France is being kept alive by paying itself? Makes no sense.
Also arianespace group has 60% of their revenue from the development of the m51 nuclear launcher, the rocket thing is their side show and a way to subsidize our nuclear launcher development not the other way around.
Also ag studied a reusable launcher in the early 2000s and found it not viable economically, because it wasn't, to make it work space x had to have massive government subsidies in guaranteed launch AND starlink which was essentially let our own investors and the dod feed the finance of space x until it's viable. Which is a good strategy mind you, but as a result pointing the finger at ag being supported by government funding as if it was a bad sign is rather absurd.
> France is being kept alive by paying itself? Makes no sense.
For the past 18 years at least, France has been trapped in an economic stagnation driven by terrible economic policies (as if trying to outcompete eastern Europe on cost wasn't a great idea). The only thing that keeps the economist from collapsing entirely is the perpetual stimulus from public spending using foreign loans. (This also will probably stop being sufficient soon since the governing party seems to be obsessed by the idea of reducing public spending instead of fixing their economic policy).
Well I would disagree with that and laugh at the fact that this exact analysis has been published by The Economist and similar for the past 50 years, in fact for the first time France unemployment numbers have gone below the numbers they climbed to in the 90s, and in 2020 for the first time since the turn of the century our deficit was reaching a point allowing our debt to start lowering instead of climbing, and was stopped by a combination of both covid and then the energy crisis and the cover offered to french people.
We do have issues and for the past 3 years they've been amplified by our political standoff (parliament cut in three third and none agree to work with the others), but the core of our economic woes is from pensions.
Inflation != currency devaluation and France had a pretty tame inflation compared to many of its neighbors (significantly less than Belgium for instance), which again is a good illustration that inflation has nothing to do with the money supply or the value of a currency, no matter how prevalent this myth is.
Neither which is the same as expanding the monetary base (debasement if you want to be spicy).
An economy with a shrinking money supply can experience inflation and devaluation relative to other currencies. An economy with a growing money supply can experience deflation and a strong currency.
> Neither which is the same as expanding the monetary base (debasement if you want to be spicy).
“debasement” proper is also something else.
> An economy with a shrinking money supply can experience inflation and devaluation relative to other currencies. An economy with a growing money supply can experience deflation and a strong currency.
Yes. And an economy with a growing money supply can experience inflation and having a strong currency at the same time (see what happened to the US and the US Dollar in the first half of 2022).
> By 2021 it had increased by same % as 2009 to 2015.
It increased faster but the money supply variation was in the same ballpark, when the CPI evolution definitely wasn't (you can compare CPI between 2009 and 2015 and 2019-2021 you'll see that there's no link between inflation and the money supply).
> Not massive inflation in asset prices. All that money had to go somewhere, so stocks are now significantly overvalued and housing is unaffordable.
This has nothing to do with “inflation” (which, by definition is the evolution of CPI).
And the solution to this problem is actually quite simple: tax the rich (who got their free central bank money from nothing in exchange).
> Well I would disagree with that and laugh at the fact that this exact analysis has been published by The Economist and similar for the past 50 years
I'd be happy to live in a timeline where the Economist criticizes the bullshit that “supply chain economics” is, but if you paid attention you'd be aware that it's not really their editorial line.
> fact for the first time France unemployment numbers have gone below the numbers they climbed to in the 90s
You should thank the boomers for retiring, not the economic policy. (By the way, employment went up in pretty much all of Europe for the 2010-2020 period while the economy stagnated in most places but the east)
> We do have issues and for the past 3 years they've been amplified by our political standoff (parliament cut in three third and none agree to work with the others
Standoff caused exactly by the government dogmatic stand over their failed economic policy …
> but the core of our economic woes is from pensions.
It is not, this is government narrative. The “pension problem” is merely an economic activity problem. When the real wages go down (which is did in France since 2017) while pensions are inflation adjusted, obviously the share of income that goes through pensions increases but that's not a “pensions problem” it's a wage issue (and economy health issue).
In fact, public spending per capita is in the middle of what remwins of the EU15 (just above all other Mediterranean countries and below all the others). The reason why the spendings per capita ratio is too high is not because the spendings are too high, but because the GDP is far too low due to inept policies.
> France is being kept alive by paying itself? Makes no sense.
Yes, by borrowing. Any meaningful reforms seems infeasible due to social and political reasons.
> Also arianespace group has 60% of their revenue from the development of the m51 nuclear launcher
Yes, so we agree its hardly much more than a government military contractor making its money from legacy products and not some sort of an innovative company.
It's just an orbital launch vehicle. Something the US can produce by dozens per day it needed. Whereas the French have a stockpile which is no more than 50 with a production rate of maybe 1 or 2 per month.
Also arianespace group has 60% of their revenue from the development of the m51 nuclear launcher, the rocket thing is their side show and a way to subsidize our nuclear launcher development not the other way around.
Also ag studied a reusable launcher in the early 2000s and found it not viable economically, because it wasn't, to make it work space x had to have massive government subsidies in guaranteed launch AND starlink which was essentially let our own investors and the dod feed the finance of space x until it's viable. Which is a good strategy mind you, but as a result pointing the finger at ag being supported by government funding as if it was a bad sign is rather absurd.