A History of the World in Seven Cheap Things

Patel and Moore explore the historical relationship between finance, state power, and the exploitation of nature in the development of capitalism. They argue that the creation of “cheap money”—a secure form of currency that can be relied upon to facilitate commerce and meet the needs of the ruling class—has been essential to the expansion of capitalism and imperialism since the 15th century.

The authors begin by discussing how Columbus’s voyages were financed by Genoese bankers, who had become the primary creditors to the Spanish crown. This relationship exemplifies the early ties between finance and state power in the era of European exploration and colonization. They then trace the origins of modern money to the silver mines of Central Europe in the 15th century, which provided the material basis for the growth of trade and the rise of the Fugger banking family.

Patel and Moore then turn to the role of Genoese banking in financing Spanish imperialism. They argue that the Genoese were able to achieve mastery over cheap money by financing Spain’s colonial exploits and reaping the rewards in the form of access to American silver. This relationship between the Genoese bankers and the Spanish state established an enduring pattern in which credit was used to organize global nature, world power, and planetary work.