Posts Tagged ‘breakup of the Euro’

French Elections

Monday, February 27th, 2012

Dear Friends,

It seems to me that, if France actually does go with the socialist candidate in the upcoming elections, the French people will be committing economic suicide. As a principle member of the revived Roman Empire, the economy of France has a great deal more weight than, say, Greece to the European enterprise. This will be regarded in the future as, an egoistic and suicidal vote that, collapsed the European Union. This will effect the World’s economy in unexpected ways. The effect on you and I, in our disparate countries, may be ruinous or benign… but, the effect on the average Frenchman and Woman will assuredly be, catastrophic!

The election of the socialist would put France on the same road as Spain. Everyone knows that, a road always leads to the same place, no matter how many times you take it. That is why we have maps, because this always holds true, so it should be no surprise that, France will end up where Greece, Spain, Italy, Portugal and Ireland (for other reasons), are now. We can safely say that the same road will lead to the same destination. Do the French people really want to go there?

The election of the socialist would, necesarially, bring in new taxes and new regulation, this is common sense because it is the platform of socialism. Regulation to solve this or that magnified problem. The new regulation, inevitably leading to new problems and exasperating old ones, leading to the “need” for new regulation. A feedback loop of bureaucracy and regulation staunching all economic activity.

If that were not enough, the newly elected socialist will enact more and more taxes, to redistribute the goods of society by political favor. Taxes will necessarially go up. As taxes go up they will be increasingly evaded. The pernicious feedback loop of higher taxes, leading to lower revenue, leading to higher taxes again, will be set up. Any economic activity that escapes the regulatory friction will be crushed by the tax load. (Or be corrupted and evade the new taxes).

New social welfare spending would also be ushered in by a socialist regime. The socialist always makes the demand side argument… as if it has any real merit. Demand side is as disgraced as it can be because it has failed every time it has been tried. Failure is not a positive attribute to those that have their eyes open and common sense as our guide. The people put on the dole, will grow increasingly angry at their boredom, and the wealthy that pay for it will be increasingly angry about the poor’s indigence. The equation of, one faction taking their wealth and giving it away to support their political power will be run. with all the ensuing negative returns.

The European Union is at a tipping point. With national economic indigence epidemic, the economic underpinnings of the European Union, are disintegrating. Germany cannot force the people of the disparate European Nations to choose wealth instead of welfare. Moreover, it is not possible for Germany to support every other European Union Nation, that seeks a welfare check. It cannot be done by any Nation. France is simply Too big to fail… especially now.

The French should read their own philosopher Fredrick Bastiat. He had a great deal of intelligent things to say, on this very matter, to his fellow Frenchmen and Women. The French eschewed Bastiat’s advice once, and it cost us a generation of the best and brightest, in the executions and Napoleonic wars. It is my ardent hope, and prayer, that the French people not only read and understand what Bastiat teaches us… but take it to heart. Not that there is any European politician that the International Capitalist Party can support, due to the insidious penetration of the Marxist ethos into the body politic, of Europe. A vote against socialism is a good start to changing the direction of Europe, from welfare, to wealth.

Lets all pray the French, this year and time, are rational maximizers instead of egoists.


John Pepin