed in an egalitarian nation

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of self satisfied activists, where the
gentry, as he writes, is scarce.

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He wrote furthermore that quote every man
is his own herald, and he

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that has but wit to invent a
coat may challenge it as his own end

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quote. In this case, the
English complaint would have jibed with those of

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the Spaniards, looking over a strictly
hierarchical culture, and a preference for poverty

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over labor, honor over trade,
and a downright obsession with the purity of

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blood. And of course we're a
stone. The Netherlands seemed to be nothing

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in the early sixteen hundreds, if
not a tinder box for religious controversy.

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It seems as though every Puritan,
every Protestant cult has a fouling somewhere in

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the Netherlands. It's this, more
than anything else, the Dutchman's permissive attitude

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to faith that would continue to set
them against their Spanish overlords all the way

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until sixteen forty eight. But as
I mentioned, as troublesome as religion might

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be, the reality was the Netherlands
was vital to the Spanish economy. Over

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three quarters of Castilian wool, virtually
the region's only export, was sold and

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produced in the Netherlands. Spain needed
the Low countries to process its wool,

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and Philip also had personal reasons to
treasure the Netherlands. His father was born

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at Ghent, his grandfather, Ebruges. Philip himself could trace his lineage all

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the way back to the Capatian kings
of France. He took deep pride in

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the fact that he was descended from
such a legendary dynasty. The idea of

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the Netherlands as a single entity,
however, was an artificial construction, an

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artificial construction of imperialist powers. In
fifteen forty nine, Charles the Fifth had

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joined Flanders and Artois to the Dutch
and German speaking provinces that had formerly been

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part of the Holy Roman Empire,
and assumed for himself the title of Lord

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of the Netherlands, a title he
invented. Representatives of the different provinces or

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states met in a powerful parliament known
as the States General, but there was

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absolutely no tradition among any of them
of political unity. Disastrously, Charles isolated

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the intellectually and spiritually experimental Dutch from
a religious tolerance forced upon him in the

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Empire by the German princes, thus
exposing the Dutch to decades of autocratic Habsburg

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intolerance. Had Charles simply approached his
Dutch subjects in the same way that he

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approached his German ones, this story
may have turned out a lot different.

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Instead, he negotiated a massive restructuring
of the Netherlands Church with the Papacy that

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was kept secret from the Dutch until
it was announced. He subjected this politically

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unstable collection of independently minded peoples to
nearly crippling levels of taxation. Philip would

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then continue and strengthen his father's policies
and permanently stationed garrisons of dreaded professional Spanish

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troops known as deceros in the Netherlands
as a result, in a somewhat ironic

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rerun of Charles's experience with the Spanish
Calmuneros that covered many, many episodes ago.

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When Philip returned to Spain in fifteen
fifty nine, he left his illegitimate

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half sister Margaret of Parma, as
regent in Brussels, and the Dutch were

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incensed, feeling downright colonized. So
then in fifteen sixty five, the States

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General sent one of the most powerful
Dutch aristocrats, the Count of Egmont,

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to Spain to negotiate directly with Philip. Egman returned convinced that the King had

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personally offered a more conciliatory policy toward
Protestants and freedom of worship in general.

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He even had signed an agreement that
hinted at further compromise. But within months

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that an infamous document that is known
today by historians as the Letter from the

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Segovia Woods. Philip wrote instructing Margaret
that no leniency was to be shown to

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any heretic. Far from introducing a
new policy of religious tolerance, he was

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determined to strengthen the Inquisition in the
Netherlands, and to make his point,

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he ordered that six radical Protestant and
a Baptists whom Margaret had hoped to pardon,

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instead be quote brought to justice end
quote. And this is definitely the

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Queen Mary style of justice we're talking
about here. Now. Whatever Philip had

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said to the Count of Angmo will
never know, probably, but he certainly

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appeared to have broken his word.
At least that's how the Count perceived it.

