what if I told you that the most powerful man in Europe wasn't a king or even an emperor but a banker by the name of yakob fuger I mean $400 billion that would be yacob's net worth in today's money but here's the thing he wasn't just wealthy he was so powerful that he kept Kings Emperors and popes on their toes at the height of his power he was effectively the ruler of Europe influencing the policies of various states to further his business interests he greatly contributed to the advancement of capitalism and finance however ultimately his actions would also further divide the continent and lead to a devastating decades long War I want to take a moment to understand how he became one of the most successful yet controversial Bankers in early modern history this is the story of yakob fuger let's start the very beginning fugger's family came from incredibly humble Origins his grandfather Hans fuger was a peasant Weaver in the village of grain in swabia they were not rich by any means they were just working class Farmers but what he lacked in wealth he made up in ambition Hans migrated to the city to get away from the rule of oppressive Nobles and once he was in the city he began working hard as a Tradesman eventually he married a guild Master's daughter well actually he did this twice over the course of his life but as a result he eventually gained more Civic rights freedom of Commerce and other privileges as his trade prospered he he became a member of the guils committee and the city's great Council achieving success in the textile trade so hanser worked really hard to move up the ladder from his humble farming days and eventually to a successful position where he set the stage for the rise of the fugger Dynasty now his son yakob the first would be even more successful like his father he was gifted in the art of Commerce yacob the first saw the failures of his relatives who lost their fortunes through poor and hasty decisions determined to avoid their mistakes y took a calculated approach to business he took calculated risks spread his risks by diversification trying his hand at every tried and true businesses his careful and industrious approach paid off greatly by 1463 he even became a full member of the merchants Guild this signified his status amongst the city's Merchant Elites now yakob the first fathered a total of 11 children these children inherited an incredibly highly functioning business Empire they continued to expand the family business at op in their father's cautious yet bold business strategies they Diversified into textiles spices jewels and even religious relics like martyr's bones or fragments of crosses amongst those 11 kids the youngest son yakob II would be the one to ultimately lead the family business to unprecedented Heights ironically though he initially intended to avoid engaging in a family Enterprise he was more interested in pursuing a religious career had history played out differently he could have become a priest or even could have gone on to become a cardinal but his older brothers wanted him to join the family business because they were convinced that he had a natural talent for numbers yakob II was sent to Venice to train the family's recently established agency in Venice he studied modern bookkeeping starting in 1478 he also learned about Italian Financial practices gaining insights into Banking and trade that would prove crucial for the fuger family's expanding Empire after returning back in his mid-20s he was given control of a family agency in insbrook in Austria as a finance year he showed himself to be unlike his family members you see he was intelligent but he wasn't very cautious with money like his brothers or his father rather he embraced risk and this daring approach would later Define his career in fact very soon in the business he made his biggest Gamble and targeted the patronage of a powerful Habsburg Noble called Sigman you see Sigman was Notorious for his extravagant lifestyle and poor financial management he would spend lavishly on grandos and at times eccentric parties there's one Infamous event where coat a dwarf jumped out of a pie to wrestle a giant I mean you get the picture of what kind of Lifestyle this guy Sigman LED now here's the kicker Sigman Finance his lavish Lifestyle by taking out numerous loans and often defaulting on them but this is where yakob fuger comes in where others saw Folly in sigman's financial recklessness fuger saw an opportunity he managed to get involved in one of of sigman's borrowing spres now the amount fuger lend was small compared to what others had given but it was a strategic move it solidified his relationship with Sigman and the habsburgs this relationship was crucial as it provided fuger with a chance to enter the lucrative mining industry which was usually dominated by the nobility at the time so he didn't have access to it yet by helping Sigman out he took a calculated risk which paid off heavily it kickstarted fugger's career as a banker which would continue to gain momentum by praying on sigman's financial irresponsibility let me give you an example of one of these moments you see one time during the habsburg's military Skirmish with the more powerful Venice Sigman found himself financially stranded as you could expect large Bankers refused to lend him money due to his