First among the reactions globally was that of China:
China bluntly criticized the United States after the S&P ratings cut to AA-plus, saying Washington had only itself to blame and calling for a new stable global reserve currency.
"The U.S. government has to come to terms with the painful fact that the good old days when it could just borrow its way out of messes of its own making are finally gone," China’s official Xinhua news agency said in a commentary.
Xinhua scorned the United States for a "debt addiction" and "short sighted" political wrangling. China, it said, "has every right now to demand the United States address its structural debt problems and ensure the safety of China’s dollar assets."
"International supervision over the issue of U.S. dollars should be introduced and a new, stable and secured global reserve currency may also be an option to avert a catastrophe caused by any single country," Xinhua said.
If you think it is bad now, consider our predicament if the dollar was to be replaced as the new global reserve currency. However it is ironic to be lectured by the Chinese on economic matters given their ideological bent. Communists telling Capitalists (pseudo anyway) how they should conduct their business.
France, on the other hand is expressing faith in the US’s ability to get its house in order, as is Poland’s Prime Minister:
France’s Baroin said France had faith in the United States to get out of this "difficult period." Friday’s U.S. unemployment numbers were better than expected and so things were heading in the right direction, he said.
"One should not dramatis, one needs to remain cool-headed, one should look at the fundamentals," he told France’s iTele.
"There is no need for panic," Polish Prime Minister Donald Tusk said. "We will see in August, and maybe more intensively in September what the effects for the world economy will be."
Of course, with the huge problems in Europe, both France and Poland are inclined to play down the significance of a US downgrade. And more interesting than what will happen later this month or next may be what happens on Monday, the first day global markets will mark their reaction to the US credit downgrade:
Because the S&P move was expected, the impact on markets may be modest when they reopen on Monday. But the ratings cut may have a long-term impact for U.S. standing in the world, the dollar’s status and the global financial system.
"The consequence will be far reaching," said Ciaran O’Hagan, fixed income strategist at Societe Generale in Paris.
"It will weigh on secure assets. The bigger reaction will be on risky assets, including equities and on agencies (Freddie Mac, Fannie Mae) and states backed directly by the federal government."
But he added: "U.S. Treasuries will remain a benchmark. This is a ship which takes a long time to turn around."
Norbert Barthle, a budget expert for German Chancellor Angela Merkel’s conservatives, said the downgrade would certainly provoke further turbulence in markets.
Everything mentioned is very important to the future of the US economy and its financial health. Unfortunately most of it is negative. In the next few months we’ll see how this shakes out, but at this point, even the optimists are pessimistic.
And mission creep continues apace because, as most military experts would have told you, you can’t change a government with a “no-fly zone” and only airpower.
French and British officials said this week that they were sending more than a dozen attack helicopters to allow for more precise ground attacks, particularly around Misurata, where loyalist forces continue to fire mortars and artillery despite rebel gains and heavy air attacks.
With no troops on the ground, NATO planners and pilots acknowledge that they often cannot pinpoint the shifting battle lines in cities like Misurata. “The front lines are more scattered,” said Col. L. S. Kjoeller, who commands four Danish F-16s flying eight daily strike missions from Sigonella air base in Sicily.
Unsaid in those two paragraphs, but reported elsewhere, are that groups of special operations types will be inserted to do targeting for the helicopter attack assets. Yes, “boots on the ground”.
And why is this supposed war of days taking months if not longer? Well, they obviously underestimated their foe and overestimated their capabilities. Also, they planned for one mission and tried to execute another (no-fly and regime change) and don’t have the assets necessary to accomplish that real mission). We’re now seeing them begin to understand that they may have bitten off more than they can chew – at least as they’re presently arrayed.
Adm. Samuel J. Locklear III, the overall commander of NATO forces in the Mediterranean, said from his office in Naples that the allied mission has largely achieved its goal of protecting civilians, especially in eastern Libya, and has seriously damaged the Libyan military.
