[identity profile] metatrix.livejournal.com posting in [community profile] deathtocapslock
There is an inherent divide between magical creatures (such as goblins) and wizards. This is based on two things:

1. Wizards can pass as muggles if they wish to. Magical creatures cannot. The implication of this is that magical creatures are much more vulnerable to muggle violence, and also that Secrecy means that magical creatures must go into isolation and hiding, while wizards must simply keep their magic a secret when interacting with muggles.

2. Wizards continue to be born of muggles, whereas there is no such thing as a magical creature born of non-magical parents. (Theoretically, I suppose a half-giant or half-goblin could be born of a union between a magical creature and a muggle, but there is no indication in canon that this is possible). The first implication of this is that magical creatures face extinction more easily than wizards do (even if you wiped out all living wizards, muggleborns would continue to be born). The second implication is that wizards cannot maintain Secrecy simply by isolation. They need to address the issue of muggleborns.

The statute of secrecy reinforces the divide between magical creatures and humans (wizard and muggle). Wizards are able to directly trade with muggles. But goblins cannot. They can only trade with wizards or other magical creatures. This limits their economic prospects a great deal.

Magic vs Might is an alternate model where all magic-bearers (creatures and wizards) unite against non-magic bearers (muggles). Any one magical race would likely be unable to keep muggles subdued. But united altogether, they stand a chance against the muggles. This is the model that the Death Eaters (and later Umbridge) are backing.

What the goblins fear most is wizards and muggles united against them. They wouldn't stand a chance. So it is in the goblins' best interest for there to be conflict and mistrust between muggles and wizards, as well as within wizards and within muggles. I wouldn't put it past them to fund both sides of the conflict. It is in their interest to do so. I also would not be surprised if goblins in reality have no use or desire for wands, but simply use it as a negotiation point to maintain their position as the wizarding world's sole bankers.

Incidentally, any time you have a closed economy, some people stand to get extremely rich. I envision a scenario where certain wizarding families with Ministry connections support Secrecy and isolation because they benefit financially. These families would make money by selling muggle goods to wizards. This only works if wizards are unable or unwilling to purchase muggle goods directly from muggle stores. These Ministry-connected families would want to encourage ignorance of the muggle world, prejudice and fear of muggles, and, interestingly, complete assimilation of muggleborns and half-bloods into wizarding society from a young age. This last is where things like Hogwarts, the Slug Club, and the ban against underage magic all come in. These families would also be motivated to collude with goblins to maintain a closed economy and a fiat currency. I wonder if this is how the Potters made their fortune.

Thoughts?

Date: 2015-01-19 07:16 pm (UTC)
From: [personal profile] oryx_leucoryx
The goblins control the exchange rate of pound to Galleon, as Gringotts is the only place where Muggle-raised magical children can acquire Galleons. (At least in Britain. We don't know how wizarding banking works in other countries.) The goblins can increase or decrease the rate as suits their goals at any given time.

I like your thoughts on the Potters.

Also note that Bowman Wright, inventor of the golden snitch, was a half-blood from Godric's Hollow. Where did he get the gold for the snitches? Was he related to the Potters?

golden snitches

Date: 2015-01-20 12:42 am (UTC)
From: [identity profile] hwyla.livejournal.com
Did you mean gold to use in the actual making of the snitches or gold as in monetary backing or start-up money?

Because while the snitches are 'golden' I don't believe it has ever been stated that they are actually made of gold instead of merely a golden color or perhaps something similar to electro-plating?

Considering a snitch really can only be used once, it would seem likely that they would be melted down once caught, so the gold could be reused.

It would also put an even worse light on James having stolen a school snitch.

Altho' IF actual gold IS used in the snitch's manufacture, then I'm now imagining a partnership with Flamel to get the gold at a 'good' price - *snicker* - the cost of lead and something extra for his expertise and time.

I do rather wonder just how much the goblins might have disliked the Philosopher's Stone and thereby Flamel.

Re: golden snitches

Date: 2015-01-20 02:59 am (UTC)
From: [identity profile] attilathepbnun.livejournal.com
Snitches can only be used once? Are you sure?
I don't remember that being mentioned. Maybe it's the spells that expire, and the Snitch itself can be reused, once the correct spells have been re-applied?

Those thoughts on the manipulation of wizard feelings towards Muggles, in order to thus manipulate the economy, are *int-eresting*, indeed. I wouldn't be surprised if that *was* how the Potters, and other wealthy magical families, *started* their fortunes. Since James was uprejudiced enough to actually marry a Muggleborn, however, I would guess they've been out of that aspect for some generations.
Considering the present-day Malfoy attitudes towards Muggles and Muggleborns, though, I'd guess *they* are still actively involved in such manipulation

Re: golden snitches

Date: 2015-01-20 03:17 am (UTC)
From: [identity profile] vermouth1991.livejournal.com
Golden Snitches have this built-in BS plot device "flesh memory" to determine which side's seeker touched it first. That however would only apply in "real" matches, right? School training doesn't count.

James is still a prick for steeling school equipment, though. Can you imagine a RL student stealing a hockey puck?

Anti-muggle Prejudice

Date: 2015-01-20 04:51 am (UTC)
From: [identity profile] jana-ch.livejournal.com
One should be careful to to mix up attitudes toward muggleborns with attitudes toward muggles. Just because the Potters (or at least James Potter) aren't into heavy-duty anti-muggleborn prejudice doesn't mean they have no anti-muggle prejudice. Do we meet any wizards who aren't prejudiced against muggles? Even Arthur Weasley is ignorant and condescending.

Re: Anti-muggle Prejudice

Date: 2015-01-20 06:26 am (UTC)
From: [identity profile] vermouth1991.livejournal.com
Snape would be a hopeful candidate, once we take his daddy-issues out of the equation.
(deleted comment)

Re: Anti-muggle Prejudice

Date: 2015-01-20 09:31 pm (UTC)
From: [personal profile] oryx_leucoryx
Based on Severus' conversation with Lily, we know Tobias was around during their pre-Hogwarts friendship (when Severus mentions his parents arguing and his father not liking anything much), so the hook-nosed man is intended to be Tobias. Though Tobias does not accompany Severus to the train station.

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