Sarkozy: We Will Never Let The Euro Fall!

In a speech to some of the worlds most powerful businessmen, currently gathering in Davos for the annual World Economic Forum, French president Nicolas Sarkozy was waving the EU flag, raising his voice and almost shouted out: “Ms. Merkel and I will never – do you hear me? – never let the euro fall!” I suppose everyone present could hear him – if anyone takes any notice is a completely different matter.

“To those who bet against the euro, watch out for your money because we are fully determined to defend the euro.”

Nicolas Sarkozy

“The consequences of a failure of the euro would be so cataclysmic that we could not possibly entertain the idea. We couldn’t even play with the idea of entertaining the idea,” president Sarkozy said in a key-note at the World Economic Forum in Davos (Switzerland), Thursday, as he tried to put an end to corridor speculations about the future of the euro.

Personally, I’m pretty sure the speculations will go on – perhaps even reinforce – after the French presidents latest outburst against those he sees as the evil speculators, trying to destroy the euro zone and its common currency.

Last year he claimed that the EU would use “a secret weapon” to fight the forces of the financial markets.

(Maybe it’s a superfast money printing machine?)

Anyway – according to Mr. Sarkozy, France and Germany have some kind of agreement to defend the “speculators” by all means:

“The euro is Europe. And Europe spells 60 years of peace. Therefore we will never let the euro go or be destroyed,” he said, according to todays reports from Davos.

“To those who bet against the euro, watch out for your money because we are fully determined to defend the euro.”

“Ms. Merkel and I will never – do you hear me? – never let the euro fall.”

Failure Would Be Cataclysmic

“The consequences of a failure of the euro would be so cataclysmic that we could not possibly entertain the idea. We couldn’t even play with the idea of entertaining the idea.”

“To imagine that we might pull out, that we might abandon the euro, is to show a complete misunderstanding of the state of mind of Europeans who have been at each others’ throats for decades and who have only one thing in mind – peace and co-operation,” he said.

Adding that Europe’s identity is inseparable from the single currency.

“To imagine that we might pull out shows a complete misunderstanding of the European psychology. It has to do with our identities as Europeans.”

Well, some might argue theat it is the French president who shows a “complete misunderstanding” when it comes to the psychology and feeling of identity amongst Europeans.

Here’s the official video recording of the welcoming remarks by Doris Leuthard, President of the Swiss Confederation and Federal Councillor of Economic Affairs, and then; the opening address by Nicolas Sarkozy, President of France:

More at: http://www.weforum.org

It’s The Derivatives, Stupid!

He also took a swipe at commodity speculators, a growing theme of his tenure this year as chairman of the G20 and G8.

The president repeatedly pointed out that in the last few weeks he holds investors responsible for the rise in food and energy prices that have aggravated riots in some developing nations.

He criticised the derivatives market for the role he believes it played in the economic crisis.

“They played a ‘pass the parcel’ game which was, of course, very profitable because everyone you passed the parcel to made money – until finally there was no one to pass it to,” the French president says.

I would suggest that Mr. Sarkozy takes a few lessons and updates his knowledge of psychology and human behavior – not only the common, but also market behavior and psychology.

I can recommend a few books.