Napoleon and the Wars of the First and Second Coalitions

WEBVTT
Kind: captions
Language: en

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What I want to do is give you a
broad overview of all of the

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wars that France was
in at this time.

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And then talk about in a little
bit more detail exactly

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what Napoleon was up to.

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And his role in either beginning
or ending many of

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these wars.

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So you might remember from 1792
to 1797, you had your war

00:00:22.080 --> 00:00:23.330
of the First Coalition.

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And the players there
were Prussia,

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Austria, and Great Britain.

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I'll just write Britain
for short.

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And this was essentially
started by the French.

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You might remember, King Louis
XVI was alive then.

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He supported the war, because
he thought that they would

00:00:49.440 --> 00:00:51.140
lose and maybe reinstate him.

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Or that it would make
him popular.

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The revolutionaries liked the
war because they wanted to

00:00:55.120 --> 00:00:57.430
spread the Revolution.

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And you might remember it ended
at the Treaty of Campo

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Formio in 1797, due mainly to
Napoleon's victories in Italy.

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At that time, he was in charge
of the Italian campaign.

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And the government
of France at that

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time was the Directory.

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In power to a large degree
because of Napoleon's ability

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to defend them.

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Then from 1798-- let me do this
in a different color--

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from 1798 to 1802, you have
the Second Coalition.

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Now you might immediately
see, Napoleon took power

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at the end of 1799.

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So this war spanned some of the
Directory being in control

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and some of Napoleon as First
Consul being in control.

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And here the players-- once
again you have Austria and

00:02:01.020 --> 00:02:05.680
Great Britain-- they tend to be
always at war with France

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at this period, especially
Great Britain.

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And instead of Prussia,
you have Russia.

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And actually, just to help you
visualize what the Austrian

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Empire looked like at this
time-- and the Prussian

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Empire, this map doesn't
do it justice.

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Let me go down to this map.

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That's in 1810.

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Let me go a little
bit earlier here.

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This is in 1805.

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And I'll draw the boundaries
a little bit

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bolder than they did.

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So this is France.

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These are the boundaries
of France.

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Actually, it was able to
take some territory

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in what is now Italy.

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I could do the whole boundary
if you like, but I think you

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get the idea.

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But the one empire that existed
then that doesn't

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exist in its current
form, was Prussia.

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Doesn't even exist at all.

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There is no Prussian Empire,
or Prussian nation, or the

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country of Prussia anymore.

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You can see there it had some
overlap with Germany, some

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overlap with Poland, some other
countries, won't go into

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detail there.

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Then you have the
Austrian Empire.

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Austrian Empire is
right over there.

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As you can see, it encompasses
much more than just the modern

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nation or country of Austria.

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Then you have the Russian
Empire, which, give or take,

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looks not too different
than Russia today.

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But the big difference between
the world-- there's many

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differences-- between the world
now and the world then

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was that there was no
nation of Germany.

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You had a bunch of people
speaking German, but they were

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divided into a bunch of
small little states.

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This map doesn't show it.

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Some of them were under Austrian
control, some of them

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were under Prussian control.

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And this loose confederation of
German kingdoms and states,

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this was called the
Holy Roman Empire.

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Let me write that down.

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And as Voltaire famously said,
they were neither holy, nor

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Roman-- they didn't speak Latin,
they weren't Italian,

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they were German.

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It wasn't holy, this
wasn't controlled

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by a religious figure.

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And it wasn't an empire, it
wasn't a tightly-controlled

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state that was kind of expanding
its boundaries.

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It was just a loose
confederation of kingdoms.

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So that gives you a
visualization of what the

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world looked like right then.

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So with that in mind, let me
go back to my overview.

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Right there.

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And then the Second Coalition,
in 1801 you had

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the Treaty of Luneville.

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Once again, this was a defeat
of the Austrians, mainly due

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to the military capabilities.

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Napoleon was now in
charge of France.

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But he led once again,
an Italian

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campaign against the Austrians.

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This is his victory in
Marengo right there.

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I'll go into a little
more detail on that.

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And that essentially declared
victory on Austria, allowed

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Napoleon to take more territory

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along the Italian peninsula.

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You can see it right there.

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And then later he had the Treaty
of Amiens with the

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British in 1802.

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And that really ended
the coalition.

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I guess you could say the
coalition ended in 1801,

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because Austria was out of it.

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Russia was kind of just
passively observing.

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They participated.

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But they didn't really give
or take or lose anything.

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And then I could say at this
point the United Kingdom,

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essentially I guess the best
explanation of why that it was

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war fatigue.

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But we'll see that they weren't
tired for long.

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Because then in May of 1803, you
have the beginning of your

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Third Coalition .

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And then I'll go to a little
bit more detail about this.

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The Third Coalition, Britain
declares war on what we could

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call the French Empire.

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And this isn't going
to end until 1805.

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So you can see, Great Britain
is essentially at war almost

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continuously.

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There's a few gaps
give or take.

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But there's always
this tension.

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This is the Third Coalition.

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And once again, I could write
the United Kingdom if you

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like, because they actually now
are the United Kingdom of

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Great Britain and Ireland.

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You have the United Kingdom
in there, we

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have Russia in there.

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And once again, we
have Austria.

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And there were other players.

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There was Portugal.

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But these were the
prime players.

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And we'll see in this video
that this, the war of the

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Third Coalition, really ended
with Napoleon being the

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dominant power in Europe.

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And ended with him essentially
thinking that he is

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unstoppable.

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So I'll do a little bit
more detail on that.

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This resulted in 1805, with
the then Emperor Napoleon.

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And we'll talk about how
he became emperor.

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But in 1805, Napoleon-- maybe
I should say 1806, because

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this ended at the end of 1805--
Napoleon views himself

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as unstoppable, as invincible.

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He got some good victories
that fed his

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already large ego.

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So with this as an overview,
let's review a little bit of

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the life of Napoleon and the
roles that he directly played

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in pretty much all of
these conflicts.

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So the first time we heard about
Napoleon was in 1793.

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And I'll just draw
it right here.

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You're might remember, there
were all of these Royalist

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insurrections going on against
the revolutionary government.

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And they had this bright
artillery captain in Toulon

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who put down an uprising
there in 1793.

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He got some, I guess you could
say, France-wide, or

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nationwide fame from
doing that.

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Then in 1795, you might
remember, the Directory was

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trying to get formed in Paris.

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So this is 1793.

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Then in 1795-- let me do a
better color than that.

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That's hard to read.

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In 1795, he defended the
Tuileries by essentially

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sending out that grapeshot and
mowing down people to keep the

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Royalists from taking out the
revolutionary government.

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So once again, hugely,
hugely popular.

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So all of that was occurring
during the war

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of the First Coalition.

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And then Napoleon was made the
general in charge of the

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Italian campaign.

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And in 1797, he was essentially
able to end the

00:09:00.520 --> 00:09:04.460
war of the First Coalition in a
victorious way for France by

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defeating Austria and Italy.

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And that ended the
First Coalition

00:09:07.470 --> 00:09:08.650
with the Campo Formio.

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This was Napoleon.

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Then, you might remember, OK,
he's this hugely popular guy.

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He actually started publishing
some newspapers.

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And he actually sent some
military generals to put down

00:09:25.290 --> 00:09:29.310
further counter revolutions on
the part of the Royalists.

00:09:29.310 --> 00:09:32.490
So he became even more
and more popular.

00:09:32.490 --> 00:09:34.800
And the Directory was
a little bit afraid

00:09:34.800 --> 00:09:35.580
of him at this point.

00:09:35.580 --> 00:09:37.700
So they said, hey why don't you
go do whatever you want.

00:09:37.700 --> 00:09:40.650
And that's when Napoleon
left from Toulon

00:09:40.650 --> 00:09:43.030
and he went to Egypt.

00:09:43.030 --> 00:09:47.090
He went to Egypt with his
visions of grandeur, where he

00:09:47.090 --> 00:09:49.790
did all of the damage
down there.

00:09:49.790 --> 00:09:55.210
And killed and won multiple wars
against the Ottomans in

00:09:55.210 --> 00:09:56.550
both Egypt and Syria.

00:09:56.550 --> 00:10:01.570
But unfortunately for him, his
good friend Horatio Nelson

00:10:01.570 --> 00:10:04.710
destroyed his whole fleet in
the Battle of the Nile.

00:10:04.710 --> 00:10:08.660
Horatio-- let me draw that
in a darker color.

00:10:08.660 --> 00:10:13.370
So that is Horatio Nelson
destroyed his

00:10:13.370 --> 00:10:14.540
entire fleet there.

00:10:14.540 --> 00:10:15.870
So they were stranded.

00:10:15.870 --> 00:10:21.000
In 1799, Napoleon was
essentially able to abandon

00:10:21.000 --> 00:10:23.790
all of his troops and
then come back to

00:10:23.790 --> 00:10:25.470
France on his own.

00:10:25.470 --> 00:10:34.040
So this is in 1799, Napoleon
makes his way back to France.

00:10:34.040 --> 00:10:37.760
And then we saw in the last
video, he takes power with two

00:10:37.760 --> 00:10:41.400
of the directors as the three
consuls of France.

00:10:41.400 --> 00:10:45.130
But in short order, he is able
to declare himself as First

00:10:45.130 --> 00:10:48.820
Consul in 1799.

00:10:48.820 --> 00:10:50.070
This is hard to read.

00:11:00.070 --> 00:11:05.190
And is essentially the dictator,
or the authoritarian

00:11:05.190 --> 00:11:07.140
ruler, of France.

