{"id":37823,"date":"2012-06-03T22:02:25","date_gmt":"2012-06-03T20:02:25","guid":{"rendered":"http:\/\/www.pauljorion.com\/blog\/?p=37823"},"modified":"2013-01-02T00:47:50","modified_gmt":"2013-01-01T23:47:50","slug":"appeal-to-all-the-parliamentarians-who-envisage-voting-the-balanced-budget-rule","status":"publish","type":"post","link":"https:\/\/www.pauljorion.com\/blog\/2012\/06\/03\/appeal-to-all-the-parliamentarians-who-envisage-voting-the-balanced-budget-rule\/","title":{"rendered":"APPEAL TO ALL THE PARLIAMENTARIANS WHO ENVISAGE VOTING THE \u201cBALANCED BUDGET RULE\u201d<\/b>"},"content":{"rendered":"

En attendant la version en slovaque, voici la version en anglais du billet de Paul Jorion ADRESSE \u00c0 TOUS LES PARLEMENTAIRES EUROP\u00c9ENS QUI ENVISAGENT DE VOTER LA \u00ab R\u00c8GLE D\u2019OR \u00bb<\/em><\/a>, \u00e9galement disponible sur la version en anglais du blog<\/a>. Merci \u00e0 \u00a0Tim Gupwell.<\/p><\/blockquote>\n

The inept formulation of the financial stability pact, as well as the \u201cbalanced budget rule\u201d which is derived from it, require (as I recalled in a recent column for Le Monde-\u00c9conomie<\/a>) a nation\u2019s growth rate to be equal or superior to the level of the \u201caverage\u201d coupon demanded by capital markets for its debts. Obviously, the lower the growth, the more a nation\u2019s economy will be in danger, and the more an economy seems to be at risk, the more the capital markets will demand a higher \u201crisk premium\u201d component in the rate of this nation if it seeks to borrow. With the Balanced Budget Rule implying that a nation\u2019s growth must be equal or superior to the average \u201ccoupon\u201d, the famous scissors effect comes into play: \u201cif one doesn\u2019t want sovereign debt to increase when the growth rate drops, then this growth rate must increase rapidly so as to exceed the \u201caverage\u201d rate of the debt \u2013 which is itself increasing due to the risk created by the fall in growth.\u201d<\/p>\n

Dear Parliamentarians, if you think that this is the most stupid thing you have ever heard in your whole life, then reconsider your vote, because there is nothing else at stake: it is really for this that you are about to vote!<\/p>\n

Of course, it is perfectly possible to emerge from this self-inflicted nightmare by focusing on the comparison of expenses, which can lead to an annual deficit and the fuelling of a nation\u2019s accumulated debt, with revenues instead. But to talk of revenues means talking of \u201ctaxes\u201d and talking of \u201ctaxes\u201d inevitably reminds us that in general the ruling classes of our nations are always tempted by the possibility of avoiding paying them either entirely or in part, which is why they prefer to talk in terms of \u201cgrowth\u201d, regardless of the liberties which thereby need to be taken with logic, mathematics and common sense in general.<\/p>\n","protected":false},"excerpt":{"rendered":"

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En attendant la version en slovaque, voici la version en anglais du billet de Paul Jorion ADRESSE \u00c0 TOUS LES PARLEMENTAIRES EUROP\u00c9ENS QUI ENVISAGENT DE VOTER LA \u00ab R\u00c8GLE D\u2019OR \u00bb<\/em><\/a>, \u00e9galement disponible sur la version en anglais du blog<\/a>. Merci \u00e0 \u00a0Tim Gupwell.<\/p>\n<\/blockquote>\n

The inept formulation of the financial stability pact, as […]<\/p>\n","protected":false},"author":38,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,17],"tags":[1899],"class_list":["post-37823","post","type-post","status-publish","format-standard","hentry","category-economie","category-politique","tag-balanced-budget-rule"],"_links":{"self":[{"href":"https:\/\/www.pauljorion.com\/blog\/wp-json\/wp\/v2\/posts\/37823","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pauljorion.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pauljorion.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pauljorion.com\/blog\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pauljorion.com\/blog\/wp-json\/wp\/v2\/comments?post=37823"}],"version-history":[{"count":4,"href":"https:\/\/www.pauljorion.com\/blog\/wp-json\/wp\/v2\/posts\/37823\/revisions"}],"predecessor-version":[{"id":46299,"href":"https:\/\/www.pauljorion.com\/blog\/wp-json\/wp\/v2\/posts\/37823\/revisions\/46299"}],"wp:attachment":[{"href":"https:\/\/www.pauljorion.com\/blog\/wp-json\/wp\/v2\/media?parent=37823"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pauljorion.com\/blog\/wp-json\/wp\/v2\/categories?post=37823"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pauljorion.com\/blog\/wp-json\/wp\/v2\/tags?post=37823"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}