Bye Bye Sarkozy

Over the weekend France and Greece elected two socialist governments.

Gone are the days of Mr. Sarkozy and his conservatives views. He came to run the France with many objectives, one of them, to try to downgrade the power of the unions.

The French people are used to a certain standard of living, where the middle class enjoys big benefits, they have the number one rated healthcare system in the world.

Mr. Sarkozy’s achievements included a downgrade in France’s credit, trying to force austerity measures.

Austerity does not work. The proof is in Spain and the UK. The UK with its austere measures in back in a recession. Spain has a 25% unemployment.

Having grown up in Argentina the I.M.F. (International Monetary Fund), a club of rich nations who were always interested in recovering their loans, or at least strangling poor nations with mob type interests, would always ask for austerity measures. The only thing that austerity measures provoke is just a shrinking in the economy, increasing unemployment. because the pie get smaller instead of increasing.

For years we heard this recording that the belt needed to be tightened. The reality is that it tightens with the needy, the haves get richer during those periods, never end up paying their fair share, and the bill is always picked up by the less fortunate. Even though it may sound familiar this is how Argentina and many other nations found themselves trapped by the idiotic and unrealistic measures of the IMF.

The French made a decision that they feel may work better for them than the austere measures that the elite club and their representatives tried to impose on them.

Time will tell if France will grow its economy faster than the UK and other European nations.

These elections may also put the future of the euro in serious jeopardy, not that it was on safe grown before, as the European elections within the community further down the year may end up challenging the authority to Germany.

I have predicted the end of the euro for a while because it is unsustainable to most of the European nations to abide with the strict guidelines that it central bank imposes.

Time will tell if I am mistaken.