poor credit history leaving him desperate and guess who stepped in to help sigment out I mean fuger recognized this opportunity and gambled his family's Fortune he was on a mission to raise every coin he could and eventually lend sigment 100,000 FL La that's like tens of millions of dollars in today's money just for your reference it was a make or break situation but if fuger succeeded in this plan he would reap a substantial profit you see fuger was smart he placed tough terms and conditions on the loan this include forbidding Sigman from repaying it with silver from his minds but instead giving fuger control of the State Treasury other Bankers were laughing at fugger's apparent recklessness they were convinced that he would never see a penny back on that risky alone fuger on the other hand thought more strategically and was willing to take the risk now just imagine the look on their faces when wagons loaded with the ariduk silver rolled up to fugger's warehouses the gamble he took paid off spectacularly fuger was now a far wealthier man and he cemented his position as a trusted Ally and financier to a noble who was very powerful at the time the young fugger's bold moves and willingness to embrace risk had transformed the fuger family's fortunes he not only secured their financial future but also established the fuger name as synonymous with Banking and finance but this was just the beginning he was just getting started in what would be a long and illustrious career from this Venture yakob fuger gained not only wealth but also political connections he used these to participate in mining operations in celesia and in celesia yakob met a mining expert using his knowledge he identified and leased the best copper mining spots for the family Enterprise under his business leadership he would open up the greatest mining center of the time and it didn't stop there fuger was offered even more in schwat in Tyro here the aruk Sigmund of Austria gave yakob access to the mother of all Silver Mines and this was done as repayment for a loan that had funded his lavish lifestyle because of the fugger's industrial activities people flocked to schwas transforming it into the largest mining Metropolis in the world during the first half of the 16th century now it's important to note that copper was essential in making cannons and bayonets and these were important weapons at the time deciding the course of warfare and the fuggers now had near monopolistic control over this highly valuable resource they could set the price and its production significantly boosted their wealth and influence in order to better scale their operations the Foggers established the first public company in 1494 and they started that with a capital of 54,000 gilders now just 2 years later yakob managed to double this amount by convincing the prince Bishop of brixen to join as a silent partner yak's Vision was clear create a copper Monopoly and become the richest man in Europe and possibly the world to achieve this he expanded aggressively opening foundaries across Central Europe he also expanded the family's sales network especially focusing on their agency in ANP the city was a growing Hub of trade between Europe Asia and the new world and the ERS were the unofficial rulers and then a crisis hit and he began to fully realize the role of power in Building Wealth but this success didn't come without a challenge a crisis hit pushing fuger back to better appreciate the relationship between power and wealth his chief creditor the prince Bishop of brixen had died and the pope claimed the inheritance and this was a large sum of money only to be taken over by someone more powerful without any recourse but fuger didn't Panic he used his negot negociation skills and deep understanding of the political landscape to navigate the crisis many sources tell us that he engaged in very interesting conversations with the Vatican and leveraged his Network to protect the foger's interests he not only averted disaster but also learned a valuable lesson that power is power he had to seize power at all costs this realization transformed fugger's approach to his business and alliances he began to see people as pieces in a great game only to be discarded or used as he saw fit he also decided to Dish his old Patron for a new one moving away from Sigman to instead aligning with his cousin the future Holy Roman Emperor Maximillion the now when Maximillian threatened to take power if Sigman failed to repay his debts fuger could have stepped in and offered to lend the arch duuk a helping hand but that's not how it went down you see fuger preferred maximilan he ended up financing his efforts to take Vienna and this was a smart move because Max Max imilan was a far more capable ruler his rise to power opened new opportunities for fuger you see the emperor maximilan granted him access to Hungary which was then a key region in Copper Mining and fuger seized this chance and reconfigured hungary's mines which ultimately further expanded his mining Empire in 1507 laying the foundation for the family's widespread land Holdings yakob acquired the c ships of kerschberg and weisenhorn from maximilan the effectively the figur were now counted on into the status of the high ranking Nobles themselves all in but name now yacob's influence continued to grow