France bankrupt? Not as long as you have savings!
Insolentiae – Apr 09, 2024
3 billion euros is the state debt. Considerable, you might say, and you are right. It is enormous. But is it serious?
Obviously it's serious and it can't last forever. But sometimes, even if it's not forever, it's a long time!
And it may last longer than we all think or anticipate.
Is France at risk of bankruptcy?
Obviously she risks bankruptcy.
In reality France is already bankrupt.
We have been spending since 1974, that is to say for 50 years, much more than what “we earn”. And yet the debt continues to rise!
The markets continue to finance us.
So… the question is why the markets continue to lend to France when we are managing like hell? Well, not us, our “Mozarts” of finance.
The answer is simple and is essentially due to two reasons.
The first, if things became really serious, the ECB would intervene as a last resort, buy French debt to avoid bankruptcy and the explosion of the euro zone. This is the “Draghi doctrine” of the President of the ECB who in 2011 declared that the euro was irreversible, that it would do whatever it took and that that would be enough.
The second reason is that the French are rich! Very rich. We squeal, we complain and many are indeed poor. But despite the taxes and the level of taxes in this country, the French are very, very economical. Finally, those who are not unsuccessful baskets and in reality, there is a potentially immense taxable windfall. In 2023 the savings rate in France will be 17.3%! Yes, you read correctly. 17.3%! It's colossal, it's considerable. For comparison, in the United States the savings rate is only 4.3%! I don't know if you realize what that means. On average, French people who know nothing about economics operate with credit budgets and at the end of the year they spend 17,3% less than what they earned. The “Mozarts” of finance who govern us, all these pretentious and well-educated graduates who take us for imbeciles, “people who are nothing” and these “brilliant” types end each budget year having spent more than 40% more than they earned and made deficit after deficit.
The heritage of the French? 20 billion euros!
While the Mozarts are plunging 20 feet of deficit under the sea, the simple French are cushioning and holding 000 billion euros in assets at the last count in 20.052.
“After a strong increase in 2021 (+9,1%), France's net wealth increased by 5,6% in 2022, to 20.052 billion euros, according to an INSEE study published this Wednesday. This corresponds to the difference between the value of financial and non-financial assets (58.977 billion euros) and that of the liabilities of economic agents (households, businesses and public administrations). »
And yes, minus the Mozarts' liabilities, we still have more than 20 billion euros! Hahahahahahahahaha. Fire them all and put my chickens in Bercy, even a goat would do better than all those who have followed one another for 000 decades.
As for the net financial wealth of households in 2022, it was… 4 billion euros!!
And yes, my friends, France is rich! Very rich.
Then France will go bankrupt... when the French have been ruined!Set Featured Image
You must understand that before the country's bankruptcy, the country's solvency will be considered by the crazy, the incompetent and the Mozarts who pull the levers, as strategic. Like the best interests of the nation.
Your assets are the guarantee of our solvency.
Finally, I could almost say that the French State has pledged your money, your savings, your assets to the markets.
There will only be bankruptcy in France when household savings have also been consumed by our apprentice sorcerers in the Palaces.
Will France go bankrupt is therefore the wrong question…
At this stage of the reasoning, it should normally become clear to you that, contrary to what we hear, the question is not whether France will go bankrupt.
