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To Hollande, With Love

Tyler Durden's picture


Monsieur le Président de la République
Palais de l’Elysée
55, rue du faubourg Saint-Honoré
75008 Paris

Paris, 4th of July 2012

Monsieur le Président,

You have just been elected after a particularly adroit and fortunate electoral campaign which has awarded you full powers. This gives you the historic opportunity to carry out the in-depth reforms this country needs to help it face its major challenges, with a widened social support.

Unfortunately, the first projects unveiled by your government do not engage on this path. On the contrary, they portend a number of ominous consequences. The implementation of a confiscatory fiscal policy would cripple our major companies by accelerating the exodus of their management heads, while freezing investment into small and medium-size businesses. The fleecing of the middle classes as well would accentuate the weakening of the work ethic, already damaged by the 35-hour week. Finally, modest and low incomes would also suffer. Increase taxation of overtime would erode their purchasing power, while the project to raise the ceiling on the Livret A savings account may well support the financing of public debt, but would encourage an increased amount of the working-class savings to be sunk into an investment with lacklustre returns.

The plan to fleece the entire country in order to sustain the survival of an obsolete social welfare system is doomed, yet it may be implemented for a few months. But endeavouring to also fleece our German friends is a dangerous and reckless ambition. Why should they accept to contribute to the financing of a 60 year retirement age in France when they have just raised it domestically to 67? Certainly, Germany would have a lot to lose with the implosion of the euro. But it is politically untenable to demand support for social benefits that the Germans have denied for themselves and unrealistic to imagine they can single-handedly carry the burden of a spendthrift Europe.

You are faced with a formidable dilemma. Either to consolidate the viability of our core social progress by embarking on a courageous reform program or threaten it by impoverishing the country, while endangering the European construction project. By all means, consider the odds before taking your decisions.

With this hope in mind, Monsieur le Président, I remain yours faithfully,

Edouard Carmignac

Source Carmignac Geston, h/t Sean Corrigan


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Wed, 07/04/2012 - 22:40 | 2587840 The Duck Stops Here
The Duck Stops Here's picture

I kinda hope he continues with his destructive path, then the Germans will get a clue a lot faster that Europe is only interested in maintaining their standard of living off their backs. The sooner the Germans realize they are getting the raw end of the deal the sooner sanity can return, of course when it comes around again it will be ironically insane pain.

Wed, 07/04/2012 - 22:43 | 2587849 Western
Western's picture

What about just scrap the high taxation, revert to the franc, reduce gov't spending, show everyone that France can be a success ex-Euro?

Wed, 07/04/2012 - 22:49 | 2587858 The Duck Stops Here
The Duck Stops Here's picture

Nah, let the world (read Barack Obama) see that setting high taxes on those with wealth doesn't solve the problem when you either tax them into a lower tax bracket or leave the country. Also, that while retirement with a pension at 62 is a nice idea, in the current state of the world it isn't possible. It would have been much more realistic if they had lived within their means for decades before.

Wed, 07/04/2012 - 23:11 | 2587883 veyron
veyron's picture

But giving tax cuts to the rich creates jobs?  


Both parties did some strange stuff, but I find Reagan's voodoo economics to be particularly pernicious 

Thu, 07/05/2012 - 00:11 | 2587941 Michael
Michael's picture

What are the odds of it happening to someone else and not me?

That is the question.

Thu, 07/05/2012 - 01:15 | 2588018 The Monkey
The Monkey's picture

Just a reminder to anyone that is still short the market. Make sure you cover if you have any open positions left.

Great short coming on the other side of the ECB's rate cut, but make sure you are very patient and let every last ounce of buying finish off.

Don't be a muppet!

Thu, 07/05/2012 - 04:15 | 2588102 Troll Magnet
Troll Magnet's picture

hey vey(mo)ron,
giving tax cuts to EVERYBODY creates jobs. but you're free to support high taxes. all the tbtf banks will thank you.

Thu, 07/05/2012 - 00:32 | 2587965 Michael
Michael's picture

+ 1000 veyron.

That's where it really started.


Thu, 07/05/2012 - 00:52 | 2587987 Taint Boil
Taint Boil's picture



Ah the good old days - Reagonomics. or this

Thu, 07/05/2012 - 03:53 | 2588088 superflyguy
superflyguy's picture

the 2nd pic is not correct. Clinton didn't balance the budget, he changed the accounting rules

Wed, 07/04/2012 - 22:59 | 2587870 Oh regional Indian
Oh regional Indian's picture

If real histories are ever "known" given the wheels with-in wheels nature of our world, a deep dive into the French Revolution, which was such a rallying cry and guiding light for the whole Egalite, liberte was all a carefully crafted disaster of blood-letting to finally over-thrown any remnents of Monarchy. So that the banking hand could be the ruling hand. Everything that came from there was the first modern day success of propaganda, where people were "behind" what they had no idea about.

Of course then came the American Revolution (the next GREAT lie)...on and on.

In that context, France's current place in the world (un-deserved) and it's coming flushing is going to be particularly galling (Gauling?). 

Sarkozy had all his offices and residences raided yesterday. He was a criminal in office.

Hollande is no different. Scary thing is, he re-presents the idealogical core that started the egalite shit-show in the first place. If we truly are at full circle, man, we have problems. Big problems coming up. 




Wed, 07/04/2012 - 23:17 | 2587887 Pure Evil
Pure Evil's picture

Uh, the American Revolution came first then the French Revolution.

American Revolution - 1776

French Revolution - 1789

Wed, 07/04/2012 - 23:23 | 2587896 Oh regional Indian
Oh regional Indian's picture

Right you are PE, I got those time lines mixed.... they were inter-related though of course.


Wed, 07/04/2012 - 23:49 | 2587922 world_debt_slave
world_debt_slave's picture

The French didn't wait long enough to see if the experiment worked or not.

Thu, 07/05/2012 - 04:15 | 2588103 JohnF
JohnF's picture

Um, no, not really.


Being French, they merely screwed things up tres vitesse...

Thu, 07/05/2012 - 12:19 | 2589199 monad
monad's picture

Give them credit for beheading their 1% & dumping Robespierre. We have yet to achieve parity.

Thu, 07/05/2012 - 19:40 | 2590517 kikkoman
kikkoman's picture

they could have made things a lot easier by dumping Robespierre along with the rest in 1789, it would have spared them from years of terror and 40.000 executions (who by majority weren't the remnants of the old system but peasants and workers).

that's some bitter parity you hope to achieve.


Thu, 07/05/2012 - 07:11 | 2588183 j0nx
j0nx's picture

Stick to Indian history. You just made yourself look like an ass.

Thu, 07/05/2012 - 10:36 | 2588749 ProtectiveFather
ProtectiveFather's picture

Don't make xenophobic comments. You just make yourself look like an ass.

