Skip to comments.EU: Another domino falls as Hollande pushes France into depression
Posted on 09/30/2012 1:44:36 PM PDT by bruinbirdman
If French President François Hollande thinks he can assuage the bond markets by dishing out tax-heavy austerity instead of genuine reform, he has been given very bad advice.
His tragically-misguided budget offers no strategic plan to reverse -- or even to stop -- thirty years of slow national decline. He offers no worthwhile measures to slim the Leviathan state, now a Nordic-sized 55pc of GDP, without Nordic labour flexibility or Nordic free markets.
He does not tell us how he will stem the slide in Frances share of eurozone exports over the last decade, down from 17pc to 13pc, or what he will do about the disastrous swing in Frances trade balance from a surplus of 2.5pc of GDP to a deficit of 2.4pc since 1999.
He proposes nothing credible to restore Frances viability within EMU, or to stop public debt spiralling beyond 90pc of GDP. Instead he has served up the most drastic retrenchment in forty years, at the worst possible time, and in the worst possible way. And markets are supposed to applaud?
The budget will tighten discretionary fiscal policy by 2pc of GDP next year into the teeth of deepening depression, without offsetting monetary stimulus or exchange rate relief.
Mr Hollande likes to quote Leon Blum, the Popular Front leader of the interwar years. The reality could hardly be more cruel. He is replicating the disastrous deflation policies of Labour Chancellor Snowden in 1931, before the Labour Party woke up to the delicious possibility that you could lift two fingers to the forces of reaction and leave the Gold Standard.
Worse yet, he is perilously close to re-enacting the desperate deflation decrees of Pierre Laval -- an ex-Socialist dreamer, pacifist, and utopian who lost his way, and ultimately cleaved too closely to foreign
(Excerpt) Read more at telegraph.co.uk ...
“Let them eat cake!”
“That didn’t work out so good last time.”
“Oh....then let them eat croissants.”
Le ha ha!
another elections have consequences moment
Coming next to America if Obama gets re-elected, you can bank on that.
Euro protesters demand Skittle-pooping unicorns!
Will bring economic activity to a screeching halt except for the last panic buying as shelves go empty
I could care less about most French save the wine makers. Being tied to the land, wineries will not be able to flee the country and taxing them at 75% does not portend well for future prices or quality. Of course it will be a boone for Oregon pinots and California Cabs when the frogs drive down production in Burgundy and Bordeaux.
“Let them have FREE cell phones!”
Your advice to me is not working! Whatsup wit dat?
I hear Argentinian and Australian wines are decent.
As opposed to the Mother-of-All-Godzilla-sized Leviathan states, the Massive-sized 103pc of GDP currently here in the USA.
http://www.youtube.com/watch?v=HNG068z9FYk OOo-BAA-Ma Phones!
The liberals are collapsing western economies while the islamists unify and prepare for war.
This is pre-planned.
Seventy-five-percent socialist tax rates may be bringing the French economy to its knees, as expected. However, on the bright side, Parisian students haven’t brought their city to its usual state of mass chaos this year with weeklong citywide rallies demanding the overthrow of the current socialist government.
But unless it’s overthrown soon, the only place an average French citizen will be able to afford a decent meal will be at MacDonald’s.
That is....if the Obamas don’t manage to outlaw fast food restaurants. It looks like that is a distinct possibility if they cheat their way to another term.
What about China?
When the French get riled up, they go communist or fascist rather than the usual “moderate” nosey, oppressive and controlling p.c. socialist. It’s bloody and fail time in France.
The Leftists here so badly want their own bloody French revolution or “American Spring.” Gov. Brown is releasing prisoners who were convicted as yutes (gang members). Is the old Marxist trying to kickstart a great Frenchy riot in California?
This really sucks. When France goes down the tubes, I won’t be able to kick it around any more.
Production of French wines may continue but people will discover that cheaper American/Chilean/Australian/South African etc. wines are just as good.
I think that’s the % of GDP that is produced by the public-sector...
It is a Keynesian discussing the errors of a socialist. I hate to say that about AEP because he is very insightful on non economic things.
A 75% rate on the “rich” is to get the support and cheers of the proletariat. It is alwo shortsighted as hell because it ultimately mreduces everyone’s standard of living, especially those who do not have sufficient resources and connections to be able to move their assets and selves from the country. As class warfare, it misses the declared target and blows out the firing chamber.
A 75% rate on the “rich” is to get the support and cheers of the proletariat. It is also shortsighted as hell because it ultimately reduces everyone’s standard of living, especially those who do not have sufficient resources and connections to be able to move their assets and selves from the country. As class warfare, it misses the declared target and blows out the firing chamber.
AEP thinks the euro currency zone is a fiasco, a utopian fantasy. He predicts its demise.
However, he thinks money printing, while fruitless in the end, will temper the social upheaval associated with the current eonomic meltdown.
He does not favor a sudden massive catastrophy.