Interest rates worry. François Bayrou warns that pensions and debt will have to be discussed. The new generations would do well to turn to Bitcoin …
In short
- French debt representing 3,300 billion euros, or 113 % of GDP. Interest should fly to 108 billion euros per year in 2029.
- With a budget deficit of 170 billion euros and limited growth prospects threaten the payment of pensions.
- Faced with inevitable inflation, new generations would do well to have their own retirement in bitcoins.
System wear and tear
Beyond its high level, (113 % of GDP), French public debt worries especially because of interest.
According to Bercy forecasts, the debt burden will explode in the coming years. It should go from 58 billion euros per year (2024), to 75 billion in 2027 and 108 billion in 2029.
Last year, tax revenues and public spending were respectively 1500 billion euros and 1670 billion, which gives us a deficit of 170 billion euros, of which 58 billion was used to pay interest.
Yes, we borrow to pay interest. It is called that “roll the debt”. These interests are called “debt load” or “debt service” in the jargon.
This burden is already the fourth post of public expenditure, largely in front of the security or ecology budget, but behind national education and defense.
For Pierre Moscovici, “we have, in recent years, in 2023 and 2024 in particular, lost control over our public finances ».
“The debt burden was 25 billion euros in 2021. Today is 67 billion. It is more than the defense budget. It will be more than the national education budget next year ”he worried.
“The slippages that accumulate, it makes debt; And debt is our children who pay it ”he had the honesty to emphasize. In other words, it might be time to plane the pensions of boomers, right?
François Bayrou Will he have the courage, he who must reveal by July 14 a budgetary plan which will ask “An effort to all French people, without exception”? And the state? A CSA survey stresses that 92 % of French people believe that the state must reduce its lifestyle.
No energy, no retirement
On the pension reform and on current discussions, the Prime Minister affirms “” that there is no taboo ”including on the starting age.
We spend 10 % more than what fits in the boxes.
François Bayrou
The size of the debt and the low prospects for growth (rarefaction of oil inexpensive to get out of the ground) unfortunately suggest that the new generations will have no retirement, or so little.
It should be understood that pensions are funded by workers' wages. And for wages, there are productive entities that create wealth. Cereals, meat, petrol, clothes, smartphones, cars, houses, etc.
And these riches are produced by machines. Everything is made and (above all) transported by machines that would not work without energy. A factory is a large machine park. A coffee is a coffee machine. A garage is electrical tools in a mess. A bakery is an oven, etc.
So the future richness that will pay, or not, pensions, depends a lot on the amount of energy available. But, in fact, it has been down in Europe for 15 years. However, without energy growth, difficult to produce more for everyone.
This is problematic for the modern monetary system which is a ponzi based on perpetual growth and increasing debt, under penalty of defects or inflation.
Unfortunately, the energy decline suggests that millennials, generation Z and the following will retire after 70 years.
Artificial intelligence will certainly boost productivity, but at the end of the end, it is petrol fuel trucks that supply our supermarkets.
Bitcoin, the right retirement savings plan
Bitcoin can do nothing against energy rarefaction. It takes tens of millions of years to create oil and nothing will change this physical reality. There is no uranium, lithium, nickel or cobalt in the blockchain…
To believe that having an absolutely fixed currency in quantity changes anything in this reality is denial. The standard of living, abundance, depend on our ability to produce, and therefore essentially on the amount of energy available and its cost of extraction.
Another certainty is that national currencies are depreciated as the energy is problematic. Keeping in mind that oil is the limiting factor in GDP. The reason is that it feeds 95 % of world transportation.
In addition, it should be remembered that 30 % of the oil that Europe consumes goes through the Strait of Ormuz. The value of the euro would collapse rapidly in the event of a world war.
Faced with rampant inflation and the degradation of public accounts, the new generations would be well inspired to prepare their retirement themselves.
You have to save yourself for your old days, and what could be better than the best value of value ever created: Bitcoin. It is the first currency existing in absolutely finished quantity and of which the United States is about to make its reserve currency.
Do not miss our article on the subject: Bitcoin is a much better investment today than ten years ago.
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