Skip to comments.Spain: Too Big to Fail and Too Big to Save (Cash transactions over 2500€ will be banned)
Posted on 04/20/2012 10:52:29 AM PDT by dennisw
Cash business transactions over 2500 are to be banned, Hacienda has said they will not fine anyone who admits that they have been making payments of more than 2,500 over the previous three months. The cash limit is part of the Governments anti-fraud plans which have been approved today. Those Spaniards who have a bank account outside the country now face the legal obligation of having to inform Hacienda about the account. The Government hopes its anti-fraud measures will bring in 8.171 billion .
My fellow US citizens will be saying to themselves, "So what? We have to report our foreign bank accounts, and any large cash transactions are flagged." But gentle reader, this is much different. This is new law for Spain, basically currency control writ large, and bells have to be going off all over Europe.
This is the new Spanish government revealing serious desperation. The government's back is to the wall. They have to know they will not collect the taxes they need to generate, but are going to try anyway to demonstrate to the rest of Europe (read Germany) that they are doing everything they can.
In a side note, on Wednesday, Spain's interior minister introduced new measures to thwart plots using "urban guerrilla" warfare methods to incite protests. And the local papers are printing op-eds by economists talking about how the effort to comply with German austerity demands will just make the economy worse, and that the government is not taking into account the resolve of labor unions to oppose them. "Germany is the problem." It pains me to say this (truly it does), but this is what we were writing about Greece, not all that long ago. We are seeing footage of demonstrations, verging on riots. It is a familiar pattern.
Why don’t they just get rid of currency? They could put a mark on everyone, and if citizens wanted to buy or sell stuff, they could just show the mark and then take what they need from the communal pile. [/s]
Yep. Or at least to avoid any further flight of capital.
THERE IS MORE AT REAL CLEAR POLITICS-——>>>>>>
yea a step towards capital controls....coming soon to a country near you!
Franco IS dead. That’s why they’re having problems.
A university education in economics.
And the first two are optional.
No worries there. They can book the "uncollectable" fines as receivables.
Boy is life about to get miserable for the hombre en la via.
So what happens to a nation whose people have forgotten how to work, whose people has been taught entitlement since birth, when their all-knowing government can no longer borrow the money to support them?
Good case to watch -
‘cause we’ll be repeating it here in five years or so.
I'm sure it was.