What did Spain do with the Aztec gold?

You know, all that gold taken from the Aztecs and Incas during the days after Columbus started the rape of the new world?

A column (reference lost) raised the question and provided an answer. This provided an interesting contrast to current economic conditions as described by Charles Bird. What is comes down to is that the gold from the new world was analogous to printed money. It did not reflect real wealth like that the US is developing in the productivity growth described by Charles. Printed money is more like what happened to the German mark in the thirties. It causes inflation.

Real wealth, such as the US economy is currently producing, raises the standard of living. Real wealth means more things are available at less cost. Fewer farmers and fewer acres provide more food. New things (and technologies) that are invented cure disease, improve communications, facilitate manufacturing, enable ideas to become even more things.

The concept to ponder is the difference between gold mined to be put on the market and gold obtained by whatever means to be used as money to purchase other things.

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