Told you so: France is totally fucked from raising taxes on the wealthy.

[MannyGoldstein]

First their new (confessed!) Socialist president raised taxes on foreign-owned second homes.

As if that wasn't awful enough, he next set a $565,000 per year pay cap for executives in state-owned companies. I don't know how very important people can live on that.

So instead of austeritying the peasantry as reasonable Progressives know we need to do, Hollande is waging class warfare on France's job creators, and now the chickens have come home to roost!

The invisible bond vigilantes have arrived!

In today's auction of French bonds, yields dropped to negative rates. Because of Hollande's moves, borrowers are pretending that they now have so much confidence in being repaid that they are actually paying France for the privilege of lending France money. Of course, this is just a trick to get the French to borrow more money than they can ever hope repay, thus making big profits for the banks.

Silly Socialists!

Austerity now! Austerity forever!

Best regards,

Third-Way Manny

[RagAss]

1. LOL ! - Outstanding post.

[Vidar]

2. Nicely done.

[Jackpine Radical]

3. Nothing like socialism to just wreck a country.

How the hell can you maintain reasonable class distinctions in the face of crap like this?

Next thing ya know they'll be giving their workers all kinds of benefits out of the profits stolen from the rich.

[Larry Ogg]

65. You managed to put the Koch brothers complete book of Teabagery 101 into three sentences...

Very well done!

[rational_democrat]

4. No...

This isn't a good thing for France... It means money is fleeing the private sector and investors are willing to take a small loss to protect against inflation.

[coalition_unwilling]

7. I'm pretty sure you are not serious but, if your post was serious and not

sarcastic, you are 100% incorrect.

To wit, investors in French debt are so unafraid of the threat of inflation that they are willing to accept a zero or even negative rate of return. Investors actually are exposing themselves to the threat of inflation down the road but, like I say, they see no threat of inflation so are not too worried about it.

[TrollBuster9090]

26. It doesn't matter, it's still bad. Anything that happens in a foreign country is bad.

That's the rule.

Foreign countries can only be used as examples of good things when they involve right wing policies. That's been the gentleman's agreement for as long as I can remember. Ireland is an example of a great country when it comes to lowering the business tax rates, but never an example of high wages and unionization. But I think there's a rule someplace that says NOTHING that EVER happens in FRANCE is allowed to be good.

[closeupready]

48. LOL, so true, so very true.

I'd K&R your post if I could.

[Go Vols]

85. +1

[AleksS]

89. In fact, everything in France is always soooo bad

In fact, everything in France is always soooo bad that Mittens was forced, FORCED I SAY, against his every wish, to pass up his opportunity to serve in Vietnam, in order to go to France as a missionary to help them out.

[TrollBuster9090]

92. Hey, don't knock Mitt's service to his country as a CULTURE warrior!

Do you think it was easy arguing with French existentialists armed with stale baguettes?

And don't even get me STARTED on the anti-American sentiments of The Paris Business Review!

http://www.parisbusinessreview.net/

[Red Crow]

83. Deflation.............

For a few years now some very smart people such as Nicoole Foss at The Automatic Earth have been predicting deflation as our biggest worry.Quite frankly IMHO I believe Europe and the US are going to be screwed for a few years.at least.Japan has been in a deflationary trap for years.Regardless of one's political persuasion.........buckle up.

[L0oniX]

13. LOL ...WTF ...do you really need to see a sarcasm tag?

[Gin]

24. That bug gets me

Each time....i think it's in my screen...grrrrrrrrrrrrrr

[Inuca]

35. You are not alone :-) n/t

[dmr]

64. Me too. I want to swat it, but don't want it smeared, either.

[Hassin Bin Sober]

33. Um no. Google Bonds 101 ....... or something.

Locking yourself in at LOW rates in anticipation of inflation is, well, stupid.

Inflation causes a price drop in the bonds YOU hold and a corresponding rise in market yields (not your yield). You either sell at a loss or sit tight on your shitty yield.

You have it backward.

[coalition_unwilling]

5. Brilliant send-up of redbaiters' rhetoric. K&R! - n/t

[Brickbat]

6. K&R for austerity now!

Don't make the job creators angry! They might, you know, stop creating jobs, or something!

