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As France Lowers Retirement Age, Germany Better Be Ready To Pay For Austerity's Unwind

Tyler Durden's picture




 

As noted earlier, Europe has been so obviously crippled by years of brutal austerity (which, as we pointed out before never actually happened), that it has had to experience the supreme indignity - a miserable two years of plunging flat GDP growth. Because under the old normal, it appears that unless one is issuing massive debt, pardon "growing", society grinds to a halt. Well, it appears that France has finally had enough, and as of today, "the French government approved a measure Wednesday that will lower the retirement age to 60 from 62 for a narrow group of workers, partly reversing unpopular pension reforms made by former President Nicolas Sarkozy as he sought to improve France's public finances." Obviously, this means that more welfare funding will have to be sourced as all else equal, this means less money will be produced by the country's workforce, and more money will be consumed by its retirees. Who will do it? Why German of course. Because after Merkel caved first on Greece, and then on Spain, it is now game over for German "prudence" and everyone will line up at the trough. Congrats Berlin: we can only hope you have discovered those magical money-growing trees. You will need them.

From Dow Jones:

The reform, which is less sweeping than promised by new President François Hollande during his election campaign, comes just days ahead of legislative elections in France and is likely to further fuel questions about Mr. Hollande's ability to make a serious dent in France's deficit against a backdrop of the deepening euro-zone crisis.

 

The government's decision will authorize people who contributed to the pension system for more than 41 years to retire at 60, Social Affairs Minister Marisol Touraine told reporters after the weekly cabinet meeting. The government will also take into account maternity leave and unemployment periods in the contribution period, she said.

 

Ms. Touraine said the reforms will cost €1.1 billion ($1.37 billion) in 2013 and €3 billion in 2017. The extra expenditure will be covered by increased contributions by employees and employers, she added.

 

The measures will allow people who started working early in life and who have paid the required amount of pension contributions over the course of their working life to retire at age 60, instead of the normal minimum retirement age of 62.

 

Ms. Touraine said 110,000 people will be affected by the reform.

We don't know about 110,000 people but we know about one: Angela Merkel. Have fun paying for French early retirement as austerity dies a miserable death.

 

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Wed, 06/06/2012 - 14:40 | 2500392 Ahmeexnal
Ahmeexnal's picture

Sacre Bleu, Deux Deux!

AVANT!!

Wed, 06/06/2012 - 15:45 | 2500650 Manthong
Manthong's picture

It is only fitting that 41 years of cheese tasting and Champagne sipping should earn an early retirement..

and those legislated five week vacations are brutal.

http://www.cbsnews.com/2100-500164_162-704571.html

Wed, 06/06/2012 - 16:47 | 2500887 DoChenRollingBearing
DoChenRollingBearing's picture

Greek Death Spiral, it's getting VERY real for Greece...

http://www.cnbc.com/id/47700847

Wed, 06/06/2012 - 14:40 | 2500397 eclectic syncretist
eclectic syncretist's picture

Isn't that where all this is going?  Free money for everyone?  Maybe that's why the central banks are mad at politico's.  They forgot to remember that all the money is supposed to be taken from the taxpayers and given to the banks.

Wed, 06/06/2012 - 14:53 | 2500449 john39
john39's picture

debt slaves are controllable slaves.  Breaking Germany is probably just part of the plan.

Wed, 06/06/2012 - 15:07 | 2500507 NotApplicable
NotApplicable's picture

For over a hundred years now.

Wed, 06/06/2012 - 15:08 | 2500516 Joe Sixpack
Joe Sixpack's picture

"...this means less money will be produced by the country's workforce, and more money will be consumed by its retirees..."

The second part is true, but I am not sure about the first.

This means the out of work young people will take jobs (at half the wages) that the retiring 60 year olds have, and they will go off unemployment. French unemployment is 10% (http://en.wikipedia.org/wiki/List_of_countries_by_unemployment_rate). If people retire more will go to work (assuming a fit in skills). Youth unemployment is 23% (http://www.indexmundi.com/france/youth-unemployment-rate.html).

This may not be a dumb move.

