ECONOMY

Economically there were several problems.

• The introduction of the fleece coin (mixture of silver and copper) that was used in purchases and sales in the interior of Spain. Manipulations of this currency were carried out, consisted in removing the silver from the coin to use them for other benefits . The fleece lost its validity.

• Due to the large amount of precious metals coming from America there was an inflation. This did not worry rich Spaniards.

• Felipe III found empty money boxes for the enormous cost of wars and the enormous amount of precious metals brought from Seville created a demand for luxury items, which were made outside the peninsula.

For these 3 causes in 1607 there was a suspension of payments by the real power to not be able to return the debts. To resolve this situation Felipe III gave the bankers titles of public debt in exchange for credits.

• The duke of Lerma bought a large number of houses, palaces and land in Valladoliz very cheap. He changed the court to Valladoliz and everyone bought him the most expensive lands. With that money he bought land in Madrid and changed the court again to Madrid, raising the prices of the houses and obtaining great wealth.