EU: Another domino falls as Hollande pushes France into depression

ScienceRocks

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EU: Another domino falls as Hollande pushes France into depression
The Telegraph ^ | 9/30/2012 | Ambrose Evans-Pritchard
Another domino falls as Hollande pushes France into depression - Telegraph

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 France’s share of eurozone exports over the last decade, down from 17pc to 13pc, or what he will do about the disastrous swing in France’s trade balance from a surplus of 2.5pc of GDP to a deficit of 2.4pc since 1999.

He proposes nothing credible to restore France’s 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

This is what Obama wants to do to our nation...Raising taxes doesn't work! Simply looking at idiotic policies of other nations is the best way to tell what is right or wrong.
 
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If any one of the major blocks holding up the world economy collapses=depresssion. Hell, I'd go as far as say dark age.

Eu,
US
China

are the main nations/blocs to watch.

We know for a fact that Obama's policies don't work.
 
In Spain, Greece and France the government is like cool and smart and runs the economy....we should do that here!
 
France’s Socialist 75 percent tax rate is economic suicide
The Telegraph (UK) ^ | September 28, 2012 | Nile Gardiner

Back in May I wrote a piece describing Francois Hollande’s election victory as emblematic of the EU’s decline, noting that “his government promises to be a symbol of everything that is wrong with Europe today.” True to his election campaign promise, the new French president, together with his prime minister Jean-Marc Ayrault, has outlined his plans for a 75 percent marginal income tax rate tax on anyone earning more than €1 million Euros a year.

This is economic suicide for the second biggest economy in Europe, a supreme act of financial har-kiri for a country whose public debt has now risen to 91 percent of GDP, a growth of 30 percent in five years. This is part of €20 billion Euros worth of new taxes, mainly on businesses and high earners, unveiled by a backward-looking Socialist government seemingly intent on economic self-destruction. As Jean-Paul Agon, chief of L’Oreal told The Financial Times earlier this week, it will now become “almost impossible” for France to attract leading business talent.


(Excerpt) Read more at blogs.telegraph.co.uk ...
France
 
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I'd be embarrassed to post such crazy shit.

For once, Matthew isn't posting crazy shit. French professionals are moving to London in droves to escape the 75% tax levels. But hey, we don't mind. Britain benefits from getting the cream of the French business crop...and we mustn't forget to thank France for putting yet another nail in the coffin of the EU. :D
 

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