00:11:07.140 --> 00:11:09.150
But all of while this was
happening, remember, this was

00:11:09.150 --> 00:11:12.220
all during this war of
the Second Coalition.

00:11:12.220 --> 00:11:16.080
In 1798, he wasn't much help
in that war, he was out in

00:11:16.080 --> 00:11:18.510
Egypt doing all of these
silly things.

00:11:18.510 --> 00:11:21.840
They were at war with Britain,
that's why Horatio Nelson went

00:11:21.840 --> 00:11:24.370
and destroyed his fleet.

00:11:24.370 --> 00:11:28.780
But even after he takes power
at the end of 1799 or early

00:11:28.780 --> 00:11:31.060
1800, they're still at war.

00:11:31.060 --> 00:11:34.200
So Napoleon, he decides
to take charge.

00:11:34.200 --> 00:11:40.850
So he leads the troops across
the Alps into Italy.

00:11:40.850 --> 00:11:44.140
And once again, this pattern
is emerging.

00:11:44.140 --> 00:11:46.460
And this one actually wasn't
very clear in the beginning

00:11:46.460 --> 00:11:47.690
that it was going
to go his way.

00:11:47.690 --> 00:11:50.210
The Italian campaign, it
started very badly.

00:11:50.210 --> 00:11:53.300
But eventually, he was able to
win against, once again, the

00:11:53.300 --> 00:11:57.590
Austrians at the Battle of
Marengo and Hohenlinden.

00:11:57.590 --> 00:12:00.550
I know I'm probably not saying
all of these well.

00:12:00.550 --> 00:12:04.640
But once again, through Napoleon
directly leading the

00:12:04.640 --> 00:12:08.890
troops, he was able to end the
war of the Second Coalition.

00:12:08.890 --> 00:12:11.260
And then the United Kingdom, or
Great Britain, however you

00:12:11.260 --> 00:12:17.990
want to call it-- many times
when people use the word Great

00:12:17.990 --> 00:12:21.130
Britain it's referring to the
entire United Kingdom of Great

00:12:21.130 --> 00:12:22.110
Britain and Ireland.

00:12:22.110 --> 00:12:24.880
If you wanted to be formal,
Great Britain refers just to

00:12:24.880 --> 00:12:27.700
the island of Great Britain that
has England and Scotland

00:12:27.700 --> 00:12:30.930
and Wales on it, while
this is Ireland.

00:12:30.930 --> 00:12:33.680
But I don't feel like keep
repeatedly saying United

00:12:33.680 --> 00:12:37.100
Kingdom of Great Britain and
Ireland, which was now united

00:12:37.100 --> 00:12:38.510
in the early 1800s.

00:12:38.510 --> 00:12:41.090
I'll just keep saying
Great Britain.

00:12:41.090 --> 00:12:42.780
But there was just fatigue.

00:12:42.780 --> 00:12:46.420
So the war essentially ended
with Great Britain as well.

00:12:46.420 --> 00:12:51.060
This is, as we said before, this
was the Treaty of Amiens.

00:12:51.060 --> 00:12:55.340
But very, very, very,
short-lived peace.

00:12:55.340 --> 00:13:02.300
Because in 1803, with Napoleon
still in power, the Third

00:13:02.300 --> 00:13:03.670
Coalition formed.

00:13:03.670 --> 00:13:06.400
And in the next video, we're
going to see exactly how

00:13:06.400 --> 00:13:11.260
Napoleon was able to once again
be victorious over these

00:13:11.260 --> 00:13:17.040
powers to become essentially,
in his mind, invincible.


Payday Loans

WEBVTT
Kind: captions
Language: en

00:00:00.360 --> 00:00:03.900
I think most of us have a sense
that payday loans are

00:00:03.900 --> 00:00:08.010
probably not the best source for
a loan, that they probably

00:00:08.010 --> 00:00:11.420
charge a lot of money to those
people who need that cash

00:00:11.420 --> 00:00:12.135
really badly.

00:00:12.135 --> 00:00:14.750
And what I want to do in this
video is one, explain what

00:00:14.750 --> 00:00:17.090
they are but even more do
a little bit of math to

00:00:17.090 --> 00:00:21.570
understand really how bad of
an interest that they do

00:00:21.570 --> 00:00:22.100
charge,

00:00:22.100 --> 00:00:26.730
So the way that works is let's
say that I need to buy my wife

00:00:26.730 --> 00:00:30.050
a nice gift for her birthday
that's tomorrow and I want to

00:00:30.050 --> 00:00:31.970
borrow $500.

00:00:31.970 --> 00:00:37.600
So I want to borrow $500.

00:00:37.600 --> 00:00:40.510
I would suspect that most people
aren't borrowing it for

00:00:40.510 --> 00:00:43.700
some type of a gift, they're
desperate to make the rent or

00:00:43.700 --> 00:00:47.540
pay the utilities or buy food
or who knows what else, but

00:00:47.540 --> 00:00:50.750
whatever your reason, you need
to borrow $500 and I would

00:00:50.750 --> 00:00:52.690
suspect that you have very
little in your bank account,

00:00:52.690 --> 00:00:54.900
otherwise you wouldn't go
to the payday lendor.

00:00:54.900 --> 00:00:58.820
And they say all right Sal,
we're open to lending you $500

00:00:58.820 --> 00:01:03.170
and we're not going to do all
of this deep research on how

00:01:03.170 --> 00:01:05.500
good of a credit you are and
all of that, but we want a

00:01:05.500 --> 00:01:06.170
couple of things.

00:01:06.170 --> 00:01:08.570
One, we want to know your pay
stub and your pay date.

00:01:11.590 --> 00:01:15.760
They're going to want to see
your pay stub, they're going

00:01:15.760 --> 00:01:19.220
to they want to know when you're
going to get paid, so I

00:01:19.220 --> 00:01:22.590
guess we call it your payday.

00:01:22.590 --> 00:01:25.400
And they might want some
recent bank statements.

00:01:28.380 --> 00:01:32.050
And the whole reason why they
want these things is they want

00:01:32.050 --> 00:01:34.430
to know you know even though
your credit might be horrible,

00:01:34.430 --> 00:01:39.340
then you're going to get your
salary or you're going to to

00:01:39.340 --> 00:01:42.320
get a payment from your employer
probably in two weeks

00:01:42.320 --> 00:01:45.500
on your payday, and then you're
going to be good to pay

00:01:45.500 --> 00:01:47.230
back to the $500.

00:01:47.230 --> 00:01:49.000
And to ensure this, so one
they're going to make sure

00:01:49.000 --> 00:01:52.900
that you have a job, that in
your pay stub maybe you make

00:01:52.900 --> 00:01:56.830
$1,000 every two weeks or maybe
you make $2,000 every

00:01:56.830 --> 00:01:58.220
two weeks so that you're
good for this.

00:01:58.220 --> 00:02:03.230
So maybe you maybe make $1,500
every two weeks, so they like

00:02:03.230 --> 00:02:04.250
to see that.

00:02:04.250 --> 00:02:07.480
Maybe your payday is two weeks
from the day that you're

00:02:07.480 --> 00:02:09.699
borrowing it, borrowing
the money.

00:02:09.699 --> 00:02:15.790
So two weeks from today.

00:02:15.790 --> 00:02:18.820
And then your bank statement
shows that your bank kind of

00:02:18.820 --> 00:02:21.410
goes up $1,500 and you pay the
rent and the food and then it

00:02:21.410 --> 00:02:23.960
goes back close to zero, then it
goes up to $1,500 but they

00:02:23.960 --> 00:02:27.100
want to see that this $1,500
is hitting periodically.

00:02:27.100 --> 00:02:29.170
And they say, you know,
we're going to give

00:02:29.170 --> 00:02:32.310
you the $500 today.

00:02:32.310 --> 00:02:34.445
You need to write us a check.

00:02:42.330 --> 00:02:47.370
We want you to write a check for
not $500, for every $100

00:02:47.370 --> 00:03:00.370
you borrow, I want you to
pay us back another $25.

00:03:00.370 --> 00:03:03.690
So $25 extra.

00:03:03.690 --> 00:03:06.370
And at first you might say,
that's not bad, that's 25%

00:03:06.370 --> 00:03:09.430
interest. It's high, maybe it
compares to some interest,

00:03:09.430 --> 00:03:10.360
some credit cards.

00:03:10.360 --> 00:03:15.050
But this isn't 25% a year, this
is 25% for two weeks.

00:03:15.050 --> 00:03:16.900
And at the end of this video,
we're going to do the map on

00:03:16.900 --> 00:03:19.790
what that actually turns
into on an APR, or an

00:03:19.790 --> 00:03:21.410
effective APR basis.

00:03:21.410 --> 00:03:23.560
And these numbers are not crazy,
these are actually very

00:03:23.560 --> 00:03:25.960
typical for payday loans.

00:03:25.960 --> 00:03:29.780
So if I'm borrowing $500, I
have to give them back the

00:03:29.780 --> 00:03:34.570
$500 in two weeks plus
$25 for every $100.

00:03:34.570 --> 00:03:37.540
So I'm borrowing $500, so I'm
going to have to do plus five

00:03:37.540 --> 00:03:41.390
times 25 five or $125.

00:03:41.390 --> 00:03:45.760
So I'm going to write them a
check for $500 plus a $125 so

00:03:45.760 --> 00:03:50.880
that's $625.

00:03:50.880 --> 00:03:52.850
I'm going to write a check, but
obviously I don't have the

00:03:52.850 --> 00:03:55.650
money in my bank account right
now, otherwise I wouldn't even

00:03:55.650 --> 00:03:57.240
be going to the payday loan.

