Hmm. Does any of this sound at all familiar?
President Francois Hollande may only manage a lightweight reform of France’s indebted pension system, with trade unions preparing street protests and his own Socialist Party warning it would oppose painful measures.
Fellow Europeans say France risks damaging its own standing and that of the euro zone among investors, and upsetting southern members struggling with harsh reforms, if it fails to address the deficit in its pension funding.
But left-wing lawmakers are determined to prevent any erosion in the old-age provision enjoyed by the French. …
Yet the fact that pensions are almost entirely borne by the state means public spending on pensions is 14.4 per cent of output versus 12.9 per cent in the EU.
The pension pot has been depleted by rising unemployment and without reform, the funding gap will balloon from 14 billion euros (HK$143 billion) currently to 20 billion euros by 2020.
Much like the recently and officially bankrupt city of Detroit, France and its explicitly Socialist leadership are struggling to find a way out from underneath the crushing fiscal burden of much too much government spending and extravagantly underfunded pensions, and their politics are largely dominated by ultra-liberals and big labor to the degree that putting the country on the long-term path to fiscal sustainability isn’t really on the radar. Hollande’s big goal at the moment is to push through just enough reform so that they won’t have to address the problem again until 2020… but what happens after that? And what about all of the additional debt they’ll be wracking up in the interval?....To Read More……
My Take – Six things. First; France is going to go broke.....soon. That's it, get over it! Secondly; the EU will dissolve, either officially or in reality when France, or any other EU country, defaults. Third; the French are attacking the very institutions that funded them, and as a result that source will dry up entirely. When that happens they will be unable to pay for anything and anarchy will ensue, and it is my belief that an even more restrictive form of socialism will take over. Fourth; violence will spread throughout France to such a degree that it will become another Syria, and much of the violence will be directed against Muslims. Fifth; that will spread throughout Europe and after that…. well…..who knows for sure, but I do believe we will be seeing a worldwide battle between the Muslims and everyone else. Sixth; there will be a massive drive to end the violence by creating a worldwide government under the auspices of the United Nations, and that will so destructive economically, philosophically and morally they will bankrupt the world.
Then the violence will really begin.
I am not optimistic! Why? Because the world has abandoned Judaic/Christian values and principles in favor of socialist worship of the state. Now the world has no moral foundation for its actions other than the philosophical flavor of the day. And the world has gone mad.