Mega Posted October 23, 2009 Share Posted October 23, 2009 http://www.forbes.com/feeds/afx/2009/10/20/afx7018936.html Mike Quote Link to comment Share on other sites More sharing options...
Mikhail Liebenstein Posted October 23, 2009 Share Posted October 23, 2009 http://www.forbes.com/feeds/afx/2009/10/20/afx7018936.html Mike MIke, a good find. A dilemma for the Eurozone I'd say. Despite QE in the UK, Sterling has actually proven somewhat elastic, and ultimately the Americans and the Japanese will just keep on printing when we stop. The Euro on the other hand is different. Whilst I am sure Spain would like a bit of inflation, the German uber inflation hawks won't allow this unless they come under pressure. I take this article as a sign that the French might be about to break rank and demand devaluation efforts for the Euro so as to protect industry and jobs. Remember one thing when dealing with the French, they are one of the most expedient and pragmatic nations on Earth and will twist their position in an instant if it benefits the national interest - and nothing wrong with that I say. Quote Link to comment Share on other sites More sharing options...
Deckard Posted October 23, 2009 Share Posted October 23, 2009 A dilemma for the Eurozone I'd say. The Euro on the other hand is different. Whilst I am sure Spain would like a bit of inflation, the German uber inflation hawks won't allow this unless they come under pressure. I take this article as a sign that the French might be about to break rank and demand devaluation efforts for the Euro so as to protect industry and jobs. +1 The title of this trhead should be: "Every country in the Eurozone vs Germany". As pointed out in my thread in the Economics subforum, Germany is the only major economy in the Eurozone to have benefited from the single currency in terms of competitiveness, while everyone else lost out. But the French should be talking to the likes of Axel Weber - not sending out vague signals loosely directed at the US. Quote Link to comment Share on other sites More sharing options...
expatowner Posted October 23, 2009 Share Posted October 23, 2009 +1 The title of this trhead should be: "Every country in the Eurozone vs Germany". As pointed out in my thread in the Economics subforum, Germany is the only major economy in the Eurozone to have benefited from the single currency in terms of competitiveness, while everyone else lost out. But the French should be talking to the likes of Axel Weber - not sending out vague signals loosely directed at the US. There is an economics subforum in this website? Quote Link to comment Share on other sites More sharing options...
Deckard Posted October 23, 2009 Share Posted October 23, 2009 There is an economics subforum in this website? allegedly Quote Link to comment Share on other sites More sharing options...
indirectapproach Posted October 23, 2009 Share Posted October 23, 2009 Nutty old Ambrose is onto the same story with a bit more wingspan, http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/6389779/Euro-at-1.50-is-disaster--for-Europe.html The whole world is moving. The Germans have anchored the euro so it can do nothing more than twist on the tide and Trichet, some dude called Henri and Sarko are bitching with more gallic panache than comprehension. http://www.telegraph.co.uk/news/worldnews/europe/france/6341064/Nicolas-Sarkozy-takes-swipe-at-Britains-economic-woes.html As if they think that's going to do any good. The idea of doing something sensible, practical, Anglo-Saxon, like lowering their interest rate seems beyond them. About three years ago, before the proverbial hit the air con, I watched a live press conference on tv, where Trichet, a Frenchman, head of the ECB in Frankfurt, took journalists questions on his interest rate decision, in English. Even the French and German journos asked their questions in English. Funny old world I thought to myself. Quote Link to comment Share on other sites More sharing options...
Deckard Posted October 23, 2009 Share Posted October 23, 2009 The Germans have anchored the euro so it can do nothing more than twist on the tide and Trichet, some dude called Henri and Sarko are bitching with more gallic panache than comprehension. As if they think that's going to do any good. The idea of doing something sensible, practical, Anglo-Saxon, like lowering their interest rate seems beyond them. Gotta love the French... fancy sharing a currency with them? Thought not. Quote Link to comment Share on other sites More sharing options...
scepticus Posted October 23, 2009 Share Posted October 23, 2009 (edited) Gotta love the French... fancy sharing a currency with them? Thought not. Turns out the french have a higher-gdp-per-capita-per-man-hour than the USA. Seems they are the worlds experts at being lazy. Or you could say, working smart not hard, as we say in the office. Edited October 23, 2009 by scepticus Quote Link to comment Share on other sites More sharing options...
