Many people think that we will not pay our debts and I am almost one of them.
Why “almost”? Because “at this stage” as they say, or as things stand, the system seems to want to make people believe in its solvency and maintains its imaginary fiction… for the moment!
France will not pay its debts unless the whole world does not pay its debts!
At this stage therefore, not paying our debt would be tantamount to going bankrupt, alone, in a world where other countries would remain solvent.
This hypothesis is by no means credible.
If France goes bankrupt it will be in the context of a huge general bankruptcy.
Otherwise, it would imply a financial and social catastrophe of great violence for our country which would find itself totally isolated.
If I think that in the long term, we will be obliged to erase a significant part of our debts, this can only be the result of a collective consensus and an immense international negotiation. We are not there.
We are not there so much that before getting there, we will probably have to go through the austerity box. And that has been the very heart of the IMF’s work for decades!
IMF invites France to prepare plan to reduce debt
France must work now on a plan that will allow it to consolidate its public finances as soon as the economy has overcome the crisis due to the coronavirus, the International Monetary Fund said on Tuesday. Source Magazine Challenges citing the Reuters news agency here.
In its annual report on France and while the crisis “Expected to leave the public sector budget deficit at 7.7% of GDP this year, IMF urges government not to waste time and develop plans to cut spending once economic recovery takes hold”.
“Debt in France is high and we believe that the time has come to develop and approve a credible medium-term fiscal consolidation plan,” said IMF mission chief in France, Jeffrey Franks, during conference call ”.
On the Bercy side, our Minister of the Economy, Finance and Recovery, Bruno Le Maire, took note of this report by ensuring that he shared the IMF’s analysis on the need to continue supporting businesses, the relevance of ‘an “ambitious” stimulus plan and “the importance of developing a strategy to rebalance public finances now”.
Clean up public finances!
And do you know what it means when the IMF talks about cleaning up a country’s public accounts?
Nothing really good for its population which finds itself massacred between an increase in taxation and a reduction in public services.
Nothing good either for the nation concerned, which is asked to sell off some assets and family jewels. This was the case with Greece, its ports and its few assets.
Macron, as he had said on Brut will be “forced” to do unpopular things, and he might not be able to run for a second term.
For our country, the tax burden is already very high. Taxes will go up but not that much, it is public spending that will be significantly reduced, and all those who depend on it will suffer significantly.
The famine is coming, the IMF has just officially requested it!
Finally, don’t forget, the consequences of bankruptcy or the consequences of the policy to be followed to avoid bankruptcy are more or less the same! The only difference is the dynamics. Bankruptcy is brutal. Austerity saves time. In any case, the consequences are very unpleasant.
It is already too late, but all is not lost. Prepare yourselves !