“Qaddafi will never be able to turn a large army on his people again, because it’s gone,” said Admiral Locklear, noting that the air campaign has wiped out more than half of Libya’s ammunition stockpiles and cut off most supply lines to forces in the field.
But the admiral acknowledged Colonel Qaddafi’s resiliency, and said that without sustained political and economic pressure as well, “the military piece will take a very long time.”
Not really – if its mission is to establish and enforce a no-fly zone as we were told in the beginning. And as is obvious, Adm. Locklear certainly isn’t talking days or weeks anymore. He’s talking months and possibly longer. Meanwhile, British papers are reporting the war of “days not weeks”, that their present visiting guest talked them into, is in the $1 billion to 1.5 billion pound range – a cost the debt ridden country can ill afford. Makes you wonder how much longer they’re willing to wage it (even as they escalate their presence with attack helicopters).
Nice mess you’ve got there Mr. Obama. So much for being against “dumb wars”, huh?
I’d love to tell you I’m surprised (well I am somewhat surprised that the French are already trying to enforce the NFZ), but finding out that Gadhafi’s forces are still attacking despite declaring a “cease fire” seemed pretty predictable at the time.
According to Nicholas Sarkozy, the French have the situation well in hand:
French President Nicolas Sarkozy said allied air forces had gone into action on Saturday over Libya and were preventing Muammar Gaddafi’s forces attacking opposition fighters and civilians.
"Our planes are already preventing air attacks on the city (Benghazi)," he said adding that military action supported by France, Britain, the United States and Canada and backed by Arab nations could be halted if Gaddafi stopped his forces attacking.
Well, that’s nice. Seeing as how air attacks don’t really seem to have been very decisive one way or the other to this point, and based on everything I’ve read, I’d suggest the benefit is marginal at best.
Gaddafi’s forces also battled insurgents on the outskirts of the opposition-held city of Benghazi on Saturday, defying world demands for an immediate ceasefire and forcing opposition fighters to retreat.
The advance by Gaddafi’s troops into Libya’s second city of 670,000 people appeared to be an attempt to pre-empt Western military intervention which diplomats say will come after an international meeting currently underway in Paris.
A Libyan opposition spokesman said Gaddafi’s forces had entered Benghazi while a Reuters witness saw a jet circling over the city shot down and at least one separate explosion near the opposition movement’s headquarters in the city.
"They have entered Benghazi from the west. Where are the Western powers? They said they could strike within hours," opposition military spokesman Khalid al-Sayeh told Reuters.
See what I mean about “marginal”? Apparently they have struck “within hours” but taking out a single plane that apparently wasn’t doing much more than recon isn’t going to swing the balance of power to the rebel side. And, as mentioned yesterday, once Gadhafi’s forces enter the city, it will become much too dangerous to strike within the city for fear of collateral damage killing civilians (unless you put SOF folks in with the rebels to handle that sort of job – but remember, we’re not committing any ground troops).
Benghazi isn’t the only place Gadhafi’s troops are on the move:
A witness told Al Arabiya television on Saturday that Zintan in western Libya was being bombarded and Libyan leader Muammar Gaddafi’s tanks were approaching the town. "Now we are being bombed in Zintan from more than one direction: from the north and the south," said the witness, who was not identified.
"There are tanks heading towards the southern entrance of Zintan, around 20 to 30 tanks, which are hitting the city and residential areas in the south," he said.
Obviously, “preventing air attacks” isn’t going to change much is it? The tanks are still rolling on.
The words are over, the threats have been made – now it is put up or shut up time.
I think involvement in this is a mistake. We’ll see how it goes.
UPDATE: From the Washington Post:
Forces loyal to Moammar Gaddafi entered the eastern rebel stronghold of Benghazi early in the day after shelling and fierce fighting, a fresh act of defiance of U.N. calls for a cease-fire. Government troops in tanks and trucks entered Benghazi from the west, in the university area, and began to shell the city, including civilian areas. Intense fighting broke out in some enclaves. The city of 1 million quickly became a ghost town, with residents fleeing or seeking cover in barricaded neighborhoods.
