The Dutch-Spanish confrontation in the 17th century began as a local insurrection but evolved into the world's first global conflict--a conflict that profoundly influenced the relationship between Europe and the Indies as well as the European balance of power and the world economy. This is the first study of the conflict and its immediate aftermath. Israel reveals the deep and complex divisions between the political elites on both sides and demonstrates the decisive impact of political and military activity on the economic fate of Europe and the wider world.