indirectapproach Posted October 23, 2009 Share Posted October 23, 2009 (edited) I have been puzzling over these French productivity numbers for quite sometime because they are so, so much at variance with my experience of France, which I know quite well. How about the numbers are bounced by swathes of illegal labour to which blind eyes are turned but which is kept off the books? Edited October 23, 2009 by indirectapproach Quote Link to comment Share on other sites More sharing options...
ken_ichikawa Posted October 23, 2009 Share Posted October 23, 2009 Gotta love the French... fancy sharing a currency with them? Thought not. They are pragmatic to say the least , in that one of their presidents de gaulle maybe lost faith in the US dollar and exchanged all their dollar reserves for US gold, Nixon shortly afterwards delinked the US gold standard. Quote Link to comment Share on other sites More sharing options...
jackalope Posted October 23, 2009 Share Posted October 23, 2009 I have been puzzling over these French productivity numbers for quite sometime because they are so, so much at variance with my experience of France, which I know quite well. I think the massive social costs for employers and the difficulty in sacking anyone makes employers reluctant to add more people and they'd rather invest in automation or other technology to increase output. Hence high productivity and high unemployment. Quote Link to comment Share on other sites More sharing options...
indirectapproach Posted October 23, 2009 Share Posted October 23, 2009 Yeah, that seems to make a lot of sense. Quote Link to comment Share on other sites More sharing options...
abharrisson Posted October 23, 2009 Share Posted October 23, 2009 I think the massive social costs for employers and the difficulty in sacking anyone makes employers reluctant to add more people and they'd rather invest in automation or other technology to increase output. Hence high productivity and high unemployment. Fair point plus the French have the LOWEST rate of new business start ups in the developed world...... if they had the same activity levels in the small business sector as the uk then unemployment levels would be more like 5% than 15% ( or whereever they are). Plus I suspect the 35 hour week works to reduce the admin burden on each unit of production. Plus for a country where they boo their own football team if they haven't scored in the first five minutes the french are incredibly nationalistic still when it comes to buying french made goods. Todays bizarre french fact.... france is a bigger market for mac d's than the UK. Quote Link to comment Share on other sites More sharing options...
scepticus Posted October 23, 2009 Share Posted October 23, 2009 I think the massive social costs for employers and the difficulty in sacking anyone makes employers reluctant to add more people and they'd rather invest in automation or other technology to increase output. Hence high productivity and high unemployment. In which case perhaps that model combined with a reasonable welfare state and stronger family ties and sensible house prices is a better model for the future than the defunct model of the US/UK. Quote Link to comment Share on other sites More sharing options...
abharrisson Posted October 23, 2009 Share Posted October 23, 2009 In which case perhaps that model combined with a reasonable welfare state and stronger family ties and sensible house prices is a better model for the future than the defunct model of the US/UK. Don't you believe it.... every model has its flaws and france has plenty.... its just a different way of doing things. Quote Link to comment Share on other sites More sharing options...
scepticus Posted October 23, 2009 Share Posted October 23, 2009 Don't you believe it.... every model has its flaws and france has plenty.... its just a different way of doing things. True. I'm sure we're going to go for high unemployment and low productivity. It's great to be different. Quote Link to comment Share on other sites More sharing options...
thod Posted October 23, 2009 Share Posted October 23, 2009 Yes the French are nationalistic. Most of the cars on the roads are French and it the same with every other product. They genuinely believe that everything French is better than everything from elsewhere. They are not experimental. Don't believe the hype you have heard about French food, it is not exciting. They would not want a curry because it is not French, ergo it is inferior. Almost everything in France is very expensive to buy. Its frequently cheaper to jump on the ferry and bring product over yourself. There are exceptions, beer and fags, electricity, council tax, but consumer items and food are expensive. There is little scope for Tesco to come in and kick them with cheap prices, the French would simply not shop there, it is not French (Lidl and Aldi are present for some reason). Employing someone is expensive and self employment is taxed almost out of existence. They have separate taxes called cotisations which can be more than you earn. It destroys the dynamism of the economy. France is a socialist country and the way things work are odd to those from the UK. Those that do best are not entrepreneurs, but those who can argue a bigger slice of the common pie for themselves. Everything is regulated to ensure vested interests. Want to replace a broken roof tile, you need an artisan roofer or you can't sell the house with your botch job. Having said that, the country works. Everything is very well maintained, much more so than ramshackle Britain. When you employ a tradesman, he will do what is specified to a high standard. There is not the level of inequality seen in Britain. In many ways going to France will remind you of stepping back in time. No youth crime and courteous people. Its a pity the French are not more adventurous and curious of the outside world. Its a great place to live but a lousy place to earn a living. Quote Link to comment Share on other sites More sharing options...
