France says rating safe despite Moody's warning, weak growth
How do you know when a politician is lying?
When someone without an axe to grind gives an honest assessment, in this case Moodys, and the politician says the opposite.
Socialist France has been in financial difficulty for years.
The problems are now only coming to light in the bond market.
France will lose its triple A rating soon, as it has failed to control deficit spending.
Political dreams of an immaculate recovery are fleeting thoughts now, as the reality of high unemployment sets in.
Soon, France will need to ditch the Euro.
Bring on devaluation and the Franc!
Or better yet, default on most of the debt and return to sound money - gold.
(Reuters) - France vowed to defend its triple-A credit rating on Tuesday after a warning shot from ratings agency Moody's which prompted Paris to acknowledge growth would probably miss its targets and more belt tightening could be needed before elections next year. Moody's raised the prospect on Monday of one of the pillars of the euro zone losing its coveted triple-A status, saying it could place France on negative outlook in the next three months if the costs for helping to bail out banks and other euro zone members overstretched its budget. Moody's also warned of a weakening in France's economic growth outlook, which could complicate efforts to cut a budget deficit forecast for 5.7 percent of gross domestic product (GDP) this year -- roughly the same level as bailed out Portugal. Economic growth in France, the euro zone's second-largest economy, ground to a halt in the second quarter. While most economists expect a pick-up this year, they see weak growth continuing in the medium-term as unemployment remains mired at around 9 percent, undermining domestic consumption. Finance Minister Francois Baroin acknowledged the government's 2012 growth target of 1.75 percent was too high and would have to be adjusted, without saying by how much or when. "It is probably too high compared to the development of the economic situation ... We will adapt it, that much is clear," he told France 2 television. He said, however, that France's triple-A -- essential to the euro zone's 440 billion euro ($605 billion) EFSF rescue fund, which is largely underwritten by Germany and France -- was safe because Paris stood ready to take additional budgetary steps.My view:
How do you know when a politician is lying?
When someone without an axe to grind gives an honest assessment, in this case Moodys, and the politician says the opposite.
Socialist France has been in financial difficulty for years.
The problems are now only coming to light in the bond market.
France will lose its triple A rating soon, as it has failed to control deficit spending.
Political dreams of an immaculate recovery are fleeting thoughts now, as the reality of high unemployment sets in.
Soon, France will need to ditch the Euro.
Bring on devaluation and the Franc!
Or better yet, default on most of the debt and return to sound money - gold.
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