[mlevans]

9. Wouldn't they first have to start creating jobs

in order to stop?

[Brickbat]

12. Quiet, you!

Don't make them angry!

[Tigress DEM]

34. ROFL

really

[chervilant]

8. O, Manny,

I you!

(I wish all those massive egos intellects on my IL could express themselves so well...)

[pscot]

10. Austerrorizing:

making the peonage pay for the follies of their betters.

[Ruby the Liberal]

11. Well played!!

[SDjack]

14. Damn!!! How can we overtake France's leadership as #1 healthcare system if

they keep pulling this crap?

[L0oniX]

15. I hope we get austerilized in the same way.

[Zalatix]

16. Austerilized! LOL! You managed to put a cherry right on top of Manny's already stellar act!

for Manny and for you, too!

[SammyWinstonJack]

38. We won't. Not even that 'socialist' Obama would take such drastic action amid the calls for

austerity

[GreenPartyVoter]

53. +1000

[TBF]

17. Who can afford a car elevator now?

They are screwing up everything!

[Fumesucker]

18. Please don't throw me in dat Briar Patch br'er Fox..

Evidently borrowers are playing the Br'er Rabbit gambit.

Third-Way Manny you just get smarter and better informed every day, what would we do without you?

[pampango]

19. Bring back Sarkozy. He wouldn't be screwing France like this. Hollande isn't anti-immigrant like

Sarkozy or anti-immigrant and anti-trade like Le Pen.

Hollande knows that high and progressive taxes provide for the safety net, health care and corporate regulaton that every citizen deserves.

[Rain Mcloud]

20. Welcome to the Corporate States of Austerilia

Fausterity or F*cking Austerity,Beer for the masses.

[AlbertCat]

21. Mon dieu!

It's the dreaded Francification of.... France!


Don't let it happen here.

[DirkGently]

22. Totally "right!"

er, as it were.

[sabrina 1]

23. You crack me up Third Way Manny!

But you're right of course, sorry for laughing, France must get rid of its Socialist, Commie Government before it begins to look like Iceland! Which, btw, is reported to be in great shape and ready to pay off its IMF debt!! If that were to happen to France? Can you imagine?

Austerity Now! Austerity forever! And if you don't believe me, look at Greece!

[Fuddnik]

25. Kick and rec!

[TrollBuster9090]

27. So, does this mean we now get to have a good old fashioned BIDDING WAR to see which country can

bring in the most socialist policies in hopes of attracting the Bond Vigilantes?

That would be nice. We've been racing to the bottom on wages, taxes and safety regulations long enough.

[Arugula Latte]

28. Sacrebleu!

[rhett o rick]

71. Geshundheit! nm

[JDPriestly]

29. Thanks Manny.

[dipsydoodle]

30. The negative yields are for short term bonds only.

And btw - executives in state-owned companies are not job creators.

[TBF]

61. Neither are executives in privately owned companies -

unless you live somewhere that pays $1 per hour.

[AllyCat]

86. LOL!

[Autumn]

31. No more freedom fries for me. It's french fries all the way baby

[Rabid_Rabbit]

32. What is the advantage of buying negative yield bonds?

Could someone explain why someone would buy bonds that have negative yield? Doesn't that mean that when the bonds mature they are worth less than when they were purchased?

[Hassin Bin Sober]

36. A safe way to park money in an asset versus converting it to gold and burying it in your yard?

I'm no expert so that is just a guess.

Also, I assume the market is bidding up the bond prices which bids down the yield. In other words, more people chasing after those "safe" investments causes the yield to drop. Traders still make money speculating on the bond prices.

[dipsydoodle]

43. Yes

It comes close to retaining its value which is better than the risk of a substantial reduction.

And yes - sheer demand has pushed down the yield to a negative state.

[Hassin Bin Sober]

55. Does the bond originator actually demand the negative interest payment?

[dipsydoodle]

57. Nope

The originator, in this case France , just kept dropping the rate until all they wanted to sell were sold. It just happened that it went negative before the sell out.