Thu, 07/05/2012 - 00:23 | 2587954 CompassionateFascist
CompassionateFascist's picture

 et aussi: the American "Revolution" was in fact a SECESSION, maintaining a fundamentally conservative power structure. The French Revolution was proto-Bolshevism, soon to be drowned in its own blood and massacre and replaced by the Napoleonic Thermidor. France has always been and continues to be a total disaster. Still, Germany without Prussia is a body without a soul, so the Germans may finance the PIIGS and Frogs for yet awhile.

Thu, 07/05/2012 - 03:52 | 2588087 Dead Canary
Dead Canary's picture

Right you are Mr. Evil. Remember, the French king helped us out. (Embarrassingly, we would have failed without old Louis)

Thu, 07/05/2012 - 10:11 | 2588427 i-dog
i-dog's picture

The French helped the American Revolution only because it was anti-British! There was no altruism or brotherly love involved at all. In fact, through their agents, the French largely instigated it!

Then they, and the Jesuits, ensured that there was a Federal Government and Supreme Court under their control (the Constitution), and a Central Bank also under their control (First Bank of the United States), to replace the autonomous Articles of Confederation and state currencies/banks brought about by the Revolution ... quick smart and very deliberately!

The French Revolution, as ORI said, was purely to overthrow the Bourbons -- because the Bourbon kings and Habsburg Emperors of Europe had expelled the Jesuits from France, Spain, Portugal, Austria, and all of their external territories, in the few preceding years. After the Jacobin (ie. Jesuit) "Reign of Terror" in France -- to destroy the aristocracy and protestants -- the Jesuits then unleashed Napoleon to take out the remaining Bourbon monarchs and the Austro-Hungarian Habsburgs.

Wed, 07/04/2012 - 23:21 | 2587892 bankruptcylawyer
bankruptcylawyer's picture

oh regional conspiracy moron------if you were right, and all of these motions of history were giant banking cabal shenanigans, 

then i hope you get a king. a good fascist king for you, that would be good. he could roast your ass on fire and kill all the redskins as most fascists are want to do. 


Thu, 07/05/2012 - 03:00 | 2588064 The Big Ching-aso
The Big Ching-aso's picture



There are 3 sides to every coin flip.  People expect 2 see heads or tails.  Sometimes however the coin stands on its edge.

Thu, 07/05/2012 - 08:21 | 2588298 Lebensphilosoph
Lebensphilosoph's picture

My thanks to you. Finally someone appears who understand something of the nature of the 'Glorious Revolution'. The age of revolutions begins with the age of nation state, democracy and ... banking!

Thu, 07/05/2012 - 09:05 | 2588408 Offthebeach
Offthebeach's picture

Who was John Law working for, I forget.?

Wed, 07/04/2012 - 23:23 | 2587897 Dr. Engali
Dr. Engali's picture

France successful ? Lower taxes? Less government spending? In France? I just laughed so hard I almost peed myself. All these fascist western countries and their crazy spending habits are done for.

Thu, 07/05/2012 - 08:38 | 2588345 Lebensphilosoph
Lebensphilosoph's picture

France Fascist? I laughed harder.

Wed, 07/04/2012 - 23:29 | 2587905 vast-dom
vast-dom's picture

send similar letters to Obummer and Bernank. actually, send much worse letters to them. net = letter writing will change nothing; email the fed!

Thu, 07/05/2012 - 04:19 | 2588108 zuuuueri
zuuuueri's picture

but... think of the poor politicians!! what would happen to their careers when the festival of free shit stops? what would happen to the miserable parasites when the festival of free shit stops? oh, the horror! how cruel of you, mister, to imply that men live from their own means!
why, in such a world there wouldn't even be a need for these politicians! unthinkable!
and these generous politicians help men live beyond their means! hooray for the festival of free shit!

Thu, 07/05/2012 - 06:47 | 2588164 Peter Pan
Peter Pan's picture

Like I keep saying, the world is full of fuckers and suckers. So the question is, for how long and how far is Germany willing to bend over so that France, Greece and the rest of them can screw German workers?

If Europe cannot even agree on a uniform retirement code/age, then who the hell are they trying to convince about further politicl and economic union?

My money is on the Euro failing but not before every trick has been tried.

Thu, 07/05/2012 - 08:23 | 2588300 Inspector Callahan
Inspector Callahan's picture

I'm french and I'm desesperate to see how a quality website like zerohedge is watching the situation in France. First of all and compared to the former president Sarkozy, the financial situation coild be improved. As a reminder, the current finance minister is Pierre Moscovici which is and was one of the principal supporter of Dominique Strauss Kahn aka DSK. If you were french you would notice that the legend Zerohedge is spreading as soons as they compare France to Germany consisting on saying that Hollande is reducing the retirement age to 60 is completely false.

In fact AND only in fact, Hollande has decided to withdraw the retirement age at 65 to come back to 60 only for the few citizens who started to work very early, 16, 17 or 18 year old. This policy is concerning 110 000 workers. With a labor force of 31 millions of persons, this is actually representing 0,35% of all the workers. This is not a metter of worries.

Also, Hollande is trying to change the deal in Europe, change a deal of austerity which has Krugman noticed in his recent open letters in the FT that in no case in history, austerity as lead to improve a bad economic situation. So for god sake stop talking about Hollande like he was a soviet or marxist. I admire the work of Marx but Holland is a kind of Obama. He is a member of the system and the austerity everybody is asking will come soon. Try to ficus on the USA which in my opinion was the patient zero of this crisis and is maybe one of the worst country to live. At Least in France we don't have any city like Detroit or phantom cities all around the contry.

Thu, 07/05/2012 - 09:07 | 2588414 beentheredonethat
beentheredonethat's picture

Please leave this site. Go practice your desperation somewhere else. I spent some time in France and it is a sad country. It's a mini north Korea with a sidewalk cafe. And two miles from the center of Paris looks exactly like Detroit. Except it's more dangerous. You don't understand. We don't give a about France, it is just fun to watch you enjoying jerry Lewis and pretending everyone speaks the 12th most spoken language in the world and that your current government is dangerously capitalist.

Thu, 07/05/2012 - 09:30 | 2588449 i-dog
i-dog's picture

Fuck off, yourself, Net Nanny! This site is for exchanging opinions.

Put some counter arguments, or corrections, on the table ... or STFU!!

Thu, 07/05/2012 - 13:27 | 2589480 KnowIDontKnow
KnowIDontKnow's picture

Agreed. The comment section on ZeroHedge is pretty weak.  Don't come here to read intelligent, reasoned debate.  It's more of a flame war.  The indignation on display is quite justified, but the quality of the debate is sorely lacking.

Thanks for giving us some actual facts.  But don't expect people to pay much attention to them here.

Thu, 07/05/2012 - 14:45 | 2589722 NaiLib
NaiLib's picture

Cher monsieur Callahan,

A strange nick for a Frenchman indeed.


All I can see is that Zerohedge published an open letter to The President of France. Written by a fellow frenchman...

