1 00:00:00,540 --> 00:00:29,059 Okay, so today we are going to start with the Spanish Habsburg dynasty. Okay, so what we are going to see is this new dynasty ruling Spain. This new dynasty is going to be the one, or is going to start after the Catholic monarchs. It's going to start in the 16th century, in the early 16th century with Carlos V or Charles V. Okay, so Charles V is going to be the first king of the Habsburg dynasty in Spain. 2 00:00:29,059 --> 00:00:35,579 Remember, we are not talking about Spain, we are talking about the Hispanic monarchy. 3 00:00:35,579 --> 00:00:40,619 So let's see which are the main characteristics of this Habsburg dynasty. 4 00:00:40,619 --> 00:00:45,939 The first thing is that we are going to study the Habsburg dynasty in the 16th century. 5 00:00:45,939 --> 00:00:53,219 And in these 100 years, in this century, we are going to have two main kings of this Habsburg 6 00:00:53,219 --> 00:00:54,299 dynasty. 7 00:00:54,299 --> 00:01:00,240 We are going to have Charles V, Carlos V, and Philip II or Felipe II. 8 00:01:00,240 --> 00:01:06,040 If you check the dates, Carlos V is going to start to reign in 1516 and he is going 9 00:01:06,040 --> 00:01:08,260 to end in 1556. 10 00:01:08,260 --> 00:01:11,400 So he is going to reign 40 years. 11 00:01:11,400 --> 00:01:19,060 Charles V is going to abdicate in 1556 on his son Philip II. 12 00:01:19,060 --> 00:01:22,519 Remember Charles V was a little bit old, he was tired. 13 00:01:22,519 --> 00:01:32,799 So he is going to resign, he is going to abdicate on his son Philip II, and Philip II is also 14 00:01:32,799 --> 00:01:40,760 going to reign almost 40 years, from 1556 till 1598. 15 00:01:40,760 --> 00:01:44,879 One of the most important characteristics of this Habsburg dynasty is that the Spanish 16 00:01:44,879 --> 00:01:51,519 monarchy is going to be the most powerful monarchy in Europe in the 16th century. 17 00:01:51,519 --> 00:02:01,719 If we check the territories controlled by Charles V and Philip II, you'll see that they 18 00:02:01,719 --> 00:02:07,269 are controlling almost the whole continent. 19 00:02:07,269 --> 00:02:13,469 For example, this is the territories acquired or inherited by Charles V or Carlos V. 20 00:02:13,469 --> 00:02:19,349 If you check from the Catholic Monarchs, he is going to inherit Castile, these territories 21 00:02:19,349 --> 00:02:25,229 in North Africa and also America and Aragon with this territory Sardinia 22 00:02:25,229 --> 00:02:31,530 Sicily and Naples okay so these territories along with America are going 23 00:02:31,530 --> 00:02:38,610 to be the territories acquired or inherited by Carlos Quinto due to the 24 00:02:38,610 --> 00:02:44,370 Catholic Monarchs the Catholic Monarchs were one of the where their 25 00:02:44,370 --> 00:02:48,449 grandfathers and grandmother okay the grandmother and grandfather so the 26 00:02:48,449 --> 00:02:52,289 grandparents okay so the idea is the Catholic Monarchs are the grandparents 27 00:02:52,289 --> 00:02:59,909 of Charles V with regard to his mother but regarding to his father 28 00:02:59,909 --> 00:03:07,110 Charles V is going to inherit the Holy Roman Empire or the 29 00:03:07,110 --> 00:03:11,789 possibility to be the Emperor of the Holy Roman Empire and he is going to 30 00:03:11,789 --> 00:03:17,129 inherit these territories okay the lower countries or the Netherlands and Belgium 31 00:03:17,129 --> 00:03:20,210 where is nowadays the Netherlands and Belgium this is the lower countries 32 00:03:20,210 --> 00:03:26,250 Luxembourg Franco Condado okay and these territories that they are the Austrian 33 00:03:26,250 --> 00:03:31,009 territories so what he is going to inherit is Castile with America and this 34 00:03:31,009 --> 00:03:36,569 territory in the North Africa in Northern Africa Aragon with a Sardinia 35 00:03:36,569 --> 00:03:46,370 Sicilian Naples this is the this is the territories inherited by the or the 36 00:03:46,370 --> 00:03:52,430 relation with the Catholic Monarchs okay in the other hand what we are going to 37 00:03:52,430 --> 00:03:58,610 have is the lower countries Luxembourg and Franco Condado as long as well as 38 00:03:58,610 --> 00:04:06,530 these Austrian territories and due to his grandfather he is going to have the 39 00:04:06,530 --> 00:04:13,750 possibility to be the Emperor of the German the Holy Roman Empire okay this 40 00:04:13,750 --> 00:04:19,389 Holy Roman Empire finally is going to be in the hands of Charles V. If you remember, 41 00:04:19,389 --> 00:04:30,790 Luther and Charles V are going to fight because Charles V was the emperor of the Holy Roman 42 00:04:30,790 --> 00:04:40,689 Empire. So the idea is these are the territories inherited by Charles with America, Luxembourg, 43 00:04:40,689 --> 00:04:46,689 Franco