00:03:57.240 --> 00:03:58.520
What I'm going to do on
the date, I'm going to

00:03:58.520 --> 00:04:00.310
forward-date this check.

00:04:00.310 --> 00:04:03.180
I'm going to put the date, let's
say this is the first of

00:04:03.180 --> 00:04:08.070
the month, instead of let's say,
it's January 1, I'm going

00:04:08.070 --> 00:04:13.520
to put January 16 and whatever
year I might be doing it.

00:04:13.520 --> 00:04:16.709
So I've forwarded it, this
is two weeks from today.

00:04:16.709 --> 00:04:23.780
Two weeks in the future, and
then I'm going to sign the

00:04:23.780 --> 00:04:31.780
check and I'll write it's for
a payday loan and I'll write

00:04:31.780 --> 00:04:39.910
$625 etc. etc., then I have my
little information here.

00:04:39.910 --> 00:04:42.220
And I'm going to give them this
check and what they're

00:04:42.220 --> 00:04:44.370
going to say is we're not going
to cash this, we're just

00:04:44.370 --> 00:04:47.510
going to keep this nice little
check for us and when your

00:04:47.510 --> 00:04:49.520
payday hits you have
an option.

00:04:49.520 --> 00:04:58.250
You can come back to us and give
us $625 in cash and then

00:04:58.250 --> 00:05:01.510
we will give you back this check
that is uncashed or if

00:05:01.510 --> 00:05:04.950
you don't show up, we are just
going to cash this check.

00:05:04.950 --> 00:05:07.070
So one of these two things
are going to happen.

00:05:07.070 --> 00:05:11.670
But effectively, if you didn't
lie to them, they're going to

00:05:11.670 --> 00:05:14.870
essentially charge you $625
and you can imagine it is

00:05:14.870 --> 00:05:17.890
risky for the lender or because
these are people with

00:05:17.890 --> 00:05:20.130
you know be maybe shady pay
stubs and obviously they're

00:05:20.130 --> 00:05:21.970
desperate, so they weren't
good at managing their

00:05:21.970 --> 00:05:24.700
finances, but they're doing
their best to ensure that once

00:05:24.700 --> 00:05:27.950
that payday comes in, once
that's that payment from the

00:05:27.950 --> 00:05:30.300
employer comes in, that they
get first dibs was on the

00:05:30.300 --> 00:05:33.200
money before the person can
pay their rent or their

00:05:33.200 --> 00:05:34.790
utilities or their food.

00:05:34.790 --> 00:05:37.030
And so that's the general
idea behind it.

00:05:37.030 --> 00:05:39.550
Now we start off saying this
probably not a good idea and

00:05:39.550 --> 00:05:40.980
you got a sense of that, because
we're essentially

00:05:40.980 --> 00:05:47.070
paying 25% interest for every
two weeks, not for every year.

00:05:47.070 --> 00:05:50.580
But let's think about what
that is on an APR basis.

00:05:50.580 --> 00:05:54.040
So let's say we're paying $25
for every $100, that's really

00:05:54.040 --> 00:05:55.700
25 per cent.

00:05:55.700 --> 00:06:01.640
When you say per cent, that
root means hundred, right?

00:06:01.640 --> 00:06:02.940
Century, 100 years.

00:06:02.940 --> 00:06:05.220
So per cent, it literally
means per 100.

00:06:05.220 --> 00:06:09.590
25 per 100, so this is literally
25% interest or we

00:06:09.590 --> 00:06:14.655
could write it the traditional
way, this is 25%

00:06:14.655 --> 00:06:18.625
interest per two weeks.

00:06:21.970 --> 00:06:25.750
So if we were just calculate a
simple APR, a simple annual

00:06:25.750 --> 00:06:36.690
percentage interest rate, and
you might want to watch the

00:06:36.690 --> 00:06:41.820
video on that to understand that
that just takes your 25%

00:06:41.820 --> 00:06:44.490
and then multiplies by the
number of periods in the year.

00:06:44.490 --> 00:06:47.860
So we have 52 weeks per year,
but this is every two weeks,

00:06:47.860 --> 00:06:50.750
so instead of multiplying it
by 52 weeks, we're going to

00:06:50.750 --> 00:06:54.450
multiply by there's 26 two-week
periods in the year.

00:06:54.450 --> 00:07:03.535
So times 26 two-week
periods per year.

00:07:03.535 --> 00:07:08.360
And this is 25% per two weeks.

00:07:08.360 --> 00:07:11.950
When you multiply this out, this
is equal to-- let's get

00:07:11.950 --> 00:07:16.325
the calculator out-- I'll just
multiply the numbers, I won't

00:07:16.325 --> 00:07:16.920
do the decimals.

00:07:16.920 --> 00:07:27.320
25 times 26 equal to 650%.

00:07:27.320 --> 00:07:30.900
We're paying an APR of 650%.

00:07:30.900 --> 00:07:32.900
So if you thought the credit
card companies were charging a

00:07:32.900 --> 00:07:36.660
lot of interest, charging you
a mid teens interest rate or

00:07:36.660 --> 00:07:40.240
20% rate, this is 650%.

00:07:40.240 --> 00:07:44.890
It's an order of magnitude
or two above what even credit

00:07:44.890 --> 00:07:45.780
cards charge.

00:07:45.780 --> 00:07:50.300
So this is a really, really,
crazy annual percentage rate

00:07:50.300 --> 00:07:52.340
and this was just a simple
annual percentage rate where

00:07:52.340 --> 00:07:55.670
we multiplied it by 26, this
isn't the effective annual

00:07:55.670 --> 00:07:58.685
percentage rate, or the actual
mathematically correct one.

00:07:58.685 --> 00:08:01.680
To do that, we would actually
have to take-- and you might

00:08:01.680 --> 00:08:04.040
want to watch the video on
this-- if you were to let that

00:08:04.040 --> 00:08:06.150
just compound, and you can
imagine if you're the payday

00:08:06.150 --> 00:08:08.380
lender, you are essentially
getting that compounding if

00:08:08.380 --> 00:08:11.000
you keep lending your money
out and if you lend the

00:08:11.000 --> 00:08:12.940
interest you get from the last
person, and you lend that out

00:08:12.940 --> 00:08:14.130
the same rate.

00:08:14.130 --> 00:08:16.590
To figure out that effective
annual percent rate, you do

00:08:16.590 --> 00:08:23.100
1.25, 25% plus 1 to
the 26th power.

00:08:23.100 --> 00:08:25.570
We have 26 of these
periods in a year.

00:08:25.570 --> 00:08:28.160
And what is that going
to be equal to?

00:08:28.160 --> 00:08:33.980
So we have 1.25 to
the 26th power.

00:08:33.980 --> 00:08:37.370
And then we get this crazy
number, we're going to want to

00:08:37.370 --> 00:08:39.770
subtract a 1 from it, not
that it's going to

00:08:39.770 --> 00:08:41.710
change much of our math.

00:08:41.710 --> 00:08:50.450
So minus 1, and we get, well
let me be very clear--

00:08:50.450 --> 00:08:55.550
essentially this is 329
times our money.

00:08:55.550 --> 00:08:58.550
So this if this was a one here,
that would be 100%.

00:08:58.550 --> 00:09:02.720
So let me just be clear, this
number right here that number

00:09:02.720 --> 00:09:05.990
right there is such a high
number it's hard to fathom.

00:09:05.990 --> 00:09:08.140
If you were to actually let
money compound at this rate,

00:09:08.140 --> 00:09:11.490
and usually they would make
you at least roll over the

00:09:11.490 --> 00:09:14.080
principal, so this may or may
not be accurate but that

00:09:14.080 --> 00:09:17.550
actual payday lender, if they
actually are able to roll over

00:09:17.550 --> 00:09:21.330
the money at this rate, they're
going to have 329

00:09:21.330 --> 00:09:22.140
times their money.

00:09:22.140 --> 00:09:24.610
Or if you write it as
a percent, it would

00:09:24.610 --> 00:09:29.410
literally be 32,987.

00:09:29.410 --> 00:09:33.900
Literally, 32,987%.

00:09:33.900 --> 00:09:36.560
Or after a year, you'll
essentially have to pay

00:09:36.560 --> 00:09:41.480
roughly 330 times your money
back to the payday lender.

00:09:41.480 --> 00:09:43.680
And obviously they don't let
you compound like that, but

00:09:43.680 --> 00:09:46.590
this just gives you a sense
of how ridiculous this

00:09:46.590 --> 00:09:47.550
interest rate is.

00:09:47.550 --> 00:09:50.430
I mean, you might have heard
of the term usury.

00:09:52.960 --> 00:09:55.560
In the past, usury really meant
any kind of interest,

00:09:55.560 --> 00:09:58.390
but now in our current cultural
context we associate

00:09:58.390 --> 00:10:01.630
it with just an unreasonable
level of interest and that

00:10:01.630 --> 00:10:03.450
threshold might be different
for some people.

00:10:03.450 --> 00:10:06.050
Some people might say it's
unreasonable to pay 20%, or

00:10:06.050 --> 00:10:09.610
30% interest, or 40% annual
interest. But I think everyone

00:10:09.610 --> 00:10:15.840
would agree that whether you
look at 650% or 33,000%, these

00:10:15.840 --> 00:10:18.330
are usurious and reasonable
interest rates.

00:10:18.330 --> 00:10:22.310
So you really, at all costs,
unless your life depends on

00:10:22.310 --> 00:10:25.260
it, you want to avoid
these payday loans.


Finite geometric series word problem: mortgage

WEBVTT
Kind: captions
Language: en

00:00:00.420 --> 00:00:02.770
What I want to do in this
video is go over the math

00:00:02.770 --> 00:00:07.810
behind a mortgage loan.