So they’re in Benghazi. Apparently there is a huge civilian exodus to the East (Egypt).
Oh, and about that airplane that was shot down circling Benghazi:
A warplane was shot down over Benghazi, and rebel leaders later claimed it as one of their own. While they said mechanical problems caused the crash, calls from mosques across the city suggested that friendly fire brought down the plane. “Don’t attack the airplanes, because these are our planes,” a mosque preacher urged over loudspeakers.
Apparently the rebels shot down their own plane.
But the besieged town of Misurata, 130 miles east of Tripoli, was still coming under heavy artillery fire, residents said, and there were also reports of continued fighting around Ajdabiya, even farther to the east. The assaults on rebel-held towns took place despite government promises of a cease-fire.
On the rather daffy side (yeah, couldn’t help it):
In what appeared to be a desperate attempt to avert military action, Gaddafi sent two letters to international leaders, according to deputy foreign minister Khaled Kaim, who read the letters to journalists. One was a warm, conciliatory note to Obama, and the other was a sharply worded, menacing message to the United Nations, France and Britain.
To Obama, he wrote: “If Libya and the US enter into a war you will always remain my son, and I have love for you.” Libya is battling al-Qaeda, he said, seeking Obama’s advice. “How would you behave so that I can follow your example?” he asked.
In the other letter, addressed to U.N. Secretary General Ban Ki-moon and the leaders of France and Britain, he warned that the entire region would be destabilized if they pursued strikes against Libya. “You will regret it if you take a step to intervene in our internal affairs,” he wrote.
Why does Gadhafi consider Obama his “son”?
The French Finance Minister has noticed that the disparities within the European economy are causing a number of issues, and fingers the….Germans!
“Clearly Germany has done an awfully good job in the last 10 years or so, improving competitiveness, putting very high pressure on its labour costs. When you look at unit labour costs to Germany, they have done a tremendous job in that respect. I’m not sure it is a sustainable model for the long term and for the whole of the group. Clearly we need better convergence.”
You see, having an economy so efficient that you can be more competitive than your neighbors with high wages and a high standard of living means you need to change so that the French, Greeks and other assorted PIIGS can continue down the path they have chosen. The Germans are just too darned efficient for the greater good.
In the interest of being helpful I have identified several important initiative’s that the Germans should adopt to align themselves more fully with their neighbors.
- Do not keep your debt levels below 3% of GDP…ever.
- Encourage massive strikes at the drop of a hat.
- Make public services far more attractive than working in the private sector, with massive strikes and riots to keep it that way.
- Make it almost impossible to layoff anyone for any reason.
- Mandate at least six weeks paid vacation for every employee.
That should make sure your economy is not too efficient.
Is China’s economy about to rollover?
I won’t explain this, just let it sink in:
I don’t think it will be as bad as Japan, but the evidence isn’t giving me any great comfort either.
I love Apple, and I love my iPhone. Still, is Apple really worth more than Walmart? Or these various baskets:
- 4x the global smartphone market
- 5x the global music market
- 100x the global smartphone app market
- Enough to buy HP, Dell and Hitachi, with mad money left over for Xerox or Seagate
Yep, that whole efficient markets hypothesis may take a beating again.
Did any of you see Michael Lewis on 60 Minutes Sunday? If you didn’t, I highly recommend it.
Cross posted at The View From the Bluff
Or at least the French minister in charge of humanitarian relief, Alain Joyandet is making that claim:
“This is about helping Haiti, not about occupying Haiti,” Mr Joyandet said.
Well, yeah, but it’s also about coordinating the flow of traffic in and out of a single runway airport, something which is bound to get a few hackles up. And that’s caused Joyandet’s outburst. He’d apparently been in a scuffle in the control tower of the airfield with the US commander there over a French evacuation flight. It seems he came out on the short end of the confrontation, thus the outburst.