Condado and the lower countries on these territories and the possibility of be the emperor 44 00:04:46,689 --> 00:04:53,889 and he is going to be finally the emperor the difference with uh with uh with philip ii is 45 00:04:53,889 --> 00:05:00,689 philip ii is going to inherit all the territories of Charles V it means the Iberian peninsula 46 00:05:00,689 --> 00:05:06,449 sardinia sicily naples these territories in northern africa also milan is going to be a 47 00:05:06,449 --> 00:05:13,970 new acquisition at the end of the reign of Charles V Franco Condado Luxembourg and the lower countries 48 00:05:13,970 --> 00:05:22,529 but Philip and these territories that they are the sorry and and that's it so the Holy Roman Empire 49 00:05:22,529 --> 00:05:29,970 and the Austrian territories are going to be for Fernando I that he is the brother of Philip the 50 00:05:29,970 --> 00:05:34,889 second or the brother of Charles the fifth okay so let's recap a little with 51 00:05:34,889 --> 00:05:39,389 Philip the second these are the territories of Charles the fifth and 52 00:05:39,389 --> 00:05:43,649 Philip the second is going to inherit almost all the territories that Charles 53 00:05:43,649 --> 00:05:48,829 the fifth had okay it's going to inherit the 54 00:05:48,829 --> 00:05:54,730 Iberian Peninsula Sardinia Sicily Naples Milan Franco Condado Luxembourg and lower 55 00:05:54,730 --> 00:05:59,889 countries however the Holy Roman Empire and these ocean territories are going 56 00:05:59,889 --> 00:06:09,389 to be for Fernando I. Fernando I is the brother of Charles V. So as you can see Philip II 57 00:06:09,389 --> 00:06:15,250 is going to inherit almost all the territories of Charles V but he is not going to inherit 58 00:06:15,250 --> 00:06:23,129 the Holy Roman Empire or the Austrian territories. Why? Because Charles V has been fighting against 59 00:06:23,129 --> 00:06:28,970 the Protestants in the Holy Roman Empire. This problem of the Protestants is a huge 60 00:06:28,970 --> 00:06:37,029 problem for Charles V so he doesn't want Philip II to have the same problem so he's going 61 00:06:37,029 --> 00:06:42,790 to say ok my son Philip II is not going to have the problems related with the empire 62 00:06:42,790 --> 00:06:47,930 related with Protestantism so I'm not going to give him the Holy Roman Empire I'm going 63 00:06:47,930 --> 00:06:53,889 to give the Holy Roman Empire to Ferdinand to Fernando I ok so that's the idea Philip 64 00:06:53,889 --> 00:06:59,930 The second is going to inherit all these territories, the territories in orange, along with America, 65 00:06:59,930 --> 00:07:07,209 but he is not going to inherit the Holy Roman Empire nor the Austrian territories that they 66 00:07:07,209 --> 00:07:12,350 are going to be for Ferdinand, because these territories have a huge problem and is the 67 00:07:12,350 --> 00:07:19,009 fights between the Catholics and the Protestants, and Charles V do not want Philip to be involved 68 00:07:19,009 --> 00:07:22,339 in these problems. 69 00:07:22,339 --> 00:07:29,259 So let's see, here is Charles V, here is Philip II, here the father and the son. 70 00:07:29,259 --> 00:07:31,959 You see they are dressing in a different way. 71 00:07:31,959 --> 00:07:41,850 Charles V is more a medieval man and Philip II is more a Renaissance man. 72 00:07:41,850 --> 00:07:48,209 So both monarchs are going to belong to the Habsburg dynasty and as you have seen in the 73 00:07:48,209 --> 00:07:56,689 maps they want to control Europe they want to have an absolute political authority or power 74 00:07:56,689 --> 00:08:03,329 over Europe if you check the maps of course Charles V is almost controlling the whole continent 75 00:08:03,329 --> 00:08:07,490 okay Philip II is going to have a lot of territories but he is not controlling 76 00:08:08,129 --> 00:08:16,290 the Holy Roman Empire however remember Fernando and Philip II are relatives okay they are from 77 00:08:16,290 --> 00:08:25,730 the same dynasty so they are allies so in the end the hasbro dynasty is almost controlling the whole 78 00:08:25,730 --> 00:08:35,820 continent okay europe and also america so a huge powerful monarchy or a huge powerful dynasty in 79 00:08:35,820 --> 00:08:41,179 this case so the hasbro dynasty is going to control almost the whole continent okay so let's 80 00:08:41,179 --> 00:08:48,039 Let's see how Charles V or Carlos Quinto and Philip II pursued similar political objectives. 81 00:08:48,039 --> 00:08:54,899 They are going to have more or less the same policies, domestic and foreign policy. 82 00:08:54,899 --> 00:09:00,299 They are going to have more or less the same enemies, they are going to act or they are 83 00:09:00,299 --> 00:09:04,580 going to have more or less the same goals, the same objectives. 