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It was a decision that made him
appear three really bad things in the

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eyes of the Dutch. One foreign
good newsing about that two week and three

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dishonest, and then on top of
it, into this story is going to

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enter another character, a true wild
card, if you will, Philip's own

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son and heir, his deformed son, Don Carlos. Don Carlos was well,

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we would say troubled today. Once
he was given a giant turtle as

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a present, which bit his finger. Don Carlos responded by biting off the

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turtle's head with his teeth. But
he was the heir to the throne,

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a fact which worried Philip and had
worried Charles the Fifth before him. Don

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Carlos was already troubled when, at
a young age, he fell down a

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flight of stairs while chasing a gardener's
daughter, whom he enjoyed striking with wooden

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rods just deserts. Perhaps he struck
his head multiple times. On the way

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down, he cracked his skull so
badly that it was visible through the wound.

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Said wound soon became infected, and
physicians around Don Carlos vigorously debated the

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best way to treat him. One
wanted to cut a hole in his skull

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to relieve the pressure. Others simply
wanted to purge him across Spain, Masses

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were said for the air, and
religious processions abounded. Carlos lapsed into a

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delirium, and a famous Modisco doctor
was called, but his various caustic ointments

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only brought the patient closer to death's
door. Philip could not bear the suffering

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and retreated to a nearby monastery to
pray. He must have wondered privately whether

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the boy's death might not be for
the best. Not the last time he

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would wonder that. But then the
Duke of Alba suggested they bring out the

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mummified body of a priest, Diego
de Alcala, locally revered as a great

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healer of the sick, both in
life and now in death. The desiccated

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remains were laid down beside the sick
bed and the semi conscience. Don Carlos

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asked that his eyes be forced open
so that he should see. He reached

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over and touched the cadaver quote,
after which he drew his hands across his

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diseased face end quote. Within hours, a miraculous recovery had begun, so

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that a week later the doctors could
begin draining puss from the abscesses that had

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formed around Don Carlos's eyes. Five
weeks later, his recuperation was complete,

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but the prolonged trauma had made Don
Carlos's physical and mental condition worst. Philip

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made efforts to control his son by
placing important and powerful men within his household,

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but Carlos was as ambitious as he
was deranged. In fifteen sixty five,

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he planned to go to Aragon and
announce himself king. Only one of

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Philip's deputees managed to hold the boy
back from that bizarre illusion of grandeur.

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But before long, Don Carlos would
go for from a headache to a major

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political liability, and the cause for
that escalation would be the Netherlands. The

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first the situation in the Netherlands had
to escalate itself. That happened on the

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fifth of April fifteen sixty six.
On that day, the Beggar's Revolt began.

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Three hundred armed men broke into the
palace and demanded that Margaret of Parma,

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Phillip's regent, disband the inquisition in
the Netherlands. She had no choice

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and so complied. One of her
counselors loudly proclaimed that she had nothing to

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fear from these quote unquote Beggars,
and suddenly this little rebellion had a name.

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Three days later, these men held
their famous Beggars Banquet, during which

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they swore never to abandon their cause
for religious toleration. But now things were

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getting out of hand. On July
seventh, Margaret wrote to Philip, letting

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him know that she had effectively lost
control over the region. She believed the

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problem was Protestantism, particularly the Calvinists. Everywhere she wrote, there were shouts

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of long Live the Beggars. Evidently
the name stuck. These groups quickly began

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whitewashing local churches in Calvinist's style.
The Prince of Orange reportedly told Margaret that

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the crowds would soon turn on her
and she would be dead. The Spanish

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court was aghast. Eventually, the
powerful but warlike Duke of Alba agreed to

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serve as governor of the Netherlands and
bring the region to heal. Margaret gladly

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agreed to step down the following year, fifteen sixty seven, and so in

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the spring of fifteen sixty six,
the Duke of Alba set sail for the

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Netherlands. In the meantime, Philip's
heir, Don Carlos, had descended into

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hopeless lunacy. According to one reliable
diplomatic reporte he walks hunched over and seems

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weak on his legs, but is
much given to violence to the point of

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cruelty end quote. On one occasion, he rode Philip's prize horse so brutally

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that the animal died. Another report
said, quote, he has abandoned himself

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to such chaos that the joy among
the Spaniards at having a native prince is

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as great as the doubts they have
about his ability to govern. Yet end

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quote, However, he could be
generous, bind the affection and favor even

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of the servants in his father's household. He borrowed heavily from money lenders,

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to gamble, and especially to lavish
gifts on women, notably Philip's attractive young

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Queen Elizabeth of val Waw. Philip
did his best to hold out hope,

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perhaps even when all else seemed lost. He encouraged Don Carlos to attend meetings

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of the Council of State, where
he at least seems to have behaved humanly.