Wed, 06/06/2012 - 15:16 | 2500538 withnmeans
withnmeans's picture

Top British MP calls for Greece to leave euro.

http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_06/06/2012_445582

Wed, 06/06/2012 - 15:17 | 2500543 Joe Davola
Joe Davola's picture

The extra expenditure will be covered by increased contributions by employees and employers, she added.

 

So the youths earning less will end up paying more - c'est le fisted.

Wed, 06/06/2012 - 16:00 | 2500697 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

So the youths earning less will end up paying more - c'est le fisted.

Französisch Faust ficken - nicht so ausgezeichnet.

 

Wed, 06/06/2012 - 16:16 | 2500748 darkpool2
darkpool2's picture

Of course thats a total lie ! Those who have contributed 41 years have seen their pension pool monies grow large and fat, and they should be ENTITLED to dip into the pot. No need whatsoever for remaining workers and employers to make additional contributions to cover these costs. Afterall, the money is all there..............isnt it ????????? What,you mean it isnt? Man the guillotine .

Wed, 06/06/2012 - 18:38 | 2501290 Matt
Matt's picture

What's the over-under on when France forms the Sixth Republic?

Wed, 06/06/2012 - 15:19 | 2500550 Bunga Bunga
Bunga Bunga's picture

Workforce does not produce money, but the banks.

Wed, 06/06/2012 - 15:25 | 2500574 Thisson
Thisson's picture

No way, Jose.  The retiring 60 year olds have cushy French government jobs with overpaid salaries and benefits, so no, the replacement workers wont be cheaper.  The new entry-level gov't workers will simply replace the echelon a year ahead of them as they step up replacing those above them, and so on, and so on up to the rank of the 60-year-olds that are retiring, now 2 years earlier, at an additional incremental cost for health care and other benefits.

You cannot make an economy more productive merely by making more promises to pay benefits and entitlements.   Someone, somewhere, has to produce the things that the government wants to give away, and until maximization of production is incentivized, an economy is not going to reach its full potential.

Wed, 06/06/2012 - 21:29 | 2501806 mjk0259
mjk0259's picture

I would rather retire at 60 then have the economy reach it's full potential? The top 1% get 80% of the wealth. Why do I want to increase that?

Wed, 06/06/2012 - 23:16 | 2502088 Joe Sixpack
Joe Sixpack's picture

The 60 yr olds and the youth are already getting paid either way (work and unemployment). Then 60 year olds should be retired. The youth should be working. This move puts things in more correct order. And since both are paid anyway, it makes more sense to pay the young to work and the old to lounge rather than vice versa.

Wed, 06/06/2012 - 17:44 | 2501168 mkkby
mkkby's picture

But societies trained on entitlement can default with absolutely no remorse.  Turns out the free shit really was free after all.  The only idiots in the game are the ones still working and supporting the system.  Myself included (but not for long).

Wed, 06/06/2012 - 14:40 | 2500398 Apeman
Apeman's picture

I don't live very far from the German border. Where do I have to be to pick up my cash? Any Germans here who can help me out?

Wed, 06/06/2012 - 14:42 | 2500404 Ahmeexnal
Ahmeexnal's picture

seems like germany's plan to dominate europe has just exploded in their face.

Wed, 06/06/2012 - 14:47 | 2500430 GeneMarchbanks
GeneMarchbanks's picture

One more time for you: the dominating force in Europe ain't in Europe.

 

Wed, 06/06/2012 - 14:52 | 2500444 pods
pods's picture

Yep, it beings with "City of" and ends with "London."

pods

Wed, 06/06/2012 - 15:00 | 2500479 AnAnonymous
AnAnonymous's picture

The center of the world is located in the US of A.

Wed, 06/06/2012 - 15:08 | 2500514 NotApplicable
NotApplicable's picture

That's just the barrel of the gun. Now, look for the hand holding it.

Wed, 06/06/2012 - 15:18 | 2500546 frenchie
frenchie's picture

Tel aviv ?

Wed, 06/06/2012 - 16:02 | 2500703 mcguire
mcguire's picture

the vatican

Wed, 06/06/2012 - 15:58 | 2500689 AnAnonymous
AnAnonymous's picture

That's just the barrel of the gun. Now, look for the hand holding it.
_________________________________

Most representative would be a US of A middle class, indo european hand.