84 00:09:04,580 --> 00:09:08,519 The first one is that they want to maintain their territories. 85 00:09:08,519 --> 00:09:10,759 They want to keep their kingdoms. 86 00:09:10,759 --> 00:09:16,639 They have a huge empire and one of their goals is to keep it, it means, and in order to do 87 00:09:16,639 --> 00:09:20,120 that of course they are going to declare numerous wars, ok? 88 00:09:20,120 --> 00:09:23,539 They are going to fight in more than one war, ok? 89 00:09:23,539 --> 00:09:28,580 They are going to fight in numerous wars in Europe. 90 00:09:28,580 --> 00:09:35,379 So the idea is, what they want, ok, is to retain, to maintain, to keep their territorial 91 00:09:35,379 --> 00:09:41,379 patrimony it means their territories patrimony territorial means their 92 00:09:41,379 --> 00:09:46,480 territorial possessions through numerous wars against the kingdoms okay they are 93 00:09:46,480 --> 00:09:51,379 going to fight against France against England against the Protestants in the 94 00:09:51,379 --> 00:09:57,659 lower countries the Protestants in Germany etc so the idea is or the the 95 00:09:57,659 --> 00:10:03,620 Ottoman Empire that is the Turkish Empire so the idea is they want one of 96 00:10:03,620 --> 00:10:09,940 the main goals is to keep their territorial patrimony they want to keep their territories 97 00:10:09,940 --> 00:10:16,580 okay how they are going to do that fighting in different wars against european kingdoms 98 00:10:17,779 --> 00:10:23,379 how they are going to pay these wars using the american silver okay all the silver found in 99 00:10:23,379 --> 00:10:30,980 america is going to be used in order to pay this wars okay and they are going to be able to fight 100 00:10:30,980 --> 00:10:38,120 these words due to this silver okay when this silver is not enough what they are 101 00:10:38,120 --> 00:10:43,759 going to do is to ask for money to bankers Italian or German bankers okay 102 00:10:43,759 --> 00:10:49,700 for example if you remember this painting here is a German banker the 103 00:10:49,700 --> 00:10:55,779 name of the family is Fugger so the Fuggers are going to be one of the 104 00:10:55,779 --> 00:11:02,120 bankers giving money to the Emperor here is charge the fifth okay so charge the 105 00:11:02,120 --> 00:11:06,639 fifth that is the Emperor is going to get money from different bankers here is 106 00:11:06,639 --> 00:11:12,519 the Fugger giving money to charge the fifth what is doing this banker burning 107 00:11:12,519 --> 00:11:19,480 some debts burning some loans it means he is saying to charge the fifth you are 108 00:11:19,480 --> 00:11:25,480 so powerful okay so I'm not going to make you pay these debts okay part of 109 00:11:25,480 --> 00:11:32,980 the debts, so I'm going to be your friend, your ally, so that's the idea, he's showing 110 00:11:32,980 --> 00:11:40,700 to Charles V, I'm burning them, Charles V is going to owe that much money to different 111 00:11:40,700 --> 00:11:47,840 bankers because the American silver is not enough to pay these wars to retain, to keep 112 00:11:47,840 --> 00:11:54,340 this territorial patrimony, to keep these possessions, so it was not enough and became 113 00:11:54,340 --> 00:12:02,419 inducted means endeudado to italian and german bankers the other one is related with religion 114 00:12:02,419 --> 00:12:10,860 we have seen what has happened with lutheranism with martin luther what has happened with the 115 00:12:10,860 --> 00:12:16,299 reformation in germany so the idea is charles v or carlos quinto and felipe segundo what they 116 00:12:16,299 --> 00:12:21,899 are going to do is to defend catholicism they are catholic and they are going to defend catholicism 117 00:12:21,899 --> 00:12:34,100 And their goal is not only to defend Catholicism but to preserve Catholicism in Spain and their European territories 118 00:12:34,100 --> 00:12:42,200 So what they want is, ok, I'm going to defend Catholicism in general against the Turks, against the Protestants 119 00:12:42,200 --> 00:12:47,320 But also what I want is religious unity in my territories, in my kingdoms 120 00:12:47,320 --> 00:12:50,700 That means Spain and the European territories 121 00:12:50,700 --> 00:12:58,919 So this policy is what is going to make, for example, Charles V fight in Germany against the Protestants 122 00:12:58,919 --> 00:13:05,960 Or Philip II to fight against the Protestants in the lower countries, en los Países Bajos 123 00:13:05,960 --> 00:13:13,820 Ok, so how they are going to defend Catholicism and preserve this religious unity in Spain and Europe 124 00:13:13,820 --> 00:13:15,240 So two main policies 125 00:13:15,240 --> 00:13:17,679 The first one is the domestic policy 126 00:13:17,679 --> 00:13:25,059 it means the policy that is going to be