But he’s not the only one complaining:
Geneva-based charity Medecins Sans Frontieres backed his calls saying hundreds of lives were being put at risk as planes carrying vital medical supplies were being turned away by American air traffic controllers.
See previous commentary about the one runway airport. Perhaps a little coordination with those at the airport concerning the arrival of such flights might help integrate them into the landing plan vs. just showing up and demanding a priority for landing?
Just a thought. Of course, my bet is had we relied on the UN, the airport still wouldn’t be functioning. And had the French taken over the aiport, the same criticisms leveled against the US would be leveled against them. In this case, given the situation, they’re just inevitable.
And someone else is having his usual say about the US:
Speaking on his weekly television show, [Hugo] Chavez opined that the U.S. mission in Haiti was a ruse to initiate military occupation.
“I read that 3,000 soldiers are arriving, Marines armed as if they were going to war,” Chavez said. “They are occupying Haiti undercover.”
President Obama signed an executive order to send 7,000 U.S. troops to the ravaged country as aid organizations attempt to distribute food and water to the survivors.
Chavez, a frequent critic of American intervention, praised the humanitarian effort in Haiti but questioned the need for so many troops.
“Doctors, medicine, fuel, field hospitals – that’s what the United States should send,” Chavez said.
Of course the US has sent doctors, medicine, fuel and field hospitals. But there has to be security as you push these assets out into the community to ensure the lawlessness which has been seen in various areas doesn’t effect the efficiency of the rescue operation. 7,000 troops to provide that sort of security is not a large force (about 1 BCT plus).
Haiti, however, has provided Baby Hugo with another opportunity to break out the anti-Amerianism.
I’ve got to tell you, with the reaction of France and Venezuela to a freakin’ humanitarian rescue mission, it doesn’t seem as if the Obama global, bowing, scraping and apologizing tour produced much goodwill. This doesn’t sound any different than the carping heard when that other guy was around.
I don’t get it. Where’s NOW? Where are all the women’s groups? Where are all the agitated ladies yelling “no means no!” Where are the children’s rights organizations demanding Polanski’s extradition?
And what in the world is going on in Hollywood? If ever anyone wanted to point to the decadence in our country this provides the example.
Here, let’s let Kate Harding provide a little clarity, shall we:
Roman Polanski raped a child. Let’s just start right there, because that’s the detail that tends to get neglected when we start discussing whether it was fair for the bail-jumping director to be arrested at age 76, after 32 years in “exile” (which in this case means owning multiple homes in Europe, continuing to work as a director, marrying and fathering two children, even winning an Oscar, but never — poor baby — being able to return to the U.S.).
Got that? He raped a child. He plead guilty to a lesser charge, but in fact he raped a child. Then he fled. You tell me, if it was some poor Wal-Mart frequenting, no-name red-neck who had done that 30 years ago and then taken off and hidden out in a double-wide for all this time, Hollywood would be having benefits for the victim and howling for the blood of the rapist. The women of The View would be demanding justice. Dr. Phil would be on Oprah telling the world of the long-term trauma and effect this sort of event can cause. Nancy Grace would be pounding the podium and telling the world this isn’t about the forgiveness of the victim, but justice.
Instead, as Harding points out, we’re hearing every excuse in the book from the glitterati (not necessarily the one’s I’ve named) as to why Polanski should skate. He’s been in “exile” for 30 years. Really? He’s lived in France. Although some may consider that to be a form of “exile” few prisoners convicted of rape would consider living there, fathering 2 children and generally enjoying the lifestyle of the rich and famous to be “exile”, much less punishment.
Instead, what it all boils down too is he’s an artist and artists are different than the little people and should be treated differently. I mean, don’t you know they don’t have to follow the rules? Haven’t you watched the awards shows or followed their lives on Entertainment Tonight? It is they who get to define what is good or right, or so they believe. They can ignore the rules and flaunt them, because, you know, they have a talent which millions enjoy. That makes them special and certainly more special than some floozy 13 year old child who’s life has come to nothing in comparison.