You cant part a US citizen living in the US from her gun.

Has to be a US of A hand.

Wed, 06/06/2012 - 16:04 | 2500716 TheFourthStooge-ing
TheFourthStooge-ing's picture

AnAnonymous bleated:

Most representative would be a US of A middle class, indo european hand.

You cant part a US citizen living in the US from her gun.

Has to be a US of A hand.

Typical ridiculosity one would expect from French Indo-Chinese Antarctic citizenism.
You left your brain on Easter Island.

Wed, 06/06/2012 - 16:11 | 2500736 AnAnonymous
AnAnonymous's picture

Judgement from a master? It has to be with that french indo chinese antartic citizenism ridiculosity.

But it happens that master makers are sometimes poor judges.

Wed, 06/06/2012 - 16:02 | 2500707 mcguire
mcguire's picture

thos are just the accountants...

the real power wears scarlet and rides the beast. 

Wed, 06/06/2012 - 14:46 | 2500421 5880
5880's picture

Please step into this shower for your money, they;ll get your filings later

Wed, 06/06/2012 - 15:13 | 2500533 timbo_em
timbo_em's picture

Sorry, no cash here, only gold and silver...and some calls on wheelbarrow makers.

Wed, 06/06/2012 - 16:00 | 2500696 Arnold Ziffel
Arnold Ziffel's picture
Corruption in Europe could slow recovery: study(Reuters)

 

http://smallbusiness.yahoo.com/advisor/corruption-europe-could-slow-reco...

 

Looks like 'Corruption and Fraud' are the new business models.

Wed, 06/06/2012 - 14:42 | 2500401 q99x2
q99x2's picture

Those Frenchies ain't never going to be allies against the NWO at this rate.

And the Germans are as bad as the Americans.

Wed, 06/06/2012 - 14:42 | 2500406 Aunty Christ
Aunty Christ's picture

Vive l'arrogance! This little piece de resistence ought to speed  up the rating agencies review of France"s AAA rating

Wed, 06/06/2012 - 14:49 | 2500434 GeneMarchbanks
GeneMarchbanks's picture

You're a tad behind the times.

Wed, 06/06/2012 - 14:42 | 2500410 bigdad06
bigdad06's picture

France is going to have to raise the retirement age before the end of the year! LOL! Take a listen http://www.youtube.com/watch?v=f3-ZZVFjFDM

Wed, 06/06/2012 - 14:47 | 2500419 ArrestBobRubin
ArrestBobRubin's picture

Huh, how do you figure? Here's what the Germans need to say:

F*cken Zee Offen, Ja?

Wed, 06/06/2012 - 14:47 | 2500423 midgetrannyporn
midgetrannyporn's picture

funny.

Wed, 06/06/2012 - 14:47 | 2500424 Stoploss
Stoploss's picture

And everyone thought Hollande would lay down with his legs in the air.

Looks like it went the "you will print bitch, got it?" way.

Im guessing the retirement age drop was only for state employee's. :)

Wed, 06/06/2012 - 15:19 | 2500551 frenchie
frenchie's picture

nah dumkopf

for folks who started very early doing physical jobs, the ones fat ass ricans dont do anymore but chinese kids do...

see ?

Wed, 06/06/2012 - 14:50 | 2500431 Dick Darlington
Dick Darlington's picture

Hollande also promised to create "tens of thousands" of PUBLIC sector jobs. And the (communist) socialist FM Moscovici said France will NOT do austerity but will reduce deficit "by his own way". Which means Moscovici wants to BORROW more to create "growth" which is supposed to shrink the RATIO of deficit per GDP while the HUGE absolute pile of debt continues to grow. Translation: die-hard socialist continuing the same disastrous policies as before.

 

And 2014 will be the 40th anniversary of continuous budget deficit. Viva la France!

Wed, 06/06/2012 - 14:54 | 2500440 hedgeless_horseman
hedgeless_horseman's picture

 

 

Which means Moscovici wants to BORROW more to create "growth" which is supposed to shrink the RATIO of deficit per GDP while the HUGE absolute pile of debt continues to grow.