00:00:07.810 --> 00:00:09.680
And this isn't really going
to be a finance video.

00:00:09.680 --> 00:00:11.270
It's actually a lot
more mathematical.

00:00:11.270 --> 00:00:15.470
But it addresses, at least in
my mind, one of the most basic

00:00:15.470 --> 00:00:18.470
questions that's at least been
circling in my head

00:00:18.470 --> 00:00:20.120
for a long time.

00:00:20.120 --> 00:00:22.970
You know, we take out these
loans to buy houses.

00:00:22.970 --> 00:00:28.100
Let's say you take out a
$200,000 mortgage loan.

00:00:28.100 --> 00:00:29.900
It's secured by your house.

00:00:29.900 --> 00:00:34.700
You're going to pay it over--
30 years, or you could

00:00:34.700 --> 00:00:39.180
say that's 360-- months.

00:00:39.180 --> 00:00:41.720
Because if you normally pay the
payments every month, the

00:00:41.720 --> 00:00:45.140
interest normally compounds
on a monthly basis.

00:00:45.140 --> 00:00:50.460
And let's say you're
paying 6%-- interest.

00:00:50.460 --> 00:00:52.760
This is annual interest, and
they're usually compounding

00:00:52.760 --> 00:00:56.150
on a monthly basis,
so 6% divided by 12.

00:00:56.150 --> 00:00:59.210
You're talking about
0.5% per month.

00:01:03.210 --> 00:01:06.870
Now normally when you get a
loan like this, your mortgage

00:01:06.870 --> 00:01:10.780
broker or your banker will look
into some type of chart or

00:01:10.780 --> 00:01:13.480
type in the numbers into some
type of computer program.

00:01:13.480 --> 00:01:15.710
And they'll say oh OK,
your payment is going

00:01:15.710 --> 00:01:20.590
to be $1,200 per month.

00:01:20.590 --> 00:01:26.170
And if you pay that $1,200 per
month over 360 months, at the

00:01:26.170 --> 00:01:30.700
end of those 360 months you
will have paid off the $200,000

00:01:30.700 --> 00:01:33.190
plus any interest that
might have accrued.

00:01:33.190 --> 00:01:37.290
But this number it's not
that easy to come along.

00:01:37.290 --> 00:01:42.550
Let's just show an example of
how the actual mortgage works.

00:01:42.550 --> 00:01:45.430
So on day zero, you
have a $200,000 loan.

00:01:51.490 --> 00:01:53.010
You don't pay any
mortgage payments.

00:01:53.010 --> 00:01:54.670
You're going to pay your
first mortgage payment

00:01:54.670 --> 00:01:56.120
a month from today.

00:01:56.120 --> 00:02:05.010
So this amount is going to be
compounded by the 0.5%, and

00:02:05.010 --> 00:02:08.440
as a decimal that's a 0.005.

00:02:08.440 --> 00:02:11.250
So in a month, with interest,
this will have grown to

00:02:11.250 --> 00:02:19.200
200,000 times 1 plus 0.005.

00:02:19.200 --> 00:02:22.290
Then you're going
to pay the $1,200.

00:02:22.290 --> 00:02:26.485
Just going to be minus 1,200
or maybe I should write 1.2K.

00:02:26.485 --> 00:02:28.820
But I'm just really just
showing you the idea.

00:02:28.820 --> 00:02:33.400
And then for the next month,
whatever is left over is

00:02:33.400 --> 00:02:38.230
going to be compounded
again by the 0.5%, 0.005.

00:02:38.230 --> 00:02:40.140
And then the next month you're
going to come back and you're

00:02:40.140 --> 00:02:42.010
going to pay this $1,200 again.

00:02:42.010 --> 00:02:45.370
Minus $1,200.

00:02:45.370 --> 00:02:48.980
And this is going to
happen 360 times.

00:02:48.980 --> 00:02:50.250
So you're going to
keep doing this.

00:02:50.250 --> 00:02:52.780
And you can imagine if you're
actually trying to solve for

00:02:52.780 --> 00:02:54.740
this number-- at the end of it
you're going to have this huge

00:02:54.740 --> 00:02:58.090
expression that's going to have
you know 360 parentheses over

00:02:58.090 --> 00:03:01.690
here-- and at the end, it's
all going to be equal to 0.

00:03:01.690 --> 00:03:04.570
Because after you've paid your
final payment, you're done

00:03:04.570 --> 00:03:06.260
paying off the house.

00:03:06.260 --> 00:03:12.130
But in general how did they
figure out this payment?

00:03:12.130 --> 00:03:13.850
Let's call that p.

00:03:13.850 --> 00:03:16.900
Is there any mathematical
way to figure it out?

00:03:16.900 --> 00:03:20.580
And to do that, let's get a
little bit more abstract.

00:03:20.580 --> 00:03:24.560
Let's say that l is equal
to the loan amount.

00:03:29.630 --> 00:03:32.660
Let's say that i is equal
to the monthly interest.

00:03:38.340 --> 00:03:46.100
Let's say n is equal to
the number of months

00:03:46.100 --> 00:03:47.150
that we're dealing with.

00:03:47.150 --> 00:03:52.400
And then we're going to set
p is equal to your monthly

00:03:52.400 --> 00:03:54.360
payment, your monthly
mortgage payment.

00:03:54.360 --> 00:03:57.340
Some of which is interest, some
of which is principle, but it's

00:03:57.340 --> 00:04:00.550
the same amount you're going to
pay every month to pay down

00:04:00.550 --> 00:04:01.830
that loan plus interest.

00:04:01.830 --> 00:04:04.640
So this is your
monthly payment.

00:04:07.390 --> 00:04:10.360
So this same expression I just
wrote up there, if I wrote it

00:04:10.360 --> 00:04:15.740
in abstract terms, you start
off with a loan amount l.

00:04:15.740 --> 00:04:20.100
After 1 month it
compounds as 1 plus i.

00:04:20.100 --> 00:04:22.620
So you multiply it times
1 plus i. i in this

00:04:22.620 --> 00:04:25.480
situation was 0.005.

00:04:25.480 --> 00:04:30.440
Then you pay a monthly
payment of p, so minus p.

00:04:30.440 --> 00:04:32.560
So that's at the
end of one month.

00:04:32.560 --> 00:04:35.330
Now you have some amount still
left over of your loan.

00:04:35.330 --> 00:04:38.990
That will now compound
over the next month.

00:04:38.990 --> 00:04:42.030
Then you're going to
pay another payment p.

00:04:42.030 --> 00:04:46.770
And then this process is going
to repeat 300 or n times,

00:04:46.770 --> 00:04:47.920
because I'm staying abstract.

00:04:52.870 --> 00:04:53.975
You're going to have
n parentheses.

00:04:57.180 --> 00:05:00.970
And after you've done this
n times, that is all

00:05:00.970 --> 00:05:02.830
going to be equal to 0.

00:05:02.830 --> 00:05:06.020
So my question, the one that
I'm essentially setting up in

00:05:06.020 --> 00:05:09.160
this video, is how
do we solve for p?

00:05:09.160 --> 00:05:11.510
You know if we know the loan
amount, if we know the monthly

00:05:11.510 --> 00:05:13.980
interest rate, if we know the
number of months, how

00:05:13.980 --> 00:05:16.080
do you solve for p?

00:05:16.080 --> 00:05:18.870
It doesn't look like this is
really an easy algebraic

00:05:18.870 --> 00:05:19.930
equation to solve.

00:05:19.930 --> 00:05:21.235
Let's see if we can
make a little headway.

00:05:24.200 --> 00:05:27.360
Let's see if we can rearrange
this in a general way.

00:05:27.360 --> 00:05:31.850
So let's start with an example
of n being equal to 1.

00:05:31.850 --> 00:05:36.510
If n is equal to 1, then our
situation looks like this:

00:05:36.510 --> 00:05:40.850
you take out your loan, you
compound it for one month, 1

00:05:40.850 --> 00:05:45.230
plus i, and then you pay
your monthly payment.

00:05:45.230 --> 00:05:48.860
Now this was a mortgage that
gets paid off in 1 month, so

00:05:48.860 --> 00:05:52.840
after that 1 payment you are
now done with their loan,

00:05:52.840 --> 00:05:54.660
you have nothing left over.

00:05:54.660 --> 00:05:58.490
Now if we solve for p, you
can now swap the sides.

00:05:58.490 --> 00:06:02.630
You get p is equal to
l times 1 plus i.

00:06:02.630 --> 00:06:08.920
Or if you divide both sides
by 1 plus i, you get p over

00:06:08.920 --> 00:06:12.340
1 plus i is equal to l.

00:06:12.340 --> 00:06:13.890
And you might say hey you
already solved for p

00:06:13.890 --> 00:06:14.640
why are you doing this?

00:06:14.640 --> 00:06:15.950
And I'm doing this, because
I want to show you a

00:06:15.950 --> 00:06:17.630
pattern that'll emerge.

00:06:17.630 --> 00:06:19.890
Let's see what happens
when n is equal to 2.

00:06:24.410 --> 00:06:26.300
Well then you start
with your loan amount.

00:06:26.300 --> 00:06:28.500
It compounds for one month.

00:06:28.500 --> 00:06:30.610
You make your payment.

00:06:30.610 --> 00:06:32.380
Then there's some
amount left over.

00:06:32.380 --> 00:06:35.400
That will compound
for one month.

00:06:35.400 --> 00:06:37.250
Then you make your
second payment.

