Friday, February 6, 2009

‘Sarky’ Sarkozy thinks Brown is a fool and ‘England’ is the UK

French president Nicholas Sarkozy vows not to repeat Gordon Brown's mistakes

In a bid to pacify his compatriates French president Nicolas Sarkozy says "Gordon Brown's decision to cut VAT has absolutely not worked. Cutting VAT by two points doesn't incite people to buy if they are scared about their future. If anything, consumption in Britain has gone down." Mr Sarkozy went on to suggest that France's response would be different from the UK's, because the "English have no industry". No but we don't have a idiot who get's himself a 'trophy' wife and takes a year off from his first term to woo her either. He is of course right about the VAT. I haven't seen a single price in every small shop come down because of the VAT cut. No-one is monitoring this aspect of the 2.5 % VAT cut.

Posted by shining wit @ 01:52 PM (1357 views)
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26 thoughts on “‘Sarky’ Sarkozy thinks Brown is a fool and ‘England’ is the UK

  • tyrellcorporation says:

    LOL, go Sarko! Typical French knife wielding when your foe is on the ground but I’m sure they are looking on with glee at Brown’s collapse. For a decade they’ve had to take his chest beating and posturing about the UKs miracle economy, and the Eurozone’s lacklustre performance.

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  • I’m waiting for Napoleon’s line “Zey are a nation of shopkeepers” next.

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  • ..but..but we have an industry of Reality TV….surely that’ll be enough!

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  • With the eurozone in as much turmoil and more to come, could you imagine if one of the struggling countries, Spain, portugal or even Ireland decided to leave it? Imagine what would happen if Ireland adopted the GB pound. I might be able to buy a nice place in France after all. LOL.

    And wait till Carla finds out he’s shorter than Tom Cruise !

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  • And from the BBC’s story about this subject –

    http://news.bbc.co.uk/1/hi/uk_politics/7874648.stm

    “Mr Brown’s economic stimulus plans came under fire in December from Germany’s finance minister Peer Steinbruck, who said Britain’s response to the crisis had been “crass” and “breathtaking” _ stop beating about the bush Peer Steinbruck !

    In my opinion (and I have quite a few!) the VAT cut is a prime example of simplistic thinking and the sort of ‘fag-packet’ economics that Brown and his (former) marxist supporting excuse for a chancellor come up with.

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  • shining wit said…I’m waiting for Napoleon’s line “Zey are a nation of shopkeepers” next.

    The possibility is receeding. Even our high street shopkeeping is under threat……

    I have to say Sarko is a little ungrateful after Brown “saved the world”.

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  • alan at 5….

    I think he’s just taking an educated guess that Blighty is completely stuffed and it’s not hard to see that the VAT reduction is more smoke and mirrors.

    Seriously though – Every, and I do mean every, one of the ‘lttle’ shops I frequent (about 8 of them) have not reduced on single price on their entire range of products. It’s OK in big chains and such.

    No-one is monitoring this so the net result is that these shopkeepers trouser 2.5% VAT we give them. I think this will soon be calculated as the BIGGEST fraud in British history and Crash thinks he’s helping the economy ! Laughable.

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  • This is a little dig at the covert protectionism UK govrnment polices are conjuring ——— The ‘unfair’ competetiveness of sterling and the independent decision on VAT from a member state. The instability within the Eurozone is becoming a serious concern.
    Diverting attention to age old enemies in the population’s psyche is pure politics. A little breather until the riots start in these lesser controlled societies.

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  • Shining Wit – I do agree that in general bigger chains have reduced prices and smaller shops haven’t, but to be honest, that’s fine by me. The extra 2.5% that shopkeepers are able to pocket might just save a few from going to the wall, and if I don’t save a penny on a mars bar then hey ho, you win some you lose some. When it comes to bigger ticket items i’m sure we will all make sure we get the saving.

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  • timmy t @ 9….

    “….and smaller shops haven’t, but to be honest, that’s fine by me.” – small point timmyt – It is corrupt, illegal and hurting the most vulnerable in ou society, the old and those who cannot get to the ‘big’ shops.

    “When it comes to bigger ticket items i’m sure we will all make sure we get the saving.” – Maybe, unless the pre-vat price mysteriously creeps up as I’m sure all the clever stores, even the big supermarkets are aware of. Brown’s point about saving the average family £20 a month is just hokem.

    Sarkozy is completely right that it will not result in increased consumer spending “Oh, I think I’ll buy that plasma TV know that it’s gone down from £799 to £779 “- This government simply does not know what it’s doing ! Brown bashing all his doubting back-benchers over 45 days right when he’s going to needed them most. I rest my case.

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  • Well how does Sarkozy know the VAT cut hasn’t worked. Obviously spending has gone down anyway given the impending recession. How people get away with this kind of bluff is quite saddening. Not that our own political twonks / journo’s are any better.

