However, the Spanish also suffered economically. The gold and silver coming from the New World only made the Spanish temporarily wealthy. One of the long-term problems was inflation.
Firstly, Spain’s population was rapidly increasing, thus, Spanish merchants began to raise prices on foods and other goods as the demand was significantly higher.
Throughout the 16th century, Spain also increased its military might. To protect its treasure-filled ships, Spain built a powerful navy and strengthened its other military forces, creating a skillful army. For a century and a half, Spain’s army seldom lost a battle.
Spain’s American colonies helped make it the richest, most powerful nation in the world during much of the 16th century. Ships filled with treasures from the
Americas continually sailed into Spanish harbors. This newfound wealth helped usher in a golden age of art and culture.
;growing maize, beans, and Garrido's wheat; lending money, goods, livestock, and slaves to entrepreneurs and adventurers in return for a share of the profits; importing silkworms; and raising big stone structures as monuments to himself.
Cortes and Spain reaped various benefits and did many new things including: digging silver mines; establishing cattle ranches and hog farms; panning for gold; opening a shipyard on the Pacific coast; creating a shopping mall in central Mexico City
Additionally, to pay off the Spanish army that captured Mexico the soldiers and officers were granted large areas of land and the natives who lived on them as a type of feudalism.
We also introduced the Encomienda system, a system of oppression and exploitation of natives. Essentially, because of the encomienda system, the upper class gained money as a result of the labor of the lower class.
Cortes spent the next seven years establishing peace among the Indians of Mexico and developing mines and farmlands. Cortés was also one of the first Spaniards to attempt to grow sugar in Mexico and one of the first to import African slaves to early colonial Mexico.
Cortes also began the construction of Mexico City on the Aztec ruins and brought many Spaniards over to live there. Mexico city soon became the most important European city in North America.
We introduced new technology, we introduced the Aztecs to domestic animals, sugar, grains, and European farming practices. Institutions of Europe were introduced into Mexico. Spain also opened up trade with other countries and made profits.
Hey guys, I am back after a few years. Let me update you on what has been happening. Firstly, a whole new race has been created, it is a mixture of Spanish and Natives, they are called Mestizos. We have also brought in Priests, converting every last native here.
Over the course of 93 days, we mounted assault after assault on the Aztec defenders, gradually wearing them down. When we, at last, broke through the city’s defenses, we were ruthless, subduing the Aztecs street by street, slaughtering at random & looting what we could.