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I’ll explain in 5 minutes why Macron has to scare the French (waiting for them to change President …)

2 years ago babelfish

Macron made a speech in which he spoke of £ End of the period of plenty ", a necessary step to" Defend our freedom "

The first memory is that of a king who defended the freedom and independence of a country to the detriment of the French economy and losing himself in person: Louis XVI invested heavily in the war alongside the nascent United States of America, which, without the French intervention, they would never defeat the United Kingdom.

A struggle for the freedom of others that made France go into debt and laid the foundations for the Revolution, in which it lost its head.

Why should Macron make this announcement? Because, as we have already written, the French "price ceiling" policy does not work and the French state, due to EDF, risks making an epochal bang.

The speech is very simple: Macron realized that the price of gas and light are an essential element of French social stability: the Yellow Vests movement began even for a modest increase in fuel prices compared to the current ones. So the French president decided to apply the famous “price cap”, limiting the increase in electricity and gas to 4%.

The problem is that prices have a very bad, but very effective function in the economy: they are a signal of what to consume and what not. Without free prices, at least partially, the French are not pushed to save, but to maintain high consumption, if not further substituting electricity for example for LPG heating. The result is an increase in marginal demand and therefore in prices. Speculators then, seeing this trend, play with it and earn and send the price of electricity with forward delivery at incredible levels:

Therefore the price does not contain the demand, the supply is insufficient and the internal prices of electricity go to levels equal to 30 times the average up to 2021. To give a practical example at these prices, 1.5 Euro per Kw / h, using the oven or dishwasher risks costing citizens many euros. However, without higher prices, there will be no reduction in demand. The "Price" will not indicate the drama of the situation.

Currently the French " steal " energy from Germans and Italians, who have instead seen their bills rise, indeed explode, also for the energy sent to the French. However, this situation cannot last forever, and Macron must transfer at least part of the energy prices to the French to reduce their demand. Otherwise, the risk is that of not having enough energy or of blowing up the 100% state subsidiary EDF for the accumulated losses, which risk being tens of billions.

Here then is what Macron says to the French. get ready for scarcity, it's for freedom! Obviously no one asked the French if they want to "Freeze for Kiev", as in 1777 no one asked them if they wanted to go to war to help George Washington. Then there was the King, now there is Macron, but the King, by divine right, at the end of the crisis they cut off his head. Maybe for Macron it will be enough to send him home.

PS: Macron says the time of plenty is over for the French, but his holidays have been harshly criticized on the left for their length …

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The article I'll explain in 5 minutes why Macron has to scare the French (waiting for them to change President …) comes from ScenariEconomici.it .

This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/vi-spiego-in-5-minuti-perche-macron-deve-spaventare-i-francesi-in-attesa-che-questi-cambino-presidente/ on Thu, 25 Aug 2022 17:04:58 +0000.