His mountain who made France lose its financial sovereignty
- 2023/2/25 10:08:29
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Until the 1970s, France was one of the worlds richest forex trad cashback forexg session times most powerful countries but France today has been overwhelmed by heavy debt total national debt amounted to 187.03 billion euros, accounting for 91.7% of Frances GDP per capita debt up to 66,508 euros forextradingtime economy was dragged into recession by debt, the The long-term unemployed population exceeded 3 million former French Prime Min forextradingmarketter Fillon, in order to remind French public opinion, had publicly stated at the beginning of his rise to power: I am the leader of a country that is already bankrupt…… How did France fall to this? Is it really due to a welfare society, as mainstream French academics say, that ultimately led to the emergence of todays astronomical national debt? This is a deliberate misrepresentation aimed precisely at concealing the alarming fact that Frances national financial sovereignty changed hands The fundamental cause of Frances national debt is due to the fact that France unwittingly lost its national financial sovereignty under the banner of financial modernization and reform, and under the slogan of convergence with the advanced international financial system of the United Kingdom and the United States, and thus began to embark on a path of debt economy, which eventually led to The French tragedy, which has led France to this point, should provide an important lesson for China, which is at a critical period of financial reform; it reminds us that once financial sovereignty is lost, it will lead the country irrevocably to the road of no return to indebtedness and bankruptcy Frances loss of national financial sovereignty is a long historical process, the key point of which is a law passed on January 3, 1973, known as The introduction of the Pompidou Rothschild law, this law completely changed the structure of the relationship between the French state and financial institutions, hollowed out the states dominance over finance, especially over the national currency, and thus unwittingly lost the countrys financial sovereignty, triggering a series of major financial and economic consequences that have affected the present day and have accumulated so far Comparing the debt curve of France since World War II so far can It can be seen that the French national debt began to rise from the mid-1970s in 1978 the French national debt was only 72.8 billion euros, accounting for 21.2% of Frances gross domestic product (GDP), while from this year onwards the debt soared and never fell, and has now reached 187.03 billion euros, accounting for 91.7% of GDP Frances 2013 national budget, interest payments on the debt have become The debt burden has made the state budget unable to provide normal and active financial support for economic growth, resulting in zero or even negative economic growth, when the countrys financial credibility is inevitably downgraded and borrowing rates rise, the more indebted the country is, the higher the borrowing rates, the less it can borrow money Thus, the more the need to borrow money in the vicious circle, thus seriously impacting the normal development of the national economy national bankruptcy will no longer be an empty talk It should be noted that France and many European countries debt and the nature of the U.S. national debt is not quite the same because the United States is also able to dilute the debt by issuing more money (i.e., the adoption of monetary easing), pegging the currency to oil and other means, and by maintaining the dollar But the debt crisis of the eurozone countries, including France, has no solution other than to restore economic growth, although France is still able to borrow for daily use at lower interest rates through the market, but this pattern is no longer possible to maintain long-term debt burden has made it difficult for France to get out of the trap of low growth or even negative growth. Frances only hope is the full recovery of the world economy, driving France out of the debt trap, but from the current international economic situation, this expectation is likely to fail, France is likely to become the euro zone after Italy, Spain, Portugal and other countries a new round of crisis outbreak De Gaulle why must step down After the war France experienced a difficult period of French ruling class in 1958 invited back the Second World War De Gaulles philosophy of governance is very clear, consisting of three major components: the state, the army and the currency and the biggest problem facing France is the currency at the time France was under the supervision of the International Monetary Fund, the franc was worth almost nothing, the country owed the International Monetary Fund about $900 million, which was a huge sum of money at the time De Gaulle came to power that issued a new franc, and immediately made the new The French franc was devalued by 17% against gold, thus launching the New Economic Plan 10 years later, France achieved economic take-off (including nuclear programs, space exploration, the development of the worlds only supersonic airliner Concorde, the establishment of a nuclear strike force, the development of oil development industry, etc.) while returning the entire debt to the IMF in 1969 This time, the French economy was largely controlled in the The state, 170 large enterprises each year under the organization of the government to develop national and corporate development plans and private banks, including the later rapidly expanding Rothschild Bank is smaller, and the state requires that 20% of its funds must be given to the state as a guarantee fund This is the golden age of the French system, the core is the state control of the financial system, dominating economic development really benefit from this system is the French People In the early 1970s, France entered the last years of the Golden Thirty years of development At that time, Frances economic development was mainly constructed on employment and industry State investment was mainly concentrated in the industrial sector and infrastructure, which enabled the economy to develop at a high rate At the same time, social consumption patterns also provided strong support for economic development The French population bought a large number of durable goods such as cars, washing machines, refrigerators, etc., making Frances domestic consumption to the end of the 1970s, the first wave of consumption passed, French society turned to tourism, movies and other areas of consumption, while manufacturing faced stagnation At this time, as in other Western countries, France faced a choice of economic development model is to focus on capital, that