There is a striking contrast between the real situation of the American economy and the frequently catastrophic judgment about the French economy. In Parliament, discussions on the 2026 budget are beginning and the rating agency Standard & Poors has just downgraded France's rating to A+ with a stable outlook from AA- with a negative outlook. The fragility of the government, characterized by the narrowly rejection of a motion of censure and a heavy debt justified this decision. And it has triggered a wave of alarmist comments aimed at pushing through a rigorous budget despite a political context that is not ...

Continue reading

The aggravation of international tensions should not make us forget the current fragility of the economic and financial balances in which the stability of the dollar and the resulting confidence must play an essential role. In the past, taxes were successively assigned three missions: to finance public spending, then to contribute to the redistribution of income to correct inequalities, and finally, with the application of Keynesian principles, to act on economic activity by stimulating investment and household consumption through the budget deficit.

After decades during which wealth accumulated, even if it was not evenly distributed, and the exchange of goods ...

Continue reading

At a time when the debate on public debt in France is becoming increasingly tense, the situation in the United States does not seem to attract much attention. However, the results are not very bright and the threats to the world economy are therefore real.  The federal debt in 2024, to which we would have to add the debt of the federated states, if we want to make comparisons, reached 98% of GDP in 2024 and the forecasts for 2035, with no change in policy, 125%. The federal deficit in 2024 amounted to 6.4% of GDP and could reach ...

Continue reading