As we wait for the news out of Jackson Hole, we have been reading the articles regarding France’s President Sarkozy laying out another of his ambitious agendas for global issues as France takes on the presidency of the G-20 and G-8. We bring this to our readers attention for there is nothing more dangerous than a small Frenchman trying to exert his influence upon the world. Sarkozy is at most times just an irritant, but going into 2011 he becomes a danger.
Sarkozy is under fire in France for the malaise of the French economy and also for immigration issues. The president’s popularity has slid faster than Obama’s so he is looking at the world stage to resurrect his political standing. (Currently, he is trailing the Socialist Dominique Strauss Kahn in the current polls for the 2012 election.) Kahn is presently the head of the IMF, which gives him a respected global institution on which to launch his presidential ambitions. Sarkozy, being the meglomanic he is, will push the G-20’s agenda to serve the purposes of domestic French policy. He has been heard demanding a new Bretton Woods to “fix” currency rates and limit fluctuations. He has also stressed the need for limits on the flows of global capital. In addition, he has advocated the need for heavy regulation of the financial system, especially reforms and regulations, which would result in the curtailing the influence of London and Wall Street.
In an article in yesterday’s Financial Times and today’s Wall Street Journal, he lays out his agenda and it is aggressive and so very French. At its heart, the agenda aims to curtail the influence of the Anglo-American model of capitalism. If the U.S. were to need a depreciated dollar to boost its exports, at what rate should the DOLLAR be “fixed”? What view will the French leader take to solve the PIIGS problem and how will he go about at suggesting that the Germans need to correct their massive trade surplus?
A politically wounded, dimunitive French leader should always cause the world concern. Put it on your radar screens for it is a guarantee that the French president will provide pyrotechnics to the markets. When France held the EU presidency, Sarkozy was credited with many achivements in his hyper method of governing, jumping from issue to another. We failed to see any successes but when you have Carla Bruni standing tall behind you it is easy to look past small accomplishments.
August 27, 2010 at 2:44 am |
For sure Sarkozy will push the G-20′s agenda to serve the purposes of domestic French policy, wasting time and energy… disagreements between Angela Merkel and Sarkozy about the future of Europe will provide more pyrotechnics to the markets! PIIGS are coming back this Fall…
August 27, 2010 at 5:10 am |
In Brussels, some senior figures are already referring to him (Sarkozy) privately as King Nicolas.
August 27, 2010 at 5:47 am |
thanks Arthur –we will be watching this story in a big way.This man can do a great deal of damage on the world stage.Unfortunately nobody in Washington will be prepared for it
August 29, 2010 at 6:28 pm |
Yra,
The market is interpreting Bernankes commitment to do everything necessary, but, with the liquidity trap can you spell it out exactly what he can really do? I don’t see much but I could be missing something. Can QE2 really do anything?
August 30, 2010 at 1:21 am |
not sure yet that we are in a liquidity trap—QE2 will be dependent as tpo how they go about–if the market believes that real interst rates are negative QE2 will succeed—best QE2 would be the FED selling dollars and buying other currencies but that may be politically impossible