00:06:37.250 --> 00:06:39.480
Now this mortgage only
needs two payments,

00:06:39.480 --> 00:06:41.550
so now you are done.

00:06:41.550 --> 00:06:43.110
You have no loan left over.

00:06:43.110 --> 00:06:45.490
You've paid all the
principal and interest.

00:06:45.490 --> 00:06:47.060
Now let's solve for p.

00:06:47.060 --> 00:06:48.470
So I'm going to color the p's.

00:06:48.470 --> 00:06:50.960
I'm going to make this p pink.

00:06:50.960 --> 00:06:54.510
So let's add p to both
sides and swap sides.

00:06:54.510 --> 00:06:59.380
So this green p will be
equal to all of this

00:06:59.380 --> 00:07:00.310
business over here.

00:07:00.310 --> 00:07:09.460
Is equal to l times 1 plus
i minus that pink p.

00:07:09.460 --> 00:07:11.320
They're the same p, I just
want to show you what's

00:07:11.320 --> 00:07:13.040
happening algebraically.

00:07:13.040 --> 00:07:17.610
Minus that pink p
times 1 plus i.

00:07:17.610 --> 00:07:21.680
Now if you divide both sides
by 1 plus i, you get p over

00:07:21.680 --> 00:07:30.590
1 plus i is equal to l times
1 plus i minus that pink p.

00:07:30.590 --> 00:07:34.380
Now let's add that pink p to
both sides of this equation.

00:07:34.380 --> 00:07:43.410
You get the pink p plus this
p plus p over 1 plus i is

00:07:43.410 --> 00:07:47.350
equal to l times 1 plus i.

00:07:47.350 --> 00:07:50.320
Now divide both
sides by 1 plus i.

00:07:50.320 --> 00:07:59.820
You get the pink p over 1 plus
i plus the green p, the same p,

00:07:59.820 --> 00:08:02.210
times-- it already is being
divided by 1 plus i, you're

00:08:02.210 --> 00:08:03.910
going to divide it again by 1
plus i, so it's going to be

00:08:03.910 --> 00:08:10.280
divided by 1 plus i squared
is equal to the loan.

00:08:10.280 --> 00:08:12.630
Something interesting
is emerging.

00:08:12.630 --> 00:08:16.400
You might want to watch the
videos on present value.

00:08:16.400 --> 00:08:19.620
In this situation, you take
your payment, you discount it

00:08:19.620 --> 00:08:22.800
by your monthly interest rate,
you get the loan amount.

00:08:22.800 --> 00:08:26.490
Here you take each of your
payments, you discount it, you

00:08:26.490 --> 00:08:31.380
divide it by 1 plus your
monthly interest rate to the

00:08:31.380 --> 00:08:33.270
power of the number of months.

00:08:33.270 --> 00:08:35.490
So you're essentially taking
the present value of your

00:08:35.490 --> 00:08:39.400
payments and once again,
you get your loan amount.

00:08:39.400 --> 00:08:42.180
You might want to verify this
for yourself if you want a

00:08:42.180 --> 00:08:43.510
little bit of algebra practice.

00:08:43.510 --> 00:08:45.670
If you do this with
n is equal to 3.

00:08:45.670 --> 00:08:48.110
I'm not going to do it just
for the sake of time.

00:08:48.110 --> 00:08:51.280
If you do n is equal to 3,
you're going to get that the

00:08:51.280 --> 00:09:00.990
loan is equal to p over 1 plus
i plus p over 1 plus i squared

00:09:00.990 --> 00:09:06.600
plus p over 1 plus
i to the third.

00:09:06.600 --> 00:09:10.010
If you have some time, I
encourage you to prove this for

00:09:10.010 --> 00:09:13.480
yourself just using the exact
same process that we did here.

00:09:13.480 --> 00:09:15.460
You're going to see it's going
to get little bit harry.

00:09:15.460 --> 00:09:17.800
There's going to be a lot of a
manipulating things, but it

00:09:17.800 --> 00:09:19.440
won't take you too long.

00:09:19.440 --> 00:09:23.800
But in general, hopefully, I've
shown to you that we can write

00:09:23.800 --> 00:09:27.460
the loan amount as the present
value of all of the payments.

00:09:27.460 --> 00:09:30.300
So we could say in general the
loan amount, if we now

00:09:30.300 --> 00:09:33.790
generalize it to n instead of
and n equals a number, we could

00:09:33.790 --> 00:09:38.080
say that it's equal to-- I'll
actually take the p out of the

00:09:38.080 --> 00:09:44.940
equation, so it's equal to p,
times 1 plus 1 over 1 plus i

00:09:44.940 --> 00:09:50.510
plus 1 over 1 plus i squared
plus, and you just keep

00:09:50.510 --> 00:09:58.710
doing this n times, plus 1
over 1 plus i to the n.

00:09:58.710 --> 00:10:00.760
Now you might recognize this.

00:10:00.760 --> 00:10:03.585
This right here is a
geometric series.

00:10:07.180 --> 00:10:10.450
And there are ways to figure
out the sums of geometric

00:10:10.450 --> 00:10:12.410
series for arbitrary ends.

00:10:17.360 --> 00:10:19.330
As I promised at the beginning
of the video this would be

00:10:19.330 --> 00:10:22.750
an application of a
geometric series.

00:10:22.750 --> 00:10:31.250
It's equal to the sum of 1 over
1 plus i to the, well I'll use

00:10:31.250 --> 00:10:37.040
some other letter here, to
the j from j is equal to 1.

00:10:37.040 --> 00:10:39.520
This is to the one power you
could view this is to the first

00:10:39.520 --> 00:10:43.340
power to j is equal to n.

00:10:43.340 --> 00:10:45.350
That's exactly
what that sum is.

00:10:45.350 --> 00:10:48.200
Let's see if there's any simple
way to solve for that sum.

00:10:48.200 --> 00:10:50.890
You don't want to
do this 360 times.

00:10:50.890 --> 00:10:53.020
You could, you'll get a number,
and then you could divide

00:10:53.020 --> 00:10:54.940
l by that number, and you
would have solved for p.

00:10:54.940 --> 00:10:57.730
But there's got to be simpler
way to do that, so let's see

00:10:57.730 --> 00:11:00.800
if we can simplify this.

00:11:00.800 --> 00:11:03.400
Just to make the math easier,
let me make a definition.

00:11:03.400 --> 00:11:08.940
Let's say that r is equal
to 1 over 1 plus i.

00:11:08.940 --> 00:11:13.350
And let me call
this whole sum s.

00:11:13.350 --> 00:11:15.980
This sum right here
is equal to s.

00:11:15.980 --> 00:11:19.720
Then if we say r is equal to
each of these terms then s is

00:11:19.720 --> 00:11:22.220
going to be equal to this is
going to be r to

00:11:22.220 --> 00:11:23.910
the first power.

00:11:23.910 --> 00:11:26.420
I'll write r to first this is
going to be r squared, because

00:11:26.420 --> 00:11:29.400
if you square the numerator
you just get a 1 again.

00:11:29.400 --> 00:11:34.490
So this is plus r squared plus
r to the third, plus all

00:11:34.490 --> 00:11:38.410
the way this is r to the n.

00:11:38.410 --> 00:11:39.930
And I'll show you
a little trick.

00:11:39.930 --> 00:11:42.120
I always forget the formula,
so this is a good way to

00:11:42.120 --> 00:11:44.580
figure out the sum of
a geometric series.

00:11:44.580 --> 00:11:46.460
Actually this could be used to
find a sum of an infinite

00:11:46.460 --> 00:11:49.240
geometric series if you
like, but we're dealing

00:11:49.240 --> 00:11:51.940
with a finite one.

00:11:51.940 --> 00:11:53.530
Let's multiply s times r.

00:11:53.530 --> 00:11:56.880
So r times s is going
to be equal to what?

00:11:56.880 --> 00:11:59.720
If you multiply each of these
terms by r, you multiply r

00:11:59.720 --> 00:12:02.390
to the first times r
you get r squared.

00:12:02.390 --> 00:12:05.750
You multiply r squared times
r you get r to the third.

00:12:05.750 --> 00:12:10.650
And then you keep doing that
all the way, you multiply r--

00:12:10.650 --> 00:12:14.040
see there's an r to the n minus
one here-- you multiply that

00:12:14.040 --> 00:12:16.030
times r, you get r to the n.

00:12:16.030 --> 00:12:19.060
And then you multiply r to
the n times r, you get

00:12:19.060 --> 00:12:22.500
plus r to the n plus 1.

00:12:22.500 --> 00:12:26.120
All this is right here is all
of these terms multiplied

00:12:26.120 --> 00:12:29.650
by r, and I just put them
under the same exponent.

00:12:29.650 --> 00:12:32.460
Now what you can do is you
could subtract this green

00:12:32.460 --> 00:12:34.180
line from this purple line.

00:12:34.180 --> 00:12:42.720
So if we were to say s
minus rs, what do we get?

00:12:42.720 --> 00:12:46.210
I'm just subtracting this
line from that line.

00:12:46.210 --> 00:12:52.000
Well, you get r1 minus 0,
so you get r to the first

00:12:52.000 --> 00:12:53.590
power minus nothing there.

00:12:53.590 --> 00:12:56.320
But then you have r squared
minus r squared cancel out r

00:12:56.320 --> 00:12:58.090
to the third minus r to
the third cancel out.

00:12:58.090 --> 00:13:01.163
They all cancel out, all the
way up to r to the n minus r to

00:13:01.163 --> 00:13:03.460
the n cancel out, but then
you're left with this

00:13:03.460 --> 00:13:04.450
last term here.

