# Lesson 5: Early Globalization (pt. 2) ## How Globalization Creates Privilege Notable seizures: Portugese im Macau (1554) Spain seizes Manila (1571), takes over pre-existing trade routes. > Galleon Trade - Two galleon trade ships that traded majority gold and treasure, eventually leading to the golden age of piracy ![Image](https://upload.cafenono.com/image/slashpageHome/20240227/202446_rJ8oEaUeRIZMQKHPrV?q=75&s=1280x180&t=outside&f=webp) The Columbian Exchange preconditioned globalization to be unequal --- ## Spanish Silver 1579 Marked a new age of piracy on the pacific ocean ### Francis Drake Farmers son, most successful pirate in history. ![Image](https://upload.cafenono.com/image/slashpageHome/20240227/202447_SCNKZ49etvPUenSNob?q=75&s=1280x180&t=outside&f=webp) > He used two cannonballs chained together to take down the main mast of the ships, rendering them inoperable The Spanish had an abundance of silver, 26 tons from the americas, enough to pay off all British debt, then fund their government for a year. Drake, backed by the Queen Elizabeth I, rained over 30 and sank over 70 with special permission from the Queen. He was so notorious that the Spanish crown was willing to offer 10 Million modern day dollars for Drake, dead or alive. He used a very special method of attack, he would slow his ships down and disguise them as merchant ships, getting as close to the Galleons as possible, usually seizing the vessel whole rather than sinking them. ![Image](https://upload.cafenono.com/image/slashpageHome/20240227/202447_S7KU3n3aWenoroB6Zu?q=75&s=1280x180&t=outside&f=webp) --- ### Andes - South America ![Image](https://upload.cafenono.com/image/slashpageHome/20240227/202448_ENCPRQfE3lJXhliWuz?q=75&s=1280x180&t=outside&f=webp) The turning point of Spanish silver trade, the Potosí silver mine. Essentially a mountain made of silver, it was formed 170 million years ago, when tectonic plates collided. It is to date the largest silver mine in the world. For the next 300 years, Potosí would supply 80% of the world’s silver. But within 20 years, all of Potosí’s pure silver would be mined out. The remaining ores are too impure to be extracted using heat --- ### **Bartolomé de Medina** experimenter, inventor, Spanish textile trader In 1553, he travelled to the Potosí mine to attempt to extract the silver. His method that had been tested in Europe - Chemical formula for extracting silver using mercury - initially failed. Medina failed to realize that the rocks that bear silver here have significant less copper sulfate than back in Europe. ![Image](https://upload.cafenono.com/image/slashpageHome/20240227/202449_CSEiPJKyFF9EthNSSm?q=75&s=1280x180&t=outside&f=webp) ![Image](https://upload.cafenono.com/image/slashpageHome/20240227/202451_JDeDkzEQu8xi9aY4sY?q=75&s=1280x180&t=outside&f=webp) After much experimentation, he realizes the missing component, and created the silver extraction method, but at the same time, he also unlocked the doors to a new era. With this discovery, silver production from Potosí dramatically increased, with 220 tons of silver mined every year. Making it the busiest industrial complex in the world. With their new-found wealth, the Spanish began to mint Pesos de ocho, pieces of 8. An estimated 2.5 million coins were minted yearly. The coin is equivalent to 80 modern day dollars. This not only kickstarted trade in Europe, it also marked the true beginning of globalization. From here on out, the world had entered a new era, one where global trading was seamless ![Image](https://upload.cafenono.com/image/slashpageHome/20240227/202452_VwPFiUiRR85dhJdkWZ?q=75&s=1280x180&t=outside&f=webp) The Peso was the first true global currency, with it being found from Asia to America. It was considered legal tender in the USA until 1857 and was the direct inspiration for the dollar sign. > In total, 50000 tons of silver was shipped out of the Americas, so much so as to create new Atlantic trade routes. --- ## What is money? > Money - Anything that is widely accepted or used to exchange for goods and services. > Bartering - Exchanging goods for goods ### Characteristics of Money ### Functions of Money - Generally acceptable - Scarce - Durable: Strong and can last long time - Divisible: Can be split into units of different values - Portable - Act as medium of exchange - Stores value: save and spend later - Unit of account: measure value - Act as standard for deferred payment: allow people to borrow and repay later ## Holland’s Tulip Craze ### Amsterdam 1639 ![Image](https://upload.cafenono.com/image/slashpageHome/20240227/202453_HXQNPkt9H17dolXClU?q=75&s=1280x180&t=outside&f=webp) A century after the Spanish expeditions, Holland has become the richest nation on the planet, controlling over half the world’s shipping, and having the most millionares in all of Europe, boasting the highest income per head in the continent. while at the same time also becoming the gambling city of Europe. Accompanying new riches, are new luxuries. That luxury, in this case, would be the tulip. Tulips from **Türkiye **infected with a specific disease that makes its petal especially vibrant. At the height its popularity, it could sell for 100 times its weight in gold. ## Jan Van Goyen Struggling artist, eager investor Around this time, a new form of product was also created, futures markets, the rights to obtain next year’s profits. Enter Van Goyen, a struggling artist who decided to take a gable in the tulips market, he invested all of his savings into tulip shares. ![Image](https://upload.cafenono.com/image/slashpageHome/20240227/202454_jZVwmkOUO1BSKDS7es?q=75&s=1280x180&t=outside&f=webp) | November 1636 | December 12th 1636 | January 1637 | | --- | --- | --- | | Prices Quadruple | Prices Double (10x original price) | Double Again | For commoners, this was the their one chance to become wealthy, where everyone had a shot in the market, it could turn orphans into millionares, as well as the opposite. make it rate chance for common to become wealthy some investors decide to sell fan hoyen doesnt confident that it will rise feb 3rd 1637 - auction, first batch of tulip bulb go unsold in days, investors panick to sell shares, but no buyers prices crash - used to worth 5000, now worth nothing value of investments can go up and down, they learn fan hoyen draw to repay debt 1200 pics, 800 draws, pilgrim ## Slave trade rural centeral africa, modern day angola Warrior queen, defend empire defend against portuguesse, who want land and people as slaves need slaves to manufacture sugar africans traded africans powerful africans sold africans to keep safe from portuegese portugese now stop working with her, start taking her ppl as slaves portugese work with african warlords aindongos outnmbered and surrpounsed people gets enslaved over 3 centures, europeans slave trafers transfer 15 million africans, mostly from centeral africa over next 20 years till death, fight to keep indongo people safe 250 years later, slavery abolished india - riches from american turn ruler indian ruler into richest man on planet 1631 boorham pur fortress shajahan - emporor of 100 million people shajahan means king of the world trasure hosues, house large amounts of scarce materials many american traders come to india for textiles cotton silk spices etc. 100 tons of silver pours into india each year millions in taxes giving to shajahan favrite wife in labor, muMtaz mahal 14th child many wives mahal first wife inspiration behind the throne For the site tree, see the [root Markdown](https://slashpage.com/atwnotes.md).