And besides, Polanski escaped justice long enough, thanks to our friends in France who refused to extradite an admitted child rapist, that he’s should be allowed to slide, or so his defenders rationalize.
The fact that she’s forgiven him (since justice was never done, what other choice did she have but bottle it up and let it poison her life?) and wants to avoid the publicity is understandable. Her mental health has demanded she find a way to put this behind her because the justice system was never able to bring her any sort of satisfaction or closure.
However, this isn’t really about her anymore – it’s about child rape and the simple fact that it is never right, never excusable and is always punishable, no matter how long it takes to track the perp down. That’s justice. You can’t drag Bubba out of the trailer and put him in jail for however long is appropriate if you can’t drag Polanski back from Switzerland and do the same.
Appearing before microphones at the G-20 conference, the Presidents of the US and France along with the PM of the UK made an announcement concerning Iran:
President Obama and leaders of Britain and France accused Iran on Friday of building a secret underground plant to manufacture nuclear fuel, saying the country has hidden the covert operation from international weapons inspectors for years.
Appearing before reporters in Pittsburgh, Mr. Obama said that the Iranian nuclear program “represents a direct challenge to the basic foundation of the nonproliferation regime.” French President Nicholas Sarkozy, appearing beside Mr. Obama, said that Iran had deadline of two months to comply with international demands or face increased sanctions.
Essentially the argument is the facility is too big for the manufacture of nuclear fuel for peaceful purposes and can only exist to enable the pursuit of nuclear weapons.
American officials said that they had been tracking the covert project for years, but that Mr. Obama decided to make public the American findings after Iran discovered, in recent weeks, that Western intelligence agencies had breached the secrecy surrounding the project. On Monday, Iran wrote a brief, cryptic letter to the International Atomic Energy Agency, saying that it now had a “pilot plant” under construction, whose existence it had never before revealed.
So now Iran has been called out. That’s the easy part. Increased sanctions are promised. That’s the hard part. Russia may possibly come on board (we’ll see if the unilateral decision to remove the missile defense shield from eastern Europe), but China is an unknown (although the Chinese foreign ministry recently said it was not in favor of increased sanctions). That’s assuming the Obama administration plans on working all of this through the UN.
One of the sanctions that the US and others are considering is one which would restrict the importation of gasoline. While Iran sits on a sea of oil, it has very limited refining capacity. It must import most of what it uses. Cutting those imports would seriously effect the country. However Venezuelan strong man Hugo Chavez, during a recent visit with Iran, promised to provide the regime with gasoline. That could set up a confrontation between the US (and others) and Venezuela. Hugo Chavez might finally get the confrontation with the US he’s been claiming was coming very soon.
This is about to get complicated and nasty. December is the date in which France has demanded compliance with international demands. In the interim, both sides are going to be scrambling to line up their allies. And then there’s the wild card – Israel.
This will be an interesting couple of months. But one question I have – why wasn’t this presented to the UN before the president of Iran spoke?
UPDATE: Dale sends me a link to this article by Simon Tisdale at the Guardian in reference to this story:
…Now it seems the Iranian regime has been caught red-handed, and clean out of trumps, by the forced disclosure that it is building, if not already operating, a second, secret uranium processing plant.
The revelation will bring a triumphal roar of “told you so!” from Bush era neoconservatives in the US to hawkish rightwingers in Israel. The likes of former vice-president Dick Cheney and UN envoy John Bolton, and the current Israeli leader, Binyamin Netanyahu, have long insisted that Tehran’s word could not be trusted.
Yet the argument about who was right and who was wrong about Iran is hardly important at this juncture…
As Dale sarcastically notes:
Yes. Whatever we do, let’s not try and keep track of who was right and who was wrong about Iran. We certainly wouldn’t want to have a track record of foreign policy reliability we could consult in the future.
Because this is about, uh what was it again, oh, yeah, change!