It does not really matter who is in charge of France. The point to be made is _what_ does the Political Class in France propose

to get out of the crisis,


The author of the letter suggest that the current President is taking the wrong way, so far, one must say to be fair.


France has only a couple of choices to make it.

1. Get _COMPETITIVE_ in the world markets..

2. Get the public finances in shape.


You do not get competitive by raising taxes. Imposing extra costs to whatever production you aim to make money from.

You do not get competitive by scaring away investments.

You do not get competitive by raising costs of retirement , regardless if you believe its fair to give a small portion of the workforce a special treat.

France do as most European countries confiscate more than 50% of the countries gdp to be handled by beaurocrats and politicians solely for the porpose of

getting elected and reelected.

The Eurorpean system in itself is hugely socialistic. Its totalitarian. Ruled by The Politiscal Class for the political class.

What makes Europeans believe that politicians are better equipped to "take care" of its "subjects" than the "subjects" themselves.??

Why should anyone working in Euorope have to work more than 6 months a year only do give the result of that work to the Ruling Political Class?

Its in reality nothing but feodalism in a new shape.

Does Hollande do what Mitterand used to do? Take his friends on Sunday luncheons around France in military helicopters to various 3 star restaurants too?

Honestly, France and the rest of the world is heading towards totalitarianism quicker than anyone of you can believe.

Thu, 07/05/2012 - 18:10 | 2590319 ajax
ajax's picture


To Callahan and "rvremi": It's a real pleasure to read comments from French citizens. As an American who hasn't lived in the US for over 35 years and who has no desire whatsoever to do so ever again I cheer you on for your frankness and for your derring-do; coming on this site writing English as a second (or third) language quaking in your boots - but look!! Your English is better than 75% of these amerloques who can't express themselves in anything else than "headlines" and expletives mostly having to do with human waste passing through the intestines. There they are, these amerloques, all bluster and headlines and garbage with no education, no facts, no experience, just bullshit bullshit bullshit. For everyone of them who bleats of socialism/France there isn't a single one of them who knows what they're on about let alone how to spell their ridiculous cliches...

If even 50% of you Americans had ever spent 1 to 5 years abroad (out of the US), I repeat, 1 to 5 years abroad, then this conversation would be a whole hell of a lot more interesting but as it is - you quacking ducks - "my fellow Americans" all I can say to any of you anymore is simply this: "Just shut the fuck up". Not one of you obscene, loud- mouthed headline reciters has any substantive idea whatsoever about France, Switzerland, Germany, etc - it's all too subtle for you so you prefer to blow it all out your ass the way you do about Cali counties etc etc etc. because that's all you can do because that's all you really know because you haven't either the courage nor the true intellectual curiosity to go beyond your end of a city block.

If there's one nation in this world which has been holding back equitable growth, decency in politics, reining in the grotesque inequality of nations and peoples: look at yourselves USA. What a nasty lot of ignorant bastards you have become ... the hypocrisy of your blow-holes knows no bounds anymore.

"the right to "bare" arms" ... how many times have I seen that written on blogs - just about says it all.


Wed, 07/04/2012 - 22:40 | 2587841 Turin Turambar
Turin Turambar's picture

I hear the toilet flushing, and when I look in the bowl, I see France going down the drain.

Where is a Bastiat when they need one the most?

Wed, 07/04/2012 - 22:46 | 2587852 devo
devo's picture

Where is a Bastiat when they need one the most

Did you mean bidet?

Wed, 07/04/2012 - 22:57 | 2587866 CH1
CH1's picture

No, he meant Frederick Bastiat, when they need HIM most.

But if the great Bastiat were there now, they'd either lock him up in an insane asylum or kill him.

Thu, 07/05/2012 - 02:17 | 2588050 Socialized Losses
Socialized Losses's picture

To late for the likes of Frédéric Bastiat. France & the Euro need a decision maker like Gen. Joseph Gallieni. But God Almighty who'd even want the job?

Wikipedia:  "Upon seeing the "taxicab army" ferrying troops to the front, Gallieni made one of the most oft-quoted remarks of the First World War: ("Well, here at least is something out of the ordinary!")."

Wed, 07/04/2012 - 22:50 | 2587859 ZH11
ZH11's picture

The modern day Hidalgos who cry like little girls the moment it looks as though there is a chance that they may have to contribure towards society instead of taking it all for themselves.

Why not move to Russia and see how accommodating they are to people who are rich but not Russian or connected to the old KGB network you entrepid capitalist?


Thu, 07/05/2012 - 08:25 | 2588304 Lebensphilosoph
Lebensphilosoph's picture

The modern day Hidalgos who cry like little girls the moment it looks as though there is a chance that they may have to contribure towards society instead of taking it all for themselves.

The only ones crying like little girls are socialists who can't have their way in parasitising the productive members of a state. Society? There is no such thing.

Why not move to Russia and see how accommodating they are to people who are rich but not Russian or connected to the old KGB network you entrepid capitalist?

Why would anyone want to do that?

Thu, 07/05/2012 - 10:40 | 2588696 ZH11
ZH11's picture

These people are not producive in any measurable way are they, they're shifting capital around for the rich to get richer. 

If they refuse to contribute to taxation revenues they are of no benefit to a society as it becomes a one way transaction against the bulk of the people in the country whom taxes increase because those who can don't pay.

We're not talking about the new Newtons and Galileos here, we're talking about people with average degrees working in tax dodging companies demanding that the country sets a taxation policy that suits capital/them.

They are destroying the aggregate demand in economies across the world due to their selfish and purely idealogical viewpoint, they are sowing the seeds for their own demise, but far worse than that everyone elses too whose voice doesn't get heard.

If you truly belive there is no such thing as society I think you're in trouble in a big way.

No man is an island and only two types of people exist outside it!

Wed, 07/04/2012 - 22:56 | 2587861 SDRII
SDRII's picture

Meanwhile s&p is upgrading the Philippines while it piles on India. Subic bay stroke pivot is to Iran sanctions flouting stroke gld horders . That was easy

Wed, 07/04/2012 - 23:21 | 2587894 JackT
JackT's picture

What came of those "shocking" results from Greek austerity that they were going to discuss?

Wed, 07/04/2012 - 23:27 | 2587901 The Duck Stops Here
The Duck Stops Here's picture

Austerity at this point is pointless, like performing CPR on a dead person at the viewing.

Wed, 07/04/2012 - 23:39 | 2587914 wandstrasse
wandstrasse's picture

yes it is true, there is a lot of real economy left in Germany.. but we have 'enjoyed' the same fake fiat wealth / welfare as anybody else.. We pile up debt like anybody else, we just pay less interest (until now). We are the last piece of collateral to maintain the ponzi.

Thu, 07/05/2012 - 00:33 | 2587967 chump666
chump666's picture

And you are about to be pounded with stagflation once ECB attempts to lower PIIGS yields and keep the EUR bid.  Problem is, they, the ECB are taking on two many fronts at once.  They will get boned on the EUR, no doubt there.  Which means you will get a nice wave of inflation, mostly oil.

