I don't know why so many people link capitalism with Protestantism. All the banking technic were invented in Venice, Florence, Genoa during the middle ages. It is just that when America was discovered, all the migthy cities of the mediterranean sea became suddenly isolated from Atlantic trade, that was left to Netherland, Britain
Well, it's in the line of what you write yourself.
a) Feudal period in The Netherlands.
The Netherlands are officially a part of the Holy Roman Empire, but in practice there are a lot of rather independent regions. Some are governed by a Count, others by a Duke.
The region where I live is Brabant. The Duke of Brabant wanted to improve trade. So he supported the cities, gave them several rights. So the most important cities were Brussels, Antwerp, Leuven, Breda, Den Bosch.
Also the region got important rights to stimulate the economy. Abby's were busy to change wilderness into fertile lands.
b) After a while the cities grew more powerful, and because of some marriages The Netherlands became part of Burgundy, and later on we had a King Charles V.
He was born in The Netherlands, but wanted to become Emperor of the Holy Roman Empire.
And here it starts.
Charles V did lend a huge sum of money to raise an army. With that army he started several wars to show who was the most important man in Europe. So he burnt a lot of cities in Northern Spain.
Cities that were like city states, with an own government. Copied from the idea of the cities in Northern Italy.
And so Charles V became Emperor.
Of course the city states in The Netherlands knew what was coming.
And surely when Philip II, the son of Charles V became the new King.
The cities wanted to keep their privileges. While Philip II wanted a centrally governed empire.
So, he did in The Netherlands what his father did in Spain.
Burn one city after another. (What a hero!)
The pretext was a war between catholics and protestants, but in fact it was a war between a totalitarian system, and a liberal group of cities.
c) And where capitalism comes in?
Simply because the Dutch invented the shares.
Thousands of people could buy shares of a ship.
And share the profit if the ship came back with loads of stuff that could be sold for huge sums of money.
The problem was, people started to trade with shares.
In that way creating a capitalist bubble.
In the same period the Spanish didn't grasp economy problems, and never understood that getting more gold in from America every day only would sink the value of gold more and more.
So that's why the Dutch started to help the Spanish economy by looting the Spanish gold and silver, that came from America.
After a while, the English learned that trick too. The eternal copycats...
d) Just before 1800 the Dutch learned that France is much more a natural ally of The Netherlands than England.
But then Napoleon goofed, and spoiled Dutch trade by starting a sea blockade against England.
From then on, the Dutch switched their attention back to their most loved enemy, the English.
London became the international trading center, because Napoleon was an army general, and had little knowledge about sea trade and maritime affairs.
Tongue in cheek..