Cap-and-trade is only the beginning. France is mulling a CO2 tax on its citizens:
The French government plans next year to begin making heavy users of household and transport fuels bear more of the tax burden. President Nicolas Sarkozy is expected to say in coming weeks that such a shift is necessary to nudge French citizens toward cleaner alternatives.
The tax would reportedly start at about 14 euros (or $20) for each ton of CO2 emitted, and could rise to levels of around 100 euros ($143) for each ton by 2030. That could mean substantial increases in the price of gasoline and diesel, as well as a sizable jump in the cost of keeping homes warm.
Nudge French citizens? What is government doing nudging its citizens toward anything to do with their energy usage? Quite simply government, at least in France, has decided that citizens must conform to its priorities (proven or unproven) and thus uses its power to tax to “nudge” people into the behavior it prefers?
Is that a proper function of government? Only if you believe government is infallible and should be the arbiter of what constitutes the “proper” way of living. Trust me, such a belief has absolutely nothing to do with freedom, choice or liberty.
But skeptics say the idea may have less to do with clean energy, and more to do with a desire on the part of Mr. Sarkozy’s government to find new ways to keep the national debt in check.
Heh … the skeptics may be on to something. We have the same sort of problem in this country which is why I imply that cap-and-trade is only the beginning. Once implemented government will use the precedent (“we’re controlling industrial CO2 emission, now we need to control “private” CO2 emissions”) to tax citizens on their use. It’s all about revenue and this source is perfect – created, literally, out of thin air.
As usual, the socialists in France (and elsewhere) are without a clue:
In addition, members of the opposition Socialist party have slammed the plan, suggesting it would unfairly burden lower income citizens — particularly those who are obliged to use their cars.
Segolene Royal, a former presidential candidate, has instead called for direct taxes on gasoline and other energy companies.
Because everyone knows that a direct tax on “gasoline and other energy companies” would never be passed on to “lower income citizens” who are “obliged to use their cars” and “unfairly burden” them, would they?
We continue to hear how wonderful it is as compared to the horrible US system.
But is it? One of the fundamental truths of any health care system is you have infinite demand meeting finite resources (beds, doctors, availability, etc). Whatever system a country has, that truth doesn’t change.
So, regardless of system, there is going to be some sort of rationing. It is unavoidable and inevitable.
Now add a desire to control and cut costs associated with the provision of health care to the mix (the promise of every one of these government systems). On the one side, as European nations have done, access to health care is expanded to include everyone. On the other hand, these same nations attempt to control health care costs.
The result? Very mixed. France is always held up as the exception to the rule that government health care can’t be both good and inexpensive. But a closer examination seems to indicate that it isn’t an exception at all:
A World Health Organization survey in 2000 found that France had the world’s best health system. But that has come at a high price; health budgets have been in the red since 1988.
In 1996, France introduced targets for health insurance spending. But a decade later, the deficit had doubled to 49 billion euros ($69 billion).
“I would warn Americans that once the government gets its nose into health care, it’s hard to stop the dangerous effects later,” said Valentin Petkantchin, of the Institut Economique Molinari in France. He said many private providers have been pushed out, forcing a dependence on an overstretched public system.
Why have private providers been “pushed out”? Because government has provided health care “cheaper” than do private providers (and obviously at a loss given the deficit). Notice I said “cheaper”. That doesn’t necessarily mean “better”.
And the same thing is being seen in other European health care systems which are considered “models” of government run health care:
Similar scenarios have been unfolding in the Netherlands and Switzerland, where everyone must buy health insurance.
“The minute you make health insurance mandatory, people start overusing it,” said Dr. Alphonse Crespo, an orthopedic surgeon and research director at Switzerland’s Institut Constant de Rebecque. “If I have a cold, I might go see a doctor because I am already paying a health insurance premium.”
Cost-cutting has also hit Switzerland. The numbers of beds have dropped, hospitals have merged, and specialist care has become harder to find. A 2007 survey found that in some hospitals in Geneva and Lausanne, the rates of medical mistakes had jumped by up to 40 percent. Long ranked among the world’s top four health systems, Switzerland dropped to 8th place in a Europe-wide survey last year.