carried out inside their own territories what they are 127 00:13:25,059 --> 00:13:32,019 going to do is to repress okay protestants and humanism protestants and humanist people 128 00:13:32,019 --> 00:13:38,639 why they are going to repress protestants easy they are against catholicism so i'm going to 129 00:13:38,639 --> 00:13:45,340 repress them why i'm going to repress it because remember the council of the council of trent 130 00:13:45,340 --> 00:13:53,200 has said that one of the policies that the catholic kings must follow is to repress 131 00:13:53,200 --> 00:14:01,159 protestantism because they are a heretic movement okay they are not catholics is a heretic movement 132 00:14:01,159 --> 00:14:08,340 they are against the catholic dogma also they are going to fight a fight against humanism they are 133 00:14:08,340 --> 00:14:14,679 going to repress humanist people why they are going to repress humanists because if you remember 134 00:14:14,679 --> 00:14:22,840 human is this intellectual movement is against is against explaining the world 135 00:14:22,840 --> 00:14:29,559 through God they are going to as they are going to explain the world nature 136 00:14:29,559 --> 00:14:35,440 everything through reason so they are going to believe that humanism as 137 00:14:35,440 --> 00:14:41,940 intellectual movement is a threatened or amenaza against Catholicism so in their 138 00:14:41,940 --> 00:14:47,879 domestic policy is to repress humanism because humanism tries to explain 139 00:14:47,879 --> 00:14:54,240 nature and the world through reason and not through God and second they are 140 00:14:54,240 --> 00:14:58,679 going to fight they are going to repress Protestants because they are a heretic 141 00:14:58,679 --> 00:15:05,559 movement okay so that's the idea this is the domestic policy in order to defend 142 00:15:05,559 --> 00:15:09,840 Catholicism and preserve religious unity okay we are Catholics so we are going to 143 00:15:09,840 --> 00:15:15,799 repress the Protestants and also the humanists because they can threaten Catholicism. Remember 144 00:15:15,799 --> 00:15:23,179 here is Philip II and his son Carlos that they are looking at these Protestants that they are 145 00:15:23,179 --> 00:15:32,799 burning alive in order to repress Protestantism in Spain. And in the European policy what they 146 00:15:32,799 --> 00:15:37,759 are going to do is to start different wars against the Protestants. For example the Netherlands 147 00:15:37,759 --> 00:15:52,740 Remember, in the northern territories, in the lower countries, Protestantism is going to be spread in this region and they are going to rise up against Philip II. 148 00:15:52,740 --> 00:16:06,379 So Philip II is going to fight them through war. He is going to fight them using his army, okay? And he is going to start this war that is going to last 80 years, 80 years, okay? 149 00:16:07,759 --> 00:16:32,059 So the idea is they are in the European policy is to through war they are going to fight against Protestant states like the Netherlands, the UK. Remember in the UK what we have is Anglicanism. Okay, that Anglicanism was set or was started by, I will say, by Henry VIII, Enrique VIII. 150 00:16:32,059 --> 00:16:36,559 so the idea is they are going to fight the Netherlands and the UK both are 151 00:16:36,559 --> 00:16:40,639 going to be Protestant States in the in case of the Netherlands is a Spanish 152 00:16:40,639 --> 00:16:45,320 territory in case of the UK is a different Kingdom so Philly the second 153 00:16:45,320 --> 00:16:48,919 is going to fight against these two King in the against these two territories 154 00:16:48,919 --> 00:16:54,080 this kingdom and this Spanish territory okay so what monarchs what they are 155 00:16:54,080 --> 00:16:58,940 going to do is to maintain keep and expand the administrative system 156 00:16:58,940 --> 00:17:04,440 established by the Catholic monarchs what does it mean if you remember I 157 00:17:04,440 --> 00:17:09,019 explained that the Catholic monarchs organized Castile Aragon their 158 00:17:09,019 --> 00:17:15,380 territories in general using councils okay remember they create the council 159 00:17:15,380 --> 00:17:20,259 for the Inquisition they create the council for Castile the council for 160 00:17:20,259 --> 00:17:27,319 Aragon etc so the idea is Carlos Quinto and Felipe Segundo are going to keep 161 00:17:27,319 --> 00:17:32,539 this administrative system and what they are going to do is to expand it they are 162 00:17:32,539 --> 00:17:37,880 going to create for example the Council for America or for the Indias that's the 163 00:17:37,880 --> 00:17:43,259 correct name they are going to create the the Council of Flanders for the 164 00:17:43,259 --> 00:17:46,500 Netherlands because there is a war here and