[Tigress DEM]

37. Banks ALWAYS want to loan money to people who don't need it. France doesn't NEED the money now.

It's like comping a high roller in Vegas so that when that person DOES get in a jam and needs lots of money fast, they go to the bank or money lender they know in hopes of a good deal. THEN when the chips are down, the rates go up.

It's a win-win for the banks. People who don't need money pay back their loans quickly so that money can be back in circulation and loaned to others at higher rates to make up for the "loss" of profit. Backing a winner makes your bank look good and even if it's at a slightly negative rate of return.

Tig

[Egalitarian Thug]

39. Because the person believes that something terrible is coming and that

the French government stands the best chance of still being when it's over. They'd rather have most of their money back on the other side than loose it all buying bonds from a government that will not survive the catastrophe.

"I told you so" is small comfort, but it 's all we got these days.

[Dokkie]

62. This is one head scratcher

The way I see it, this is one level worse than burying your money in the ground because with this, you do not only suffer the loss from inflation but also the hit from negative interest rate. I could think of one reason and that am sure is not it, but some rich folk with very little self control is buying this bond to prevent him from blowing it all buying useless items.

Some stories are feel good, it makes no sense. Could anyone confirm this is not some type of adjustable rate bond (dont think something like that exists but this story is so weird that I wouldn't be surprised if something like this was in the mix) France is selling

[AdHocSolver]

82. Anyone with assets deposited in U.S. bank accounts is losing money.

Interest rates on deposits are historically low, fees and interest rates on loans from banks are much higher than what they pay depositors, and interest paid to depositors is much less than the real rate of inflation.

Yet people keep their money in bank accounts because, even though the banks are ripping off their depositors, most banks carry FDIC insurance or an equivalent, so there is some protection for people's assets.

Putting assets in government bonds would work the same way.

[FlaGranny]

88. $0.72

That's the interest I earned last year on a savings account that had an average of $8000 in it. Completely pathetic. There IS a $5 a month charge, though, to keep the account if you don't maintain minimum balance. Regular checking has a $10 a month charge if you drop below minimum, and has no interest. This bank could be charging me $15 a month. This is Wells Fargo and it's soon to become my previous bank.

[me b zola]

40. !

Third-Way Manny

[nadinbrzezinski]

41. Third way Manny

You're the best!

[99Forever]

42. There should be a wave of..

.. 3rdWay's Corporate Apologists along any moment to give you a complete tongue lashing for posting something that knocks their crappy, buttkissing ranks into the dirt.

Austerity, code for 1%er disdain for WE the People.

[awoke_in_2003]

44. Unfotunately, Congress...

Is too "smart" to let bush tax cuts expire or, dread the thought, raising the taxes on the wealthy. Or, maybe, substitute the word "smart" with "paid for".

[Zorra]

45. Thank heavens we have the Third Way helping to protect austerity in America.

They've been helping keep America safe from democracy since 1984.


Thanks once again, Third Way Manny!

[pa28]

46. OK, Hollande is officially out of the club of very serious people. K&R

[Liberal_Stalwart71]

47. I nearly choked on my pretzel!!

[L0oniX]

49. Quote: "Austerilize ...must austerilize" - Nomad

[nolabear]

50. Les Less Miserables Than Americans

Well done.

[BlueCaliDem]

51. Very well done! K&R eom

[AllyCat]

52. Okay. Time to learn French and move.

[FrodosPet]

73. Some resources to start

http://translate.google.com/translate?sl=auto&tl=en&js=n&prev=_t&hl=en&ie=UTF-8&layout=2&eotf=1&u=http%3A%2F%2Fwww.immigration.gouv.fr%2Fspip.php%3Fpage%3Ddossiers_det_imm%26numrubrique%3D286%26numarticle%3D1858&act=url


The reasons and objectives of a new immigration policy professional

France has set a new immigration policy that allows both to control migration flows and to organize legal immigration.

