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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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.

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?

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.

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 

Michael's picture

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

That is the question.

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!

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.

Michael's picture

+ 1000 veyron.

That's where it really started.


Taint Boil's picture



Ah the good old days - Reagonomics. or this

superflyguy's picture

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

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. 




Pure Evil's picture

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

American Revolution - 1776

French Revolution - 1789

Oh regional Indian's picture

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


world_debt_slave's picture

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

JohnF's picture

Um, no, not really.


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

monad's picture

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

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.


j0nx's picture

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

ProtectiveFather's picture

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

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.

Dead Canary's picture

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

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.

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. 


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.

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!

Offthebeach's picture

Who was John Law working for, I forget.?

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.

Lebensphilosoph's picture

France Fascist? I laughed harder.

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!

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!

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.

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.

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.

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!!

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.

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.

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.


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?

devo's picture

Where is a Bastiat when they need one the most

Did you mean bidet?

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.

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!")."

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?


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?

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!

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

JackT's picture

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

The Duck Stops Here's picture

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

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.

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.

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?