One of the founding states of the European Union is buried in debt. In late June, France’s public debt represented 86.2% of gross domestic product, according to a report.
French public debt increased by 46.4 milliard euros in April-June 2011, according to a report of the French Institute of Statistics,or about 86.2% of GDP, ie, the profit generated by France in a year, informs the French daily Le Figaro in its electronic page.
The French state has contracted additional loans of 52.6 billion euros. Obviously, these are state bonds to investors and repayable on a long term of ten years, the report commented.
There is also the problem if the euro area will resist
Several Nobel laureates in economics finds that euro zone sovereign debt crisis will survive, but as a possible split could be caused by Germany rather than Greece.
Discussions were fierce and austerity versus about economic stimulus, but the crisis in the euro area and the danger of breakage dominated monetary union meeting.
If indebted countries like Greece would leave the euro area, their currencies were devalued, making it more difficult to euro-denominated debt repayment.
Instead, a rich country like Germany would be in a better position to pay its debts because its currency would probably appreciate against the euro.
Thus, issues out of monetary union would be much lower for Germany.
Nobody said but if the euro area would have any meaning in the absence of Germany.
Roubini shock again:Capitalism destroys itself.
Nouriel Roubini, professor of economics who predicted the crisis in 2008, make another prediction: the riots that have haunted the Middle East and the UK will expand, given that capitalism is threatened self-destruction.
“The recent popular demonstrations in the Middle East to Britain, and accumulation of popular discontent in China – and quite soon in other advanced economies and emerging markets – are determined by the same problems and tensions: growing inequality, poverty, unemployment and helplessness. .. Even the middle class is feeling constrained by falling incomes and opportunities, “said Roubini, according to Israeli newspaper Globes.
Dr. Doom explained that capitalism is in crisis that Karl Marx predicted a century ago and which is determined by the transfer of power and wealth from labor to capital, ie the middle class to class wealthy Wall-Street.ro write.
I wonder what about the idea abobut the United States of Europe, in this case …