Exactly, for two key reasons: 

  1. The denominator, GDP, is much easier to fake than the numerator, which is debt. 
  2. Debt pays interest to the ruling class.
Wed, 06/06/2012 - 15:00 | 2500476 GeneMarchbanks
GeneMarchbanks's picture

Word is that an unknown amount of military(NATO) spending will be cut to continue the 'welfare state' spending that everyone loves to hate. Hollande apparently gave 'Bama the heads up in Chicago.

Damn this Ollande and his following through with promises.

 

Wed, 06/06/2012 - 15:07 | 2500511 boogerbently
boogerbently's picture

Who do they think they are?????

America?

Wed, 06/06/2012 - 14:58 | 2500471 midgetrannyporn
midgetrannyporn's picture

there is no such thing as capitalism. get over it already.

Wed, 06/06/2012 - 15:20 | 2500554 reTARD
reTARD's picture

Hollande just completed his very first "actual, not campaign-propagandized" objective upon election: lowering the retirement age for the "select few" (for himself and his closest buddies).

Wed, 06/06/2012 - 21:33 | 2501825 mjk0259
mjk0259's picture

Well, hasn't the USA also had pretty much 40 years of continuous budget deficit? And we did it without govt medical insurance, 35 hour work week, 5 weeks vacation, relative employment security, etc. Seems like the French have a better plan.

Wed, 06/06/2012 - 14:53 | 2500452 debtor of last ...
debtor of last resort's picture

As they say, there are people with hats, and people with caps.

Wed, 06/06/2012 - 14:54 | 2500454 Sanksion
Sanksion's picture

Austerity may save the State and its crony capitalism to a certain extent. As an extremist who whish the end of the state, I applaud these measures which will accelerate the rate of evolution. 

Wed, 06/06/2012 - 14:57 | 2500459 ebworthen
ebworthen's picture

Until the banker money trees are cut down, the people will demand their own.

Moral Hazard, Moral Hazard, Moral Hazard....

Wed, 06/06/2012 - 15:00 | 2500475 midgetrannyporn
midgetrannyporn's picture

Exactly. The kleptocrats have sown the seeds of their own destruction.

Wed, 06/06/2012 - 14:57 | 2500468 Sandmann
Sandmann's picture

He can reverse it after June 17

Wed, 06/06/2012 - 15:00 | 2500477 Haddock
Haddock's picture

Does this mean more jobs for the youth?

Wed, 06/06/2012 - 15:01 | 2500481 EFNuttin
EFNuttin's picture

France = California
In the USA, every time California approves some new bit of socialism such as a state cap and trade system for carbon dioxide or very generous benefits for government retires, it is ultimately paid for by everyone in this semi-borderless society. The only thing that even slows down California's one party government is the state constitution's balanced budget requirement. Could it be that the increasing division of red and blue states with one party controlling the legislature and governorship in state after state could be an adaptation to compete with the Eurozone? After all, the Eurozone is far more heterogeneous than the USA regarding language, culture, and law. Democrat controlled states vs Republican controlled states makes for interesting political science field experimentation.
The Euro bosses wanted a United States of Europe and they got it, complete with beggar thy neighbor externalities. The so-called budget controls were always a farce and the Euro currency was spread across too many different cultures. It is like an angry rugby team trying to share one small blanket in one big bed.

Wed, 06/06/2012 - 15:01 | 2500482 cnx
cnx's picture

"Congrats Berlin: we can only hope you have discovered those magical money-growing trees."

But they already did! In fact, they are restraining themselves, resisting the calls of others to make use of those trees. Their magical forest is located in Frankfurt-: ECB,  and the trees are  called LTRO1,2,3,... QE.

Wed, 06/06/2012 - 15:03 | 2500497 ParkAveFlasher
ParkAveFlasher's picture

None of this happens without a substantial, standing force of armed Americans on German soil.

Wed, 06/06/2012 - 15:25 | 2500563 Dr. Engali
Dr. Engali's picture

That's exactly right. Leave Europe to defend themselves and the picture would be a lot  different......for all of us.

