Viva La France
Amidst the global gloom and doom, the first major uplifting news came from France, where French President Nicolas Sarkozy conceded defeat in France's presidential elections, and congratulated Francois Hollande, wishing him "good luck" as the country's next President.
Hollande had campaigned with the promise of more government spending and higher taxes reaching up to a 75-percent income tax on the rich. He is slated to be the first major western leader who is promising such a cure, running against the wisdom of all other current leaders including President Barack Obama. I have always taken the position that Obama is a Republican-lite, and with him in the White House the masters of the world have nothing to be afraid of.
Hollande’s victory demonstrates that the American people need to wise up and understand how the big brothers have it so well - creating a false choice between varying degrees of right wing agendas.
Hollande also promised that he would re-negotiate a European treaty for cutting down budgets to manage the current debt crises now facing Europe. The cutting down of social programs, benefits and jobs only adds to further shrinking of the economy, as we have seen in Greece, Iceland and other countries. Despite this, the banksters are still forcing this down the politicians' throats as the only medicine for the current ills.
The jobless rate is touching double-digits in France, and yet Hollande has prescribed raising the minimum wage, a move portrayed by Sarkozy as a sure shot way to increase the pressure on the middle class. The French people did not buy that opinion, and of course they are right. The current economic downturn has been caused by transferring the tax burden from the rich to the middle class and it can only be rectified by reversing the situation. When minimum wages go up, people spend the money and economic activity intensifies. When top tax rates go down the wealth is sucked out of the economy, only to starve it further. The term "job creater" is a myth, as companies hire employees only when the economic activity rises.
We can only hope that Hollande will be able to resist the pressure of the banksters and act as he had promised before the Presidential election.