Professional immigration under control must meet the needs of business and be adapted to the carrying capacity of France, given the changes in economic conditions

--------------------------------------------

Some of the work permits available are:

http://www.immigration.gouv.fr/IMG/pdf/immigrationprofessionnelle_etrangers_anglais.pdf

“Skills and Talents" permit

You have a project. The “Skills and Talents” permit,
valid for an initial period of three years and renewable thereafter, allows you to carry out any professional activity of your choice in connection with your project.

~ snip ~

The "Salaried" and “Temporary Worker" permit

Different residence permits can be issued opening up access to specific professions in France.
- The “Salaried” temporary residence permit
- The "Temporary Worker" residence permit
- A permit granted under a bilateral agreement.

The list of professions you can carry out in France can be consulted on: http://www.immigration.gouv.fr

~ snip ~

Medical Examination

Foreign nationals arriving in France as employees must present an endorsed employment contract and obtain a medical certificate from the ANAEM (Agence Nationale de l’Accueil des Étrangers et des Migrations).

~ snip ~

--------------------------------------------

From what I have read about emigration to countries such as Canada and France, it can be a challenge. First and foremost, you need to either have highly sought after skills, or be financially self sufficient. People such as myself really don't stand a chance of getting in.

Definitely for France, study the language, and try to find out what skills are required. Better yet, try to have a job lined up before starting the process. And finally, while they may be somewhat more civilized than us, there are still people who look down on foreign or guest workers, and can cause grief.

If this is what you really wish to do, good luck. Just be prepared for the red tape and delays and lawyers and all the other crap people must go through to change their country.

[xchrom]

54. ...

[Spitfire of ATJ]

56. Thanks I needed a good laugh

And a reminder this is a Liberal website.

[skamaria]

58. Well Done!

No sarcasm thingy nessesary.

[Melissa G]

59. Way to go, Third-Way Manny!

[retread]

60. Damn it! Am I going to have to start calling them "freedon fries" again??

[midnight]

63. Thanks for the update.... K&R

[fascisthunter]

66. Haha... awesome!

[Starry Messenger]

67. Aw, socialists are no fun.

We're going to miss out on the riots and fires of a good population squeeze.

[Strelnikov_]

68. Well played n/t

[PufPuf23]

69. I guess We can call France out for "Freedom Socialism"

Third Way Manny is a sage at DU.

[hay rick]

70. The real Manny was abducted by aliens.

They did obscene things to him and returned him to earth as "Third Way Manny." The horror.

In other news:

The French Socialists timidly raise top marginal taxes on the wealthiest to 75%, not even approaching the 91% top marginal rate maintained under Republican American President Dwight David Eisenhower.

President Barack Obama swears that he will allow the top marginal tax rate for the wealthiest Americans to return to a deficit-eroding 39.6%. He doesn't mention Eisenhower. He also doesn't mention that this promise is redeemable only after the election; that the Republicans couldn't possibly take hostages at that time; and if they did take hostages, it's unimaginable that he would cave in to their demands.

Three lefts make a right.

[rhett o rick]

72. I was abducted by aliens once and they refused to do obsene things to me.

I am filing a discrimination law suit.

[joshcryer]

74. I look forward to Third-Way Manny's post when the tax cuts expire.

[Zorra]

77. Me, too! Third Way Manny's posts were awesome the last time the tax cuts expired!

Oh...oh, yeah...

nevermind

[joshcryer]

78. Oh they'll expire this time.

Just you wait and see.

[Ghost Dog]

90. Yep. And military-industrial complex subsidies will be cut

wonderously.

[MannyGoldstein]

80. With, or without, Grand Bargain austeriliciousness?

If the tax cuts end for the bottom 80% or so, we go into another recession.

[joshcryer]

84. Oh, so you supported the tax cut extension?

PS Obama will be unable with the obstructionist congress, to renegotiate the tax cuts for the bottom 80%.

[Agony]

75. Yay! teh chickens are roosting!!1!

[newthinking]

76. Germany went negative too. Hope this doesn't mean (more) serious deflation is

on the way

[WillyT]

79. :evilgrin:

[suffragette]

81. J'adore Manny

C'est magnifique!

[a2liberal]

87. K&R (n/t)

[Fantastic Anarchist]

91. Fucking awesome!

Vive la socialism!