they need a council in order to 165 00:17:46,500 --> 00:17:52,259 fight there etc so the idea is they are going to maintain to keep the 166 00:17:52,259 --> 00:17:56,839 administrative system the councils created by a Catholic Monarchs and they 167 00:17:56,839 --> 00:18:04,519 are going to expand them okay they are going to make them even better even more complex and 168 00:18:04,519 --> 00:18:12,069 professional so now what we are going to study and this is the last the last slide what we are going 169 00:18:12,069 --> 00:18:17,890 to study is the economy and the society in the 16th century okay we are going to see how is the 170 00:18:17,890 --> 00:18:25,589 economy in Spain in the 16th century okay what you need to know is that the core el corazón the core 171 00:18:25,589 --> 00:18:31,710 of the of the Spanish economy is going to be the silver and gold that came from 172 00:18:31,710 --> 00:18:37,589 America okay that's the idea okay the Spanish economy is going to grow due to 173 00:18:37,589 --> 00:18:42,329 the silver and gold obtained in America more silver than gold okay when you 174 00:18:42,329 --> 00:18:47,529 think of the of a of a Spanish America you need to think of silver not gold 175 00:18:47,529 --> 00:18:52,650 okay we are going to obtain more silver than gold gold is a minority the 176 00:18:52,650 --> 00:18:57,829 majority of the metal is going to be silver okay so the idea is the Spanish 177 00:18:57,829 --> 00:19:03,750 economy is going to prosper is going to grow due to this silver and gold as you 178 00:19:03,750 --> 00:19:11,769 can understand if the Spanish economy is based on this silver and gold America is 179 00:19:11,769 --> 00:19:19,299 going to be really important for Charles the fifth and Philip the second so in 180 00:19:19,299 --> 00:19:28,900 In order to keep America for the Spanish, the first thing that they are going to establish 181 00:19:28,900 --> 00:19:31,980 is to organize this trade with America. 182 00:19:31,980 --> 00:19:32,980 How? 183 00:19:32,980 --> 00:19:38,059 First, there is going to be only one port that is going to trade with America in order 184 00:19:38,059 --> 00:19:41,440 to establish a monopoly. 185 00:19:41,440 --> 00:19:43,579 So the idea is this, okay? 186 00:19:43,579 --> 00:19:46,220 We have the Spanish territories, as you can see here. 187 00:19:46,220 --> 00:19:50,779 have Mexico we have Peru we have Venezuela we have Central America we 188 00:19:50,779 --> 00:19:55,700 have the Caribbean Florida etc so we are going to connect the Spanish 189 00:19:55,700 --> 00:20:03,279 territories with Spain with the peninsula through Sevilla through Seville 190 00:20:03,279 --> 00:20:10,279 so there is going to be only one port that can trade legally with America only 191 00:20:10,279 --> 00:20:16,160 one port that trade legally with America and this port is going to be Seville or 192 00:20:16,160 --> 00:20:23,960 Sevilla okay they establish the monopoly it means the only country that can trade 193 00:20:23,960 --> 00:20:32,880 with America is Castile okay so Castile is the only country that can trade with 194 00:20:32,880 --> 00:20:38,960 America how they are going to establish this monopoly establishing only one port 195 00:20:38,960 --> 00:20:45,380 to trade with America and this port is going to be Sevilla the second 196 00:20:45,380 --> 00:20:51,000 thing that they are going to do Philip II is going to establish a fleet system it means he's going to 197 00:20:51,000 --> 00:20:59,019 establish a fleet a combination of different ships warships in order to defend the ships that they 198 00:20:59,019 --> 00:21:06,640 are going to carry the silver and gold so the idea is we are going to have two main fleets this one 199 00:21:06,640 --> 00:21:13,380 that is the fleet of Veracruz that goes to Mexico and then go back to the peninsula and this one 200 00:21:13,380 --> 00:21:19,160 that is the fleet of the los galeones this is the name los galeones because they are made of 201 00:21:19,160 --> 00:21:25,619 galeones a type of ship of warship so the idea is they are going to go to panama and from panama 202 00:21:25,619 --> 00:21:32,700 to peru so they are going to connect this with the royalty the royalty of peru with panama and 203 00:21:32,700 --> 00:21:40,059 and then the peninsula and this other one is going to connect mexico with the peninsula 204 00:21:40,059 --> 00:21:46,980 So, the idea is this trade, this American trade is really important, so they are going 205 00:21:46,980 --> 00:21:54,019 to organize it based on two main ideas, or two main measures. 206 00:21:54,019 --> 00:21:58,740 The first one is only one port can trade with America, that one is Seville, because what 207 00:21:58,740 --> 00:22:01,259 they want is to establish a monopoly. 