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Spain's politicians, in something of an emergency move, have just stuck Spanish households and small businesses with a hefty new energy tax to go into effect tomorrow. Yeah, that oughta help matters.

This latest in a series of energy tax hikes is intended to help pay down the burst renewabubble, which they also realize they can't just end but must perpetuate, continuing the harm as they sidle toward finally stopping the bleeding (they hope, even if they can't quite figure out how to unwind their self-imposed mess). The bleeding their politicians created, and ours plan to replicate here before the 2012 re-elect. Yes: still.

As I have noted here before, it turned out that killing it, dead, would just bring down the banks who backed the 'guaranteed' scam, as well. Which does tend to happen when politicians create aid-dependent industries, and therefore bubbles. Which must burst.

No wonder Obama stopped saying 'look at Spain.' What's amazing is that the kidz at the White House really didn't understand. When they started him down that path. Or now. But seem only to get that they need a new phony success story to point to.

2011 prediction: Their decision to redirect attention to China and the looming scandal that is Germany's bubble (hint: the government, Deutsche Bank, and talking one's own book), will work out just as well.

View all comments (12) | Leave a comment

RJ| 12.31.10 @ 3:05PM

This is another addition to the long list of government intervention in economics creating havoc. Government should stick to core governing functions and leave economics to the markets. Given the record of government intervention, it is amazing how many people sign on to a politician's plans to "help" the economy. It all goes back to Bastiat's "That Which is Seen and That Which is Not Seen."

George| 12.31.10 @ 5:48PM

What a pile of right wing neo-conservative tripe. take away the fossil fuel subsidies and compare them to the renewable energy benefits and your use once fossil fuel argument goes up in smoke... Literally!

Occam's Tool| 1.1.11 @ 5:13AM

What's really killing Spain is lack of children. Compared to that, the energy problem is a trifle. But Spain, like the rest of Western Europe, is a dead man walking: 1.47 children born/woman (2010 est.) Average age of females: 41.5 years.
(Source CIA Factbook)

Wxcynic| 1.1.11 @ 2:05PM

Not sure I understand the math of this issue. Popular figures for replacement populations seems to be near 2.1. That said, if we live an average of 3 to 4 generations, shouldn't the true replacement figures take that into account and be nearer to 0.5 or 0.7? If each female has half a kid we end up with two by the time I'm 80, replacing me and the wife. Granted, demographics will soar upward in age.

Nancy| 1.1.11 @ 5:59PM

Wx...the concept of "replacement level" breeding can be confusing, for sure.
But 2.1 is actually correct.

The way it works is that everyone has to "replace" themselves.. .Every woman needs to bear 2 children.
It doesn't matter if we live till 40 or 80.... Each individual still has to "replace" himself. If there are 3 generations of your family alive today (Grandparents are awesome!!), it's really just a temporary situation . Since other families are in different stages & people are being born & dying every day, it will balance out, over a large population.
(The Baby Boom's really skewed the census numbers in our lifetime, but each of us still needs to have at least 2 little ones or our population will shrink.)
Happy New Year

Wxcynic| 1.1.11 @ 9:37PM

Thank you Nancy,
As a greatgrandfather of three with a Mother still alive it seems there are a lot of us replacements.

Rich Fisher| 1.1.11 @ 1:10PM

George, everytime I see one of you energy neophytes use the term "use once" or "finite" I wonder what rock you climbed out from under. We keep finding more and more oil but don't have the brains to drill for it or extract it. Your only argument is that it takes millions of years to break down whatever it is that gets broken down to make oil. And I say, "SO WHAT"! Every day is a million years from some day in the past you moron so every day something from a million years ago is finally oil. You have absolutely no proof that there is a fninite supply of oil and that it isn't still being "made". There's more proof that oil is abundant and we don't even know how much more there is that we haven't found. If we had the political will to drill for it or extract it we wouldn't have an energy crisis. But, then, what would you renewable morons have to talk about then? Since global warming is also a hoax cooked up by the Left and eco freaks, to prevent our drilling for more oil, you're running out of "the sky is falling" things to talk about. How about we give the Left their own country and let them run it as they wish and we'll run the US as a capitalist nation and after, oh say 200 years of so, we'll see who's doing best. Oh yeah, I forgot, we've already done that. It's called Europe and look at what great shape the Left and their socialism has left it in. Game, set, match. Shut up and get out. The Emperor has no clothes.

Richard Baker| 1.1.11 @ 10:23AM

George:
What ever are you smoking? The tax revenue from petroleum is a cash cow for most states. "Renewable sources" can't survive because of their expense. What was the subsidy for the Chevy Dolt, again?

Iter| 1.2.11 @ 6:16AM

There is ITER project to be on stage after 100 ys from now. Besides, U or Th technologies enable 1000 ys of enough energy. So, don`t worry folks.

theBuckWheat| 1.2.11 @ 9:42AM

Every one of these market distortions was made possible by expansive credit creation by government or else outright subsides and grants. In every case the full price of the foolishness will be paid by the public and the holders of the currency that was inflated to pay the bill.

Negro X| 1.2.11 @ 11:06PM

Why is burning gas in my car hurting the planet, but setting fire to housing developments in California is saving it?
If cutting out the middleman lowers the price, why are we paying the government to stand between us and the markets?

laura arenas| 1.3.11 @ 8:41AM

If Spanish women don't have many children, the population is more than normally increased with the millions of undocumented immigrants that land from Africa, Eastern Europe and South America. With as many rights as the host citizens!

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More Blog Posts by Chris Horner

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