but it didn't go unnoticed by his envious Rivals when other Bankers pressured Maximillion to cut fuger out fuger used his power to pressure influential dukes and Bishops to force Maximillion to relent I mean this guy had immense negotiation skills I can't stress that enough now in 1514 the emperor maximilan officially recognized ob's power and influence by making him account which at that time was a very high ranking position in nobility now the emperor Maximillion also had several reasons to remain on fugger's good side he was literally the most valuable Ally and his chief financial supporter but eventually as the emperor's Health got worse he needed yacob's Good Will to secure the throne for his chosen successor Charles I yacob fulfilled the emperor's wishes after he died yacob raised almost 54 4,000 gilders of a total of 852 gilders needed for Charles's success in the election and the defeat of his rival I mean fugger officially financed around 64% of the election expenses do you think there's any scenario in which Charles wouldn't be indebted to fugger no chance and by the way this was all out in the open you see these kinds of obvious political donations might look like corruption in today's standards but it was customary for rulers back then to Showcase their economic power through payments to elect her princes so this massive financial support not only secured Charles I's position but further solidified fugger's influence on European politics now fuger was a long-term strategist he knew that just supporting one side of the political Isle wasn't that smart so he made every effort to secure alliances with other powerful Nobles as a counterbalance to Charles's influence this included the likes of King Henry VII of England and by doing so he also ensured that the fugger family's power extended beyond the Holy Roman Empire and into the courts of other significant European monarchs yakob fuger had his net of influence cast far and wide with his ever growing influence fuger began focusing on his next Target Rome he also took over the transfer of donations from Germany to Rome and it earned him the title of God's banker overnight he became the top financier of the Vatican he even took the initiative to pay the Swiss mercenaries to protect the hope establishing the tradition of the Swiss papal guards now soon the fugar were also made responsible for handling the remittances to the papal Court they managed funds from the sale of indulgences and secured Church benefits from 1508 to 1515 they Leed the Roman mint embedding their influence more deeply within the vatican's financial operations all in all yakob fugger's deep ties with the Vatican saw him serving seven popes and minting coins for four of them his financial Acumen played a pivotal role in funding significant projects like the cine Chapel I mean this truly showed his commitment to being an influential architect in Europe's financial and religious landscape yakob fuger was now a man who had immense influence over the emperor and the pope he had his hands in both political influence and spiritual and religious influence basically he was in a position to dictate any law or policy with very little opposition this was a man of peasant Origins if you remember achieving a level of power that even the greatest Kings with vast armies could not now when his brother ulrick fuger died in 1510 it left yakob fuger to assume the sole responsibility for all the family business operations he became the Undisputed master of European Finance wielding influence that would come to shape the continent's history from that moment onwards yacob's Fortune grew so rapidly that many historic events were driven by his business interests for example he dictated to Emperor maximilan to pursue a marriage alliance with Hungary this redrew the map of Europe and created the ostroh Hungarian Empire with both States merged it allowed for better defense of the Christian Europe against the expanding Ottoman Empire for fuger however this move was meant to better protect his Holdings in Hungary that's the amount of influence and foresight fuger had meanwhile in Rome fuger was pivotal in ending the church's century-long ban on Usery charging interest on loans had long been considered a sin but yakob saw the need for a change to further his business interests in Alliance with other powerful Merchants he urged the pope to repeal the medieval ban on leving interest fugger's efforts in legalizing interest marked a breakthrough for capitalism it accelerated debt financing and set the stage for the modern economy at the height of his power he could threaten the most powerful Nobles in the continent if they fell behind on their debt obligations for instance in 15 23 he wrote a Stern letter demanding payment from Charles I of Habsburg think about this for a second Charles I was the most powerful man in Europe he had 81 titles including the emperor of the Holy Roman Empire king of Spain king of Jerusalem and people considered him to be divine and he presided over an Empire that stretched the globe despite all this yakob fuger had the guts to just remind him in the letter and he wrote it is worth noting that his majesty would not have the Imperial Crown without me you must calculate the money you owe me and pay me without further delay I mean this right here is real