Leave the EU, let the PIIGS sink.  You be footing the bill taxed form all angles.  All the whole the Greeks, Spanish, Italian can live the high life once again.

Thu, 07/05/2012 - 06:59 | 2588170 Peter Pan
Peter Pan's picture

Wandstrasse well said, but given that Germans did not have a property boom in the last 10 years and also kept wage rises to a minimum, one must ask who in Germany ended up with the wealth generated by the German people? Or was their wealth lent to the Greeks, Spaniards and Portugese?

Thu, 07/05/2012 - 00:01 | 2587931 Peter K
Peter K's picture

Socialism es muerte :)

Thu, 07/05/2012 - 00:21 | 2587952 GMadScientist
GMadScientist's picture

El Capitalismo también esta muerto. :(

Thu, 07/05/2012 - 00:02 | 2587934 GMadScientist
GMadScientist's picture

"would cripple our major companies by accelerating the exodus of their management heads"

Hahahahaha. C'est drole! Maybe you can hire Bob Diamond, I hear he'll be on the market soon.

"would encourage an increased amount of the working-class savings to be sunk into an investment with lacklustre returns"

Would result in people who can't afford to gamble not being coerced into speculative gambling.

"would accentuate the weakening of the work ethic, already damaged by the 35-hour week"

They will miss the floggings so.

Avez-vous d'argent, Mr. French Madoff?

Thu, 07/05/2012 - 01:02 | 2588005 northman
northman's picture

"Would result in people who can't afford to gamble not being coerced into speculative gambling."

I'm a bit confused. A tax free savings account where you can only hold cash and it bears an interest rate of 2.5% fixed by the minister of the economy. Who benefits from this? Who pays the 2.5% and where do the deposits get invested? Nobody is forced to speculate in the stock market. Infact, people are more likely to just consume in a ZIR environment - just look at stock market trading volumes. I just don't see the point in a government mandated 2.5% savings account. If everyone gets 2.5% and it's paid for by everyone (aka the banks, aka the government, aka the people), how is anyone net better off?

Thu, 07/05/2012 - 01:59 | 2588043 GMadScientist
GMadScientist's picture

"Who benefits from this?"

Anyone with a tax liability (also known as working people) and income they do not need immediately who want to see their savings again some day.

"Who pays the 2.5%?"

People with a bigger (absolute) tax liability and future taxpayers (unlike Mr. C-G's Ponzi, the state has natural replacement investors).

Would you also recommend that no person ever buy sovereign bonds or TIPS?

What's different about that transaction and this beyond the initial funding?

Thu, 07/05/2012 - 00:04 | 2587937 Bugsquasher
Bugsquasher's picture

I must say that I have long been dismayed by the Republican Party having falling into a semantic trap laid by the Democrats and the mainstream media. That being the contention that the terms “republic” and “democracy” are somehow indistinguishable in meaning and freely interchangeable.

That such a fallacious claim is not confronted demonstrates that at best, they don’t understand, or at worst, they don’t want the voting public to understand that the American Constitution exists not only to protect us from the tyranny of dictators and kings but to protect us from the dangers presented by the manipulation of democracy by the kind of emotional demagoguery that has become the stock and trade of the Democrat Party. (and all to many Republicans)

By accepting this premise we become trapped into believing that “plurality” is somehow the be all and end all in the formulation and implementation of public policy. Such a notion would have the Founding Fathers spinning in their graves.

The Constitution established our nation as a Republic, not a parliamentary democracy, and for that we should be thankful. This is demonstrated in our “Pledge of Allegiance” and by the fact that our military and elected officials swear loyalty to that Constitution, not to an individual, a political party, or a transitory elected government.

Thomas Jefferson is often held up as the spiritual father of the Democrat party, yet it is this same Jefferson to whom we owe perhaps the greatest debt for the fact that our nation is a Constitutional Republic, not a parliamentary democracy. Jefferson was not present at the Constitutional Convention; he was Minister to France at the time. Upon his return he quickly pointed out that the document as proposed, was deficient in its lack of enumerations as to what the new government would be prohibited from doing, i.e. the need to place strict limitations on the exercise of democracy. Thus we have our Bill of Rights, the first ten amendments to the Constitution. These amendments delineate specific rights that “shall not” be infringed by government regardless of what a democratic majority, elected officials or the public may demand or desire.

Neither did Jefferson raise objections to the manner proscribed for the election of our President, namely the system of the Electoral College. The Founding Fathers clearly recognized that we are not a homogenous nation. Political perspectives, social attitudes and perceptions of what is required of government vary greatly from person to person, State to State and region to region. This is as true today as it was in the 1780’s. Herein lie the foundations of not just the Bill or Rights, the Electoral College system, the Supreme Court and the U.S. Senate, but the Constitution’s philosophical guidance of our nation as a republic rather than a democracy. It is these very institutions that protect us from the tyranny of either the majority of citizens over the minority, of a group of large populous states over the smaller less populous ones or of one region over another.

So it would appear then that the founding “Democrat” better understood the dangers of social democracy than those who would claim to be his inheritors. The wisdom of his insight was quickly borne witness too by the chaos and unbridled bloodletting that came be known as the French Revolution.

It is not a mistake that our Constitution grants greater powers and responsibilities to the Senate than it does to the House of Representatives. No one could rationally argue that the Senate is a wholly democratic institution. Yes its members are elected by voting majorities from each of there respective States and its final decisions are reached by the votes of a majority of its members, but the vote of a Senator from Vermont or Wyoming carries the same weight as the vote of a Senator from California or Texas. So that if examined in terms of representing the populations of those States it is not so democratic after all. It was not intended to be. So it is also with the structure of the Electoral College. Nowhere does the Constitution bind the Electors to the majority of votes cast in their respective States. Nor should they be. They are only bound to vote in accordance to what their conscience tells them is best for the nation as a whole.

Would the Democrats argue that the Senate be done away with because it is “undemocratic?” I think not, for to do so would put their leading spokesman out of a job. It was the Founding Fathers vision the House of Representatives was to be bound to the will of the people, and that the Senate, The Supreme Court and the Electoral College was to be bound to logical discourse and reasoned debate guided only by the need for the preservation of the Constitution.

So then we must ask ourselves what insights and visions led our Founding Fathers to bequeath us such undemocratic institutions? How do they help us preserve our Republic? For myself, I have no doubts that it was their hope that carefully defined and limited democratic methods would serve us well, and for the most part they have. But they also recognized that in times of crisis or when the nation was closely divided, when inflamed political passions and unreasoned or uninformed opinion and demagoguery might hold sway, there must exist safety valves, vehicles whereby once again a few individuals engaged in logical discourse, reasoned debate, careful examination of law the Constitution and of their own consciences might right the Ship of State and bring the nation back to an even keel. They were right then and they are still right today.

