KFLCC Kingdom Economics

F INANCIAL S ECURITY IN THE L AST D AYS

of each empire were devastated. Their armies were spread too thin, leaving a rising nation with a stronger economy and military to replace the debt-straddled empire that had become lazy, careless, and left without the resources and skills to defend themselves from invaders and stronger kings. Historical researchers have pointed out that Babylon was an empire that had hoarded much gold. In their early days, they provided financial loans to the Persians at an interest rate of 33 1/3 percent, to be returned to the Babylonian coffers in the form of gold. The Persians were eventually required to repay double in three years. Thus, the Persians owed a huge and unpayable debt to the Babylonians. Persian commerce eventually slowed to a halt as their creditors went unpaid. This was one motivation for Cyrus to secretly invade Babylon (see Daniel chapter 5), conquering the mighty Babylonian Empire in 536 BC. The Babylonian leaders were having an all night drunken party when the secret assault was initiated by the Persian king. By invading Babylon, the Persians took control of the temples and treasure houses of the Babylonians. Thus the Persians were able to cancel their massive debt owed to the Babylonians through a war, making Babylon their new headquarters. The Persians were unaware that the same pattern would be repeated against them and would one day cause their own defeat. The newly-found wealth from the Babylonian coffers enabled the Persians to build cities and strengthen their empire that was controlling 127 provinces (Esther 1:1). By incorporating the wealth of Babylon and using silver as their currency exchange, the wealth and influence of the Persians spread throughout the known world of that day. Historians say that the Persian soldiers even placed silver embroidered harness on their horses. The Persian government also heavily taxed their provinces. They sent merchants to Greece, and the Greeks began borrowing from the wealthy Persians in order to expand, including loans for the Greeks to expand their navy. In 421 BC, Sparta—a city in Greece situated on the banks of the River Eurotas—borrowed five thousand talents from the Persian treasuries to build warships. This financial loan, like all others, was at standard 33 1/3 percent interest rates. Seven years later, in 405 BC, Lysander of Sparta used these ships to destroy the whole Athenian fleet which was attacked while they were drawn up on a beach. This event made Sparta unmatched throughout Greece. These five thousand

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