208 00:22:01,259 --> 00:22:07,740 The second one is that they want to protect the silver, so in order to protect the silver 209 00:22:07,740 --> 00:22:12,980 they are going to create this fleet system based on two main fleets, the fleet of Veracruz 210 00:22:12,980 --> 00:22:16,059 and the fleet of Los Galeones. 211 00:22:16,059 --> 00:22:23,000 These two fleets are composed by warships, it means ships with cannons in order to defend, 212 00:22:23,000 --> 00:22:29,559 the other ships to escort, escoltar, the other ships that trade with America. 213 00:22:29,559 --> 00:22:35,039 So that's the idea, we want to protect the silver because the silver of America is making 214 00:22:35,039 --> 00:22:39,500 the Spanish economy to prosper and also they are going to establish a monopoly. 215 00:22:39,500 --> 00:22:43,220 They do not want other countries to trade with America. 216 00:22:43,220 --> 00:22:44,640 How they are going to do that? 217 00:22:44,640 --> 00:22:50,480 They are going to establish only one port trading with America. 218 00:22:50,480 --> 00:22:58,380 So let's see the main consequences of the silver arriving to the peninsula. 219 00:22:58,380 --> 00:23:03,119 The first consequence is that this silver is going to finance the numerous wars. 220 00:23:03,119 --> 00:23:11,359 It means, thanks to this American silver, the kings, Carlos V and Felipe II, can afford, 221 00:23:11,359 --> 00:23:15,700 can pay the European wars. 222 00:23:15,700 --> 00:23:24,400 So that's the idea, due to this fact, due to this American silver, these kings, Carlos 223 00:23:24,400 --> 00:23:30,180 V and Felipe II, they can pay these wars in Europe. 224 00:23:30,180 --> 00:23:33,660 So that most of the American silver is going to end where? 225 00:23:33,660 --> 00:23:35,740 In the European banks. 226 00:23:35,740 --> 00:23:43,000 Because they are not using this money to develop the Castilian or Spanish economy. 227 00:23:43,000 --> 00:23:46,279 They are using this money to pay the wars. 228 00:23:46,279 --> 00:23:48,700 Why they want to pay the wars? 229 00:23:48,700 --> 00:23:56,140 Because one of their goals is to keep, to maintain their possessions, their territories. 230 00:23:56,140 --> 00:24:02,740 So if they want to maintain their empire they need to fight against the other kingdoms. 231 00:24:02,740 --> 00:24:08,799 In order to do that they need to pay for these wars and they are going to pay thanks to this 232 00:24:08,799 --> 00:24:10,859 American silver. 233 00:24:10,859 --> 00:24:15,539 So the American silver is going to be used to pay these wars. 234 00:24:15,539 --> 00:24:21,460 Second what we are going to see is this silver is going to make the nobility even richer. 235 00:24:21,460 --> 00:24:25,019 They are going to enrich the nobility. 236 00:24:25,019 --> 00:24:29,140 do you think the nobility is going to do with the money do you think they are going to invest the 237 00:24:29,140 --> 00:24:38,720 money in order to improve the the agrarian production it means remember the nobility 238 00:24:38,720 --> 00:24:45,799 own most of the land or most of the fertile lands do you think the nobility is going to use this 239 00:24:45,799 --> 00:24:52,440 money in order to make the land more productive no they are going to use the money in order to buy 240 00:24:52,440 --> 00:24:58,119 luxury products it means to show to the rest of the people to the rest of the society that they 241 00:24:58,119 --> 00:25:05,920 are rich okay so this is one key problem that you need to keep in mind for the next year for fourth 242 00:25:05,920 --> 00:25:13,059 official that the money that comes from america is going to be used to pay wars not to develop 243 00:25:13,059 --> 00:25:18,859 the spanish economy the spanish industry the spanish agriculture and also that the nobility 244 00:25:18,859 --> 00:25:23,900 with this money they are not going to use it to improve the production system 245 00:25:23,900 --> 00:25:29,339 they are not going to make our the Spanish industry or the Spanish agrarian 246 00:25:29,339 --> 00:25:34,819 system better or yes better so to increase the production what they are 247 00:25:34,819 --> 00:25:39,980 going to do is just to show to the people that they are rich how buying 248 00:25:39,980 --> 00:25:48,180 luxury products okay so neither the Kings nor the nobility are going to use 249 00:25:48,180 --> 00:25:53,039 money to develop the Spanish economy they are the nobility to show the others 250 00:25:53,039 --> 00:25:57,839 that they are rich and the Kings to preserve their empire paying these wars 251 00:25:57,839 --> 00:26:03,119 okay this is going to affect to Castile and you'll see that Castile is going to 252 00:26:03,119 --> 00:26:10,460 be in crisis at the end of the 16th century because of these reasons okay so 253 00:26:10,460 --> 00:26:15,539 the third one is the craft industry in the beginning careful with this the 254 00:26:15,539 --> 00:26:24,000 The craft industry in the beginning is going to grow because the American territories are 255 00:26:24,000 --> 00:26:26,660 demanding these manufactured products. 