Yet all this said, in speech after speech we here Presidents (past and present) talk of spreading freedom and democracy throughout the world, without any mention of the necessity of defining freedom as structuring individual rights as the supreme tenant of any form of self-government. Fortunately we already have the structures in place, however tenuous they may have become over the years.

Thu, 07/05/2012 - 02:42 | 2588063 ClassicalLib17
ClassicalLib17's picture

Thank you, bugsquasher,  I copied your reply for the purpose of forwarding it to my colleagues who happen to be local elected officials in my town.  Bravo, sir

Thu, 07/05/2012 - 07:27 | 2588205 Ghordius
Ghordius's picture

bugsquasher, you are not talking about the Senate as it is now, you are talking about the previous Senate as envisioned by the Founding Fathers, which was a completely different matter.

The US Senate before 1913 was composed out of two recallable representatives from each State Legislature.

Which is even more "undemocratic" for some (a debatable issue) though it kept the balance between States and Federal Government. Which was the whole purpose of the Senate. It was the whole principle of the label "United States of..." instead of "Republic of America".

Thu, 07/05/2012 - 00:06 | 2587938 radicall
radicall's picture

Bullish for CAC (and it did rlly hard) since now people will need twice as much money to keep the same amount, logic dictates that the CAC should double.

Thu, 07/05/2012 - 00:21 | 2587953 q99x2
q99x2's picture

Implosion. Time to rustle up some banksters.

Thu, 07/05/2012 - 00:28 | 2587959 chump666
chump666's picture

Gawd Europe is boring, they truly are bunch of whiny complaining a-holes  that should go to their local historian to get the lowdown on how 'cycles' of the invertible work over there.  Till then...

Anyways the ECB will cut big if Asia shows their bearish hand one again (now a clear market guide to western markets prior to open).  And they're selling stocks, buying USDs.  So much for the EU jerk off.

All yours Mario, cut 50bps, get Germany frisky and then we have some nice swing volatility i,e short the top ranges that look so juicy, sans Bernanke's cum shot.  But, could be weak.

Thu, 07/05/2012 - 00:30 | 2587960 Arnold Ziffel
Arnold Ziffel's picture

Wait until Ben asks the Germans also to finance retirement age of 50 for Californians!

I posted this under Rosenberg's article but also applicable here:

Like other cities in California, Stockton chose to offer many public safety workers the same benefits as those mandated by a state law for highway patrol officers. The change allowed police officers to retire at 50 with pensions based on 3 percent of final pay for each year in service, up from 2 percent before.

City employees in other unions also received more generous pensions with eligibility to retire at age 55 - with 2 percent of final pay multiplied by the number of years of service.

This is in contrast to the vast majority of private-sector workers who cannot receive Social Security payments before they are at least 62.

By the 2000s, Stockton's full-time employees were also entitled to free healthcare for life.

Deis, who signed Stockton's bankruptcy filing last Thursday, slammed the decision to provide free healthcare to retirees as a "Ponzi scheme" that eventually left the city with a whopping $417 million liability.


Oh yeah, the Germans won't like paying for "free health care for life" either I suspect.

Thu, 07/05/2012 - 01:15 | 2588017 hedgehog9999
hedgehog9999's picture

I wonder, are those benefits still being paid to the lucky souls that took retirement already,.or are they looking for jobs now?

Thu, 07/05/2012 - 07:21 | 2588161 itstippy
itstippy's picture

"This is in contrast to the vast majority of private-sector workers who cannot receive Social Security payments before they are at least 62."

What does the Federal SS eligibilty age have to do with an overly generous pension ponzi plan negotiated by fucktard City Of Stockton officials and its municipal employees?  Are the retired Stockton municipal employees eligible for Federal SS at an earlier age than everyone else? 

Thu, 07/05/2012 - 00:39 | 2587973 genr8n
genr8n's picture

France just gave its wealthier residients a "This Way Out" notice to follow Facebook co-founder, Eduardo Saverin, all the way to Singapore where tax is set at a compelling 10-17% effective.  Au revoir François Hollande!

Thu, 07/05/2012 - 13:34 | 2589497 KnowIDontKnow
KnowIDontKnow's picture

kicking out the leaches seems like pretty good policy to me

Thu, 07/05/2012 - 01:04 | 2588004 ReactionToClose...
ReactionToClosedMinds's picture

But of course ... that is why we need 'global harmonization' (doesn't that sound soothing?) of corproate & individual 'tax rates' ... of course, guided by (i.e., 'set') by some unelected bureaucrat tight with some crony capitalists who gets 'special deductions ... ala public-private partnership favorite GE). 

Equality .... Egalite ........ who said anything about 'freedom'?  What's yours is mine in equal share ... so why should any of us work ...... just ask'in.  I want to retire now with paid quality unrationed healthcare and 8 weeks vacation a year and can never ever be fired.  What's your problem you racist, hateful, bigoted, gun-loving, godfearing, Sarah Palin-loving, tea bagger?


Thu, 07/05/2012 - 01:30 | 2588028 lasvegaspersona
lasvegaspersona's picture


The US Constitution died (or was pronounced dead) last week. We are now officially a country of men not laws. Cops can and do kill us with impunity. Recent laws  allow the President to kill us withouy trial if he wants to. Our property rights are next. Each of the ammendments of the Bill of Rights has been found subservient to the Commerce clause. Today we set off fireworks for the fuck of it. Only the naive celebrate the birth of the nation at the time of its death.

Thu, 07/05/2012 - 02:36 | 2588058 Flatchestynerdette
Flatchestynerdette's picture

At this point?

I can only pin my hopes on the judges in Germany deciding the constitutonality of the people vs. the government re: Eurobonds and enslavement.

Sad isn't it when you're rooting for the one one last holdout on the planet to see if theiri judges have any balls to hold the line in the sand and say Nein.

Un-freaking-believable to wish Germany wins, everyone else loses, and finally the tower of babel comes tumbling down.

The poor Germans will be skewered in the press like Robertson was before he flipped his vote. Will they eventually cave and call a referendum for a new constitution? Depends if they have the stomach to fight each other in a civil war.


Politics by another name is war.

Which must mean that when I vote one way and my neighbor votes another I must want to kill them? nah, can't be that. I like my neighbor. I don't like their politics. Which begs the question - do I really like my neighbor if we see things so differently??


Thu, 07/05/2012 - 02:00 | 2588044 Nachdenken
Nachdenken's picture

France takes care of itself, has always done so. using intrigue and deception as part of national strategy.  It is ruled by alumni from a couple of schools, where leaders of industry and politics are groomed and woven into the fabric of France. A variation of most other nations, though France is exemplary in this endeavour.

It changes sides, colour and conviction to suit the mood of the times. A land that uses liberte, egalite. fraternite as the slogan to generate respect.  Its practice are lessons in history.

Perhaps France´s mistakes are catching up with it.  This letter in ZH calls for caution at the Elysee, to preserve the structures that further  French national interests.