00:13:04.450 --> 00:13:06.140
And this is why
it's a neat trick.

00:13:06.140 --> 00:13:11.280
So you're left with minus
r to the n plus 1.

00:13:11.280 --> 00:13:12.910
Now factor out an s.

00:13:12.910 --> 00:13:18.080
You get s times 1 minus r-- all
I did is I factored out the s--

00:13:18.080 --> 00:13:23.670
is equal to r to the first
power minus r to the n plus 1.

00:13:23.670 --> 00:13:26.120
And now if you divide
both sides by 1 minus

00:13:26.120 --> 00:13:28.580
r, you get your sum.

00:13:28.580 --> 00:13:42.250
Your sum is equal to r minus r
to the n plus 1 over 1 minus r.

00:13:42.250 --> 00:13:45.250
That's what our sum is
equal to, where we defined

00:13:45.250 --> 00:13:46.380
our r in this way.

00:13:46.380 --> 00:13:50.130
So now we can rewrite this
whole crazy formula.

00:13:50.130 --> 00:13:55.480
We can say that our loan amount
is equal to our monthly

00:13:55.480 --> 00:13:57.990
payment times this thing.

00:13:57.990 --> 00:13:59.620
I'll write it in green.

00:13:59.620 --> 00:14:05.420
Times r minus r
to the n plus 1.

00:14:05.420 --> 00:14:07.870
All of that over 1 minus r.

00:14:07.870 --> 00:14:11.760
Now if we're trying to solve
for p you multiply both sides

00:14:11.760 --> 00:14:18.370
by the inverse of this, and you
get p is equal to your loan

00:14:18.370 --> 00:14:20.520
amount times the
inverse of that.

00:14:20.520 --> 00:14:23.060
I'm doing it in pink,
because it's the inverse.

00:14:23.060 --> 00:14:30.860
1 minus r over r minus
r to the n plus 1.

00:14:30.860 --> 00:14:33.060
Where r is this
thing right there.

00:14:33.060 --> 00:14:34.150
And we are done.

00:14:34.150 --> 00:14:37.250
This is how you can actually
solve for your actual

00:14:37.250 --> 00:14:38.000
mortgage payment.

00:14:38.000 --> 00:14:39.550
Let's actually apply it.

00:14:39.550 --> 00:14:45.120
So let's say that your loan
is equal to $200,000.

00:14:45.120 --> 00:14:50.400
Let's say that your interest
rate is equal to 6% annually,

00:14:50.400 --> 00:14:58.220
which is 0.5% monthly which
is the same thing as 0.005.

00:14:58.220 --> 00:15:00.230
This is monthly interest rate.

00:15:00.230 --> 00:15:02.710
And let's say it's a 30 year
loan, so n is going to

00:15:02.710 --> 00:15:05.800
be equal to 360 months.

00:15:05.800 --> 00:15:08.000
Let's figure out what we get.

00:15:08.000 --> 00:15:09.830
So the first thing we want
to do is we want to figure

00:15:09.830 --> 00:15:12.200
out what our r value is.

00:15:16.160 --> 00:15:19.350
So r is 1 over 1 plus i.

00:15:19.350 --> 00:15:31.040
So let's take 1 divided by
1 plus i so plus 0.005.

00:15:31.040 --> 00:15:34.050
That's what our monthly
interest is, half a percent.

00:15:38.590 --> 00:15:42.870
So 0.995 that's what
our r is equal to.

00:15:42.870 --> 00:15:45.575
Let me write that down, 0.995.

00:15:45.575 --> 00:15:48.070
Now this calculator doesn't
store variables, so I'll

00:15:48.070 --> 00:15:50.730
just write that down here.

00:15:50.730 --> 00:16:00.020
So r is equal to 0.995.

00:16:00.020 --> 00:16:02.020
We just used that right there.

00:16:02.020 --> 00:16:04.340
I'm losing a little bit
of precision, but I

00:16:04.340 --> 00:16:06.140
think it will be OK.

00:16:06.140 --> 00:16:09.350
The main thing is I want to
give you the idea here.

00:16:09.350 --> 00:16:10.980
So what is our payment amount?

00:16:10.980 --> 00:16:24.220
Let's multiply our loan amount
that's $200,000 times 1 minus

00:16:24.220 --> 00:16:48.800
r, so 1 minus 0.995 divided by
r which is 0.995 minus 0.995 to

00:16:48.800 --> 00:16:52.390
the of the-- now n is 360
months, so it's going to be

00:16:52.390 --> 00:16:58.520
360 plus 1 to the 361 power,
something I could definitely

00:16:58.520 --> 00:17:04.970
not do in my head, and then I
close the parentheses, and my

00:17:04.970 --> 00:17:09.440
final answer is roughly $1,200.

00:17:09.440 --> 00:17:11.140
Actually if you do it with the
full precision you get a little

00:17:11.140 --> 00:17:15.050
bit lower than that, but this
is going to be roughly $1,200.

00:17:15.050 --> 00:17:17.800
So just like that, we were
able to figure out our

00:17:17.800 --> 00:17:19.790
actual mortgage payment.

00:17:19.790 --> 00:17:22.560
So p is equal to $1,200.

00:17:22.560 --> 00:17:25.570
So that was some reasonably
fancy math to figure out

00:17:25.570 --> 00:17:28.660
something that most people deal
with everyday, but now you know

00:17:28.660 --> 00:17:29.900
the actual math behind it.

00:17:29.900 --> 00:17:32.170
You don't have to play with
some table or spreadsheet to

00:17:32.170 --> 00:17:33.460
kind of experimentally
get the number.


Haitian Revolution (Part 2)

WEBVTT
Kind: captions
Language: en

00:00:00.570 --> 00:00:04.100
Where we left off in the last
video, Toussaint L'Ouverture

00:00:04.100 --> 00:00:09.250
had just been betrayed, on some
level, first by some of

00:00:09.250 --> 00:00:13.310
his right-hand men, because
they joined the side of

00:00:13.310 --> 00:00:16.020
Leclerc-- or essentially they
gave up rebelling against

00:00:16.020 --> 00:00:18.750
Leclerc-- convinced that Leclerc
wasn't that bad, that

00:00:18.750 --> 00:00:21.850
he had no intention of
reinstating slavery or taking

00:00:21.850 --> 00:00:26.100
away the civil rights of the
freemen of African descent.

00:00:26.100 --> 00:00:28.960
This is another picture of
Leclerc, right here.

00:00:28.960 --> 00:00:31.820
This is Leclerc.

00:00:31.820 --> 00:00:35.410
So he had to essentially give
up his arms. He went to

00:00:35.410 --> 00:00:38.590
negotiate with Leclerc, Leclerc
imprisoned him, put

00:00:38.590 --> 00:00:41.150
him on a boat, and sent him to
France and he died the next

00:00:41.150 --> 00:00:42.120
year in 1803.

00:00:42.120 --> 00:00:43.370
So he was betrayed.

00:00:50.230 --> 00:00:53.570
And he really was, on a lot
of levels, one of the most

00:00:53.570 --> 00:00:56.400
important leaders not
just in Haitian

00:00:56.400 --> 00:00:57.500
history, but in general.

00:00:57.500 --> 00:01:00.990
When he took power, as I said
before, he didn't take revenge

00:01:00.990 --> 00:01:02.390
on the white population.

00:01:02.390 --> 00:01:07.840
He helped the economy of Haiti
get back up and running.

00:01:07.840 --> 00:01:11.630
He actually helped defend
what is now Haiti, but

00:01:11.630 --> 00:01:16.550
Saint-Domingue against the
British Royal Navy.

00:01:16.550 --> 00:01:18.400
I forgot to mention that.

00:01:18.400 --> 00:01:28.300
Defended against the British
Navy, which at the time was by

00:01:28.300 --> 00:01:30.850
far the dominant navy
in the world.

00:01:30.850 --> 00:01:33.960
So this is what really earned
his reputation as a great

00:01:33.960 --> 00:01:37.620
general, on top of being a great
leader in terms of not

00:01:37.620 --> 00:01:40.620
exacting revenge, in terms of
not having slash and burn

00:01:40.620 --> 00:01:44.430
tactics, in terms of not just
ravaging his enemies.

00:01:44.430 --> 00:01:48.580
So he was betrayed, and then
just to make it clear that

00:01:48.580 --> 00:01:54.620
Leclerc really does deserve
devil horns of a sort--

00:01:54.620 --> 00:01:57.340
although we're about to meet
someone who deserves much

00:01:57.340 --> 00:01:59.880
bigger devil horns, or maybe
that he was actually the

00:01:59.880 --> 00:02:03.400
henchman for someone who
deserves devil horns-- in May

00:02:03.400 --> 00:02:14.470
of 1802, Napoleon signs a law
that reinstates slavery where

00:02:14.470 --> 00:02:15.720
it has not disappeared.

00:02:25.780 --> 00:02:27.720
And so it was a little
bit ambiguous.

00:02:27.720 --> 00:02:30.860
There were some areas where
slavery had still not

00:02:30.860 --> 00:02:32.250
disappeared.

00:02:32.250 --> 00:02:39.430
Those include the French
colonies at Martinique, at

00:02:39.430 --> 00:02:43.620
Saint Lucia, at Tobago.

00:02:43.620 --> 00:02:47.090
But in Haiti-- or
Saint-Domingue, at that time--

00:02:47.090 --> 00:02:48.680
things were a little
ambiguous.

00:02:48.680 --> 00:02:52.600
Had slavery truly disappeared,
or had it not disappeared yet?

00:02:52.600 --> 00:02:54.440
Apparently, slaves were
free in Haiti.

