the committee for a citizen's audit on the public debt issued a 30-page report on French public debt, its origins and evolution in the past decades. The report was written by a group of experts in public finances under the coordination of Michel Husson, one of France's finest critical economists. Its conclusion is straightforward: 60% of French public debt is illegitimate.An audit?
Audit of the debt?
Audit of the (French) Fed?
Isn't this the dream of Ron Paul, libertarians, communists, mainstreamers, left and right wing, PC and console game players, Iphone and Samsung users, rich and poor, citizens and illegals here in America?
Look for more "minute of hate" toward France on our national propaganda tube, i.e. TV.
Read the last sentence, it's a doozy: Its conclusion is straightforward: 60% of French public debt is illegitimate.
Oh, it gets better.
The report on French debt contains several key findings. Primarily, the rise in the state's debt in the past decades cannot be explained by an increase in public spending. The neoliberal argument in favour of austerity policies claims that debt is due to unreasonable public spending levels; that societies in general, and popular classes in particular, live above their means.
This is plain false. In the past 30 years, from 1978 to 2012 more precisely, French public spending has in fact decreased by two GDP points. What, then, explains the rise in public debt? First, a fall in the tax revenues of the state. Massive tax reductions for the wealthy and big corporations have been carried out since 1980. In line with the neoliberal mantra, the purpose of these reductions was to favour investment and employment. Well, unemployment is at its highest today, whereas tax revenues have decreased by five points of GDP.Oh, it gets better.
The second factor is the increase in interest rates, especially in the 1990s. This increase favoured creditors and speculators, to the detriment of debtors. Instead of borrowing on financial markets at prohibitive interest rates, had the state financed itself by appealing to household savings and banks, and borrowed at historically normal rates, the public debt would be inferior to current levels by 29 GDP points.Oh, it gets better.
Yes, it still gets better.
Tax reductions for the wealthy and interest rates increases are political decisions. What the audit shows is that public deficits do not just grow naturally out of the normal course of social life. They are deliberately inflicted on society by the dominant classes, to legitimise austerity policies that will allow the transfer of value from the working classes to the wealthy ones.We all knew that; but it's nice that this is finally in print, in a mainstream publication.
Oh, it gets better.
Yes, I know it is impossible; unpossible even for this thing to get better.
But it does.
A stunning finding of the report is that no one actually knows who holds the French debt.
Back a few years ago, I was listening to NPR radio here in Freedomland. The programme was showcasing the real estate bubble. One thing that stuck in my head to this day is that there was an interview with a simple black woman - a normal working schlob, who finally bought a house. (If you want to know how a person who cannot afford a house was targeted deliberately by our government/business complex, read up my "Fiscal Crisis" articles on the right tab, specifically the How the financial crisis came about article. The idiot boy king 'w' bush has said: "You see, we want everybody in America to own their own home. That’s what we want. This is — an ownership society is a compassionate society"... And so it was, banks were instructed from BOTH government regulators AND their CEO's and company bosses to lend to everybody, as each loan was a "credit" on their accounts, and it generated free money to play with... but enough with that, just read the How the financial crisis came about).
Anyhoo... soon the crash happened (surprise, suckas!) and the woman tried her best to pay off the mortgage. What was interesting in her story was that she learned that her lender bank sold her contract to another bank, and that one soon sold part or some of it to another institution... and finally she had no idea WHO OWNED HER LOAN, and in effect, because of the way lending for houses work in America, in effect WHO OWNED HER HOUSE.
So what the Guardian article profiles on a macroeconomic, nation state/global level, is already fucking happening to us little people, on a microeconomic level - and it doesn't get any more micro than a black woman trying to better herself and her family.
Summing up in the article:
An illegitimate debt is one that grew in the service of private interests, and not the wellbeing of the people. Therefore the French people have a right to demand a moratorium on the payment of the debt, and the cancellation of at least part of it. There is precedent for this: in 2008 Ecuador declared 70% of its debt illegitimate.Well, Ecuador is Ecuador, but France is fucking France - Western Europe, a global power.
Wonder how the jews in charge will deal with this?