How and Why Do You Need to Maximize Portfolio Value?
The South Sea Bubble
In the sixteenth century, Spain’s investment in the New World had started paying fabulous dividends in the form of galleons from Mexico and Peru loaded with gold and silver. England, with a formidable empire of its own, was quite interested in tapping into these Spanish gold assets.
In the year 1713, the War of the Spanish Succession ended with the Treaty of Utrecht which, among other things, included an Asiento Contract that allowed one British ship a year to trade with Mexico, Peru, and Chile. To make matters even more humiliating for the English, the Spaniards demanded that the ship owners pay a 25 percent tax on all profits to the king ...