influence anyhow yakob fugger's greatest contribution to history was one that he never intended the Reformation you see the fugger family's involvement in the sale of indulgences Drew many critics an increasing number of people now saw the Vatican church as having sold itself to a greedy Merchant accusations were even H that the fogger family had connections to the devil it contributed to the Protestant Reformation led by the priest named Martin Luther by the way just for your information the sale of indulgences was a practice where the Catholic Church sold certificates absolving individuals from sin or reducing their time in purgatory I mean this is often criticized as a form of corruption and exploitation because it was seen as exploiting people's fear of damnation for financial gain rather than offering them genual spiritual benefits anyway that's the sale of indulgences so the corruption within the church in influenced Martin Luther to publish the 95 thesis in 1517 Luther's challenge to the church's practices became widely known and sparked religious and social upheaval it was one of the most important moments in European history now many people also held grievances against the fuggers and the pope for legalizing Usery while this challenge facilitated businesses for the wealthy it also enabled predatory lending practices that targeted the poor leading to widespread debt bondage the ability to charge interest made loans more accessible but it also trapped many in Cycles from debt from which they could not escape this contributed to worsening social inequalities and tensions that created further hate against the three main people they thought were responsible the Pope the emperor and the one and only Banker yakob fuger the far-reaching effects of fugger's financial strategies ultimately swed the seeds for the 30 Years War this devastating conflict born from Reformation would lead to immense loss and suffering estimates suggest suest that 20% of Europe's population was perished with some areas experiencing population declines of up to 60% the war's brutality and widespread impact marked it as one of the first modern Wars reshaping the continent's political and social landscape so all that power ended up having some really horrible effects on ordinary people it's very important to remember this so far we covered yakob fuger as a masterful financier and influential power broker but what was he like as a person surprisingly despite being one of the wealthiest men in history yakob himself was a man of few wants he preferred to lead a very simple lifestyle he seemingly solely focused on expanding his business and bringing Financial reforms to the continent in his own words I want to gain while I can his biggest asset was his immense willpower he faced numerous challenges including legal actions by various government authorities frequent social unrest amongst minors also tested him the Hungarian Nobles often attempted to nationalize their Minds The peasant's Revolt in the years later also added to his troubles additionally he had to confront an uprising of artisans in his own homestown of Augsburg but whatever he was confronted with through sheer tenacity and a fixed purpose yakob was able to overcome them however there would be trials and challenges that would hunt yakob till his last years his resolve was tested when he saw his life's work and his church threatened by the Reformation you see the Reformation impacted yakob fuger by undermining the financial and political power of the Catholic Church which had been crucial to his banking Empire as the Reformation challenged the church's Authority and practices including the sale of indulgences and Usery it led to widespread criticism of figures like fuger who contributed to the destabilization of the financial interests and the broader European political landscape despite the rising tide of change he fought against the New Movement he stood firm in his beliefs and strove to protect the Legacy he built however his aging body simply could not keep up with the strain and he died in the winter of 1525 only at the age of 66 his Empire was bequeathed to his nephew anthon fuger since yakob himself never had any children now yakob fugger's Financial Acumen and his political influence led to a permanent shift in the history of the continent if the Mishi were responsible for the birth of modern capitalism it was yakob fuger that perfected it in doing so he created immense power and wealth he not only transformed the economic landscape but also influenced the political and social fabric of Europe his control over vital resources such as silver and copper and his pivotal role in financing Emperors and popes gave him unprecedented sway over the continent's financial affairs yet it also played a significant role in some of Europe's darkest chapters economic disparities and discontent grew as a result of his decisions now if you've stuck around to the end I'd really appreciate it if you could leave a crown emoji in the comment that way I could tell how many of you stuck around till the end and then please do subscribe to the channel if you haven't already it would mean the world to me also make sure you check out this video I made about the medich I think you'd find it very interesting thanks so much for watching and I'll see you soon