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Well, I remember computing once on the back of an envelope that one half of french sovereign debt was in the hand of the french themselves (either directly or through funds or regulated savings schemes like "Livret A" and all the gizmos of Caisse des Dépôts et Consignation), and that conversely one half of the savings of the wealthy french were in french debt.

So it should be livable to cancel at least that half of the debt, without pissing of trade partners too much, and  the "french wealthy" would still be well off, on average... :->>

Not a very politically correct way of "adjusting", huh ? Then there is the "good old soft way" of cancelling debt: 25% inflation. But then we have to get out of the € (or the BCE must change it's policies), and I'm not sure any of these would really pay off in the long run (you know, when we're dead).

Seriously, with the rates going up again, we can't afford more debt. Lenders just won't lend anymore. And there will be no real growth to repay it, ever. State must save, just like anyone.

Pierre
by Pierre on Fri Jun 23rd, 2006 at 12:12:02 PM EST
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