jackalope Posted October 23, 2009 Share Posted October 23, 2009 In which case perhaps that model combined with a reasonable welfare state and stronger family ties and sensible house prices is a better model for the future than the defunct model of the US/UK. Well sure, if you think 20% unemployment for the under 25s is 'a price worth paying'. Quote Link to comment Share on other sites More sharing options...
jackalope Posted October 23, 2009 Share Posted October 23, 2009 Now now, don't put words in my mouth. I said I expect we'll end up there, not that I want it. You said it was "better". Why wouldn't you want it if it were the superior model? Quote Link to comment Share on other sites More sharing options...
scepticus Posted October 23, 2009 Share Posted October 23, 2009 Well sure, if you think 20% unemployment for the under 25s is 'a price worth paying'. Now now, don't put words in my mouth. I said I expect we'll end up there, not that I want it. Quote Link to comment Share on other sites More sharing options...
abharrisson Posted October 23, 2009 Share Posted October 23, 2009 True. I'm sure we're going to go for high unemployment and low productivity. It's great to be different. I'm not quite sure what point exactly you are trying to make ? Quote Link to comment Share on other sites More sharing options...
scepticus Posted October 23, 2009 Share Posted October 23, 2009 Having said that, the country works. Everything is very well maintained, much more so than ramshackle Britain. When you employ a tradesman, he will do what is specified to a high standard. There is not the level of inequality seen in Britain. In many ways going to France will remind you of stepping back in time. No youth crime and courteous people. Its a pity the French are not more adventurous and curious of the outside world. Its a great place to live but a lousy place to earn a living. In keeping with the topic of the thread, if you had to pick up life and wealth and commit right now to france or the US for the rest of your life, which one would you pick and why? Quote Link to comment Share on other sites More sharing options...
Smog Posted October 23, 2009 Share Posted October 23, 2009 In keeping with the topic of the thread, if you had to pick up life and wealth and commit right now to france or the US for the rest of your life, which one would you pick and why? I think I'm qualified to answer this, being English, home in France and spend probably 3 months of each year in California.... ...France, no contest, as someone already mentioned, the sense of community here is like what I remember in the UK when I was a chilld, its a pleasant place to be, and with children it makes even more sense, they get a very good free education and I don't have to pay over the odds for a shit semi in the right catchment area. Although I love LA, its not a place to have a family, if the shit ever hit the fan personally you'd be truly shafted there re. healthcare/social benefits. LA for young-free-single only. As it is, I have a French contract which makes me very expensive to make redundant, and even if I was made redundant the good old French state would look after me, for a while anyway. As for the UK - well that is completely bottom of the list. Quote Link to comment Share on other sites More sharing options...
jackalope Posted October 23, 2009 Share Posted October 23, 2009 (edited) In keeping with the topic of the thread, if you had to pick up life and wealth and commit right now to france or the US for the rest of your life, which one would you pick and why? US. Just finished living in the French speaking part of Belgium for 7 years so I've had a gut full of francophone corporatism. E2A: Also lived in California for two years but wouldn't necessarily choose that part of the US again. Edited October 23, 2009 by jackalope Quote Link to comment Share on other sites More sharing options...
thod Posted October 23, 2009 Share Posted October 23, 2009 In keeping with the topic of the thread, if you had to pick up life and wealth and commit right now to france or the US for the rest of your life, which one would you pick and why? That depends on your position in life. If I was young, penniless and eager to make my mark, I would choose the US (assuming I thought I was going to be a winner). If I had a stash and was getting on in years, then France. France tops the quality of life indices. Its nice when you can just show up and buy your maison, but its a bitch to earn that cash within France. I guess it is much like the young Poles that come to the UK with the intent of earning a stack and then taking it back home to buy a big spread. I am biased of course since I made that choice. Where in the UK could I buy a modern 4 bed detached with 3 acres of land for £85k? It means you bring you kids up in a shoebox or an idyll. I simply got tired of paying £1000 a month in London. You may earn more, but you pay more in London. I don't miss cultural events like theatres and ballets because I never attended them. I have hundreds of channels from sky for the TV here for English including BBC, ITV etc. I have the internet, I drive down to the supermarket to do my shopping etc. The only big change is the language people speak and many English here don't speak any French. Français is needed if you want to get a job. Quote Link to comment Share on other sites More sharing options...
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