Will France go Bust? 3 Trillion EUR edition
Discussion
Its November 2024, the Left & Le Pen are threatening to bring down the fragile truce in the French Government.
Government (to be fair) specifically, old-skooler M. Barnier is trying to get through 60bn EUR of spending cuts to shore up the books. It's not gone down well because hey, government spending always goes up right?
He was tasked with this due to the enormous gap between spending and revenues in France. Its public debt is 3.3 T EUR.
Will France go bust?
Government (to be fair) specifically, old-skooler M. Barnier is trying to get through 60bn EUR of spending cuts to shore up the books. It's not gone down well because hey, government spending always goes up right?
He was tasked with this due to the enormous gap between spending and revenues in France. Its public debt is 3.3 T EUR.
Will France go bust?
Countdown said:
Isn't the UK's debt even higher?
They are at 110% of GDP, we are at 100%.https://www.imf.org/external/datamapper/d@FPP/USA/...
RicksAlfas said:
They do have immaculate roads, no litter and lovely flowerbeds in their towns and villages though so at least it's been spent on things which make people feel happier and proud of their local area.
Non?
So we have more in common with the French than we think. What is France's version of Blackpool on a Friday night? Non?
Mr Penguin said:
Countdown said:
Isn't the UK's debt even higher?
They are at 110% of GDP, we are at 100%.https://www.imf.org/external/datamapper/d@FPP/USA/...
bristolracer said:
They are a G7 country.
If they go under we all will
when we talk about a country going under, what do we even mean by that?If they go under we all will
Don't forget we are talking about nuclear powers here. It's not a case of "give me the money or else I'll.................."
Do what exactly? Sell some land off to China? What will the entities owed the money actually do in case of default?
Genuinely interested to know, has this happened before to such a powerful nation?
S1MMA said:
when we talk about a country going under, what do we even mean by that?
Don't forget we are talking about nuclear powers here. It's not a case of "give me the money or else I'll.................."
Do what exactly? Sell some land off to China? What will the entities owed the money actually do in case of default?
Genuinely interested to know, has this happened before to such a powerful nation?
The UK has gone cap in hand to the IMF before for a bailout so it has happened before.Don't forget we are talking about nuclear powers here. It's not a case of "give me the money or else I'll.................."
Do what exactly? Sell some land off to China? What will the entities owed the money actually do in case of default?
Genuinely interested to know, has this happened before to such a powerful nation?
ScotHill said:
Wasn't there a 'destruction of the euro' thread that one guy kept pumping up a few years ago? And a 'Fall of Deutschebank' thread? Do any of these things ever come to fruition? (or excrementation, maybe)
Lets hope not!Feels a bit like the modern version of the Roman problem....that took a very long time to be discovered
"From a purity of greater than 90% silver in the 1st century AD, the denarius fell to under 60% purity by 200 AD, and plummeted to 5% purity by 300 AD. By the reign of Gallienus, the antoninianus was a copper coin with a thin silver wash."
It's interesting that essentially the belief it was pure Silver was enough to keep the whole system going just fine, it was the eventual discovery of the comparative lack of Silver that destroyed the confidence in it. Today we actually know it's nothing but paper/digital and are accustomed to accept deflationary devlauation and so our confidence is harder to break?
Times have obviously changed but imagine trying to explain money today to a Roman, I'd like to see his face when you say that in places eg Argentina one bit of paper ($) is much more highly valued than another effectively the same bit of paper (Peso). Is our money better/worse, feels like the one thing we haven't managed to master through history.
The trouble is they are rare events, but quick and nasty and some would say inevitable
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