French Interventionism Reaches More Crucial Sectors

16.02.2018 • France

Simone Wapler – La Chronique Agora (France) –

This government – like all its predecessors – persists in crony capitalism, interventionism and disastrous investments.

You may remember the flamboyant minister of Holland – Arnaud Montebourg – the man with slinky sailors.

You thought to be rid of the character, his rantings and his investments (foolish) in the name of the State  ?

Think again. The spirit of the character is back in force in this government.

The Echoes of Friday, February 16:

“As France wants to defend its jewels – The Montebourg decree will be extended.

[…]

The Prime Minister wants to extend the sectors protected by the decree known as ‘Montebourg’ to new areas. ” 

Since 2014, the state has the right to oppose foreign investment projects in the fields of energy, water, transport, electronic communications, public health, defense.

But that was not enough…

We add to the list: artificial intelligence, datas, nanotechnologies, space and … financial infrastructures!

Difficult to include shampoos for oily hair and lacquer L’Oreal. But it seems that the end of the shareholders’ pact between the Bettencourt family and Nestlé causes some nervousness in the high parasitocratic spheres.

Get ready: yogurts (think Danone if Nestlé ever had an appetite) and cosmetics could soon become “the defense of public order and national security”.

interventionism<img class=”wp-image-44918 alignleft” src=”http://la-chronique-agora.com/wp-content/uploads/sites/3/2018/02/shutterstock_653403244.jpg” alt=”interventionnisme” width=”275″ height=”183″ srcset=”http://la-chronique-agora.com/wp-content/uploads/sites/3/2018/02/shutterstock_653403244.jpg 1000w, http://la-chronique-agora.com/wp-content/uploads/sites/3/2018/02/shutterstock_653403244-300×200.jpg 300w” sizes=”(max-width: 275px) 100vw, 275px” />More protectionism and also more interventionism

In the same spirit, Les Echos also teaches us:

“The future law The Mayor should increase the intervention capacity of bpifrance Participations, armed arms of the public bank, to invest in strategic companies . The investment company ‘would be in debt to take stakes, up to several billion euros’ “ .

Since 2008, with € 1 of State loan, France buys € 0.5 of “growth”. Any business leader who would take on 1 € to earn only € 0.5 of turnover would not survive …

In reality, the state spends money that does not belong to it but does not invest.

When an individual invests:

  • he decides to deprive himself of immediate enjoyment and has compelled himself to spend less than he received. This is not the case of the French State, whose deficit has been permanent for 47 years;
  • he chooses – in view of public information – carefully weighing the profitability of his investment. This is not the case of the state.
  • it undertakes. If the investment goes bad, the individual suffers financial losses. This is not the case for the government official who invests.
  • he follows his investment, because it is his money that is at stake. This is not the case of the state official who has invested and will then be transferred.
  • when he makes a mistake, he learns. This is not the case of the state official who will not see his salary amputated if Areva, Alstom, EDF, Thales, Engie, Nexter Systems … breaks the figure.

I would like one day to create the following financial derivative: a reverse tracker of all listed companies in which the state “invests”.

I think that such an ETF – which would bet on the fall of these companies – would reap capital gains regardless of market performance. It would make up for (a bit) the mess we pay as a taxpayer.

-Read more at la-chronique-agora.com (French)-

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