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busterarm 14 days ago

Maybe if China was willing to buy anything else but opium, that never would have happened. China's exports were in hot demand and they would only transact in silver but wouldn't buy anything to return that silver supply to global markets. It was causing massive problems in the silver market with over 40% of the yearly global supply going directly to purchasing Chinese exports.

Trade imbalances like that always lead to war. historically.

HPsquared 14 days ago | parent [-]

In that case the solution would be a floating silver price. Was this some kind of currency peg breaking? Ironic really.

orwin 14 days ago | parent | next [-]

Yes, the silver standard was a thing before the gold standard, and those switched back and forth depending on the current gold rush.

ben_w 14 days ago | parent | prev [-]

Had anyone invented fiat back then? I assumed the concept was more recent.