256 00:26:26,660 --> 00:26:32,140 So that's perfect, you say, ok, they are using the silver in order to pay these wars, they 257 00:26:32,140 --> 00:26:37,099 are showing that they are rich, but at least the craft industry in the beginning is going 258 00:26:37,099 --> 00:26:42,700 to increase, is going to grow due to this demand of the American territories. 259 00:26:42,700 --> 00:26:51,779 The problem is the prices of the products in Spain are going to be more expensive than 260 00:26:51,779 --> 00:26:52,779 in Europe. 261 00:26:52,779 --> 00:27:01,079 The thing is, due to this money coming to Spain, these products are going to be more 262 00:27:01,079 --> 00:27:04,920 expensive and more expensive as time goes on. 263 00:27:04,920 --> 00:27:09,980 It means this crumb industry is going to grow in the beginning but is going to diminish 264 00:27:09,980 --> 00:27:16,359 or is going to decrease at the end of the 16th century, because the production of these products 265 00:27:16,359 --> 00:27:21,500 in Spain is going to be more expensive than in other countries. Why is it going to be more 266 00:27:21,500 --> 00:27:25,720 expensive to produce these products in Spain than in other countries at the end of the 16th century? 267 00:27:26,119 --> 00:27:35,400 Because we haven't used our money to increase the production. We have used the money to pay 268 00:27:35,400 --> 00:27:42,519 world so we have used the money in order to make the nobility richer and to buy luxury products but 269 00:27:42,519 --> 00:27:47,400 not to increase the production to improve the production system 270 00:28:05,400 --> 00:28:11,640 because because we have used the money instead of to improve the productive system for wars or 271 00:28:11,640 --> 00:28:19,640 to make the nobility richer and show it through products like rings or pieces of 272 00:28:19,640 --> 00:28:25,960 gold etc. so that's the idea these are the these are three consequences of the arrival of these precious 273 00:28:25,960 --> 00:28:31,160 metals we are going to have a craft industry that is going to start growing in the beginning but at 274 00:28:31,160 --> 00:28:36,480 the end okay in the end of the 16th century the Spanish products are going 275 00:28:36,480 --> 00:28:40,039 to be more expensive so as you can understand what they are going to do the 276 00:28:40,039 --> 00:28:43,160 Spanish people to buy the products in Spain that they are more expensive than 277 00:28:43,160 --> 00:28:47,000 the in the Great Britain or to buy to Great Britain of course they are going 278 00:28:47,000 --> 00:28:52,039 to buy the products to the playtime so that our industry is going to decrease 279 00:28:52,039 --> 00:29:01,039 decrease decrease and almost die okay the fourth consequence is as we have 280 00:29:01,039 --> 00:29:07,640 that much money and we are paying these words we are going to start getting 281 00:29:07,640 --> 00:29:13,519 involved in more expensive projects it means if we have more money we are going 282 00:29:13,519 --> 00:29:18,319 to be involved in more expensive projects because you see that you have 283 00:29:18,319 --> 00:29:23,460 the possibility to be involved in these expensive projects so that's the idea 284 00:29:23,460 --> 00:29:29,480 okay due to the arrival of these precious metals the Kings are going to 285 00:29:29,480 --> 00:29:34,720 be involved in more expensive projects ok so the problem is when you have no 286 00:29:34,720 --> 00:29:38,160 money when they run out of money when they have no more money what they are 287 00:29:38,160 --> 00:29:43,299 going to do they are going to increase the taxes so the idea is with the money 288 00:29:43,299 --> 00:29:47,420 we are going to pay the wars ok if we need more money we go to the banks but 289 00:29:47,420 --> 00:29:52,940 if we want we need even more money to pay the loans to the banks we can use 290 00:29:52,940 --> 00:29:57,240 the American silver and also it will have not enough the taxes we increase 291 00:29:57,240 --> 00:30:02,839 taxes and that's it remember this money is going to make the nobility even richer and they are 292 00:30:02,839 --> 00:30:07,559 going to buy luxury products okay they are not going to improve the production system 293 00:30:08,279 --> 00:30:14,680 this reality is going to make the craft industry only grow in the beginning of the 16th century 294 00:30:14,680 --> 00:30:19,880 because the american territories are demanding these manufactured products but in the