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The Articles of Confederation did not allow taxes to be collected, as well as not establishing a national bank, which left the nation in debt.
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The local elites, the <em>criollos</em>, had wealth, lands and social position, but they lacked political power and were discriminated because they were born in the colonial territories; their families were of Spanish origin, but as they were born in the colonies, they were seen as socially inferior to the <em>peninsulares</em>, Spanish born in Spain and who were the only eligible to the top posts of the colonial administration. Besides, Spanish restrictions and Madrid monoply of trade impeded increased trade and its benefits with other economies. They also got inspired by the fight of the American colonies and the independence of the United States, as well by the French Revolution and its ideals. Many heroes of Latin American independence fought with the Napoleonic armies in Europe convinced they were fighting to spread the libertarian ideals of France. Besides, the decadence of Spain added another reason to dream about independence. The leaders of Latin American revolutions were <em>criollos.</em>
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B. European countries claimed and fought over land already inhabited by Native Americans