Wed, 06/06/2012 - 16:00 | 2500695 AnAnonymous
AnAnonymous's picture

Leave Europe to defend themselves and the picture would be a lot different......for all of us.

___________________
US citizens are much more on the offense than the defense.

Wed, 06/06/2012 - 16:08 | 2500723 Dr. Engali
Dr. Engali's picture

I agree with your post. As far as I'm concerned end all of these phoney wars , pull all of the troops out and bring them home. But I'll be willing to bet Europe would scream bloody murder if we tried that. Just as they did a few years ago when it was suggested.

Wed, 06/06/2012 - 16:17 | 2500752 AnAnonymous
AnAnonymous's picture

US citizen european nations have enough armies to fill the vaccuum.

They would welcome the possibility of playing the policeman of the world in oil rich parts of the world, getting their cut. WOuld be perfect time for Euro to be backed by something as oil, gas and the rest.

US of A wont leave though.

Wed, 06/06/2012 - 16:51 | 2500916 ParkAveFlasher
ParkAveFlasher's picture

The only reason to junk me is the fear of having American soldiers back home on American soil.  I would agree that is a perfectly rational fear.

Wed, 06/06/2012 - 15:30 | 2500599 ThirdWorldDude
ThirdWorldDude's picture

Nah, the 'Mericans are there only as a prevention in case some new fuhrer-wannabe raises his head.

Mr. Square Miles is the one in charge, firmly holding Hans' balls... er, gold.

Wed, 06/06/2012 - 15:06 | 2500505 Joebloinvestor
Joebloinvestor's picture

I want to see the picture of the first over a million euro earner who gets 75% taken away.

Wed, 06/06/2012 - 15:07 | 2500509 Joe Sixpack
Joe Sixpack's picture

"...this means less money will be produced by the country's workforce, and more money will be consumed by its retirees..."

 

The second part is true, but I am not sure about the first.

This means the out of work young people will take jobs (at half the wages) that the retiring 60 year olds have, and they will go off unemployment. French unemployment is 10% (http://en.wikipedia.org/wiki/List_of_countries_by_unemployment_rate). If people retire more will go to work (assuming a fit in skills). Youth unemployment is 23% (http://www.indexmundi.com/france/youth-unemployment-rate.html).

 

This may not be a dumb move.

Wed, 06/06/2012 - 15:10 | 2500522 ISEEIT
ISEEIT's picture

Money actually does sort of come from 'trees'. It comes from plants or at least plant based products. I understand that we don't have enough money but that isn't the point.

We need to stop climate change or else the money won't help anyway.

Wed, 06/06/2012 - 15:12 | 2500528 Dick Gazinia
Dick Gazinia's picture

Some people have a way with words, and some people have no way.

Wed, 06/06/2012 - 15:12 | 2500529 Seorse Gorog fr...
Seorse Gorog from that Quantum Entanglement Fund. alright_.-'s picture

Angel Merkel becoming Angry Merkel

Wed, 06/06/2012 - 15:16 | 2500537 monopoly
monopoly's picture

Unbelievable!

Wed, 06/06/2012 - 15:18 | 2500545 monopoly
monopoly's picture

Nothing moved lower after the fed bullshit except....gold, silver, miners, oil and ags. Amazing.

Wed, 06/06/2012 - 15:21 | 2500557 Dr. Engali
Dr. Engali's picture

So why even bother working? Why don't  they just print money to take care of people's needs?

Wed, 06/06/2012 - 20:53 | 2501683 Will To Live
Will To Live's picture

Are you sure you are a real Doctor?

Wed, 06/06/2012 - 15:24 | 2500567 jsavona
jsavona's picture

I've just subscribed to ZH after reading it for several months, and boy oh boy is it a seriously brilliant site. You guys have to be running THE best financial news site on the internet bar none. I LOVE IT! I'm a college prof (not in eco, mind you) and consider myself pretty smart and I read a hellava lot about finance and economics, but a lot of the technical stuff goes whoosh over  my head. And I love that b/c you guys are totally serious and know your stuff, you're not pretending - you understand it all. And the rest that doesn't go over my head I love love love. I love the mix of deadly serious commentary, incredibly dry and sarcastic humour, occasional genuine sadness at the way the world is...a compelling mix making me wait eagerly for each new post, inc. the great guest posts. I mean, you guys are as dry as dust, by which I mean NOT boring but cutting, no-nonsense, straight to the point. Leave the fluff to CNBC. You're kind of like a satanic version of Bloomberg, if you know what I mean. LOVE IT and more power to you!

