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Spain Bans Cash Transactions over $2500

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posted on Apr, 16 2012 @ 09:04 PM

Originally posted by Paschar0
(Not sure why the NO LINK is popping up, it's from blogDOTalexanderhigginsDOTcom)
If you Google Spain-bans-cash-transactions, it comes up.

Afraid of losing tax revenue to the black market, Spain has decided to clamp down on it's citizens.

I see much of what happens in countries like Spain, Greece and England as a sign of things to possibly come here in the U.S. I think most would agree the government would love to enact something like this to control people and gain revenue.
edit on 16-4-2012 by Paschar0 because: (no reason given)

Nope, you're missing a piece of the puzzle...

Borrowing costs have surged to four-month highs in past days because of concerns over Spain's ailing finances and economy.

The yield on Spain's 10-year government bond closed Monday 0.121 percentage point higher at 6.029%, surpassing 6% for the first time since December, when the European Central Bank started offering loans to banks. Banks used much of €1 trillion ($1.3 trillion) received in three-year loans to buy government debt.

For now it seems the banks have run out of money and can’t buy any more bonds. That means Spain is going to have a “real problem” funding the rest of its financing needs this year. “There is no doubt Spain will need a bailout,” said Sarkar, who’s an independent financial commentator now.

The economy is bad. It’s so bad, the Rajoy administration just threw out the initial deficit targets. They negotiated a new target with the EU, but meeting it will mean more pain for the Spanish people, via austerity measures.

Source WSJ

What isn't being discussed a great deal in these articles is that while the 6% benchmark for bonds has already been breached previously before coming down, it is consistently used as a signal that a bailout will be needed.

A bailout for Spain would not be the same as a bailout for Greece. And as many are expecting Greece to need more assistance this year too, bailing out both will be an impossibility.

This is all starting tomorrow, with Spain hoping that it can raise enough through auction in an already jittery market. Those with some common sense would stay away from it, but we know the markets don't actually work that way. Whoever is planning to buy up Spanish bonds is obviously not looking at the numbers and seeing the likelihood of both Greece and Spain needing assistance!

I've said it before and I'll say it again, the death of the €has already started. Even bankers on Wall St are openly saying that the measures in the Eurozone are delaying tactics only and nothing more - it's all the bare minimum, at the last minute, when it has to be done. There's very little effort being put into fixing the core problems from stable nations other than throwing delaying cash at the problem.
The Euro will fall this year. Greece and Spain will likely see revolutions, probably followed by all other western nations in 2013/2014 - including America.

posted on Apr, 16 2012 @ 09:15 PM
reply to post by detachedindividual

I got to agree with your post 100%. Greece was just the prologue to the real Euro crisis Spain and Italy are the main show. I believe the issue is as much financial insolvency as it is totalitarianism.

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