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But then Don Carlos flew off the
rails when he found out that Philip

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had appointed the Duke of Alba as
the governor of the Netherlands. For whatever

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deranged reason, Carlos had come to
believe that the Netherlands was his, both

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his birthright and his personal possession.
From then on, he began an almost

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maniacal series of plots to seize the
Netherlands for himself. He first reached out

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to Philip's half brother, Don John
of Austria, hoping the Austrian noble would

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support his claim. Philip knew about
all this. He hoped that Don John

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would talk some sense into the boy, but that seemed impossible. No.

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Don John reported back the Prince was
determined to rebel. By now, Philip

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knew he had to act. The
question was whether this was a matter of

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his son's incompetence or treason, But
the fact of the matter was Philip now

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had no choice. He had to
do something. So shortly before midnight on

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the eighteenth of January fifteenth sixty eight, Philip himself put on his armor,

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and I do mean that literally got
four of his senior ministers together and walked

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into Don Carlos's apartments. We took
all his important papers and weapons away,

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and then calmly Philip ordered that the
windows be boarded up and an armed guard

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set at the door. Don Carlos
was officially a prisoner in his own home.

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With nothing else he could do,
Don Carlos turned all his violence and

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rage on himself. He tried to
starve himself to death. He swallowed his

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signet ring because he thought diamonds were
poisonous. Finally, after attempting to eat

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himself to death, literally he ate
four hole partridges, he fell ill with

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a fever. On the twenty fourth
of July, Don Carlos, heir to

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the throne, finally mercifully died.
The court, led by Philip, went

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into mourning. Yet ever since,
there have been persistent rumors amongst historians that

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Don Carlos did not die of natural
causes. He was murdered by his father,

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who had him poisoned. True,
well, I certainly cannot say,

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but I will say if he did, he had his reasons. As Alba

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approached Brussels, the population was terrified. The duke had a terrible reputation for

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cruelty. Now he was at the
head of an army of ten thousand,

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with no one able to stop him. At the same time, two Spanish

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Protestants published an absolutely scathing tract,
the Quote Art of the Holy Spanish Inquisition,

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offering europe An apparently authoritative account of
the atrocities of the Inquisition, which

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Philip now seemed prepared to visit upon
the Netherlands with abandon. The local nobility

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was so petrified that they threw their
lot in with Margaret, and she managed

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to restore order. Margaret, sensing
the situation was under control, wrote to

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Philip begging him to recall Alba,
but it was too late. The moment

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that Alba entered Brussels, the purge
was on. He arrested many leading nobles

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and instituted a new tribunal known ominously
as the Council of Blood. A terrified

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peace settled across the Low countries,
but thousands of Netherlanders were fleeing abroad.

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William of Orange retreated to his ancestral
lands in Germany, and others went to

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France. Eleven thousand weavers from Ghent
alone came to England, and Norwich by

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itself allowed four thousand Flemings to settle
there. The oldest Dutch Protestant church in

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continuous use is in the Austin Friars
in the city of London. In fact,

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by the spring of fifteen sixty eight, William of Orange, the natural

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leader of the Dutch patriots in exile, was able to coordinate a series of

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armed incursions, but he was no
match for Alba, who kept the Patriot

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army in the field until Orange ran
out of money to pay his mercenaries.

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But Alba also resorted to the only
psychological weapon he really believed in terror.