end of 295 00:30:19,880 --> 00:30:25,400 the 16th century as they have not improved the production system this craft industry 296 00:30:25,400 --> 00:30:30,440 is going to be more expensive in Spain than in other countries, so that they are going to buy 297 00:30:30,440 --> 00:30:37,029 the produce to the other countries rather than in Spain. Okay, let's see the last one. Okay, 298 00:30:37,029 --> 00:30:43,190 the economy continued to be based on agriculture, so it means our economy, the economy, the Spanish 299 00:30:43,190 --> 00:30:50,950 economy, the Hispanic monarchy economy is going to be based on agriculture. Okay, so we are in an 300 00:30:50,950 --> 00:30:57,049 an agrarian economy, we have more peasants than nobility, clergy, and this nobility and 301 00:30:57,049 --> 00:31:01,670 clergy, they are controlling most of the lands, and they are using the money, the silver that 302 00:31:01,670 --> 00:31:08,170 came from America, not to improve their production systems, to improve the productivity of the 303 00:31:08,170 --> 00:31:12,789 lands, they are going to use it to buy luxury products, okay? 304 00:31:13,210 --> 00:31:15,089 So these are the five consequences. 305 00:31:15,490 --> 00:31:19,230 These consequences are not very good to the Spanish economy, okay? 306 00:31:19,230 --> 00:31:38,269 In the beginning it's going to prosper due to the silver, but as time goes on, the Spanish economy is going to start to be involved in a crisis. So that's what we are going to see, the last thing. The Spanish economy at the end of the 16th century went into decline, went into a crisis. 307 00:31:38,269 --> 00:31:41,950 Okay, so at the end of the 16th century we have a crisis. Okay 308 00:31:42,670 --> 00:31:50,529 So the production of manufacturers fall you remember Castilian wool industry and crown of a Texan industry could not compete with 309 00:31:50,849 --> 00:31:57,730 Those abroad what I said, it means it's cheaper to buy the products abroad in the in great 310 00:31:57,730 --> 00:32:01,109 Britain in France rather than in Castile or Aragon 311 00:32:01,329 --> 00:32:06,690 so the idea is as they have not invested this money in the 312 00:32:06,690 --> 00:32:14,730 Castilian or Aragonese production system what they are going to do or what they 313 00:32:14,730 --> 00:32:20,910 are going to do is to buy these products abroad okay so the idea is is cheaper to 314 00:32:20,910 --> 00:32:26,369 buy these products abroad than in Castile and Aragon okay because they have 315 00:32:26,369 --> 00:32:32,130 not improved their industries okay so they have not improved the industry and 316 00:32:32,130 --> 00:32:36,329 they cannot produce cheaper they need to produce it more expensive than the other 317 00:32:36,329 --> 00:32:41,309 countries the Spanish the people from Castile and Aragon are going to buy 318 00:32:41,309 --> 00:32:47,329 these products to the other countries to the European countries rather than to 319 00:32:47,329 --> 00:32:52,769 buy it to the Castilian and Aragonese industries the last thing is the trade 320 00:32:52,769 --> 00:32:57,390 is going to be also affected trade is going to decrease at the end of the 16th 321 00:32:57,390 --> 00:33:01,269 century and it's going to decrease at the end of the 16th century because the 322 00:33:01,269 --> 00:33:06,329 production is going to decrease because of the different deaths that the Spanish 323 00:33:06,329 --> 00:33:13,369 monarchs have okay for example in the 16th century at the end remember philip the second felipe 324 00:33:13,369 --> 00:33:22,329 segundo is going to die in 1598 the people in castile were saying si el rey no muere el reino 325 00:33:22,329 --> 00:33:28,650 muere quiere decir si el reino muere con todas las guerras en las que se ha metido con todo lo 326 00:33:28,650 --> 00:33:32,869 que está gastando a nivel internacional con lo poco que está invirtiendo en la producción en 327 00:33:32,869 --> 00:33:38,990 castilla el reino castilla morirá por tanto querían ya que muriera felipe porque si no 328 00:33:38,990 --> 00:33:46,150 con su política de guerras y de inversión en el extranjero el reino no produciría y no crecería 329 00:33:46,150 --> 00:33:51,329 económicamente so that's the idea the production of manufacturers they are going to fall because 330 00:33:51,329 --> 00:33:57,309 they cannot compete with the the industries abroad so the spanish people are going to buy 331 00:33:57,309 --> 00:34:03,210 in Great Britain, France, etc. rather than in Spain, in Castile or Aragon, and also the trade 332 00:34:03,210 --> 00:34:09,449 is going to be affected, it's going to decrease. And that's it, the introduction to the Hasburg 333 00:34:09,449 --> 00:34:13,949 dynasty. In the next class we will start with Charles V or Carlos V.