The French are right: tear up public debt


tay
#1
Debt audits show that austerity is politically motivated to favour social elites.


As history has shown, France is capable of the best and the worst, and often in short periods of time.

On the day following Marine Le Pen's Front National victory in the European elections, however, France made a decisive contribution to the reinvention of a radical politics for the 21st century. On that day, the committee for a citizen's audit on the public debt issued a 30-page report on French public debt, its origins and evolution in the past decades. The report was written by a group of experts in public finances under the coordination of Michel Husson, one of France's finest critical economists. Its conclusion is straightforward: 60% of French public debt is illegitimate.

Anyone who has read a newspaper in recent years knows how important debt is to contemporary politics. As David Graeber among others has shown, we live in debtocracies, not democracies. Debt, rather than popular will, is the governing principle of our societies, through the devastating austerity policies implemented in the name of debt reduction. Debt was also a triggering cause of the most innovative social movements in recent years, the Occupy movement.

A stunning finding of the report is that no one actually knows who holds the French debt. To finance its debt, the French state, like any other state, issues bonds, which are bought by a set of authorised banks. These banks then sell the bonds on the global financial markets. Who owns these titles is one of the world's best kept secrets. The state pays interests to the holders, so technically it could know who owns them. Yet a legally organised ignorance forbids the disclosure of the identity of the bond holders.

This deliberate organisation of ignorance – agnotology – in neoliberal economies intentionally renders the state powerless, even when it could have the means to know and act. This is what permits tax evasion in its various forms – which last year cost about €50bn to European societies, and €17bn to France alone.

Hence, the audit on the debt concludes, some 60% of the French public debt is illegitimate.



more


http://www.theguardian.com/commentisfree/2014/jun/09/french-public-debt-audit-illegitimate-working-class-internationalim (external - login to view)
 
captain morgan
Bloc Québécois
+1
#2
Ridiculous logic.

The French wanted the cash to fund a socialist Utopia... Everything was fully legit then, but now because they don't know 'who' gave them cash, the debt is somehow illegitimate?.. Why did they accept the cash to begin with, being all illegitimate 'n all.

Go on and cancel your debt France... Won't bode well for you when you come cap-in-hand begging for scraps
 
taxslave
No Party Affiliation
+1
#3
The debt holders are pension funds, private citizens etc. cancel the payments and watch the economy crumble.
 
captain morgan
Bloc Québécois
#4
Who will they blame then?
 
taxslave
No Party Affiliation
+2
#5  Top Rated Post
Quote: Originally Posted by captain morganView Post

Who will they blame then?

Evil capitalists or Jews. Maybe both.
 
captain morgan
Bloc Québécois
#6
Well, we ought to know pretty soon who will be the targeted whipping boy.... With a 75% marginal tax rate, their economy will be hitting the skids in a few short years.

So much for their 'Eureka' moment on funding society
 
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