Posts Tagged ‘Hollande’

Outlook dire as a huge depression approaches France

November 30, 2014

Sarko’s back!

The best that France can offer

The best that France can look forward to

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Hollande’s France is dragging down the Eurozone and the world

November 15, 2013
Photo - AFP

Photo – AFP

Francois Hollande is a socialist of the old school and about a century behind the times. Fundamentally he has few new ideas beyond tax the rich and create more public sector jobs. He is not even very popular at home just now – but the French have only themselves and Sarkozy’s excesses to blame for having him there. Dominique Strauss-Kahn’s sexual excesses also helped. He makes impossible promises with a straight face. He promises to cut state spending without reducing public sector jobs. He will improve competitiveness without  reducing state subsidies. And he has promised to reduce unemployment by the end of this year. Nonsense promises are not doing much for his credibility.

France’s credit rating is falling and even The Guardian has little good to say about his administration:

The GuardianFrance’s second credit-rating downgrade by Standard & Poor’s in less than two years is as damaging politically for the socialist François Hollande as it was for his rightwing predecessor Nicolas Sarkozy, who lost the election shortly after France lost its AAA rating in January 2012.

S&P directly attacked Hollande’s economic policy, questioning the socialist government’s capacity to repair Paris’s stuttering economic motor. It said the problem with France was that the government’s tentative reforms were not enough to lift growth in the eurozone’s second largest economy.

Hollande, recently found to be the most unpopular French president on record in a poll by BVA, was already struggling to sell his economic measures to the nation. “The recovery is here,” Hollande declared in August after a small rebound in growth following months of stagnation. But real, sustained growth is expected to be slow in returning. …… 

And now the economy of France, along with that of Italy, is actually shrinking. The global recovery needs Europe  – and not just Germany – to do its bit. Instead, Hollande’s schoolboy economics are not just threatening the Eurozone recovery but actually threatening to postpone the recovery.

ReutersThe euro zone economy all but stagnated in the third quarter of the year with France’s recovery fizzling out and growth in Germany slowing. The 9.5 trillion euro economy pulled out of its longest recession in the previous quarter but record unemployment, lack of consumer confidence and anaemic bank lending continue to prevent a more solid rebound.

In the three months to September, the combined economy of the 17 countries sharing the euro grew by a slower than expected 0.1 percent. In the previous quarter it rose 0.3 percent – the first expansion in 18 months. The euro fell to a session low in response.

The French economy contracted by 0.1 percent, snuffing out signs of revival in the previous three months. It had been expected to post quarterly growth of 0.1 percent and has now shrunk in three of the last four quarters. ……. 

Unemployment is still increasing even though the number of French seeking jobs outside the country is also increasing. The rich have been fleeing Hollande’s swingeing taxes in droves.

The Telegraph: 

France’s economy has buckled once again amid official warnings of an explosive political mood across the nation that threatens to spin out of control.

French output fell by 0.1pc in the third quarter and Italy remained trapped in recession, dashing hopes of a sustained recovery in Europe. “It is no longer a question of whether the eurozone can achieve ‘escape velocity’, but whether it can grow at all,” said sovereign bond strategist Nicholas Spiro.

The latest data show a continued erosion of France’s industrial base and export share. It risks shattering the credibility of President François Hollande, who has been talking up recovery for months. A YouGov poll showed his approval ratings have dropped to 15pc, the lowest recorded for a French leader in modern times.

While the risk of a eurozone bond crisis has greatly receded since the European Central Bank agreed to act as a lender of last resort in July 2012, this has been replaced by slow economic attrition. It resembles the mid-1930s slump under the Gold Standard and is fuelling political crises in a string of countries.

Le Figaro said loss of confidence in the French government is turning dangerous, citing a confidential report based on surveys by “prefects” in each of the 101 departments. “All across the country, the prefects described the same picture of a society that is angry, exasperated and on edge. A mix of latent discontent and resignation is being expressed through sudden eruptions of fury, almost spontaneously,” said the document. The report warned that people were no longer venting their feelings within normal social structures. Increasing numbers are questioning the “legitimacy” of taxes. …… 

But there is no sign that Hollande will change from his classic policies of more taxes to support a profligate state sector and a bloated welfare system. Regulated austerity is called for but Hollande’s approach will only lead to an unregulated, painful and enforced austerity as in Greece and Spain.

