“So whatever you think now about the French election, or the fate of the EU, is liable to change as the great debt crack-up our time finally gets underway and suddenly every nation has to scramble desperately to keep its shit together. That magic moment may be at hand this week as the US congress returns from Easter recess to face its budget and debt ceiling dilemmas. If the credit-worthiness of this country takes a wrong turn, it will upset the global currency system. In fact, it will rip a hole in financial time-and-space into which the presumed value of all sorts of things represented on paper and computer drives will disappear, never to be seen again.”
James Howard Kunstler talks about the coming debt crack-up, with which regular readers of SLL may already be acquainted. From Kunstler at kunstler.com:
As I write, the French stock market (the CAC 40), is doing a grand jeté (up 4.5 percent!) in celebration of Emmanuel Macron’s assumed slaying of the dragon Le Pen. But that was just the first round under the interesting French election system. Consider that two other candidates who were eliminated, Monsieurs Fillon and Mélenchon, got nearly 40 percent of the vote. Are we so sure about where their voters go in the second and final round two weeks from now?
I suspect that most Americans — even the ones who follow Rachel Maddow — are about as interested in French politics as differential calculus. Macron, 36, is a blank slate. He was finance minister under current president François Hollande, of the Socialist Party, but declared during…
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