Which Is Worse? America or France?

France vs US

‘Which is worse? America or France?’

The question must be put in context.

We were invited to dinner with local farmers last night. Jean-Yves and Arlette live in a modest house in the nearby town — an efficient and cosy place built about 25 years ago.

They’ve added a solarium to the back, where we had dinner.

Arlette operates a dairy farm left to her by her parents. Jean-Yves runs a cattle and cereal farm that was in his family. A son and his wife moved into the farmhouse in Jean-Yves’ place. Anticipating retirement, he and his wife moved into town.

French fraud

You have Trump. But we have Macron,’ Jean-Yves said.

On balance, France probably comes out ahead on that score. Macron is young, smart and good-looking.

Yes, but he is a fraud,’ Jean-Yves continued. ‘He claims he will change things. But he is mainstream. Besides, I don’t think he can change things even if he wanted to.

Over the years, we’ve commented on many public figures here at the Diary. We can’t remember one we didn’t consider a fraud in some way.

And so far, we don’t think we were wrong about any of them.

French President Emmanuel Macron is hardly an outsider or a rebel. He is a graduate of France’s elite École Nationale d’Administration. And he was finance minister under the previous president.

So entrenched and unyielding is the French bureaucracy — France’s Deep State — that it would take a real firecracker to change it. Mr Macron is not that kind of guy.

I wanted to get someone to work on the gardens,’ Elizabeth explained.

So I called a guy who has a lawn maintenance company. He said he would cut the grass. But he won’t cut down the trees because that would have to be subcontracted, and that would put his revenues over the allowable level.

You mean he’s not allowed to make more money?

That’s right. If he makes more than a certain amount, he’s required to reorganise his business…and apparently, that’s a nightmare. There must be people in Paris who are spending their time thinking of ways to make it difficult for people to do business.

Nightmare?’ Jean-Yves interjected.

Farming is a nightmare in France. We work seven days a week…because we can’t get anyone to help. Or more specifically, we don’t dare get anyone to help. Because if we hire someone, it’s almost impossible to fire him.

It’s worse than that,’ Arlette added.

Farming is so hard…with so many directives from the government — from bureaucrats who’ve never actually seen a cow — that young people don’t want to do it. I don’t blame them. I know what’s going to happen.

This too shall pass

In France, half the people work hard; the other half try to stop them.

But the typical French family is more prudent than its American counterpart. It’s seen governments come and go.

The Third Republic fell in 1940. The Fourth Republic fell in 1958. The Fifth Republic will probably fall in the coming financial crisis.

French currencies come and go, too.

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When we first visited, many years ago, it had only recently replaced the old franc with the new franc — worth 100 old francs. ‘That loaf of bread will be 500 francs,’ a baker might tell you.

Then, in 2000, the French ditched the franc for the euro.

The French know something Americans don’t: This too shall pass. It has made them cautious. Consumption, especially the conspicuous kind, is not as appreciated here as in the United States. There are fewer malls. Fewer ways to spend money. And less credit.

The government is about as insolvent in France as in the US. But the average family carries less debt.

France also has another big advantage. It may have a large and costly welfare state, but it has only a small warfare state. The French military still meddles overseas, but on a small scale.

The scale of America’s meddling, on the other hand, is colossal. The annual cost of its wars, military spending, foreign aid, and various security agencies and initiatives is almost $1 trillion…and rising.

Here’s President Trump explaining yesterday to evangelical media mogul Pat Robertson why Vladimir Putin was more likely to favour Hillary Clinton over him in the 2016 election:

It’s something that you don’t like talking about, but again we are the most powerful country in the world, and we are getting more and more powerful because I’m a big military person.

Win-lose spending

Any military spending you don’t need to defend the country is wasted…at best.

Since the US faces no serious enemies, most of its empire budget contributes nothing to either prosperity or security.

It is win-lose spending — from the pockets of the plain people to the pockets of the rich and powerful. Perhaps the Deep State insiders are grateful; perhaps not.

It is a shame the president doesn’t read history. At least then he’d put an ironic fillip on the ‘big military person’ phrase.

He would know that every ‘big military person’ in the past — from Bonaparte to Tojo – was either an embarrassment to his country or a disaster…and often both.

Excess military spending almost always leads to adventurism, war and catastrophe.

France…the US. Which is worse?

It is hard to say.

Regards,

Bill Bonner,
For Markets & Money

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Bill Bonner

Bill Bonner

Since founding Agora Inc. in 1979, Bill Bonner has found success and garnered camaraderie in numerous communities and industries. A man of many talents, his entrepreneurial savvy, unique writings, philanthropic undertakings, and preservationist activities have all been recognized and awarded by some of America's most respected authorities.

Along with Addison Wiggin, his friend and colleague, Bill has written two New York Times best-selling books, Financial Reckoning Day and Empire of Debt. Both works have been critically acclaimed internationally. With political journalist Lila Rajiva, he wrote his third New York Times best-selling book, Mobs, Messiahs and Markets, which offers concrete advice on how to avoid the public spectacle of modern finance. Since 1999, Bill has been a daily contributor and the driving force behind Markets and MoneyDice Have No Memory: Big Bets & Bad Economics from Paris to the Pampas, the newest book from Bill Bonner, is the definitive compendium of Bill's daily reckonings from more than a decade: 1999-2010. 

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