2023-05-18 15:00:00
GRANDSTAND/ECO – I have always been interested in finance and financial markets. The stock market, in my mind, was supposed to reflect the state of the national economy and French businesses.
These markets were theoretically intended to help our companies when they needed funds to invest or get through a difficult period, the counterpart of this help being of course the remuneration of the shareholders.
For several years, I have noticed with surprise that in our Western countries, most of those who are called “financial strategists” were people who reasoned in the short term, who moreover are often in collusion with the politicians in place. . And that by their reasoning, by their choices, they managed to put the companies they managed or of which they were shareholders in difficulty.
Financial globalization
The search for immediate profitability has accelerated with financial globalization. It was very often chosen to the detriment of long-term investments which would have perpetuated the future of the company.
This theoretically goes hand in hand with a Nation-State which appreciates receiving in return tax revenues from stable companies, after having provided them with infrastructure or a well-trained workforce.
However, certain relocations decided (not prevented in any case, or even encouraged by the Nation-States…) for reasons of immediate profitability have led certain companies to find themselves confronted with a shortage of “skilled” labour.
This is currently the case for everything related to energy and nuclear, IT, the automotive industry or household appliances.
The Nation-States, for their part, find themselves impacted by this type of decision, with unemployment and revenue to be replaced, often by increasing taxpayers’ levies or VAT.
Nobody seems to get their money’s worth there.
Real economy versus “magic money”
For several months, we can observe a total decorrelation between the state of the economy and the financial markets. This decorrelation is easy to see now with European indices that are close to the peaks while the French and German economies are in great difficulty, due to inflation and the ongoing deindustrialisation.
Without mentioning the measures being taken by the BRICS to accelerate dedollarization, i.e. the end of the dollar as the reference currency, which mechanically impacts the Euro zone and its currency…
The American indices continue to hold up despite the cascading bank failures, it is even more incomprehensible, but it is undoubtedly due to the “magic money” which makes it possible to not let these bankruptcies take place by having them redeemed by larger entities.
This can lead to a “financial bubble”, everyone knows that.
No banking system can survive without a minimum of trust. The algorithms used by financial markets and the political-economic strategies of Fed shareholders (which, it must be remembered, is a private bank) with the approval of the US government, are destroying that trust. A good number of countries are concerned and this undoubtedly partly explains why digital currencies, such as bitcoin, have been so successful. What now of the “official” digital currencies to come? Will they improve the situation?
Digital currencies, real estate market and regulations
For the past few months, we have been hearing about the implementation of digital currencies by Central Banks as well as the Great Reset theories from the World Economic Forum (WEF): “You will own nothing and you will be happy”.
I have often thought that finance was very far from being an essential profession, unlike professions such as education, breeding, agriculture, medicine or even construction, certain industries… In short, money should not be used for money. It must remain a means of exchange.
The current state of European financial markets could suggest that the risk of recession is very low. This is either a very short-term view of the current situation. Because there is indeed a completely artificial support from central banks given to the financial markets, which no longer have any relationship with the real economy, that of companies in particular.
Let’s already look at what is happening on the real estate market, which is also a popular market for financial institutions and investment organizations. For example, the funds of SCPI (Société Civile de Placement Immobilier) usually ensured a higher financial return than that of purely financial investments.
Today the French State and the European Union (EU) are attacking these markets on the pretext of the climate, by putting in place regulations that will be impossible for many owners to keep.
In 2028, it will no longer be possible to sell or rent a property whose energy consumption is greater than 331kWh/EP/m2/year. This completely eliminates class F and G of DPEs. In 2034, Class E ECDs will no longer be considered decent.
Many owners, both individuals and companies, will therefore be obliged to do considerable work to comply with the new legislation. Otherwise, they will be prohibited from renting and selling by 2025, 2028 and 2034. Buildings in many of our major French cities are already affected by this regulation.
The real estate market will automatically be very disrupted by this regulation with an immediate impact on owners’ finances and consequently their ability to invest elsewhere! Not to mention the foreseeable drop in selling prices for the most exposed places.
The regulatory changes will also apply to industrial and commercial premises with the establishment of the tertiary decree which concerns lessors as well as tenants and which risks accelerating the bankruptcy of many SMEs, which are already struggling to exist with the current inflation of energy prices.
So predictable chain reactions on all levels, including of course on the financial level…
A new world economic order?
Are these short-term financial and political strategies, in search of immediate profitability or efficiency, adapted to the evolution of our civilization and to the new regulations due to the desire to set up a “new economic order global” ?
Nothing is less sure.
“You will own nothing but you will be happy”, tells us the Davos Forum and the United Nations 2030 agenda. If you own nothing, by definition, there will be no more real estate or financial assets to manage! For real estate, as we have just seen, things are on the right track.
If Central Banks launch their digital currencies as they announce (For the ECB, the European Central Bank, the launch was announced by Christine Lagarde for October 2023), private banks will have lost a good part of their raison d’être and will once again become simple pharmacies whose activity will decrease as the circulation of digital currency increases.
One of the so-called motivations for the launch of this digital currency would also come from the climate because it would allow the control of the population’s expenditure on carbon emissions. An experiment is already in place in test in Sweden, I had spoken about it in one of my previous articles.
If private property, small savers, financial assets, financial markets disappear and are replaced by total social control over all citizens’ expenditure due to the introduction of this overpowered, totally centralized currency, the banking professions or the capital management and savings management professions will lose all utility and no longer have any reason to exist.
Don’t forget that the objectives of the EU, like those of the World Economic Forum, are also to reduce the number of small businesses that would “harm” the productivity of countries.
Inflation and rising energy prices have led to an increase of more than 50% in SME bankruptcies in France and it is far from over. The financial management of these SMEs represents a significant part of the activity of French banks. So the disappearance of these companies will automatically lead to the disappearance of those who helped them.
Disinformation through silence
So how to understand the current strategies of our financial “Zelites”?
They seem totally unaware of what lies in wait for them, them in the first place, because between the algorithms that manage the markets and stock market transactions (which is moreover totally incompatible with the theoretical mandatory transparency on these markets because algorithmic management is closer by definition to insider trading), artificial intelligence, robotization of trading, they will become the first “useless” to use an expression dear to Yuval Noah Harari, Klaus Schwab’s great adviser.
The decree which has just come out on the repeal of the tax exemption concerning the investment of long-term securities, risks considerably affecting the savings of the French people and in particular that of the middle classes!
And consequently, also have considerable impacts on those who manage these savings. Once again, the media which evoked or broadcast Emmanuel Macron’s speech of May 15 concerning a so-called tax cut for the middle classes, forgot to mention this increase which will concern them first and foremost. .
Indeed, many French people save to build up additional pensions. I would even be curious to know if the additional levies will not be much higher than the two billion cuts announced by Emmanuel Macron. This media silence becomes misinformation! Indeed, according to the results of the fourth edition of BlackRock’s major Global Investor Pulse survey, the French are 87% to save, the highest rate in Europe.
Sources et notes :
Decree No. 2023-355 of May 11, 2023
Are repealed:
1° Thedecree n° 66-348 of June 3, 1966laying down the conditions of application of thearticle 8 of law n° 65-997 of November 29, 1965exempting from personal income tax the proceeds of securities investments made under long-term savings commitments;
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