The document outlines the chronology of decline for the Iberian powers of Spain and Portugal from 1555 to 1898. It then discusses two main causes for their decline: financial overextension from ambitious global conquests and a focus on short-term bullion gains over long-term economic development, as well as internal strife from revolts across Europe which weakened their military strength and opened opportunities for competitors like France, England, and the United States.

1. Brian Fontaine The Decline of the Iberian World History 140 Ning Posting #1 Peoples & Empires History 140 Summer 2011

3. Causes I Financially Overextended 1584 – End Ambitious plans to conquer China via. Philippines & Thailand Most resources went to support/ protect overseas Possessions Focus on GOLD & SILVER Spanish bullion from the Americas was near-sighted goal for most of ruled period Lacked commerce & trade development abroad Failed attempt in 1770 to modernize economics based on “fair-trade” Focused on Short-Term Gains Phillip II, III, IV No consideration for long-term sustainability ECONOMICS (primary factor) Lack of understanding “inflation” Supply & Demand issues caused devaluation Adam Smith – “ All Spain’s problems attributed to over production of bullion”