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He had two Dutch leading nobles publicly
executed for high treason in the main square

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of Brussels, with three thousand Spanish
troops on duty to keep order. For

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the next three years, he prosecuted
a relentless campaign of persecution against anyone suspected

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of rebellion or heresy. The figures
are staggering. Nine thousand were imprisoned,

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fined, or had their property confiscated. As many as seventeen hundred were executed,

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ten times as many victims as the
Spanish Inquisition would execute during the whole

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of Philip's reign. Many more fled, perhaps as many as sixty thousand total

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in fifteen sixty seven, in fifteen
sixty eight, then in fifteen sixty eight,

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with an arrogance that could only be
described as breathtaking. Alba erected in

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Antwerp a bronze statue of himself trampling
the rebellious Dutch under his horse's hoofs making

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matters worse. This was all cast
from melted down cannon he had captured from

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the rebellious Dutch. It was modeled
on medieval images of the Spanish patron Saint

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James the Moor Slayer riding down Muslims, and caused such outrage that Philip had

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it removed and destroyed. Sure,
the Duke of Alba was a brilliant soldier

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in a strategist when it came to
battle, but he had no idea how

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to run the subtleties of government.
At sixty years old, he was an

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00:20:49.519 --> 00:20:56.079
old man who quickly tired of trying
to win the peace. Alba was not

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only an old man now by the
standards of the age, but he was

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also sick, ailing with gout.
Alba repeatedly begged Philip's permission to return to

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the warmer climates of Spain. Finally, in fifteen seventy two, the King

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began the process of bringing this aging
general home. But before he could retire,

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the Dutch erupted in rebellion. Alba
was now too sick to direct the

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Spanish troops in the field, and
that task fell to his equally psychopathic but

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equally inexperienced son, Fadrique. Father
and son approached the campaign of rebellion with

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appalling cruelty, only made worse by
the riotous mood of the troops who had

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not been paid for months. And
that's going to be the key. By

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the way these Spanish soldiers went on
the rampage at Milenken and put the entire

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population of Nard into the sword.
There could have been no more powerful encouragement

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for the Dutch, and when Fadrique
advanced on Harlem, he found the citizens

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stealed for a fight to the death. They realized they had no choice.

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Even children now helped to break the
siege, skimming across the ice on their

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skates under the cover of fog to
bring supplies, and three hundred armed women

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played their part in the fighting.
Instead of an easy victory that they had

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anticipated, Fadrique's army had to dig
in during the harsh winter. In early

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skirmishing, a contingent of Crack troops
was devastated when it tried to engage a

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handful of armed Dutch vessels trapped in
the ice. Suddenly, a group of

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musketeers emerged from the boats, wearing
skates and slipped fast and shore across the

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frozen sea, firing volley after volley
at their veteran Spanish assailants, who skithered

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and skidded helplessly on the ice.
Alba later commented that quote, it is

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the most novel business that has ever
been heard of, end quote, and

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ordered seven thousand spares of skates to
be made. The Spanish besiegers became so

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desperate that even Veddici suggested raising the
siege, but his father responded as followers

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00:23:11.839 --> 00:23:15.640
quote, if you strike camp without
the town's surrender, I shall disown you

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00:23:15.720 --> 00:23:18.759
as a son. But if you
die in the siege, I shall take

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your place in person. And if
we both fail, your mother will come

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from Spain to do in battle what
her son has neither the valor nor the

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patience to achieve. End quote.
But assault after assault failed. In the

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end, Alba understood that this war
would be won or lost at sea.

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In late May fifteen seventy two,
the Spanish won a decisive naval battle,

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and as a result by the end
of July, Harlem had fallen. By

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this point, the Spanish troops,
as I mentioned before, had not been

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paid for months and months on end, and they proceeded to ruthlessly sack the

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00:23:56.319 --> 00:24:00.640
city. The garrison's throats were cut
all time, two thousand of them.

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00:24:00.839 --> 00:24:07.359
Any women within the city were raped. The town was devastated. Though he

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00:24:07.440 --> 00:24:12.720
may have been cruel, the Duke
of Alba abhorred the breakdown of any order.

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00:24:14.799 --> 00:24:19.000
He ordered the ringleaders of this riotous
event to be shot by their own

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00:24:19.079 --> 00:24:25.559
men, and just like that,
Alba and his son found themselves despised not

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00:24:25.640 --> 00:24:30.880
only by the Dutch, but by
their Spanish subjects as well. Moreover,

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00:24:30.480 --> 00:24:34.839
these massacres, as I mentioned,
and this most recent one and Harley backfired.