00:02:54.440 --> 00:02:58.660
So it wasn't clear exactly what
this meant for Haiti, but

00:02:58.660 --> 00:03:00.180
at the same time, the
Haitians didn't even

00:03:00.180 --> 00:03:01.020
know this was happening.

00:03:01.020 --> 00:03:03.750
This was May of 1802.

00:03:03.750 --> 00:03:09.500
But just to make things clear,
Napoleon actually sent Leclerc

00:03:09.500 --> 00:03:13.630
a secret memo to essentially
reinstate slavery when the

00:03:13.630 --> 00:03:14.880
time was right.

00:03:26.800 --> 00:03:29.540
So these guys, they
were no jokers.

00:03:29.540 --> 00:03:31.020
They knew the situation.

00:03:31.020 --> 00:03:35.260
They knew that they needed the
help of some of Toussaint

00:03:35.260 --> 00:03:39.570
L'Ouverture's former generals,
former right-hand men, in

00:03:39.570 --> 00:03:41.860
order to keep control
of Haiti.

00:03:41.860 --> 00:03:44.670
But the intention the entire
time was, when they have the

00:03:44.670 --> 00:03:49.090
upper hand, to actually clamp
down, reinstate slavery, and

00:03:49.090 --> 00:03:53.350
take away the civil rights
of the freemen of color.

00:03:53.350 --> 00:03:56.000
Now these guys weren't
stupid either.

00:03:56.000 --> 00:03:58.450
So you might remember
Dessalines.

00:03:58.450 --> 00:04:00.560
This was one picture of him.

00:04:00.560 --> 00:04:05.560
He was also a former slave, one
of Toussaint L'Ouverture's

00:04:05.560 --> 00:04:09.560
right-hand men, very
effective general.

00:04:09.560 --> 00:04:12.840
And, as you remember, near the
end of the fight against

00:04:12.840 --> 00:04:15.850
Leclerc, he gave up the fight
against Leclerc and to some

00:04:15.850 --> 00:04:18.410
degree you could say he turned
on Toussaint L'Ouverture.

00:04:18.410 --> 00:04:22.140
But he and some of the other
former followers of

00:04:22.140 --> 00:04:24.170
L'Ouverture saw the writing
on the wall.

00:04:24.170 --> 00:04:26.320
They didn't even have to
intercept that secret memo.

00:04:26.320 --> 00:04:31.750
They got word from Martinique
and Tobago and Saint Lucia

00:04:31.750 --> 00:04:35.120
that slavery was being
reinstated.

00:04:35.120 --> 00:04:38.030
The French at this time were not
people that you wanted to

00:04:38.030 --> 00:04:42.360
deal with or trust when it came
to issues of slavery.

00:04:42.360 --> 00:04:50.720
So Dessalines and his comrades
re-took up arms. And

00:04:50.720 --> 00:04:54.210
Dessalines was a very different
character than

00:04:54.210 --> 00:04:56.080
Toussaint L'Ouverture.

00:04:56.080 --> 00:04:59.760
The one similarity is that they
were both very effective

00:04:59.760 --> 00:05:01.220
military men.

00:05:01.220 --> 00:05:05.390
The big difference between the
two was that Dessalines was

00:05:05.390 --> 00:05:06.900
not one to hold back.

00:05:12.380 --> 00:05:17.665
He wasn't afraid to essentially
take an eye for an

00:05:17.665 --> 00:05:18.660
eye, so to speak.

00:05:18.660 --> 00:05:22.670
So here you had Dessalines in
charge of what was, I guess

00:05:22.670 --> 00:05:25.200
you could call, the
slave rebel army.

00:05:25.200 --> 00:05:28.800
And then on the other side of
it, you have Leclerc with the

00:05:28.800 --> 00:05:33.540
40,000 troops that he showed
up, with Napoleon.

00:05:33.540 --> 00:05:37.830
But lucky for Dessalines,
yellow fever--

00:05:37.830 --> 00:05:38.660
and it's not lucky.

00:05:38.660 --> 00:05:40.910
I mean, people died
across the board.

00:05:40.910 --> 00:05:46.900
But this did really turn the
tide of war in favor of the

00:05:46.900 --> 00:05:49.370
people of African descent
on the island.

00:05:49.370 --> 00:05:58.595
Yellow fever struck the island,
it killed Leclerc, and

00:05:58.595 --> 00:06:02.000
it also took out twenty
something thousand-- or the

00:06:02.000 --> 00:06:06.670
number I read was 24,000-- of
the actual French soldiers,

00:06:06.670 --> 00:06:08.430
and another 8,000 were
hospitalized.

00:06:08.430 --> 00:06:11.270
So that's 32,000 out of
commission, so you're

00:06:11.270 --> 00:06:15.485
essentially only left
with 8,000 soldiers.

00:06:15.485 --> 00:06:17.910
So all of a sudden, it
completely turned the tide,

00:06:17.910 --> 00:06:22.530
completely changed the numbers
in terms of what types of

00:06:22.530 --> 00:06:27.370
forces the rebel army had
to fight against.

00:06:27.370 --> 00:06:32.030
But it wasn't all good at this
point because Leclerc-- I

00:06:32.030 --> 00:06:35.110
mentioned, I gave him little
devil horns-- he was replaced

00:06:35.110 --> 00:06:41.440
by someone who deserves very
big devil horns named

00:06:41.440 --> 00:06:42.690
Rochambeau.

00:06:45.310 --> 00:06:48.770
Not to be confused with his
father, who goes by the same

00:06:48.770 --> 00:06:52.380
name who was a hero of the
American Revolution.

00:06:52.380 --> 00:06:56.810
He fought for France on the
side of the Americans.

00:06:56.810 --> 00:07:00.040
And he, as far as I can tell,
seemed like a decent guy.

00:07:00.040 --> 00:07:03.570
But his son was really evil.

00:07:03.570 --> 00:07:06.690
And there are very few people
in history that you can say

00:07:06.690 --> 00:07:08.990
are unambiguously evil.

00:07:08.990 --> 00:07:10.700
He is one of them.

00:07:10.700 --> 00:07:15.090
Now that he was kind of
desperate, his forces were

00:07:15.090 --> 00:07:19.120
ravaged by yellow fever, he's
going against a fairly

00:07:19.120 --> 00:07:25.990
aggressive enemy, he did things
like-- let me write

00:07:25.990 --> 00:07:28.180
these down because
they are evil.

00:07:28.180 --> 00:07:33.035
He would bury African--
or I guess I

00:07:33.035 --> 00:07:34.070
should say African Americans.

00:07:34.070 --> 00:07:37.605
He would bury former slaves, or
people of African descent--

00:07:37.605 --> 00:07:44.985
bury in, bury alive in
pits of insects.

00:07:47.960 --> 00:07:50.440
He would boil people
alive in molasses.

00:07:58.580 --> 00:08:01.650
I read one account that says
that at one point he held a

00:08:01.650 --> 00:08:07.670
ball where he invited all of
the prominent mixed-race

00:08:07.670 --> 00:08:11.630
people to a party essentially at
his place and at the stroke

00:08:11.630 --> 00:08:12.920
of midnight he announced
that all of the

00:08:12.920 --> 00:08:14.170
men are to be murdered.

00:08:18.980 --> 00:08:22.710
The only bounds on his cruelty
was the people that he could

00:08:22.710 --> 00:08:26.000
get his hands on, especially the
people of African descent.

00:08:26.000 --> 00:08:30.480
The one positive of his cruelty
is that he for the

00:08:30.480 --> 00:08:36.549
first time really unified the
population of African descent

00:08:36.549 --> 00:08:37.419
on the island.

00:08:37.419 --> 00:08:49.280
So he unified both the slaves,
the former slaves, and the

00:08:49.280 --> 00:08:50.530
mixed-race.

00:08:56.530 --> 00:09:03.160
And at the same time,
we're now in 1803.

00:09:03.160 --> 00:09:05.090
And, I've said it before, we're

00:09:05.090 --> 00:09:06.340
still at war with Britain.

00:09:11.120 --> 00:09:14.500
And Britain is-- and I've
mentioned it before-- they had

00:09:14.500 --> 00:09:17.000
the most dominant navy
in the world.

00:09:25.600 --> 00:09:30.200
This guy, despite how evil and
how cruel he was, he needed

00:09:30.200 --> 00:09:33.210
reinforcements from Napoleon
if he had to take on

00:09:33.210 --> 00:09:34.360
Dessalines.

00:09:34.360 --> 00:09:37.390
And let me be very
clear about this.

00:09:37.390 --> 00:09:40.800
Dessalines, as I mentioned, he
was not hesitant to take an

00:09:40.800 --> 00:09:42.150
eye for an eye.

00:09:42.150 --> 00:09:47.670
In one incident, Rochambeau
buried 500 rebel prisoners

00:09:47.670 --> 00:09:52.790
alive, then Dessalines went and
hung 500 French prisoners.

00:09:52.790 --> 00:09:55.600
So he wasn't someone
to kind of shy away

00:09:55.600 --> 00:09:58.540
from, I guess, blood.

00:09:58.540 --> 00:10:01.610
And this is very different
to Toussaint L'Ouverture.

00:10:01.610 --> 00:10:02.470
It's kind of a lesson.

00:10:02.470 --> 00:10:05.980
If you are fighting an enemy,
if you get rid of the more

00:10:05.980 --> 00:10:13.850
reasonable leaders of your
enemy, you might end up

00:10:13.850 --> 00:10:18.050
getting maybe a leader more
similar to yourself and your

00:10:18.050 --> 00:10:22.620
cruelty, if you betrayed the
more reasonable ones.

