Of all the inept policy moves in the midst of a clear depression, hiking taxes is right at the top of the list. Yet, that is the path Spain is on, because it will not meet its budget projections.
Here is a link to an amusing "as is" Google translation of an article on El Econimista whose headline reads "The Government will raise the VAT if they fail the current fiscal".
What caught my eye was the translation of the last sentence that reads "Therefore, it is possible that eventually have to raise this popular tax before the deadline."
I was laughing out loud at that sentence because taxes are never popular. To be sure, I did not precisely understand the correct context of that sentence.
My friend Bran who lives in Spain provides a better translation of the last sentence as follows:
Therefore it is not ruled out that the 'populares' (a common term used to denote the PP political party) would have to raise the VAT before planned.
That certainly makes more sense. However, the rest of the translation is suspect as well.
Self-Destruction Coming Up
Gonzalo Lira who lives in Chile, and with whom I have had (and still do) vehement disagreements regarding hyperinflation, graciously supplies the gist of the entire article in spite of those disagreements.
Lira writes ...