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Every Dutch town now realized it had
to fight to the death, It

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00:24:40.480 --> 00:24:45.480
had to hold out at all costs. All fake and the Duke of Alba

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00:24:45.519 --> 00:24:55.680
did was make their job more difficult
by showing cruelty after cruelty. Fadrique besieged

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00:24:55.920 --> 00:25:00.680
Al Kamar in August and September,
but even against an army of ten thousand,

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00:25:02.079 --> 00:25:07.279
this teeny tiny town held out.
Every man, woman and child had

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00:25:07.279 --> 00:25:12.799
helped to achieve the victory. On
the eighteenth of December fifteen seventy three,

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Alba finally rose from his sick bed
and left Brussels, never to return.

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00:25:19.000 --> 00:25:22.400
On his way home, he summarized
the reality of the Dutch problem for his

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00:25:22.480 --> 00:25:27.920
king as follows quote. The greater
part of the states have always aspired to

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liberty of conscience and the principle that
whatever is dought in the privacy of one's

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00:25:33.599 --> 00:25:37.200
own home should not be subject to
inquiry. If your majesty grants them freedom

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00:25:37.200 --> 00:25:42.119
of worship, they will pay whatever
taxes you demand. Neither side wants another

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00:25:42.200 --> 00:25:47.720
ruler, but you should understand that
they want you to be their ward under

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00:25:47.759 --> 00:25:52.680
their tutelage. End quote. Now, even though he was giving this advice

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00:25:52.200 --> 00:25:56.799
to Alba, any such tolerance of
religion was heresy in and of itself,

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and the idea of diluting an absolute
monarchy was anathema. As he said himself

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later on, had he been given
the resources to stamp out heresy in the

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Netherlands, he almost certainly would have
done so, even if he had to

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destroy the dikes in order to visit
a flood of seawater upon the heretics their

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farms. And their cities. He
repeatedly complained to Philip about the impossibility of

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00:26:22.240 --> 00:26:26.319
winning the war because he didn't have
enough money to pay his troops, but

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00:26:26.359 --> 00:26:30.599
the King retorted simply, quote,
I shall never have enough money to satisfy

279
00:26:30.640 --> 00:26:37.720
your greed end quote. Philip finally
understood he couldn't afford to borrow enough money

280
00:26:37.720 --> 00:26:44.839
to defeat the Dutch, and in
fact Alba's war of vengeance and cruelty had

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00:26:44.839 --> 00:27:11.079
bankrupted him. It is worth noting
for a moment how shocking this was.

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00:27:11.960 --> 00:27:17.279
The gold and more importantly, the
silver that flowed into Europe i e.

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00:27:17.880 --> 00:27:22.799
Spain from the New World was a
massive boon to essentially every European economy,

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00:27:23.839 --> 00:27:30.680
but it gave Spain a tremendous,
albeit temporary, financial advantage. It also

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00:27:30.799 --> 00:27:37.920
led to the first period of sustained
price inflation in European history. As inca,

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00:27:37.039 --> 00:27:42.119
gold and silver poured into Europe,
the prices for just about everything rose.

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00:27:44.319 --> 00:27:48.759
This was also the age when international
banking really took off. Trade boomed

288
00:27:48.759 --> 00:27:53.920
as a result of the influx of
cash, and now Europeans they needed ways

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00:27:55.000 --> 00:28:02.200
to finance international transactions at a level
that had never before been imagined. The

290
00:28:02.240 --> 00:28:07.160
famous Fuger family of Augsburg were the
banking heavy weights of the early sixteenth century,

291
00:28:07.640 --> 00:28:14.240
borrowing across Europe at relatively low rates
of interest in order to lend in

292
00:28:14.319 --> 00:28:18.880
the lucrative market at the Flemish city
of Antwerp. Their ability to accumulate real

293
00:28:18.920 --> 00:28:25.559
money, gold, silver and coin
in the strategic centers of Charles the Fifth's

294
00:28:25.599 --> 00:28:32.640
military operations enabled them to dominate the
market in Habsburg sovereign debt. Their bills

295
00:28:32.640 --> 00:28:37.160
of exchange, or as they called
them, banknotes, were considered so secure

296
00:28:37.559 --> 00:28:41.319
that people began to treat them as
though they were actually gold or silver.

