France votes for Ponzi

No more “austerity” for France. Not that there ever was any cutting of government. “Austerity” in France was tax increases. Now they aren’t even going to do that. They are going to borrow their way to prosperity.

On Sunday, Sarkozy became only the second French president to fail to claim a second mandate since Valéry Giscard d’Estaing was swept out of office in 1981.

It was also the first time the Socialist Party won a presidential contest since Mitterrand’s re-election in 1988.

The Socialist president-elect, who has emerged as a new champion for Europe’s anti-austerity camp, was expected to call German Chancellor Angela Merkel on Sunday evening.

Of course France does not have its own currency so it is going to run into some Greek style issues with interest rates. France, however, is a much larger part of the European Union than is Greece. Expect to see tension with Germany has France immediately begins its campaign to debauch the shared currency. This should be interesting. History has shown that when Germans are economically isolated and placed in debt against their will, they become very unhappy.

Speaking of debauched currency… If you do the grocery shopping for your family, you have already noticed the insidious tax being used to cover the US debt… inflation.

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9 Responses to France votes for Ponzi

  1. R.D. Walker says:

    Cloward-Piven Strategy Working Perfectly — in Europe

    Sunday might not be as epochal as Russia’s October Revolution, but it should be remembered as the day of the first Cloward-Piven Revolution. It just happened in the “wrong” countries.

    Will the revolution spread to America? Have Obama’s policies over the last four years addicted so many people to food stamps and Social Security disability payments and unemployment benefits and so many other entitlement programs that we as a nation will go the route of France and vote for the guy who promises to keep the drugs flowing, regardless of the consequences? Will the inherent resilience of the American economy keep the illusory prosperity afloat long enough to usher Obama into office for the final assault on capitalism?

    Hayek help us.

  2. Notamobster says:

    Anyone with a studied opinion of human history saw that one coming. People, when given the chance, will fuck indiscriminant people every time.

  3. R.D. Walker says:

    Paul Krugman, of course, is thrilled.

    Remember back in 2003 when Krugman was telling us Bush’s spending was going to sink America?

    Memories of the Krugman that was, March 11, 2003….

    But the conclusion is inescapable. Without the Bush tax cuts, it would have been difficult to cope with the fiscal implications of an aging population. With those tax cuts, the task is simply impossible. The accident — the fiscal train wreck — is already under way.

    How will the train wreck play itself out? Maybe a future administration will use butterfly ballots to disenfranchise retirees, making it possible to slash Social Security and Medicare. Or maybe a repentant Rush Limbaugh will lead the drive to raise taxes on the rich. But my prediction is that politicians will eventually be tempted to resolve the crisis the way irresponsible governments usually do: by printing money, both to pay current bills and to inflate away debt.

    And as that temptation becomes obvious, interest rates will soar. It won’t happen right away. With the economy stalling and the stock market plunging, short-term rates are probably headed down, not up, in the next few months, and mortgage rates may not have hit bottom yet.

  4. James says:

    This is a map of countries using the Euro.

    Germany will not make the same mistakes as WWII. In order for this war to work, Germany will need a non-aggression pact with Britain and other countries. They will not attack an eastern front, and they will not fight against England.

    Oddly enough, Germany did not start WWII, the French did. Germany defaulted on reparations for WWI, and France occupied the Ruhr in 1922. Germany was in hyperinflation at that time, and the Franc collapsed in 1924. WWII started with currency problems.

    Hitler was appointed Chancellor in 1933. Poland was invaded in 1939. So the timeline of human behavior from being miserable to turning over a government is 10 years, and misery to doing something about it is 15 to 20. A new generation is required with a different mindset.

    Yes R.D., we are seeing the seeds of another European war within 20 years.

  5. R.D. Walker says:

    P.J. O’Rourke in 2008:

    France is a treasure to mankind. French ideas, French beliefs, and French actions form a sort of loadstone for humanity. Because a moral compass needle needs a butt end. Whatever direction France is pointing in—toward Nazi collaboration, Communism, existentialism, Jerry Lewis movies, or President Sarkozy’s personal life—you can go the other way with a clear conscience.

  6. messup says:

    Socialist Policies Result In High Unemployment

    (5 May 2012) European residents are paying for the long-term deficit spending by Socialist politicians as they redistributed income / wealth.

    In March, the unemployment rates in the 17 Eurozone and 27 European Union (EU) countries were 10.9% and 10.2%, respectively. The rate in Spain was 24.1% and it was 21.7% in Greece (January).

    In March, the under-25 unemployment rates in the Eurozone and EU were 22.1% and 22.6%, respectively. The rate in Spain was 51.1% and it was 51.2% in Greece (January). (Source: 2 May 2012 Eurostat)

    And they voted for more of the same? Must be something in the wine. Merkel isn’t going to foot the bill! Oh! “Obama Money,” thru the IMF…geez, didn’t see that one coming. God Bless America. Amen.

  7. notamobster says:

    Lazy, self-interested, fools. They will be crushed by a force of Germans who aren’t afraid of work.

  8. Roy Ryder says:

    The stress between Germany and France promises to rend the EU’s economic union. It will be very difficult for the two primary engines of the EU to go in opposite directions. Germans will unhappily subisidize Greek debts and perceived laziness because there are so few of them and Germans need a place to vacation. However, Germans will not subsidize fiscal stupidity and perceived laziness on a massive scale just next door. Expect to hear renewed nostalgia for the Deutchmark and “Germany for Germans” talk.

  9. Uke says:

    This is the inevitable way of things, Roy. The people that are getting the shaft, doing all the work, and having to subsidize everyone else? If they see they can’t make the leeching party fly straight, they eventually go Galt. Which in national terms means monetary secession.

    Well, on a national scale there are always other options on the table, too.

    One of which being a blitzkrieg.