Rumor: Spain May Ditch Austerity in Favor of Massive Tax Hikes

Business Insider is reporting:

According to a source in Spain, the socialist government of Prime Minister Zapatero is now seriously considering pulling back on its plans to run an austerity budget.

Instead, the government may just be planning massive tax hikes, as popular unrest over its planned budget cuts grow.

European markets are selling off at the moment, with the Spanish IBEX down nearly 5.5%.

I'm thinking massive tax hikes might spur a few protests, but of course this would have to come from the working people, rather than the non-working Molotov cocktail throwers.

The flaw in the EU bailout plan is that it is outsiders, correctly seen as the banksters, imposing their demands on countries. The people are mad enough not to take it. The only realeconomik solution is the one I proposed on April 29.