297
00:28:42.240 --> 00:28:48.200
In fact, for the first time, paper became currency, but the Fuguers

298
00:28:48.599 --> 00:28:55.440
and the other German bankers were charting
in their account books essentially a voyage of

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00:28:55.440 --> 00:29:00.960
monetary discovery, just like the explorers
of the New World. Their ships might

300
00:29:02.039 --> 00:29:07.880
hit rocks. They overexposed themselves to
Charles borrowing and were badly hurt by his

301
00:29:07.960 --> 00:29:15.319
occasional forced reorganization of his debt and
the risk adverse Germans reduced their involvement as

302
00:29:15.359 --> 00:29:18.240
a result, the old nobility of
Genoa stepped in to fill the gap,

303
00:29:18.960 --> 00:29:25.160
encouraged by the bond that the naval
Commander Andrea Doria and his family had forged

304
00:29:25.160 --> 00:29:30.559
with the Habsburgs. The Spanish crown
borrowed in two basic ways. The foundation

305
00:29:30.799 --> 00:29:37.039
stone of sovereign debt was juros,
a range of government bonds securized in one

306
00:29:37.039 --> 00:29:41.759
way or another with a guaranteed rate
of interest over the life of the loan.

307
00:29:41.720 --> 00:29:47.880
The interest was increasingly linked to some
specific source of income, perhaps a

308
00:29:48.000 --> 00:29:52.920
lean against what were called acabbola,
which was a sales tax raised in cast

309
00:29:52.920 --> 00:29:57.000
deal on salt, wine and other
commodities, or against the rents payable on

310
00:29:57.160 --> 00:30:03.039
certain Crown estates. The recovery of
the payment was often the responsibility of the

311
00:30:03.079 --> 00:30:07.920
bankers themselves. Then there were the
other type, that were referred to as

312
00:30:07.039 --> 00:30:15.279
assentios. These were a vertable kaleidoscope
of floating debt, usually agreed upon in

313
00:30:15.319 --> 00:30:19.279
an ad hoc basis in order to
fund a particular project or campaign, on

314
00:30:19.400 --> 00:30:25.160
which the crown paid an extremely high
rate of interest for a relatively short period,

315
00:30:26.200 --> 00:30:33.079
after which creditors usually agreed to consolidate
the assentios into juros. Until the

316
00:30:33.119 --> 00:30:36.720
fifteen sixties, the bankers who lent
money to the crown largely did so out

317
00:30:36.720 --> 00:30:40.200
of their own pockets. But in
a world a wash with money, the

318
00:30:40.240 --> 00:30:44.599
Genoese were determined to borrow as much
as possible from the tradesmen, merchants,

319
00:30:44.839 --> 00:30:48.920
noblemen, farmers, and even peasants
from across Europe who wanted to lend it

320
00:30:48.960 --> 00:30:52.400
to them. They then found all
sorts of ways and putting that money to

321
00:30:52.440 --> 00:30:57.640
work. But the Spanish crown was
always the major client that drove the European

322
00:30:57.680 --> 00:31:03.119
debt market. In fact, Philip's
government was so hungry to fund its huge

323
00:31:03.119 --> 00:31:11.119
expenditure that it regularly outbid more useful
creditors such as farmers and industrialists, driving

324
00:31:11.200 --> 00:31:15.440
up interest rates and contributing to the
rampant inflation, which devalued the principle of

325
00:31:15.559 --> 00:31:22.440
crown debt and was also very damaging
to the economy. And the last part

326
00:31:22.480 --> 00:31:26.160
there is the key. Certainly,
Charles the fifth and Philip the Second were

327
00:31:26.200 --> 00:31:32.200
smart men, but they didn't understand
the market forces at play. The more

328
00:31:32.240 --> 00:31:37.119
they borrowed, the more they increased
their own borrowing costs, and the more

329
00:31:37.440 --> 00:31:42.400
New world silver they imported, the
less that silver was worth. It would

330
00:31:42.440 --> 00:31:47.200
be like if you went to an
atm, but every time you went it

331
00:31:47.279 --> 00:31:52.599
gave you less and less of your
money now. Wars are expensive. They

332
00:31:52.599 --> 00:31:55.359
always have been, they always will
be, just asked the British, who

333
00:31:55.440 --> 00:32:00.720
won two World Wars, but lost
their empire harshly as a result. Philip

334
00:32:00.720 --> 00:32:04.160
had a lot of money, sure, but he couldn't afford to fight the

335
00:32:04.279 --> 00:32:07.880
Dutch, the French, and,
as we will see, the Ottomans simultaneously.

