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NEW WORLD ECONOMY
he discovery of gold and silver in the Americas dramatically changed the economy of the world. Precious metals, mined by Indians working under deplorable conditions, were sent back to Spain where they were minted into coins and used to pay Spanish debts. The mountain of Cerro Rico in PotosÃ, Bolivia produced 85 percent of the Andean silver shipped to Europe. The very name Potosà came to signify inexhaustible wealth. Massive amounts of money soon circulated throughout Europe, and for the first time many people were able to buy large amounts of goods. Money replaced land as the measure of wealth and power, production increased, and international trade expanded. American bullion from Acapulco crossed the Pacific and was transported via the Phillipines to China to trade for spices and porcelains.
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 The Encounter
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