Posted Apr 6, 2014 by Martin Armstrong
France’s economic growth has averaged only 0.8 percent, half of Germany’s 1.6 percent, which ia about half the USA. Yet these people tell the USA its is not fair and the USA should raise taxes to 70% so their policies will not look so bad. The sad part – Obama agrees.
France’s recovery has even fallen behind that of some peripheral countries such as Spain and is really saying something. France is rapidly surpassing Southern Europe and may crash faster than Greece post 2015.75. France will become the next domino to fall. Then we will be confronted with the age-old question is there is a sound when a tree falls if there is nobody there to hear it? Surely Hollande will flee for the French will rise up against their politicians as they usually do. When France falls, they may take the euro down underwater with it.
European countries are struggling with their high taxes, little entrepreneurship, and crazy socialism that is eating their economy from within like a cancer. The best thing they can hope for is a Russian invasion so they can pretend that was the cause of their economic failure.
About 50% of the French youth just want to leave France. This is a very sad statement on the way France has been managed. Socialism is dead. You cannot keep taxing the people who produce in hopes of a handing it out as “social justice”.
Since the beginning of the year, French business and consumer surveys have moved sideways at best. France’s capacity of the economy to rebound is highly questionable. Hollande claims to have heard the French people but reads into it only what he wants to hear – they want more “social justice” his style. Hollande would rob the rich at gun point if he could get away from it. He is perhaps the worst politician in the last 100 years to say the least.
Domestic demand has fallen into a downward spiral of significant deterioration. France’s trade balance has declined from a surplus of 1 percent of gross domestic product in 1999 to a deficit of 3 percent last year with ZERO prospect of reversing. Foreign companies have been chased out and there is just no hope for the economic turnaround in France. When the Economic Confidence Model turns down 2015.75, France will fall like a dead cat without the bounce.