Wed, 06/06/2012 - 15:27 | 2500581 monopoly
monopoly's picture

And we love having you hear jsavona. We may disagree on what is posted but it is always truthful.

Wed, 06/06/2012 - 15:55 | 2500682 Financial_Guard...
Financial_Guardian_Angel's picture

I've been on a while longer than you but echo your sentiments. I learned more here in my first month than in 4 years of college. Even my 13 year old daughter reads ZH a bit trying to understand more about why I am saving physical PMs for her instead of savings bonds. But don't let them fool you too much. There are plenty of trolls and brainless sheeple on this site too. But they can easily be identified if you know what to look for--Right Million Dollar Bogus?

Wed, 06/06/2012 - 16:11 | 2500737 JimBowie1958
JimBowie1958's picture

There are plenty of trolls and brainless sheeple on this site too. But they can easily be identified if you know what to look for--Right Million Dollar Bogus?

I think he engages in satire, not trolling. Looked at satirically the guy is funny as hell cause he hits all the notes just right.

I mwan, who could really be that well educated and get things exactly wrong....other than government?

 

Wed, 06/06/2012 - 16:08 | 2500727 JimBowie1958
JimBowie1958's picture

"You're kind of like a satanic version of Bloomberg"

Has kind of a ring to it...

Wed, 06/06/2012 - 16:09 | 2500728 Karl von Bahnhof
Karl von Bahnhof's picture

Actually Bloombergh is a satanic site of it(him) self.

Just fixed it for ya...

Thu, 06/07/2012 - 02:39 | 2502485 falak pema
falak pema's picture

welcome to piazza Navona of ZH...the fountain is always wet with ideas here. Don't throw your coins  in just yet, we aren't in Piazza Trevi and there is no dolce vita on the horizon. 

Wed, 06/06/2012 - 15:29 | 2500593 Calmyourself
Calmyourself's picture

Meh..  I thought we were supposed to have collapsing bond markets as the TOUGH Germans were going to hold the line..  Wake me when the bellies are swollen in Berlin, until then I regret sounding like a Robotrader clone, trade the damn market... BTFD, especially metals maybe they will pay off at some point..

Wed, 06/06/2012 - 15:34 | 2500613 Village Smithy
Village Smithy's picture

It's getting interesting. How many slaps to the face can Germany endure before they look beyond the terrible price a Euro break-up would exact, and just say enough. I find that pain is much easier to deal with when you can attach a little pride to it.

Wed, 06/06/2012 - 15:50 | 2500667 fiercekitty
fiercekitty's picture

Is this the new "reparations" for Germany?

Wed, 06/06/2012 - 16:00 | 2500698 SokPOTUS
SokPOTUS's picture

Um, yeah...because the first time they tried that, it ended *so* well...

Wed, 06/06/2012 - 16:02 | 2500705 slewie the pi-rat
slewie the pi-rat's picture

germany is ready to pay for anything angela sez

unless and until theKrauts start listening to slewie!

Wed, 06/06/2012 - 16:03 | 2500710 emersonreturn
emersonreturn's picture

...as a body riddled with cancer can stay 'alive' much longer than expected, the world economy sinks, dependent upon its drip of fluids and drugs, its monitors all but flat...whilst doctors cluster contemplating yet another round of chemotheraphy, some debating the benefits of one last blast of radiation, and back nearer the door, a weary few suggesting the kinder, cheaper option might be to simply pull the plug...

Wed, 06/06/2012 - 16:05 | 2500718 Sandmann
Sandmann's picture

http://www.nakedcapitalism.com/2012/06/neo-liberalism-de-capitalizationd...

