Tuesday, March 13, 2012

France’s Upcoming Election Means Euro Devaluation—and a Pop In Gold

On May 6, France is holding its second round of Presidential elections, where the Socialist François Hollande is fully expected to win.


François Hollande
I’m pretty sure two things will happen immediately following the election: The first is, Carla Bruni will leave Nicolas Sarkozy (because everyone knows that a professional courtesan never stays when the going gets tough for her patron).

The second thing that will happen following the election of Hollande is that the euro will begin to fall—amid persistent, insistent calls by the new French President for Europe to spend its way out of the hole it’s in.

In other words, France is about to elect their version of Paul Krugman to the Presidency.

Up until now, Europe has been going the way of Austeristan: Forcing the weaker eurozone nations (Greece, Portugal, Ireland, Spain, Italy) to severely cut their budgets and reign in their deficit spending, so as to thereby cut their overindebtedness. (Though Germany itself has been conspicuously remiss in meeting its own austerity targets.)

Germany has gotten this continent-wide austerity regime by way of French acquiescence, an acquiescence brought about by Nicolas Sarkozy’s lapdog-like partnership with Germany’s Angela Merkel. (Sidenote: What is up with Sarkozy and strong women? Whenever Carla or Angela crook their little finger at him, he gives it up like a prison bitch.)

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