00:10:22.620 --> 00:10:25.330
But anyway, enough
of my commentary.

00:10:25.330 --> 00:10:27.470
So the stage is set.

00:10:27.470 --> 00:10:28.340
War with Britain.

00:10:28.340 --> 00:10:31.940
Britain owns the seas,
especially the Caribbean.

00:10:31.940 --> 00:10:37.900
This guy needs reinforcements
going against a very strong

00:10:37.900 --> 00:10:42.160
leader of the former
slave rebels.

00:10:42.160 --> 00:10:45.890
But Napoleon, he's known to
be one to cut his losses.

00:10:45.890 --> 00:10:47.380
He did it with his
troops in Egypt.

00:10:47.380 --> 00:10:49.970
He's really not someone who
really cares, I think, about

00:10:49.970 --> 00:10:50.495
the individual.

00:10:50.495 --> 00:10:54.280
He cares much more about
his ego and his power.

00:10:54.280 --> 00:10:55.910
So Napoleon leaves
them hanging.

00:11:02.790 --> 00:11:03.800
Napoleon saw the writing
on the wall.

00:11:03.800 --> 00:11:06.655
He wouldn't be able to get
through the British fleet.

00:11:06.655 --> 00:11:08.460
And at the same time, Napoleon's
fighting all of

00:11:08.460 --> 00:11:09.550
these wars in Europe.

00:11:09.550 --> 00:11:11.720
As you remember, the whole
French Revolution was

00:11:11.720 --> 00:11:14.090
precipitated by France
being broke.

00:11:14.090 --> 00:11:17.010
So Napoleon, not only does he
give up on this guy-- and he

00:11:17.010 --> 00:11:19.400
essentially got what he
deserved-- Napoleon gives up

00:11:19.400 --> 00:11:23.910
on maintaining all of their
colonies or any major presence

00:11:23.910 --> 00:11:25.150
in the Western Hemisphere.

00:11:25.150 --> 00:11:30.320
So essentially to raise funds,
Napoleon also sells Louisiana

00:11:30.320 --> 00:11:31.346
to the Americans.

00:11:31.346 --> 00:11:34.300
Now when I say Louisiana, I'm
not talking about just the

00:11:34.300 --> 00:11:36.930
state of Louisiana in its
present state, which

00:11:36.930 --> 00:11:37.900
is about that big.

00:11:37.900 --> 00:11:39.800
That's actually where
I was born.

00:11:39.800 --> 00:11:42.080
We're talking about the whole--
this is like 1/3 of

00:11:42.080 --> 00:11:44.180
the United States today.

00:11:44.180 --> 00:11:45.580
Sold all of this.

00:11:48.140 --> 00:11:51.780
And he was clearly desperate.

00:11:51.780 --> 00:11:56.330
He sold it for $15 million,
or that's the

00:11:56.330 --> 00:12:03.350
equivalent of F60 million.

00:12:03.350 --> 00:12:06.220
And I've been told, in today's
money, that would be on the

00:12:06.220 --> 00:12:10.480
order of $10 billion.

00:12:10.480 --> 00:12:13.720
You know, if someone said for
$10 billion, you could own 1/3

00:12:13.720 --> 00:12:15.470
of the land of the United
States, you would say that's a

00:12:15.470 --> 00:12:16.850
pretty good deal.

00:12:16.850 --> 00:12:19.100
$10 billion in today's money.

00:12:19.100 --> 00:12:23.120
So $15 million 1803, $10 billion
today, that's still

00:12:23.120 --> 00:12:24.730
not a lot of money, but
he was desperate.

00:12:24.730 --> 00:12:27.660
He realized that he couldn't
maintain control of something

00:12:27.660 --> 00:12:30.920
halfway around the world when
Britain owned the seas and he

00:12:30.920 --> 00:12:34.300
was busy having his own
troubles in Europe.

00:12:34.300 --> 00:12:36.410
So the Americans got
a good deal.

00:12:36.410 --> 00:12:38.580
And frankly, if he didn't sell
it to the Americans, either

00:12:38.580 --> 00:12:40.860
the British or the Americans
could have probably

00:12:40.860 --> 00:12:43.890
just taken it anyway.

00:12:43.890 --> 00:12:48.510
So being left to hang to dry
by Napoleon, Dessalines is

00:12:48.510 --> 00:12:55.230
able to destroy Rochambeau
and essentially declare

00:12:55.230 --> 00:13:00.410
independence for
Saint-Domingue.

00:13:00.410 --> 00:13:09.250
And it 1804, January 1.

00:13:09.250 --> 00:13:13.830
Dessalines declares independence
for, and he names

00:13:13.830 --> 00:13:17.560
the new country Haiti, which
is the indigenous peoples'

00:13:17.560 --> 00:13:18.640
name for the island.

00:13:18.640 --> 00:13:21.010
It means land of
the mountains.

00:13:21.010 --> 00:13:26.380
Now I want to just leave with
one note, because you may or

00:13:26.380 --> 00:13:27.100
may not be aware.

00:13:27.100 --> 00:13:32.030
Haiti is still a very, very,
very, very poor country.

00:13:32.030 --> 00:13:35.230
And besides, after Dessalines,
they had many, many, many--

00:13:35.230 --> 00:13:38.620
and eventually, I'll do videos
on it-- rounds of one dictator

00:13:38.620 --> 00:13:39.280
after another.

00:13:39.280 --> 00:13:41.120
And the people have really
been through a lot.

00:13:41.120 --> 00:13:42.880
But I just want to make it clear
that they really got

00:13:42.880 --> 00:13:45.330
started off on a
horrible foot.

00:13:45.330 --> 00:13:51.660
Because even though Dessalines
declared independence in 1804,

00:13:51.660 --> 00:13:55.230
the French did not recognize
Haiti until

00:13:55.230 --> 00:14:04.730
1805-- sorry- 1825.

00:14:04.730 --> 00:14:08.490
And you might say, well, who
cares about recognition?

00:14:08.490 --> 00:14:11.180
Who cares what the former
colonial masters think?

00:14:11.180 --> 00:14:12.890
But until they recognized them,
they were essentially

00:14:12.890 --> 00:14:14.050
embargoing Haiti.

00:14:14.050 --> 00:14:16.000
They weren't allowing
any trade to

00:14:16.000 --> 00:14:17.740
actually go on with Haiti.

00:14:17.740 --> 00:14:20.130
So it was really on the
front of a barrel gun.

00:14:20.130 --> 00:14:27.030
And in order to be recognized,
Haiti had to agree to F90

00:14:27.030 --> 00:14:33.710
million of debt to France.

00:14:39.290 --> 00:14:42.680
And just to be clear how much
money this is, here's a small

00:14:42.680 --> 00:14:50.440
island-- or half of an island--
of newly freed slaves

00:14:50.440 --> 00:14:55.330
and they were forced to owe
France-- and this actually was

00:14:55.330 --> 00:14:58.850
further reinforced
by the United

00:14:58.850 --> 00:15:00.140
States and Great Britain.

00:15:00.140 --> 00:15:03.460
So it goes to show you, even
former enemies can kind of

00:15:03.460 --> 00:15:06.210
agree when it comes to
a oppressing small

00:15:06.210 --> 00:15:08.100
impoverished islands.

00:15:08.100 --> 00:15:14.090
But they had to owe France the
equivalent of 1 and 1/2 times

00:15:14.090 --> 00:15:18.240
what the United States paid for
the Louisiana Purchase.

00:15:18.240 --> 00:15:19.530
This was F60 million.

00:15:19.530 --> 00:15:20.720
They got all of Louisiana.

00:15:20.720 --> 00:15:24.830
Now France is telling Haiti,
you owe us F90 million.

00:15:24.830 --> 00:15:28.470
Or that's roughly the equivalent
of $14 or $15

00:15:28.470 --> 00:15:33.580
billion in today's terms. And
this is for a population of

00:15:33.580 --> 00:15:36.230
essentially half a million
freed slaves.

00:15:36.230 --> 00:15:37.970
So it's kind of a horrendous
amount of debt.

00:15:37.970 --> 00:15:41.290
And just to be clear, this
wasn't like the crazy

00:15:41.290 --> 00:15:46.150
colonials in the early 19th
century, forcing to do this.

00:15:46.150 --> 00:15:58.720
This debt was not paid off with
the interest until 1947.

00:15:58.720 --> 00:16:00.480
They were continuing
to pay the debt.

00:16:00.480 --> 00:16:05.580
And just to add insult to
injury, the reason for the

00:16:05.580 --> 00:16:09.740
debt, they claim, was
for lost property.

00:16:09.740 --> 00:16:12.420
So that's why France claimed
that Haiti owed them the

00:16:12.420 --> 00:16:13.775
money, for lost property.

00:16:17.690 --> 00:16:20.840
Where, included in the
list of lost property

00:16:20.840 --> 00:16:23.300
was land and slaves.

00:16:23.300 --> 00:16:26.860
Essentially, now that you've got
your freedom, you owe us a

00:16:26.860 --> 00:16:31.480
ton of money for us losing
the rights to own you.

00:16:31.480 --> 00:16:32.890
So it's just insult to injury.

00:16:32.890 --> 00:16:34.810
And actually, I was shocked the
first time I learned this

00:16:34.810 --> 00:16:38.310
number, that they were forced to
continue to pay debts from

00:16:38.310 --> 00:16:43.360
one poor country, one small poor
country, right over here,

00:16:43.360 --> 00:16:46.830
they had to continue to pay
debts to a Western developed

00:16:46.830 --> 00:16:53.200
nation until 1947, essentially
to buy their freedom.