Thu, 07/05/2012 - 02:07 | 2588046 magpie
magpie's picture

...France isn't so special (anymore) that it can escape the developments affecting the rest of Europe. We're living in a big EU family after all.

Thu, 07/05/2012 - 02:17 | 2588053 rvremi
rvremi's picture

For ZeroHedge.

You should be more careful when you talk about age of retirement in Europe because what's important to considerer is the age at which you have a full pension and not the age of the retirement. In France you have a full pension if you have work 42 years so usually you have to retire at 65 or 67 to get a full pension. If you retire at 62 you have a partial pension (for all time) and you cant' have a pension before 62.

It seems to me, but I'm not sure, that in England you can retrire anytime (even before 62) if you have work 35 years.  I don't know the condition to get a full pension.

So in Germany, if you retire at 67 with a full pension, that means nothing if you don't know the real age you can get a pension.

Then the pensions in France, is more a less half the salary you get before the retirement age with a minimum of something like 800€. The calcul is much more complex that that but it's a good approximation. I don't know what is the pension you get in Germany.

You can't say we are a socialist country simply because we have social protection. Even if it's not perfect, the medical system is more efficient than the one in the USA (for what I've heard). I mean you don't need to have a private system to get efficiency. One of the principal problem of social's protection are the taboo questions about "is it useful to maintain in life old and very ill people at all cost" or "is it useful to get the more expensive treatments".

For the rest, the debts of the European countries is a problem and may drive to restrain the social benefits we get. But it's not the social benefits that causes the debts. For instance, I would like to remember you that M. Sarkozy raise the % of debts of 60% in juts 4 years. Supposedly to limit the crisis after Lehman Btothers bankrupt. The money goes to inudstries and to banks. That was really a stupid things to do but not as stupid as what Obama does at the same period. I remember you also that americain government make pression on Europe to do such stupid things.

M. Sarkozy what not only stupid but he was dishonnest. The affairs you relate is just a very little part of all things he does to give money to his friend or to him (he raises his salary of 60%). That last one being to force people (the fine if you don't is 11€) who have a car to buy ethylotests to a company owned by one of his friend.

That's the reason that makes M. Holland elected. We don't believe Hollande will do what he promises, we just hope he is an honest man.


Thu, 07/05/2012 - 04:47 | 2588119 JuicyGrabs
JuicyGrabs's picture

You`re right about Sarkozy. Unforunately the alternative to socialist parties is crony capitalism in many cases. This is why world needs more politicians like Ron Paul.

You`re also right about US(I assume you mean Obama) putting pressure on Europe to bailout banks and keep crashing system on life support. He wants to be re-elected. Romney crew is doing the opposite thing encouraging Germany not to bail out Europe.

I don`t agree with you though on state run medical system. Everything state does, it does poorly. Private sector does everything much better than the state. If we were to have 100% private run healthcare system, the costs would go down immensly due to competition. However, this fascist system we have in place in most countries creates strong crony friendships between state and big companies, awarding contracts based on lobbying not based on true value. This creates and uneven system, in which smaller companies are sidelined and competition is not encouraged since the big companies get the juicy state conctracts. Lack of competition also means higher costs! This is crony capitalism at its best.

People have been fooled into beliving that a state run healthcare system would be best. Many Europeans naively think that their state run social care system is so good and free, which is not, when infact it would be immenseley much cheaper and higher quality if state would just not meddle in freemarket issues like healthcare. And talking about free. You have a consumption tax in Europe(VAT) which US doesn`t have. What you think you get for free you`re actually paying for bigtime and I mean bigtime out of your own pocket. You`re actually paying much more in taxes than state gives back to you.

Thu, 07/05/2012 - 04:51 | 2588123 Orémus
Orémus's picture

If we were to have 100% private run healthcare system, the costs would go down immensly due to competition

But if you got the wrong insurance they cut your leg instead of curing it

Thu, 07/05/2012 - 05:02 | 2588128 JuicyGrabs
JuicyGrabs's picture

Same thing applies to insurance. Insurance would be much more affordable if government would stay out of it. You could have way more body parts insured for the same cost. With the socialist system, currently in place in many European countries(which is unsustainable btw), you pay a LOT in taxes and get a mediocre state insurance in return, where for the same money paid in taxes you could get much better bang for buck, cost affective quality insurance.

Thu, 07/05/2012 - 05:30 | 2588141 Orémus
Orémus's picture

I dont know about other European countries systems but in France with social security (la sécurité sociale) a compulsory system, you are cured what ever the cost and our medical system (financed with "la sécurité sociale") is one of the best in the world as they say. A free insurance system is good for rich people bad for poor, that said I have heard of rich people that when they got ill in USA came back to France to get cured saying (after) that it saved their life

Thu, 07/05/2012 - 06:04 | 2588148 JuicyGrabs
JuicyGrabs's picture

I assume you wanted to say that free healthcare is good for the poor. There is no such thing as free as "the poor" are paying heavily for it with consumption taxes(VAT with doesn`t exist in US) and plenty of other taxes.

I also like the word "compulsory". Liberte much? Where`s your liberty if they shove it down your throat whether you like it or not and extort the money through huge taxation.

Thu, 07/05/2012 - 02:40 | 2588061 mark7
mark7's picture

Where you get that "spendrift" Europe?! Spain dutifully paid back its debts during 90's and last decade until 2007. In 2004 it has relatively as little debt as Finland, 40 percent of GDP while USA just keep on spending on credit. Italy debt to GDP was also lowered to about 100 percent of GDP during last decade from 120 percent.

Americans continue painting Europe with the same broad brush. Spain or Italy are nothing like Greece.

Thu, 07/05/2012 - 04:44 | 2588120 Joe A
Joe A's picture

Really? Spain is hugely exposed to the real estate crisis. The real estate sector in Spain is as big as the industrial sector. That is nowhere the case in other Western countries. At the height of the housing bubble in the US the real estate sector there was one third of the industrial sector. While in 2008 all countries stopped spending in the real estate sector, Spain continued and even increased spending. The real estate and banking sectors in Spain are highly connected to politics. And Italy? There is a huge black money circuit in Italy and the mafia has penetrated many sectors of society. Italy has been caught lying about its financial figures in the past and I am sure there a many skeletons in the closet in both these countries.

And have a look at debt figures here:

Nevertheless, I agree that the US also has a lot on its plate. Just like the rest of world.

Thu, 07/05/2012 - 04:58 | 2588126 mark7
mark7's picture

Majority of mortgages are prudently supervised in Spain. For primary house a Spanish buyer could only borrow up to 80 percent of estimated value, which is lower the actual market price. For secondary or foreign buyers Spanish banks only provide 50-60 percent. Even if Spanish banks take a 100000 euro loss per house for those million unsold houses, it is still only about 100 billion euros and spread out over many years. That is pretty much the upper limit for losses.

