“My true adversary…has no name, no face; he belongs to no party; he will never declare his candidacy. He will not be elected, yet he governs. My enemy is the world of finance.”
The battle of austerity versus stimulus has just gotten a whole lot feistier as France and Greece have gone to the stimulus dark side in the weekend elections. France picked a socialist and Greece gave a nod to a neo-Nazi party with 7% of the vote.
President Obama was on the phone to Hollande as soon as the election was over. Obama must be happy because he now has another socialist compatriot on the scene. Maybe they can destroy both countries simultaneously.
Francois Hollande, the new President of France, is a 57 year old Paul Krugman. He will abandon austerity and try to spend and tax his way to prosperity while assaulting the 1% with unreasonable taxes unless you think a 75% tax rate is reasonable.
He wants to keep his welfare state going on a foundation of airhead socialist dreams. He is going to cut back on austerity measures and put a stimulus in place.
France is in denial, not unlike the United States.
Germany is not here to finance French election promises,” said Merkel’s parliamentary party leader Volker Kauder. Hollande said he doesn’t simply expect hand outs and will balance the books. I hope that is the way it works out.
Hollande thinks a stimulus will work but the excessive government spending and the countless French bureaucracies will negate any positive effects from a Stimulus.
Hollande promised an increase in consumer and business demand and growth but how is that going to happen when he is going to punish any success with huge tax increases?
The media is concentrating on the election in Greece and presenting France in a more positive light than they should because they don’t want Americans to realize Obama and Hollande have near-identical agendas. Hollande crows that he is a socialist and Obama pretends he is not. Don’t get me wrong, the Greek election is a disaster. The second place winner, Tsipras, never held a job and is clueless. The neo-Nazi party party in Greece got 7% of the vote.
Then there is Greece. PASOK and New Democracy, the two parties that have dominated Greek politics for nearly 40 years, received a combined 33% of the vote, not enough to form a coalition government. They have been in power since 1974.
The New Democracy party came in first with 19%. Syriza, a coalition of radical left and green groups (commies) led by Alexis Tsipras, a young engineer known for shouting down pro-bailout politicians in parliament, finished in second at 16.6%. Tsipras wants to cancel the bailout loan agreement and has no interest in Merkel’s austerity deal. Pasok came in third. Forbes
The radical Syriza, who resemble occupiers, has broken the pro-Europe control of the country’s major parties. They are neo-nazis believe it or not. Tsipras has threatened the rest of Europe, saying “this crisis isn’t just Greek, it’s European …, there will either be a collective, sustainable and fair European solution to the public debt issue or it will collectively fall apart,” according to Bloomberg
His threats are aimed at the euro as he warned the rest of Europe that Greece won’t be blackmailed. I guess he doesn’t realize that Greece’s entitlement state is the problem and is pulling down much of Europe. Didn’t he notice their bonds are junks status? Greeks who voted for him are more angry than thoughtful. Tsipras sounds like a guy no one will be able to work with.
Expect more riots in Greece and the future for France isn’t looking too good right now.
Germany has been pushing for austerity, structural reform, privatizations and reduced spending and now that plan is in jeopardy.
The euro slid for a sixth day versus the dollar after French Socialist Francois Hollande was elected president and Greek voters picked anti-bailout parties. Bloomberg Greece’s ASE Index plunged the most since November as voters switched to anti-austerity parties in yesterday’s election, boosting concern the nation will default. The Dow is down for the fourth day. The guys in finance are smart guys and can’t be so easily fooled. They know this is bad even if Hollande and Tsipras don’t.
Don’t be surprised if Obama comes up with some international pact to share the wealth as we all spend ourselves into totalitarianism.