Most students of economics are familiar with the Laffer curve, named by Dr. Art Laffer, which demonstrates how higher taxes do not necessarily mean a higher tax yield, with there being a point (the peak of his curve) after which total revenue falls when the tax rate increases.

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The Spanish 10-year bond yield was at 5.32% Wednesday, well below its November peak in the 6.7% range and the 7% threshold which has been unsustainable for other countries in peripheral Europe.

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Moreover, the average net yield on taxable money market funds has declined to less than 1% now from a peak of more than 6% in 2001.

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