is, to strengthen investment and profit sharing, or focus on labor, that is, favoring employment and employee benefits De Gaulle proposed a participation with French characteristics De Gaulles approach to the country was already hated by the big capital consortia because their profit margins were severely restricted and his proposal was seen as a real war effort by the French upper echelons of the financial consortia because it would further severely reduce the lucrative profits that capital could make. He was seen as an opponent who had to be removed Internationally, the United States had just decoupled the dollar from gold, and the dollar became the currency of the United States in the true sense of the word, and Europes problems The United States, after decoupling gold from the dollar, and through a series of negotiations made the exchange between currencies floatable rather than fixed, thus opening the door for Wall Street to engage in large-scale international currency speculation However, France, under the However, Frances relatively independent monetary system and banking system under the leadership of General de Gaulle became the last obstacle to resist the international financial consortiums covert attempts to break financial national boundaries, prompting all of Europe to establish so-called independent central banks, and to bring national financial sovereignty under the supervision of international financial powers At the same time, de Gaulle soon realized after the United States announced the decoupling of the dollar from gold that there was no gold as the dollar The French economic and financial interests, which had a large amount of dollar bills on hand, would be seriously damaged. Therefore, General de Gaulle formally proposed to the United States to exchange the dollar bills on hand for gold, and openly implied that he suspected that the United States was printing paper money indiscriminately, resulting in the guarantee that the dollar could be freely exchanged for gold in the Brinton Woods system has existed in name only President de Gaulle even sent several naval ships to the United States at that time The gold was ready to be transported when De Gaulle told government minister Alain Perrefitte that today it seems to be ahead of history: we pay the United States to buy us out (today this phrase is used to describe the U.S.-China economic relationship has such a strong sense of reality!) General de Gaulles attempts to turn this around, and the independent financial system adopted by France, made the U.S. Wall Street financial conglomerates see them as their main enemy This set the stage for the international anti-de Gaulle forces to force de Gaulle out of power through a color revolution, i.e., the May 1968 storm What the Banking Law Changed In the January 3, 1973 law, the Pompidou Rothschild Law Before the passage of the French state under the leadership of General de Gaulle, has controlled the countrys financial sovereignty state according to the needs of economic development through the state-controlled Central Bank of France to print money, and to support the large national economic infrastructure such as high-speed railroads, highways, nuclear power, etc. and issue a variety of long-term national debt, the financing of these areas involving the lifeblood of the national economy and security, development from the administrative structure The French central bank is subordinate to the French government, that is, the French executive, which is the opposite of the United Kingdom that is, until 1973, the French financial activities are carried out under the auspices of the French national central bank, whose model is mainly the state to the central bank interest-free or low-interest (interest is mainly necessary to maintain the central banks own operating expenses, generally less than 1%) borrowing for In this structure, the French and international private banking systems have no direct relationship with the French national debt, which was also very low in 1978, at 72 billion euros, or about 21.2% of GDP thus, international financial powers could not get their hands on French financial markets and When a country has no debt or very low debt, it is the same as the international financial consortium to make a profit on the raw material deprived of because the debt is this raw material like oil companies on oil profits, the financial consortium on debt profits So, how to find ways to make France from a debt-free country into a debt country, it became the end of the 60s international financial consortium an important goal of the January 3, 1973 The Banking Law of January 3, 1973 was deliberately created to achieve this goal one of the key provisions of this law was to restrict the French state from borrowing from the French National Central Bank at almost zero interest rates; the rationale was to limit the states uncontrolled borrowing, which was bound to cause hyperinflation The problem was that this law, which was introduced on anti-inflationary grounds In the nearly two decades prior to this law, from 1952 to 1973, the inflation rate in France was only 3.5%, so it was not clear that this law was needed and it was under the pretext of preventing hyperinflation that the new banking law was introduced, which prohibited the state from borrowing directly from the central bank and the state had to make interest-bearing loans to private banks From the beginning of this law, the financial structure of the French state was In the past, the state could borrow money from the Central Bank of France at an interest rate of less than 1%, and after this law was passed, it became the Central Bank of France to lend money to private banks at 1%, and private banks then lend money to the state at 4% According to the study of economics and finance scholar Pierre-Yves Rougeillon in his book "An Investigation into the Law of January 3, 1973", this part of the extra interest It is this excess expenditure that constitutes the bulk of Frances national debt According to several French economists, including former Prime Minister Michel Rocard, without the banking law passed in 1973, the French state budget would have been in deficit every year, and the national debt accumulated by France from the 1980s to 2010 would not have exceeded 194 billion euros. would not have exceeded 194 billion euros, which is only 10% of Frances GDP! That is to say, upwards of 1.3 trillion euros of the French debt is derived from the interest on the debt, that is, from the debt itself More crucially, because the state has to lend to private banks, this makes the state lose real control over the central bank, especially the control of the amount of money put precisely because of this, the French scholar Gilles Laveau in his recently published "Leading