Spanish banks also are not able to sell loans completely as originator further to third parties unlike in UK or US,  they have to keep at least part of the mortage package. They restuctured the laws after early 80's real-estate bust. There were nothing like those those crazy 120 percent LTV loans in Florida.

Thu, 07/05/2012 - 05:57 | 2588135 Joe A
Joe A's picture

Well, a 100 bilion is not nothing and they need it now, not spread over many years. Something led to this and don't tell me it because of cheap German money. And how can millions of unsellable houses on your balancesheet be an asset? It is a liability.

Thu, 07/05/2012 - 06:52 | 2588165 Reptil
Reptil's picture

The issue is that THROUGHOUT EUROPE (Italy and Greece and Spain excluded) there has already been AUSTERITY programs since the early nineties.

When the real estate bubble in both Ireland and Spain collapsed and balance sheets didn't add up, all that debt was dumped on the public national debt.

People know this. The spanish have cut back on a lot of expenses I know firsthand. Of course there was a ridiculous housing boom. Infrastructure rearranged to accomodate hordes of wealthy tourists from the UK or Netherlands and Germany. The issue was of course that the UK's finance bubble imploded. This caused the housing collapse in Spain. Ordinairy people just worked, and saved a little and depended on family when the shit hit the fan. They're not responsible for the banks which are private institutions and owned and controlled by a small, but wealthy spanish upper class. They're not going to support more BS. They simply have given everything they already had. That the family life is so strong and supportive there, and ppl. grow their own food, is the single reason that the gov. buildings are not burning yet in Spain.

I think the politicians are out of touch, only look at their peers (important for their carreers) and at corporate (bankers).
They're still thinking somehow they'll cross this bump in the road and can continue with their old plans (and carreer path).

If they'd only be able to switch to a new paradigm and disconnect the financial economy from the real one, this crisis would already be over.

Thu, 07/05/2012 - 13:45 | 2589545 KnowIDontKnow
KnowIDontKnow's picture





I would add that it is the product of government austerity driving down incomes that created the need for private money creation in the form of bank loans to keep the economy going at all (even though the result was a Ponzi economy of asset bubbles rather than productive investment).  An end to austerity is what is needed now to generate economic activity independent of the collapsing banking/private-money system.

Thu, 07/05/2012 - 02:51 | 2588065 mito
mito's picture

I don't think,even if he read this, that he would understand. These people are so sure that they are right ....

Thu, 07/05/2012 - 02:55 | 2588067 Joe A
Joe A's picture

Let them eat cake. Space cake. Or perhaps they already had too much of the stuff.

Hollande wants to lower retirment age, short the working week and hire more civil servants. Oh yes, that will cut pulic spending. NOT. Soon they too will be knocking on Germany's door.

Thu, 07/05/2012 - 03:24 | 2588068 ebworthen
ebworthen's picture

Too bad governments don't ever hold bakers and corporations to the same standards they wish to apply to the people.

All this talk of free market capitalism after the bailouts and debt deals to keep the malfeasant banks solvent is a joke.

Shit or get off the pot.

Jon Corzine, Jamie Dimon, Mozillo, and the Barclays gang are not in prison so to hell with it all - burn the whole damned thing down.


Thu, 07/05/2012 - 03:22 | 2588076 liszt
liszt's picture

Ok you just lost one reader, me.

Thu, 07/05/2012 - 03:24 | 2588077 Coldfire
Coldfire's picture

M. Hollande's opus is the feelgood hit of the year.

Thu, 07/05/2012 - 04:29 | 2588112 liszt
liszt's picture

I feel your despair about Ron Paul never been elected.

Thu, 07/05/2012 - 13:30 | 2588130 EmileLargo
EmileLargo's picture

Democracy is based on the principle that the common people know what is good for them and deserve to get it good and hard. - H.L.Mencken

Thu, 07/05/2012 - 05:13 | 2588131 falak pema
falak pema's picture

in fact Hollande is going to slim the welfare state; so this letter is pointing the wrong way.


Hollande is going to do what no conservative governments can do : slim the uber-government and improve is productivity. It is ironic that "new socialists" are the BEST governments to reduce government spending IN FACT and to iNCREASE the part of private sector (civil society) during their tenure. As they control labour movements better. CLinton reduced government spending balancing the budget, admittedly as the expense of defense. And, he allowed the private sector to contiinue on outsourcing big time giving them G-S repeal and more Greenspan ZIRP soup. Witness Schroeder in Germany! Mitterrand after two years of trying to meet his electoral promise did an about turn and completely liberalised the economy opening up Europe and opening up private sector to foreign captial; he created the CAC 40 and invited pension funds and monetary funds to invest in it big time. It was unheard of as France was very Gaullist and anti-foreign capital inflows from 1958 to 1983!

Reaganomics and Big Bang changed that and Mitterrand was intelligent enuff to understand that after having flopped for two years in Keynesian mode borrowing money on the market at 10%+, as Volcker had hiked interest rates world wide to juggle inflation! 

Hollande will be no different. Given the current extreme crisis in Eurozone he will align himself to Euro austerity very fast and France will be down to 3% deficits by end 2013. The whole issue today is the protectionist issue for Euro industry. They are quid pro quo measures now being imposed on China whereby Eurozone will put trade barriers on imports if they don't meet quality/eco criteria decided by the eurocrats. Also, this new regulation for controlling Eurowide bank derivative plays and the projected Tobin tax will IMO see the day. Euro zone, whatever its monetary configuration, will take on imposing banking reforms to this ponzi financial world. That in itself will be a blessing.

How Hollande intefaces with small business creation in France will be an important medium term issue of economic importance. I think he will massively follow the German model. His industrial position will be to align France on German pattern, including fiscal reforms. 

French are a spoilt people, economically speaking. And its time to pay the bills. Fasten seat belts! Hollande or no Hollande. Our social structure will have to adapt. Unfortunately a lot of baby boomers will retire and age in coming years. That demographic bulge's social cost will be ominous as long as it lasts; aka ten-twenty years or more. 


Hollande's high fiscal reform gives the right signals to Oligarchy as they are now totally unproductive in this paradigm of financialised world. It will only incite other nations to readjust their fiscal policies.

The trend to lower taxation in first world is over on both the corporates and the 1%; and its the right way to go.

Fiscal paradises will have to be reigned in if the nation states continue to be functional in first world.


This is one issue which is moot. 

The fight of civilization stays people vs the Oligarchs. But Oligarchs now have the upper hand world wide. 


Thu, 07/05/2012 - 05:30 | 2588140 Joe A
Joe A's picture

Clinton might have balanced the budget but it was Clinton that relaxed oversight on Wallstreet and it was Clinton that wanted every uneligable person in the US to own a house.

Thu, 07/05/2012 - 06:19 | 2588145 falak pema
falak pema's picture

On the issue of past tax increases here is an interesting overview. A lot of anti-state partisans did the opposite to what they preached and vice-versa! 

CHART Of Obamacare In Context Of Other Tax Hikes - Business Insider

The acid test has always been not what you say but what you do in your tenure! 

