We're Getting Close To A Real Freakout About France...

40 French Workers Occupy Steel Plant In Danger Of Being Closed

Read more: [link to www.businessinsider.com]

Just out from Eurostat.

Unemployment has hit a record high of 11.4%.

Note that technically this is the same as last month, but that's only because last month's 11.3% reading was revised higher.

The report is below the dotted line.

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Euro area unemployment rate at 11.4%

EU27 at 10.5%


Read more: [link to www.businessinsider.com]

France's manufacturing PMI fell to 42.7 from 46.0 in August.

However, this was slightly better than economists expectation for 42.6.

Here are the key points from Markit:
Marked deterioration in manufacturing sector operating conditions recorded
New export orders fall at fastest rate since May 2009
Employment declines for seventh consecutive month

From Markit economist Jack Kennedy:

“Latest PMI data show the French manufacturing sector entering a deepening downturn in September. A steep fall in new orders was the principal driver, with data pointing to considerable weakness both domestically and from export markets. The manufacturing sector looks highly likely to have made a negative contribution to third- quarter GDP, with PMI data signalling the weakest quarterly output performance since Q1 2009.”


Read more: [link to www.businessinsider.com]

I mentioned in another thread that across they EU they are fighting far too many fires to win.

While everyone worries about Italy, Portugal or Greece, I look more to France.. the strong nations need to be doing great things to help the weaker nations, but if the strong nations start to suffer, then there is no real remedy.

It seems France is just pushing it's wealthy elsewhere, and while I understand them doing that, I don't think now is the right time, and in my opinion to survive these economic times it is all about timing.

Britain got kicked off the Gold standard in the 1930s due in part to one strike over pay cuts.. known as the Invergordon Mutiny that spooked the markets.

[link to en.wikipedia.org]

At times like this (and then) it doesn't take a lot to spook the markets.

Yes i agree with you compleatly! Too many fires burning!

Marc Faber is still convinced that there's a 100 percent chance of a global recession and that stocks are due for a big sell-off.

While Faber favors gold, he thinks that it too is due for a correction after staging a huge rally.

He spoke with Fox Business News on Friday:

It has a huge rally from around – the low was at $1,522 last December and we are now over $1,700 and I think we need a correction here. In fact, I am now bearish about practically all assets near term I think we’re entering a correction time where there will be some disappointments, where stock markets, from the recent times can easily drop 20%.

However, Faber's bearish stance isn't so bearish that he has dumped everything.

I’m not 100% in cash, for the simple reason that I could be wrong, but in general I think that people that have a heavy exposure to assets being that equities, or gold, or other commodities. I think they will face some profit taking here.


Read more: [link to www.businessinsider.com]

All the details are just distractions. It doesn't matter what any of the politicians try in Europe; the crunch is coming very soon. EVERYTHING that the 'Boomer' generation has grown-up assuming to be 'rock solid' and 'sensible' was in fact a big fat fraud. They should have seen it, but just didn't want to. The politicians, of all colours, are now just looking like complete numpties.

In the UK they have just introduced a new workplace pension scheme for the privater sector in which everyone is automatically enrolled (you can opt out, but you have to keep renewing the opt-out and they are making it complicated). In truth, without exponential economic growth over the next few decades the contributions made by both the employee and employer are a waste of time. In reality the government is just desperate to raise money to fund the massive public sector pension liabilities that are now making themselves felt. It is very cynical though as all it is doing is making things infinitely worse for future generations.

The whole thing is going to buckle and snap. I think it will be interesting this Christmas. Many businesses, especially retailers, are barely holding on as it is, and they are pinning all of their hopes for survival on a good Christmas season - when that doesn't materialise then all bets are off.

zerohedge‏@zerohedge

France's Hollande faces street protest over EU fiscal pact - RTRS

6 minzerohedge‏@zerohedge

Wolfgang Munchau: Welcome back to the eurozone crisis [link to on.ft.com]

[link to www.france24.com]

Thank you my friend!

De nada meu amigo.

As long as TPTB can delay the coming collapse past US Election Day, THAT IS ALL THAT MATTERS.

If you vote for Obama, you DESERVE the misery that is coming.

Most of French banks are dead alive.
They will "have to" be saved by government, then government will need a bailout.
Then, we'll be fucked.

I have long stated the eurozone will breakup. Historically speaking, no currency union has ever survived in the absence of a political union.

Moreover, in It's Just Impossible I noted
1.The Bundesbank said there should be no banking union until there is a fiscal union.
2.Angela Merkel said that there should be no fiscal union until there is political union.
3.François Hollande said that there should be no political union until there is a banking union.
4.The German supreme court will not allow a political union nor a fiscal union, nor a banking union without a German referendum.

Mathematically Speaking

Mathematically speaking, I also fail to see how the eurozone can stay intact.

Specifically, please consider point number nine of Michael Pettis: Long-Term Outlook for China, Europe, and the World; 12 Global Predictions


9. Disruptive European Politics

European politics will become much more difficult and disruptive. The historical precedents are clear. During a debt crisis the political system becomes fragmented and contentious. If the major parties don’t become radicalized, smaller radical parties will take away their votes.

Remember that the process of adjustment is a political one. We all know someone has to pay for the massive adjustment countries like Spain must make. The only interesting question is about who will be forced to take the brunt of the payment – workers in the form of unemployment, the middle classes in the form of confiscated savings, small businesses in the form of taxes, large businesses in the form of taxes and nationalization, foreigners, or creditors.

Deciding who pays is a political process, and because the stakes are so high it will be a very bitter process. This means, among other things, that politics will degenerate quickly, and of course if Europe doesn’t arrive at fiscal union in the next year or two, it probably never will. This conclusion is also the reason for my next prediction.

That prediction was made by Michael Pettis, and I am in complete agreement.

But what if I am wrong?



Read more: [link to globaleconomicanalysis.blogspot.com]

Dont worry it will be good for another 100 point gain on the stock market.

The new modo "Everything is Bullish/shit"

Europe is FUCKED.

We are witnessing the end of the liberal-democracy/multikulti-globalist paradigm. Next up: Hard nationalism, violence, and muscular socialism.

Long way down

2 minzerohedge‏@zerohedge

FIAT ITALY NEW CAR SALES FALL 24% IN SEPT. Everyone buying Ferrari

Bring it on.

4 minzerohedge‏@zerohedge

Jesus. PORTUGUESE LIGHT VEHICLE SALES DROP 42% THROUGH SEPTEMBER

"tax the rich" is nothing but a placation to the unwashed masses.

The reason is that people who think of themselves as "middle class" are actually poor - very poor.

These people think that a person who makes 1 million+ per year is one of the elite, but the REAL elite have incomes you can barely fathom... like 10 billion per year.

Those people pay zero taxes because they are above the system and know how to work it.

People making 1 million per year are the actual middle class now, because the scale has shifted not by percentages, but by orders of magnitude.

Face it, you are poor.

2 minzerohedge‏@zerohedge

Fitch: Spain is likely to miss its 2013 deficit target. Noooooooo

^^^^^^^^^^^^^^^^^^
This

French Hydrogen Bomb Test Licorne


French Nuclear Test "Canopus"


French Nuclear Test "Encelade"


French nuclear Test : Betelgeuse