France: interest rate spread between French and German bonds closes again
298 sats \ 11 comments \ @TomK 8 Jul econ
The markets, or what the European Central Bank has left of them, are breathing a sigh of relief: France has happily elected communists to government. This is now also being rewarded by the bond market, which immediately started buying French government bonds after the result, as all fiscal problems will certainly be solved in no time once the Communists enter government.
As we have learned from the past, it is above all centrally planned government spending that allows an economy to grow innovatively and dynamically. The eurozone is on the right track towards green socialism, intelligent capital should now quickly orient itself towards market ecpnomies like the United States as a port that may be navigable again in November.
PS: Of course, we know that it is the ECB, which is approving the election result on behalf of Brussels and is now buying French government bonds in order to stabilize the bond market again. Keep up the good work!
https://m.stacker.news/38672
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56 sats \ 0 replies \ @BitcoinAbhi 8 Jul
Ok. What about debt? What do you say about ECB falling under debt?
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45 sats \ 0 replies \ @wingalt 8 Jul
In France the far right is unthinkable but the far left is acceptable despite decades of economic failure. The intellectuals used to close their eyes (i.e., vehemently deny) on Stalin and Mao's crimes and are now happy to open a new chapter of fifty shades of communism
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45 sats \ 3 replies \ @Tutankhamun 8 Jul
Despite the global dissatisfaction with the success of the communists in the French elections, I remain optimistic.
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10 sats \ 2 replies \ @TomK OP 8 Jul
Optimistic? Toward european decline?
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0 sats \ 1 reply \ @Tutankhamun 8 Jul
No, my perspective is quite the opposite. It is about directing policies towards long-term investments, actively harnessing alternative energy sources, and stopping or mitigating the wheel of war. Don't forget that the Russo-Ukrainian war has made everyone wary.
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0 sats \ 0 replies \ @TomK OP 8 Jul
so if you can name even one or two geopolitically decisive points in which the Europeans are superior to Asians or the United States, then hats off to you. for me this is not a sinking ship, for me this ship is already at the bottom of the sea
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45 sats \ 3 replies \ @0xbitcoiner 8 Jul
I don't think this graph is the best way to understand the French debt market. It just compares French and German debt, right? Shouldn't we look at the 10-year bond yields instead?
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32 sats \ 2 replies \ @TomK OP 8 Jul
yes, but that is implicit. that is the difference in interest rates between the ten-year bonds of France and Germany. relative interest rates are the only thing that counts on the markets in order to allocate capital. that is why the ECB and its partner banks are intervening in the American bond market, so that interest rates there do not run up so high and attract capital.
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45 sats \ 1 reply \ @0xbitcoiner 8 Jul
Alright, but in this context, there is an upward trend in German bond yields, is that right? I briefly examined the French yields and they appear to be steady.
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32 sats \ 0 replies \ @TomK OP 8 Jul
of course the markets generally want to push interest rates up, as the government debt of these bankruptcies is being sold off. but the ECB has clearly introduced yield curve control here and is trying to keep interest rates in check so that government budgets can continue to be financed.
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45 sats \ 0 replies \ @Bell_curve 8 Jul
More collusion by the usual suspects
I hope they all go bankrupt
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