On the issue of nation-state survival in the face of Oligarchy onslaught and what it does to Euro continental construct, here is a good overview by an ex-German politician who was top european ten years ago.

What does Europe want and at what price! 

Eurozone crisis: Tough questions for Franco-German axis after Merkel's big defeat | Business |


Thu, 07/05/2012 - 06:25 | 2588155 Ghordius
Ghordius's picture

+1, falak. regarding the european left being often the part doing the "dirty job" "in fact Hollande is going to slim the welfare state" there is another example in the German's Socialist Democratic Party (SPD) under Chancellor Schröder implementing the "Agenda 2010" which liberalized the labour market in a way no conservative-led government could have done, and by that changing the "sick man of europe" back to the productive country of today


+1 "The whole issue today is the protectionist issue for Euro industry." exactly

Fri, 07/06/2012 - 06:12 | 2591125 theprofromdover
theprofromdover's picture

My fear about Hollande was that he might be Tony Blair-lite.

All PR and no progress, just creative accounting and service jobs.

Hope I'm wrong, the true state of France's economy has the best-kept secret in Europe for the past 3 years.

Still, if it breaks up the Euro, then no bad thing for the peoples.

Thu, 07/05/2012 - 05:14 | 2588132 zilverreiger
zilverreiger's picture

The germans shouldnt pay them, there is however nothing wrong with a 35h workweek or a low retirement age. Work ethic is for empty rats.

Thu, 07/05/2012 - 05:25 | 2588133 fractal trader
fractal trader's picture

A socialist must first ruin their country to be proven wrong. Maybe by implementing direct democracy, the country (the people) would be given chance to do the opposite first.

Thu, 07/05/2012 - 06:10 | 2588149 JuicyGrabs
JuicyGrabs's picture

Communism wanted to be that "direct democracy" you speak of, the power in the hands of the people. It didn`t quite work out that way now did it.

A total direct democracy will lead a country to ruin even faster than indirect democracy. People always want something for nothing and choose the measures that fit best their immediate needs. Very few would actually understand what the system needs. Democracy in itself is a flawed concept.

Thu, 07/05/2012 - 06:19 | 2588151 fractal trader
fractal trader's picture

I'm sorry but you're so wrong. Take a look at Switzerland and tell me do they have communism.

Representative democracy leads to all sorts of corruption and may eventually lead to a totalitarianism (once a totaliratarian is democratically ellected to power) such as what happened in Germany with A.Hitler.

At the very least whose rights / interests do you think any representative would represent first (by the law of nature and pure logic), yours or theirs?

Markets would / should be a good example of direct democracy (if there weren't for contral banks).

Thu, 07/05/2012 - 06:26 | 2588154 JuicyGrabs
JuicyGrabs's picture

Democracy is nothing but the dictatorship of the majority through the power of government.

I don`t want a majority dictacting how one should live his life, what taxes to pay, whom to marry, whom to screw and so on.

This is why a constitutional republic with extremely limited government is best way to go. Each individual should be in control of his own destiny. Majority shouldn`t be able to decide how everyone should live.

Thu, 07/05/2012 - 06:33 | 2588156 fractal trader
fractal trader's picture

I agree with you on that one, fellow libertarian. Maybe the best question is whether there should be any whatever-cracy at all.

However, I was arguing direct versus representative democracy.

Thu, 07/05/2012 - 06:51 | 2588159 JuicyGrabs
JuicyGrabs's picture

I know.

In the direct democracy scenario, one would assume the majority of the demos(people) would be able to make a decision by some form of public participation(plebiscite or referendum) like they did in Switzerland with those mosques for example(people decide to ban construction). Their decision, however, would apply to whole country, even to a minority who might disagree. This is the problem I see with this system.

Sure, maybe you might like that Switzerland hold a referendum to decide whether or not to allow mosques and voted against and you and I might like that decision. However, think about direct democracy applied in Saudi Arabia or Iran where majority could by referendum decide to hang all the gays and prostitutes and other religions or non-religious, because the majority deosn`t approve of their lifestyle.

Food for thought.

The key to liberty is to limit the power of government to a minimum and not allow the majority to call the shots because very often people who change society and take it forward are more often that not in those small minority persecuted groups.


Thu, 07/05/2012 - 06:59 | 2588172 fractal trader
fractal trader's picture


Thu, 07/05/2012 - 06:20 | 2588152 Arthur Borges
Arthur Borges's picture

Well, I'm not sure how much the economy will miss the big corporations. Most having been trimming staff at home and contribute little more to the tax base than payroll taxes on a fraction of their employees. Besides, at least since the early 1980s, the drive behind new jobs in France has been small & medium enterprise.

On the other hand, if Pres. Hollande does manage to boost social benefits only to have to withdraw them later, the risk of serious social unrest would be high. Is this a deliberate ploy?

Thu, 07/05/2012 - 06:52 | 2588168 Ghordius
Ghordius's picture

I usually ignore this kind of comments, but this is worthy of an epic rant.


1. The drive behind new jobs has always been small & medium enterprises, everywhere. Big Biz is good for trimming down the workforce, that's their ticket and their strenght, beside return-on-scale.

2. The true fight we have in the first world is between small/medium and big biz. and one of the preferred slaughtergrounds are lobbyism, regulations and megalaws. Big Biz loves them, they fit their size. No, I'm not against smart regulation, I'm against 22'000 pages regulations and laws that only a MegaCorporation can propose, get passed and, by having the resources, understand. And this disfranchises everybody else.

3. having said that, the stranglehold that big biz has on everything is immense and growing, best seen by the fact that generally speaking they don't really pay taxes anymore.


Hollande made a electoral promise and he kept it. all this talk about the retiring age in France is just hot air, it affects a small part of the retirees. He still can improve finances by just making reforms that affect the quality of the French system, even with a quantitative cut.

Fri, 07/06/2012 - 06:18 | 2591131 theprofromdover
theprofromdover's picture

Big business is the same as the banks, a total syphoning-out agency of taxpayer money.

When I travel and see first class corporate swine, and wonder how they paid for the tickets, or go to 5* hotels for meetings and see who can afford the rate, it is almost always big, big business. Monopoly prices and taxpayer subsidies, backed up with heavy lobbying.

Big government likes big business, cos they make em feel good and throw little gifts in their direction.

I yearn for the good old days of free-market capitalism.

Thu, 07/05/2012 - 08:36 | 2588338 Bicycle Repairman
Bicycle Repairman's picture

Is France merely the canary in the coal mine?  Taxageddon coming to the US in 2013.  Obama or Romney, it's Taxageddon. We can't all move to Singapore.

Thu, 07/05/2012 - 10:07 | 2588581 AchtungAffen
AchtungAffen's picture

Cry me a river. Rich people complaining becuase their taxes are going to be risen. And then they throw the scare ball about how that will destroy the real economy... yeah sure. It was about time the rich stopped being so untouchable.

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