 

nIce article explains why we are in this mess

Wed, 06/06/2012 - 16:56 | 2500848 anonnn
anonnn's picture

Work 41+ years while  paying into the pension system gets you your retirement benefits. What's to complain?

Assming "work" in a meaningful sense, not some "work to commit fraud and get away with it" as banksters, financial leeches, rentiers, et al believe.

Never mind that the "right thing to do" will cost money. So does real justice , also known as fairness, in the short term cost money. And lack of justice may be the missing ingredient the global 97% seek.

Perhaps, in the USA, there is something fishy about retiring and drawing one's pension after only 5 or 10 or 20 years of pension contributions, at any age. The twisted USA pension situation is further screwed-up when you lose pension rights upon switching employers, etc.

Consider another scheme wherein you can retire at any age, but your pension benefits will be available only when you reach a minimum age, such as 55 or 60 or some such. Which is the case in France. Which has universal Healthcare at all ages, with the choice of also paying by yourself for any private medical arrangements. Thus retirement pensions are not needed for healthcare.

Globalization causes injustice/unfairness when "doing the right thing" results "uncompetitiveness" and foreign "doing the wrong thing" is allowed to destroy one's economy. Any bean counter can see that "doing the wrong thing" lowers costs and increases his "take". Corporations are persons, too [sarc]. Aren't they?

 

 

Wed, 06/06/2012 - 16:48 | 2500879 falak pema
falak pema's picture

Merkel will say nothing as this is a non issue compared to what she has already robbed from the others; the Eurozone created ONE big winner over thirty years. This xtra expenditure is peanuts; don't let this take your eye off the real bailout in eurozone : the mega private banking shag a lag collapse. And what the banks rake off today in the run away train since banksta ponzi began is much more  and totally scammed compared to what a few retirees will get for 41 years of hard labour. ZH has its head in the sand on this issue....come on TD get back on track. 

Austerity unwind/rewind is about banskta swine and their unmitigated scam gone viral; its not about consequences its about root causes. 

Wed, 06/06/2012 - 16:53 | 2500882 Rynak
Rynak's picture

 

Obviously, this means that more welfare funding will have to be sourced as all else equal, this means less money will be produced by the country's workforce, and more money will be consumed by its retirees.

I don't understand - is ZH aka "controlled resistance" implying, that the amount of workhour-DEMAND (job offerings) changes depending on amount of workhour-SUPPLY (number of people seeking work, affected by age of retirement?). Supply equals demand? Or is ZH implying, that we have an oversupply of jobs, and a shortage of workers?

Wake the fuck up! The only difference is the tool with which those not working are paid.... be it pensions or unemployment benefits. Now, if the argument were, that unemployment benefits are cheaper than pensions, and thus what this basically is about, is paying more to those not working, then you'd have an argument.

Wed, 06/06/2012 - 16:48 | 2500893 AvenoSativo
AvenoSativo's picture

In year 2012,

1. France lowers the retirement age to 60 from 62.

2. Germany raises (incrementally) retirement age from 65 to 67.

And France says that their debt is all Germans' fault.

The future generation should remember this.

 

Wed, 06/06/2012 - 16:53 | 2500926 falak pema
falak pema's picture

retirement in france is normally 65, except for those who have worked 41 years, aka low qualified workers who started at 18/20. In this day and age people start to work at 23 if they go to college. And, in five years time it will move to 42 years etc. it will follow the population age curve; it has to ! 

Wed, 06/06/2012 - 16:58 | 2500955 FieldingMellish
FieldingMellish's picture

Next time, let's just let the Germans invade Europe. They've earned it.

Thu, 06/07/2012 - 03:09 | 2502524 Sandmann
Sandmann's picture

GERMANY is  IN Europe 

Wed, 06/06/2012 - 17:10 | 2501012 Bunga Bunga
Bunga Bunga's picture

Don't worry, Germans will fund this by working till 80.

Wed, 06/06/2012 - 17:29 | 2501100 ThisTimeIsDifferent
ThisTimeIsDifferent's picture

Thanks from Germany for the free lesson, City of London and Wall Street.

You are patient, clever, and know your stuff.