to the financial capitalism In his recent article "The Banking Law of January 3, 1973 that led to the financialization of capitalism", the French scholar Gilrave pointed out that the loss of financial sovereignty is the fundamental reason why France today is burdened with a huge national debt Who profits from the failure of France Two-thirds of the claims on the French national debt are currently in the hands of banks outside France To know who started it all, it depends on who is the beneficiary In the case of the French national public debt, the first beneficiary is the international Since the private banking system has played the role of intermediary between the French central bank and the state itself, private banks have received a portion of the interest on every loan from the French state, and this interest income is tax-free. This law allows them to gain a large amount of regular income out of thin air The second profit is the international financial consortium to buy French bonds from these banks International financial consortium through the above 20 banks entitled to issue French bonds to buy French bonds, in fact, control the economic lifeline of France in todays French state budget spending, the first major item is to these financial consortium owns the French national debt In other words, after France passed this banking law, a large part of its income was used to pay international financial consortia and private banks; the hard-earned money of the French people was thus unknowingly extracted and to this day, the general public in France is still ignorant of this despite the fact that in the 2012 French presidential election, at least four official candidates, including the extreme Although at least four official candidates in the 2012 French presidential election, including the far-left Melen?on, the non-partisan Cherminade, the right-wing Poundnon and the far-right Le Pen, all mentioned this law in their campaign rally speeches or election platforms and coincidentally argued that it was this law that had led France into the huge debt trap it is in today, this fact is politically incorrect and therefore has been kept quiet by the mainstream French academia and media. Only a few academic journals such as the quarterly Journal of International Strategy published a special article in its third issue last year According to the survey, this law was voted on in the French National Assembly, only 2 of the 433 members were absent, with 388 votes in favor, far more than the absolute majority of 216; only 43 votes against Why would a law that essentially runs counter to the French national interest receive such Why did a law that was essentially contrary to French national interests receive so much support? The reason is because at that time France decided that the U.S. and British banking system is advanced and international, France should be in line with the U.S. and Britain In fact, this is the international financial consortium system through the French domestic and foreign multiple means to win a financial war Lessons should be said to be very profound Lesson 1: When the regime appears in the international financial consortium of proxy figures, it is difficult to prevent and resist January 3, 1973 It is no coincidence that the banking law was passed when Pompidou was president of France Pompidou had previously been employed by the famous Jewish banker Rothschild as president of his bank Although there is no evidence to prove that there is any interest between the two, the problem is precisely that many historical facts are unprovable and can only be understood by logical reasoning Lesson 2: Some specious theories The legal theory behind the Banking Act of January 3, 1973 is to limit uncontrolled borrowing by the state to cause inflation, the problem is that inflation in France in the 1960s and 1970s was almost negligible which forced people to doubt the motives of the law passed on the grounds of inflation Lesson 3: The beautiful slogans of convergence with the advanced financial system of the United States and Britain and the need to reform the French financial system to further integrate France into the international community had been the common notion of many French politicians and scholars at the time few French parliamentarians realized the seriousness of this law when they voted in favor of the sale of Frances national financial sovereignty they were in a state of half-understanding, under the advice and misinformation of experts, voted in favor of this The fourth lesson: in democratic countries, politicians are mostly amateurs (i.e. those who are engaged in economics do not actually understand or half understand economics, those who are engaged in finance do not actually understand finance, those who are engaged in diplomacy do not understand the essence of international affairs……), and thus are basically dependent on their administrative system, i.e. the circle of secretaries, experts and advisors, which Most of these circles come from the same schools, have roughly the same education and experience, and are therefore relatively easy to be secretly controlled by the interests behind the scenes The French media has reported that all 16 experts working as advisors to the French health minister are, or have been, or have since worked for major French and international pharmaceutical companies, receiving high salaries, so the French pharmaceutical scandal has been ongoing in recent years, resulting in thousands of deaths The case of Mediator, a weight-loss drug, has not yet been tried Lesson No. 5: When experts and scholars have been brainwashed for a long time, they will be blind to the simplest facts, but believe in advanced theories that have never been tested Frances economic situation during the reign of General de Gaulle was actually very favorable, a period of high economic growth known in French history as the Glorious Thirty Years, but the French elite is blind to such facts Ignoring such a fact, but instead bent on reforming and modernizing Frances financial institutions, thus passing the Banking Law of January 3, 1973; not only ended the high growth of the French economy (of course, the oil crisis was also a factor), but also planted a time bomb of Frances huge national debt Because of this, the French academic and political circles are currently engaged in a profound reflection on this law Chinas financial Reform has also been on the agenda must be vigilant that the international financial system in the West has proved to be dangerous and harmful, and caused todays global financial crisis, should not be our reference to international convergence coefficient by the loss of Frances financial sovereignty of the painful lessons of other stones, whether we can provide some warning to attack the jade?