I still believe in Europe and in many French firms but I have taken the precaution of shifting some of my (small) savings out of French stocks. France has not reached its bottom yet!

Déjà vu! For Iraq read Syria

August 28, 2013

Déjà vu!

Some kind of military action by the US and its allies – probably missile and drone attacks – is imminent  against Syria and Assad. To what end is uncertain. To destroy stocks of chemical weapons could be an objective but any action would probably only cause more release of the toxins involved. To destroy or help destroy Assad’s regime is possible but unlikely since the alternative would probably be Al Qaida. To assassinate Assad runs the same risk. To kill some of Assad’s military or his supporters just as a “punitive” strike could be an objective but adding to the killing to stop the killing seems a little dubious. To demonstrate a self-righteous “moral” position to the world with the least damaging consequences possible would seem to the main objective. To prevent any future use of chemical weapons by any country could be an objective thought it is difficult to see how many “bad guys” would need to be killed or how much property would need to be destroyed to create a valid deterrent.

For Iraq read Syria. For Bush, Blair, Chirac  (my failing memory) and Howard read Obama, Cameron, Hollande and Rudd. Even though each of the current four leaders is from the opposing party to that of his predecessor. For WMD read “chemical or nerve gas”. Statements by the politicians show that they are absolutely “certain” that Assad was responsible. Evidence is not forthcoming. As it was not for Iraq. And it does not inspire any confidence that to justify the Iraq invasion, “evidence” was made-up by the intelligence services to satisfy their political masters.

That upto some 300 people have been killed seems very likely though there is some doubt as to the number. The main evidence seems to be video footage. That some form of chemical or nerve agent was used seems probable. And traces of such agents are detectable years after the event, though some politicians (Obama and Kerry for example) would like us to believe that the evidence may be destroyed and therefore  time is of the essence just to preserve the evidence. Though it is likely that someone within the Assad regime was probably responsible it is not at all impossible that one of the many “rebel” groups was responsible. Some of the rebel groups – along with Assad’s supporters – have exhibited their barbaric and cannibalistic tendencies.

But I am afraid that military actions will be carried out – again – without any more serious objective than to demonstrate “moral superiority” and to fulfill domestic agendas.  Even though such actions – in themselves – undermine the very moral superiority that is being touted. Some more people – some quite innocent – will of course be killed. They will just be collateral damage and the the sacrifice in a war of moral superiority. That Tony Blair on-board a luxurious yacht somewhere supports immediate strikes against Syria only adds to my feeling that it would be ill-advised. His thirst for blood is apparently not yet satisfied. Obama needs to show that he can actually be decisive – if only for history. Cameron needs a war – any war – before the next General Election and Spain over Gibraltar does not quite fit the bill.  Argentina over the Falklands is better but too far away and already done. Hollande needs to show that he does really exist – as he did in Mali. Rudd would love to be seen at the “big table” and he could see this as a way for grabbing some of Abbot’s supporters for the election in less than 2 weeks.

The chaos in Iraq and the daily loss of life that is occurring there is a direct consequence of the Iraq invasion (and how much worse would it have been under Saddam?). The adventure in Libya to satisfy the European desire for demonstrating their moral superiority will have consequences for many many years to come. Of course the Middle East today (like the Balkans a few years ago) provides proof positive of the barbarism that lies so close to the surface of many human “societies”. And the interventions by moral “police” has always dragged the police down to the level of the criminal societies they are ostensibly trying to put down. The intervention in Kosovo has succeeded after a fashion. But it is hard to come to to the same conclusion for Iraq or Afghanistan or Libya.

To add Syria to the list seems irresponsible.

The only way to address Syria – in my opinion – is to ostracise the entire country. Shun them. Close the borders. isolate them. No weapons – to anybody. No goods, no services to enter the country. Nobody and nothing enters. Only refugees may leave. Send the country to Coventry. Go back in a few months and when the killing stops – help the survivors pick up the pieces. But don’t intervene to add to the killing in the hope of stopping the killing.


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