Stuff2,
Some wonderful idea's there .. especially the value of money ... as the Spanish discovered
.. also, the British at the time, nicked the gold from Spanish gallions, and took it back to London to hide it .. that way, it retained its value in England.
Diamonds also are stock-pilled to stop the value from reducing .. but as you say, what use is it, other than to keep the current value of diamonds at the existing price ?
On top of the trade costs are tariffs ... eg, USA doubles the cost of Bananas from Europe (through tariffs) so that US citizens buy from Caribbean sources, which are ran by US companies
.. it can have an advantagous effect to levy tariffs on other nations, to stop then nicking your business, and expanding there own economies. (just a made up example, before anybody gets into banana wars between US/Europe)
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"Wherever wood floats, you will find the British" . Napoleon