You must get bored with Germany:

third time now in 100 years that our incompetent parochial chiefs stumble into your trap and take the entire nation with them.

1914 - the Kaiser has British relatives but fails to read Mackinder. He gives Britain 20+ years to assemble the bonfire.

1939 - the Fuehrer has an excuse: he was picked in 1919 for stupidity and charisma. Funded by Harriman & Bush while Montagu Norman made sure that Germany was put into shape for Machtergreifung. A brief dance of the British oligarchs with the Austrian apprentice - then after 20 years again the trap snaps shut.

2012 - "and now for something completely different". As soon as this "French" pet currency project was announced in 1992,  "European interest rate convergence" happens: scores of banks and hedge funds pile into Club Med. Even when LTCM blew up and things got front page coverage, Germany didn't question its implicit guarantee and clung to this funny little paper reading "no bailout". Bye, bye - Wohlstand. Again, 20 years well used by the oligarchs and their economic hitmen.

Is this justice?

Yes of course - the oligarchs have more love. Love for the way the world works.

Germans, it is time to take off the blinders and learn to love the real world - like your masters.

 

 

Wed, 06/06/2012 - 19:54 | 2501509 rhs
rhs's picture

Imagne if the US were to do what France did under Sarkozy, that is, pull the rugout from under people who worked 41 years, just before the retirement they had counted on all that time. In the US, the debate is about how much warning to give younger workers. Nobody is talking about moving the goal posts for 60 year olds.

Wed, 06/06/2012 - 20:40 | 2501642 billsykes
billsykes's picture

Damn their cheese, airbag suspension cars and 20 hour work weeks.

Wed, 06/06/2012 - 20:55 | 2501672 jmc8888
jmc8888's picture

Austerity happened in Ireland, Spain, Greece, so on and so forth.

Austerity doesn't mean TOTAL spending was less.

Austerity means SPENDING ON SPECIFIC ITEMS was less.

 

Again.  If the U.S. starts war with Iran and spends 500 billion in a year, and cuts 495 billion from food stamps, welfare, AND social security....did Austerity not happen?

 

For those that think Austerity hasn't happened, all they need to do is check out how many pharmacies are in Greece now compared to before.  How much the average person has to pay for it.  How critical medical services have been cut, including AIDS screenings, and subsequently AIDS cases are on the what? major rise.  Just in athens 120 pharmacies have been closed since the troika started their games.

 

The notion that Austerity hasn't happened is asinine.  Could it be worse? Sure can.  Has it been bad for many people. Sure has.

 

Again, all because the banks got the bailouts.  The same banks that wanted the EU.  The same banks that crashed everything...which THEN caused all the social programs to be 'in dire need'.  People seem to forget that.  Social programs didn't lead to the disaster.  Monetarist policies enabling the banksters to run their fraudulent games around the world until the breaking point did.  The answer to bankster derived problems, and the ideologies that drove them, ain't austerity.

Glass-Steagall

Wed, 06/06/2012 - 21:16 | 2501772 Riquin
Riquin's picture

 

 

 

Someone needs to have a long talk with Angelina and it will go like this:

Can the EU pay the debt? ------------------NNNNNNNNNNNNNNNOOOOOOOOOOOOOOOO

Can the US pay the debt? ------------NNNNNNNNNNNNNNNOOOOOOOOOOOOOOOOO

So --- Who cares?  !!!!   Then get the printing presses all at the same time!!!!

Thu, 06/07/2012 - 12:07 | 2504150 firestarter_916
firestarter_916's picture

So, AIG wants Americans to work til we're 80 and France lowered their retirement age to 60.  It looks like Germans and Americans will be left holding the bag of dog crap while working until they are in the grave while the rest of the world enjoys free goverment money all the while still being young enough to actually enjoy their retirement. I don't know too many 80-year olds who still run their own company or have (or can even keep) a corporate job.  This is a pipe dream folks. Good luck finding an employer willing to pay you while you sit in the waiting rooms of all the Dr's offices you'll be visiting until your 80th birthday.  I sure hope Corvettes have a place to stow your walker as well while you enjoy retirement with your prostate that's the size of a large grapefruit.

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