France’s debt has crossed the sound barrier. Officially at 2,800 billion in 2021, its real amount is now abysmal between 4,000 and 5,000 billion euros. But above all the exit from the Covid will inaugurate a curious system of power between finances, government and citizens with an addition that hides another, much worse, saltier, more indigestible still.
Already in 2013, the Court of Auditors had recalled an accumulation of commitments with “off balance sheet” to 5,200 billion, recalling that the public debt had tripled in only 8 years. This estimate of public debt is still below the 2021 reality. Between Dexia, social housing, SNCF, IMF debt, and many others, the additional slate had been estimated at 3,300 billion in addition to the official debt in the last presidential election (cab Archer). The off-balance sheet reached an additional 4,300 billion in 2019 according to the Finance Law Report of the Senate 2020 on the public debt whereas it was “only” of 1,300 billion in 2006. Last year we were about twice as much in debt as Germany. In reality, nearly 300% of the GDP is committed and not 120%, which is already enormous. The information from the administration is so muddled that Parliamentarians fear to discover yet other unchecked financial holes according to their Special Rapporteur, Senator Nathalie Goulet. (Report 140 21 Nov 2019). It is true that the Minister of Finance, very dear Bruno, had to admit in a program on Canal Plus that he did not know what a hectare was, nor to multiply 100 by 100. It is embarrassing for this post.
The government has just “generously” spent 160 billion, but with our checkbook and signing for us. While the absurdities follow one another with confinements that turn into a hilarious sketch or Parisian denial, the authorities could have temporarily hired as reinforcements and for the same price people humiliated at half salary and confined. Their dignity would have been preserved. At least this measure would have contributed to the GDP instead of weighing it down. It would also have relieved the overload of health workers and public services, rather than applauding them by forgetting to pay them the promised bonuses. A long disaster runs through the waste of countless back and forth trips, mask or not, containment or not, trade or not, vaccine or not, restaurant or not, unverifiable certificate, etc…. The exoduses caused by the pseudo confinements amplify the contagions instead of absorbing them and further increase our costs and our difficulties.
The catalog is long: tourism, hotels, restaurants, sports, events, culture, air transport, ski lifts, hotels, campsites, personal property retailers, hairdressers, aesthetics, restaurants, cafeterias, drinking establishments, cinemas, travel agencies , fairs or exhibitions, exchange offices, sports, leisure activities, shows, museums, guides, gardens and zoos, sports halls, amusement parks, casinos, coaches and tourist buses, maritime transport, cultural education, etc.
From now on we must also add the loans guaranteed by the State for nearly 400 billion, some of which curiously granted to large groups or to speculative sectors close to power. Let us also count 200 billion for Social Security. The Maastricht criteria are buried, and the French people are once again betrayed. International finance willingly lends us in times of crisis to fully control us at low cost when exiting. The more we downgrade our rating, the more vulnerable we are, the more they lend us to become the absolute hostage of international finance which will be able to allow itself all the claims on our economy. France tumbles from its flamboyant AAA towards a simple A which might even quickly turn to the dubious BBB.
The Finance Stability Board, a global financial watchdog, has just released its 2020 report. Global private trade (NBFI) has for the first time surpassed that of central banks and governments, at more than $ 200 trillion. In comparison, the global “strike force” of the IMF is 500 times lower (440 billion) or 200 times lower (1 trillion) with the lines of the world states (200 and 350 billion more). This means that global private finance has taken absolute power. The indebted States are its creditors and will have as a choice that to make pay… their fellow citizens… for life. Just one example: France’s weight in this private system is less than 0.2%,
If the Government manages this problem through absurdity, like the Covid, then what we have experienced with the Yellow Vests will only be a joke next to a generalized protest, in the midst of the presidential election of 2022. The consequence of the current debt would be to further double the current taxation over at least two generations with exceptional taxation, Covid tax, increased VAT, reimbursement of guaranteed Covid loans, Social Security deficit, etc. This outcome is unthinkable. It’s time to put the imagination in power before it’s too late, and the power really seems to be lacking. He has less than six months to do so. Otherwise, power will no longer be in power, one way or another.