The creeping progression towards all-round state control under one soviet style European Union has hit a new low as Spain Bans Cash Transactions Over 2,500 Euros:
The Prime Minister, Mariano Rajoy, has announced on Wednesday that the plan to combat tax evasion on Friday approved the Cabinet prohibit the payment in cash transactions of over € 2,500 and which at least involved a businessman professional.
During the control session the Government in the House of the Congress of Deputies and in response to a question about the tax amnesty made by the general coordinator of IU, Cayo Lara, the Prime Minister has revealed that those who violate the ban will face fines of 25% of the payment made in cash.
The Government had already advanced the plan to combat fraud limitations include the use of cash for certain operations, although he had not yet specified which would place the threshold (yes at the time there was talk that it could be 1,000 euros for self-employed).
I highly doubt that this is in line with one of the supposedly fundamental pillars of the European Union, namely the unrestricted mobility of capital. Spain might as well exit right now and get it over with.
As everyone with half a brain knows and as we have been arguing here for a long time now: Government intervention leads to problems that will be combated with more government intervention until a complete breakdown of trade, credit, and the monetary system becomes inevitable.
We are witnessing the inevitable and accelerating downhill ride that is being aggravated and prolonged by one failed government intervention after another.
What’s next? All round capital controls, baby!