336
00:32:09.440 --> 00:32:14.000
Of all these wars, the Dutch
revolt was the most ruinous for Philip,

337
00:32:14.039 --> 00:32:17.599
probably because it had been completely avoidable. Moreover, as I mentioned,

338
00:32:17.920 --> 00:32:23.880
the Spanish needed the Netherlands to process
its wool. War disrupted trade, and

339
00:32:23.920 --> 00:32:29.480
that made matters so bad for Philip
that by the late fifteen seventies he was

340
00:32:29.559 --> 00:32:35.599
essentially only able to make the interest
payments on all his debts. On September

341
00:32:35.640 --> 00:32:42.119
the first, fifteen seventy five,
Philip effectively declared bankruptcy, the first sovereign

342
00:32:42.119 --> 00:32:47.799
and history to formally default on their
debts. The Genoese retaliated by withdrawing his

343
00:32:47.839 --> 00:32:52.839
banking facilities in the Netherlands, and
Philip's new military commander there complained that he

344
00:32:52.880 --> 00:32:58.880
couldn't find a single penny to pay
for his men. He wrote to the

345
00:32:58.960 --> 00:33:05.920
King, short of a miracle the
whole military machine will fall in ruins.

346
00:33:06.920 --> 00:33:10.640
It was quite the prophecy. The
light Cavalry, for example, rode six

347
00:33:10.720 --> 00:33:16.880
years pay, and in fifteen seventy
six the soldiers mutined after committing a series

348
00:33:16.920 --> 00:33:22.640
of terrible atrocities, including the especially
brutal sack of Friendly Antwerp, remembered in

349
00:33:22.720 --> 00:33:29.799
history as the Spanish Fury. The
army of the Netherlands mutinied and abandoned the

350
00:33:29.799 --> 00:33:35.599
coastal countries of Holland and Zealand.
The States General worked quickly to unite all

351
00:33:35.640 --> 00:33:39.039
seventeen provinces of the Netherlands in an
act known as the Pacification of Ghent,

352
00:33:39.759 --> 00:33:45.039
which established a humiliating general peace that
required the removal of all Spanish troops and

353
00:33:45.119 --> 00:33:52.039
officials from both the Spanish and Dutch
Low countries. The Dutch had bankrupted Mighty

354
00:33:52.079 --> 00:33:57.839
Philip by forcing him to keep such
a large army in the field for so

355
00:33:58.039 --> 00:34:06.119
long, had taken charge of themselves
everything all but had fought for, and

356
00:34:06.240 --> 00:34:13.079
every penny that he had spent had
gone to waste. Philip had paid a

357
00:34:13.159 --> 00:34:17.360
high price for all of this.
The negotiations now began for the restructuring of

358
00:34:17.400 --> 00:34:22.639
all of his debts again, there
could be no doubt that the bankers would

359
00:34:22.679 --> 00:34:25.719
have agreed to some solution in due
course. Philip may have threatened to go

360
00:34:25.800 --> 00:34:31.000
elsewhere for his credit. While his
activities underpinned such a huge proportion of the

361
00:34:31.000 --> 00:34:37.000
European economy that without his borrowing the
whole system would have eventually collapsed. But

362
00:34:37.039 --> 00:34:43.679
the process would have proved considerably more
painful had it not been for the intervention

363
00:34:44.039 --> 00:34:51.159
in fifteen seventy seven of Providence.
That year, silver receipts from the Americas

364
00:34:51.199 --> 00:34:55.800
broke every record because one of the
great technological developments in history of silver production,

365
00:34:57.280 --> 00:35:01.199
the so called patio method, was
now in use in both Peru and

366
00:35:01.280 --> 00:35:07.920
Mexico. With the promise of new
American riches, Philip and his bankers finally

367
00:35:07.960 --> 00:35:15.159
reached an agreement known to history as
the Medio General, which imposed a brutal

368
00:35:15.280 --> 00:35:22.920
tax of almost forty percent on nearly
fifteen million ducats of short term debt.