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  • Shining Wit – I’m not saying it’s right – I’m saying I can see why small shops didn’t pass it on. Put yourself in the shoes of a small shopkeeper… Do you go around your whole shop, take all the prices off and re-price everything, literally 1p cheaper? Or do you simply pay the VAT man a bit less than you were expecting at the end of the quarter and pocket the difference? As for bigger ticket stuff, you can pretty much negotiate on an individual basis on each purchase now anyway so the 2.5% is neither here nor there – and I think that’s the point – it makes naff all difference.

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  • My point timmyt is that it simply has not worked…..

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  • stillthinking says:

    The VAT cut was necessary to MASK existing inflation figures to enable dramatic cuts in the base rate, and so indirectly increase consumption by increasing lending/debtor disposable income, NOT directly by lowering the price. £20 off a plasma tv isn’t much, but several hundred a month off on your mortgage repayments, is.

    Without the cut inflation would be over 4% and there would even more howls of outrage from savers than there already are, a deflationary future notwithstanding. At the moment the main non-VAT item, a.k.a. food, is running at 10% yoy.

    Should RPI go negative then perhaps we can see a reversal ( increase ) in VAT to compensate, thereby neatly maintaining a positive rate of inflation and also generating more tax revenue !

    UK savers are currently enjoying(!) a negative savings rate, so the gain from their VAT savings on their purchases ( which they don’t make anyway) is blown away by the losses incurred on their WHOLE savings pot.

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  • Good SW – on that we are agreed!

    It’s fairly apparent that at the heart of all our problems is the fact that we have spent beyond our means – so how on God’s earth Gordo reckons encouraging people to spend is ever going to get us out of it I just don’t know.

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  • timmyt @ 14…

    I think it’s because the sadddo thinks he knows what he’s doing…..

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  • stillthinking says:

    The French don’t have the same huge debt imbalance that the UK does. So given the absence of chronic depression inducing debt amongst the general public, there isn’t much point for France to shift real wealth from savers to debtors….so why must he follow the same path. The countries are different.

    “In France, we chose investment because when we put France into debt by taking money to invest, in return we have assets, infrastructure. When you put your country into debt to pay for operating costs, you have nothing in return for your debt and you ruin the country.”

    I wonder who the second sentence refers to ?

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  • stillthinking… “UK savers are currently enjoying(!) a negative savings rate”… If I see one more f***ing ING advert saying Saving Feels Good I swear I will put my foot through the telly. “Saving Feels Like You’re Having Your Pants Pulled Down” it should say!

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  • stillthinking says:

    I don’t understand why savers in the UK bother. I think anything other than sterling has to be a better bet. GB’s whole plan is to inflate away the debts at the cost of the savers to avoid the defaults.

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  • Don’t be so sure the French aren’t in the doo-doo stillthinking….

    There pension scheme is going to burst long before it does in the UK. Teachers encouraged to retire at 55 to make way for newly qualified teachers and yet the live into their mid 80s. Their own socialist experiment is a house of cards also.

    “I think anything other than sterling has to be a better bet.” – I wouldn’t bet on that, certainly not the euro. The whole eurozone is going to be in it up to it’s neck before the years out. The big economies are going to destroy the little countries abilities to do anything and if the Spanish, Portuegese or Irish even sniff that the Brown ‘experiment’ is working, they will be banging at the doors of the ECB to help them out. All these countries have never even seen a modern recession and property collapse before!

    As for the yanks, 590,000 jobs lost in january! Obama’s 3 million new jobs will have been wiped of their economy before they even finish getting their plan into action.

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  • stillthinking says:

    you may be right. on average though, the eurozone didn’t bubble their houses so excessively, ignoring spain and ireland, relatively small countries. we shall see, I suppose.

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  • Travisherscorp says:

    So the corner shop pockets 2.5%. Maybe that will keep them in business even though they can’t get credit to purchase stock.
    I frankly don’t care. If it means that there is less to spend on guns and oppression, then that has to be a good thing. I’m not about to censure a small cornershop owner over a few quid when the government pension regulator allowed £20k of my money to be squandered by Equitable Life and then spent £millions and 8 boom years denying they were culpable in any way. Even when found guilty they have wriggled out of paying anything.
    The real thieves have the lever of power in their hands and us little people will just get flushed away at their convenience.

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  • Still thinking……

    If you look at France and compare their graphs for house price rises, although they may not be on the same scale in terms of amounts, in terms of bubbles and HPI they are simlar (% wise) as far as I can tell they are going to pop.


    http://www.adef.org/statistiques/engstathome.htm – reasonal up to date stats on French property

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  • can someone explain the charts in 24 please?

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  • The red line is the average house price in France whereas the purple is the average house price in Paris (and its near surburbs I believe) and the blue line is average house price outside Paris (the rest of the country…). The author of this chart is an economist named Friggit who believes there is a major trend (the x-coordinate index = 1) and the prices should not go outside a “tunnel” (-10% to +10%) hence the “Tunnel de Friggit”.

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