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.
Share this Article
Like this Article
Print this ArticlePrint Article