369
00:35:22.960 --> 00:35:29.159
Cooked into all this was a provision
of a new loan of five million ducats,

370
00:35:29.519 --> 00:35:35.880
and so the cycle of sovereign solvency
and default started again. As ever,

371
00:35:36.760 --> 00:35:44.519
the American that is to say,
Mexican and Peruvian silver financed Habsburg aspirations

372
00:35:45.079 --> 00:35:50.639
throughout Europe. The problem for Philip
was that even by the fifteen fifties,

373
00:35:51.159 --> 00:35:53.559
as I mentioned, the surface deposits
of silver and gold in the New World

374
00:35:54.159 --> 00:36:00.039
had all but dried up. He
needed new methods to extract the wealth that

375
00:36:00.159 --> 00:36:05.079
lay deeper beneath the surface. He
got it the patio method, but not

376
00:36:05.159 --> 00:36:09.880
until fifteen fifty seven, and took
time for the new techniques that involved essentially

377
00:36:09.960 --> 00:36:15.719
combining silver or with mercury to separate
it out, and then later heating the

378
00:36:15.760 --> 00:36:20.159
mixture to burn off the mercury.
But when he did, when it went

379
00:36:20.199 --> 00:36:24.760
into production, the results were astounding. Between fifteen seventy five and fifteen eighty

380
00:36:25.119 --> 00:36:30.679
the production of silver from Peru was
four times would it have been previously.

381
00:36:31.039 --> 00:36:35.480
But it was too late to save
Spain and its battle with the Dutch.

382
00:36:37.039 --> 00:36:40.280
Ultimately, the Dutch Revolt lasted longer
than any other uprising in modern European history.

383
00:36:40.960 --> 00:36:45.639
In the end, it lasted nearly
eighty years. It came to define

384
00:36:46.079 --> 00:36:50.840
daily life for generations of both those
who lived in the Netherlands and those who

385
00:36:50.880 --> 00:36:54.719
fought there. The Dutch were fighting
on their home soil, their navy.

386
00:36:54.760 --> 00:36:59.480
Throughout the conflict was consistently more agile, and in the end it won more

387
00:36:59.480 --> 00:37:05.960
engagement. But really the reason Spain
lost the Dutch Revolt had little to do

388
00:37:06.039 --> 00:37:09.599
with the Dutch themselves. Philip would
lose in the Netherlands because he had so

389
00:37:09.960 --> 00:37:16.280
badly over committed himself. The Dutch
could afford to focus only on the Spanish.

390
00:37:16.920 --> 00:37:23.159
The Spanish could not. Moreover,
the Spanish were standing on the beach

391
00:37:23.639 --> 00:37:29.880
trying to hold back the tide.
They were desperately trying to achieve what were

392
00:37:30.320 --> 00:37:35.119
unachievable goals, and if I'm being
honest, some of the blame for all

393
00:37:35.159 --> 00:37:40.320
these failures lies squarely at Philip's feet. He didn't learn from his father's experience

394
00:37:40.840 --> 00:37:46.840
dealing with religious toleration and dissent in
Germany. But worse still, he never

395
00:37:46.960 --> 00:37:52.360
once personally visited the region. For
a man who considered the Netherlands to be

396
00:37:52.480 --> 00:37:59.679
his birthright, that was inexcusable.
Now, as we're going to see,

397
00:38:00.079 --> 00:38:04.440
the Dutch Revolt was not the only
reason for the collapse of the Spanish Empire

398
00:38:04.960 --> 00:38:08.400
and the end of Spain's Golden Age, but it certainly did not help.

399
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Next week we head back to England
as Elizabeth the first takes the throne.

400
00:38:17.159 --> 00:38:21.440
If you're interested in more Western Sieve
in the interim, you can check out

401
00:38:21.440 --> 00:38:23.960
the links in the show notes.
Try a seven day free trial of Western

402
00:38:24.000 --> 00:38:29.559
SIEV two point zero and get back
in it with the Romans. We're deep

403
00:38:29.599 --> 00:38:32.119
into it now with them in the
Punic Wars, and I'm having a lot

404
00:38:32.199 --> 00:38:37.000
more fun covering that in a lot
more detail.