Dr. Crespo’s point is simply an astute observation of human nature. If something doesn’t directly cost the user, why would the user ration the use of such a benefit?
The use, however, still costs someone or something. The doctor must be paid, the institution must be paid, etc. So in the end, the only way to control costs is to cut payments. Eventually, the incentives to enter the health care field become less attractive (unless you like long hours, overrun waiting rooms, minimal time with patients, being second-guessed by a bureaucracy and making much less than a private system allows for compensation) and there are fewer that enter the field. Hospital beds then drop, hospitals merge and there are fewer specialists available to serve the population as Switzerland is discovering.
And then there’s the lack of innovation to face.
Bureaucracies are slow to adopt new medical technologies. In Britain and Germany, even after new drugs are approved, access to them is complicated because independent agencies must decide if they are worth buying.
When the breast cancer drug Herceptin was proven to be effective in 1998, it was available almost immediately in the U.S. But it took another four years for the U.K. to start buying it for British breast cancer patients.
The promise that has been made in the US is health care reform will return the decision making to the doctor. But that’s simply a false promise given the priorities of the reform we’ve been promised. It is to cut cost and make care “affordable” to all. Somewhere is a bureaucracy in waiting which will decide what “affordable” means – and it won’t include your doctor.
So you can expect innovation to begin to slow. Why invest billions when a bureaucracy will decide whether or not it’s a medicine or treatment worth the cost. The same bureaucracy will also decide what it will pay for your innovation. Of course, if the innovator can’t recover the cost of development and make a profit as incentive toward more innovation, the probability exits the developer will simply stop such research.
“Government control of health care is not a panacea,” said Philip Stevens, of International Policy Network, a London think-tank. “The U.S. health system is a bit of a mess, but based on what’s happened in some countries in Europe, I’d be nervous about recommending more government involvement.”
Words of wisdom most likely to be ignored by our legislators here. And the unfortunate thing is it will not only destroy an excellent health care system here, but, given the level of government spending forecast, tank the rest of the economy as well.
[HT: Carol D]
Yes, it is spring and that means protest season in France (note the previous attempt in January didn’t turn out too well due to global warming effects). This time, though, it’s not the “youths” doing the protesting. Instead we are treated to union driven protests.
The protests, which drew substantially more people into the streets than a similar outpouring Jan. 29, were depicted by union leaders as part of a sustained campaign to pressure President Nicolas Sarkozy to do more to defend French people against the economic upheaval that has unfurled across the planet since the fall. In particular, they called on him to raise low-end wages and unemployment benefits and to make it harder for business leaders to fire employees when profits sink.
And we complain about our liberals being economic ignoramuses. Per the French mob, the ticket to recovery is to raise wages, raise unemployment benefits and prevent businesses – which most likely pay for those unemployment benefits (not to mention higher wages) – from letting workers go when their profits sink. Wow … economics worthy of Timothy Geithner, Barney Frank and Chris Dodd.
See, the French really deserve our Congress for their legislature. They’d be absolutely perfect together. Simpatico. Nancy Pelosi would be the toast of Paris and Harry Reid – ok, even the French wouldn’t put up with Harry Reid, so let’s not get too carried away. But seriously, have you ever seen a mob and a Congress (or administration for that matter) that thought so much alike?
It’s like a marriage made in heaven. The Congress and administration could transfer themselves to a country where the economic damage has already been done and the economy is already chronically lethargic, the welfare state is established to include universal health care and the control they seek over industry and business is already in place. They’d be happier (and have much less work to do ruining their economy even further), we’d be happier (trust me, we would), and my guess is the French would just swoon over Obama.
And he’s about right for them – they’ve always believed in style over substance, always thought more of themselves than others have and always had a sense of hubris which never equaled their performance.
It’s freakin’ perfect.
Why didn’t we think of this before?