Posts Tagged ‘S&P’

No Ideology But Greed

November 8, 2013

Standard & Poors, the most prominent USA rating agency, which pretends to rate, if not rule, the world, has downgraded France. Same S&P which used to give AAA ratings to banks too big to flail… until the moment they went bankrupt in 2008. Same reason, as we will see, to downgrade France than there was, and is, to praise the banksters.

Because France hurt the plutocrats, and threatens to hurt them much more, insults are in order. Warren Buffet, America’s own grand father, owns S&P, S&P barks. Good doggie.

S&P (Sadist & Posh?) claims that  “France hasn’t carried out the reforms that will enhance its medium-term growth prospects“. Another factor is the inchoating agitation of the French plebs, says S&P. The Sans Culottes are rising, S&P disapproves. Meanwhile Great Britain keeps it AAA rating. Although Britain has clearly performed less well. Here are the French and British per capita GDP:

Britain: Lower GDP Than France, Absolutely, Comparatively, Overall & Also Recently

Britain: Lower GDP Than France, Absolutely, Comparatively, Overall & Also Recently

The plutocrats are the party of no taxes to themselves, hence no government by and especially for, the people. They can only hate, with all consuming passion, that the French Republic has brought up taxes to 75% on those earning more than a million euros.

The truly abominable French idea behind this was to enforce equality and decrease debt. As it is France has a lower deficit than the USA. The USA is suffering sequestration, a slash and burn cutting-into-the-muscle of the country, reduction in spending. Whereas France suffers indignities from a few anxious soccer stars and one demented actor with, apparently, an alcohol soaked trunk, in the middle of his face.

British total debt (98% GDP) is worse than France’s. Amazingly the British and USA deficits (= the rate at which debt grows) are about 6%, or nearly TWICE the French deficit. Here is the evolution of French & British Debt Per GDP:

Britain: More Debt Than France In Spite Of Astronomical Tuition "Public" Universities

Britain: More Debt Than France In Spite Of Astronomical Tuition “Public” Universities

What the plutocrats are afraid of is that such tax margins on high salaries will spread. And then what? With heavy taxes all over, plutocrats would just disappear. That would be the extinction of the species that has come (erroneously) to define itself as the pinnacle of civilization, the very engine of creation (insisted Ayn Rand, and her bleating followers).

And why is Great Britain so valued, although it performs worse than France?

The Tax Justice Network came up with the answer: with its overseas territories (Isle of man, Anglo-Normand isles, British Virgin Islands, etc.), Great Britain is the world number one tax heaven. This explains why plutocrats love London. The plutocratic mayor of new York has a 50 million dollars residence in London; he pays just $3,000 in taxes (yes three thousands; meanwhile schools close in London, from lack of funding).

I of course, beg to disagree, I think the USA is an even worse tax haven… for worldwide plutocrats.  It’s a den of thieves, and no propaganda is too low, too base, too outrageous. As a German Chancellor who came to incarnate the Dark Side put it: “Make the lie big, make it simple, keep repeating it, and ultimately they will believe it.”

What mainstream economy has been hammering, that big, simple lie, is that the market decides everything, and decides it for the best, it’s god. However, most of the “market” power is held by the plutocrats, either directly through their increasing purchasing power, or indirectly, through their paid propagandists and pet politicians. So indeed, it’s all ideology. Plutocratic ideology. And the ground state of plutocratic ideology is that it hates the French Republic.

Says Krugman in “Ideological Ratings” (thanks Kroog for the graphs!):

…”where is this coming from?

I’m sorry, but I think that when S&P complains about lack of reform, it’s actually complaining that Hollande is raising, not cutting taxes on the wealthy, and in general isn’t free-market enough to satisfy the Davos set. Remember that a couple of months ago Olli Rehn dismissed France’s fiscal restraint — which has actually been exemplary — because the French, unacceptably, are raising taxes rather than slashing the safety net.

So just as the austerity drive isn’t really about fiscal responsibility, the push for “structural reform” isn’t really about growth; in both cases, it’s mainly about dismantling the welfare state.

S&P may not be participating in this game in a fully conscious way; when you move in those circles, things that in fact nobody knows become part of what everyone knows. But don’t take this downgrade as a demonstration that something is really rotten in the state of France. It’s much more about ideology than about defensible economic analysis.

Amen.

Why is the French Republic so frightening to plutocrats? Because, as France is the sister Republic to the USA, they are afraid that French solutions too friendly to equality will be applied in the USA too (something about 1789).

Ever since May 1, 1914, a flood of venom and viciousness has been directed at the French Republic by all too many USA based plutocrats. Result: two world wars, a few holocausts, and counting. But it will not be over, until the fat lady sings.

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Patrice Ayme