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LOL - Sarkozy's grand public national bond not to be open to public

by Jerome a Paris Wed Nov 18th, 2009 at 05:10:23 AM EST

Sarkozy, who had run on a campaign to reduce government deficits and public debt is now presiding over a record increase in both deficits and debt. As Cheney before him, he's decided that "deficits don't matter" as long as he's seen to be doing something about the financial crisis. One of his big symbolic announcements to blunt the effect of his about face on debt was to propose a grand emprunt ie a big national bond that would be open to the population and be invested in big, visible, projects - and thus rally voters (especially those with savings to invest, ie his natural constituency) under a "save the country" banner" and associate them in a profitable way to his big spending plans.

The ministry of finance was apalled, given that France has no trouble borrowing on debt markets, but would need to pay a substantial premium on normal borrowing rates to make such a bond attractive to retail investors. It has thus been running a behind the scenes campaign to limit the size and scope of the operation - and has been borrowing the same amounts preemptively on the markets to limit its cost in any case. The news yesterday was that, despiute public calls by many in Sarkozy's own party to raise 100 billion euros, the emprunt would be limited to 35 billion euros.

But now we have this:

France's "big loan" likely to be raised on markets

PARIS, Nov 18 (Reuters) - France's planned special loan to fund strategic investments will be raised on the financial markets and not, as originally indicated, via small investors, one of the men charged with overseeing the project said.

Now, Sarkozy, out of misplaced pride, may still decide to go ahead with a public operation - or he may decide that the debate on the grand emprunt was enough, politically, to give him cover. But either way, it's yet another exemple of his governing by spin and not having any consistent policies or principles.

But hey, it's only taxpayer money.

"Sarkozy, who had run on a campaign to reduce government deficits and public debt"

The irony of course was that his program was, of the 3 major candidates, the one that would have added most to the debt, and by some considerable distance.

Earth provides enough to satisfy every man's need, but not every man's greed. Gandhi

by Cyrille (cyrillev domain yahoo.fr) on Wed Nov 18th, 2009 at 05:24:46 AM EST
He was minister for budget in Balladur's government back in 93-95, when the previous "largest increase ever" in France's public debt took place.

In fact, over the past 20 years, the left and the right have both governed roughly 10 years each, and debt has gone down under lefty governments, and increased under righty governments.

As usual, one might say...

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Wed Nov 18th, 2009 at 05:27:50 AM EST
[ Parent ]
This is true in Australia also: Debt tends to increase under Liberal (i.e. right wing) gov't and decreaase under Labour (i.e. left wing) gov't.  That's despite the public opinion believing it were the other way around.

So why are righties bigger spenders?  Is it just their habit of declaring war all the time (though teacosy hasn't started any afaik)?

by njh on Wed Nov 18th, 2009 at 01:35:51 PM EST
[ Parent ]
... Sarkozy's 2007 campaign slogan: "I'll be the President of the purchasing power".

The small print added: offer limited to bankers, financiers and the 1% über-class.

For a large part of the 53% of the French voters who brought Sarkozy to the Elysée palace, a reduction of their standard of living is inevitable (and well underway). Yet, come 2012, the same may still vote against their self-interest (sigh...)

by Bernard on Wed Nov 18th, 2009 at 10:41:28 AM EST
[ Parent ]
European Tribune - LOL - Sarkozy's grand public national bond not to be open to public
it's only taxpayer money

Over 60% of French taxation is indirect.

Total tax paid by any individual is limited to 50% of that person's income.

No prizes for guessing who will bear the proportionately heavier burden in paying off Sarko's debt.

by afew (afew(a in a circle)eurotrib_dot_com) on Wed Nov 18th, 2009 at 06:23:27 AM EST

Grand emprunt : des mois de "cirque", de "grand-guignol" (Aubry)

La première secrétaire du Parti socialiste, Martine Aubry, a déploré mercredi des mois de "cirque" et de "grand-guignol" à propos du "grand emprunt" annoncé par Nicolas Sarkozy lors du Congrès de Versailles en juin dernier.


"La seule annonce du président au Congrès de Versailles, c'était le grand emprunt", mais c'était "aberrant de faire un emprunt auprès des Français parce qu'il aurait fallu leur donner des avantages financiers qui auraient coûté beaucoup plus cher à la collectivité", a affirmé Mme Aubry à des journalistes à son arrivée à un déjeuner d'élus socialistes au Palais des Congrès d'Issy-les-Moulineaux.

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (etg@eurotrib.com) on Wed Nov 18th, 2009 at 08:33:39 AM EST
Sarkozy has been remarkably consistent in his failure to actually back-up anything he says with action or policy. This is a gift to France, which is thus able to merely tread-water instead of slowly sinking during his hopefully short Presidency.
by paving on Thu Nov 19th, 2009 at 07:50:09 PM EST

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