Where the Heck is the Macron-Victory Rally? Everything Is Fizzling.

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Wolf Richter wolfstreet.com, www.amazon.com/author/wolfrichter
It was a historic election in France: Emmanuel Macron will become the youngest president in French history, and the first one ever whose party “En Marche!” doesn’t have a single representative in the National Assembly, the lower house of parliament.
Legislative elections are coming up in June, but En Marche! won’t be able to replace a large number of entrenched representatives. In other words, the National Assembly, which, among other things, must pass all budget legislation and labor law reforms, will be controlled by the opposition, which might not eagerly jump through the unpopular hoops of his program.
Before he ran, Macron was briefly Economy Minister under the current regime and member of the Socialist Party. He’s a pro-euro, pro-EU globalist who faces 10% unemployment, 25% youth unemployment, and a lot of frustrated people.
Macron ran on free trade and further EU integration, pledged to reform the rigid labor market, and promised to reduce the budget deficit. He will now be tempted to mistake his landslide victory for a mandate. But instead of a mandate, much of the vote he obtained was an expression of the collapse of the establishment parties and their candidates whose policies have led to the current conditions.
No one has been able to reform the labor market in a significant manner in recent years even as private enterprise is suffocating and cannot hire. Spending by the enormous government-controlled apparatus in France accounts for 57% of GDP, the second highest in the EU, behind Finland and ahead of Denmark; so cutting the deficit, and thus cutting part of the economy, is unlikely to be popular in Parliament or elsewhere, and he will soon feel the hot breath of a backlash.
Given his campaign statements, his victory was supposed to have boosted markets – perhaps even on the principle that everything these days is supposed to boost markets. But everything is now fizzling.
Well, not everything, Japanese stocks soared 2.4%, either on early enthusiasm by international hedge funds for Macron or on hopes for continued Bank of Japan money-printing and stock buying, which isn’t a surprise either. And Hong Kong’s Hang Seng rose 0.4%. But stocks in China continued to deteriorate; the Shanghai index dropped 0.9%. It’s down 6.4% from about a month ago and at the lowest point since October 17.
The euro, after briefly touching a one-year high of $1.102 on Sunday at the first blush of election indications, has now fallen back to $1.093 where it was on May 4:

The major European indices are having the blahs, instead of turning victory laps. The German DAX is slightly in the red. The French CAC 40 is down nearly 1%. Spanish and Italian indices have dropped into the red too. The only major index now green is the UK’s – the only EU country to ever vote to leave the EU – with FTSE 100 up a smidgen. Ah, the unfairness of it all….
Oil, which had gotten hammered in recent weeks, was up earlier but is now in the red, with WTI at the moment changing hands at $45.96 a barrel.
US stock market just opened, and it’s too early to be wisecracking about the indices and their direction for the day. But they too are having the blahs, now in the red a tiny bit.
This leaves us wondering: Where the heck is the promised Macron rally – now that France’s next president isn’t going to try to blow up the Eurozone and the EU? Perhaps it has something to do with the simple fact that France’s problems, and the larger problems of Italy, particularly those of its banks, and the problems of the EU, and the global issues are all still there, none of them solved by this election.
But now the hoopla of the election is receding into the background, and reality – ludicrously over-inflated asset prices after eight years of central-bank machinations just about everywhere despite lackluster demand in the real economy – is reasserting itself.

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24 thoughts on “Where the Heck is the Macron-Victory Rally? Everything Is Fizzling.

  1. France is going to collapse into chaos as a big percentage voted for Le Penn and a big percentage did not vote. Moron will be a useless figurehead – even less effective than Hollande. A French version of Tony ‘the tosser’ Blair.

    • Apparently the family firm of Trogneux will be manufacturing a “chocolate starfish,” to commemorate Manny’s favourite pastime.(hope that’s not too cryptic).

  2. There is no victory rally because the people of France know they just got screwed and are about to get screwed even harder. Bow down to the unelected Brussels bureaucrats. Can you say “austerity”? Sure you can. If not, better learn because the fat cats in Brussels demand it. Ask Greece. Michael Jackson was killed for this song. “They don’t Care about Us” https://www.youtube.com/watch?v=IqWXAK-pAdA I don’t care what anyone says about the man, he was a musical genius.

    • That explains the low participation. This can by no means be described as a landslide. Fact is that more than 70% French did NOT vote for Macron.

  3. France Elects Rothschild’s Manservant President…
    “The fairy tale of Emmanuel Macron emerging as an “organic candidate”, new party and all, out of the blue, always struck me as the Deep State crowd testing if P.T. Barnum’s old maxim, “There’s a sucker born every minute” was still in play. It is. Macron was obviously put in play by someone, not only with deep pockets…

  4. As long as the Zionist British bankers control the EU – nothing will change. We must confine these thugs where the belong!

  5. This is how Macron won:
    UP TO ONE THIRD OF ALL BALLOTS SENT OUT TO VOTERS, MOST LIKELY 60 PERCENT OF LePen’s BALLOTS, were destroyed at the time of mailing. ONLY LE PEN BALLOTS WERE DESTROYED, THERE IS NOT ONE REPORT OF A SINGLE BALLOT FOR MACRON ARRIVING DESTROYED. It was reported before the election that an enormous number of ballots for LePen were destroyed at the time of mailing, by tearing them badly BEFORE THEY WERE MAILED OUT. The French election was, in this method, STOLEN. Macron is NOT THE LEGITIMATE PRESIDENT OF FRANCE.
    Macron is a usurper, and not a President. He was put into power via an overtly and openly scammed election. The French have had it visibly and obviously proven to them – their nation can only be saved via violent uprising.
    1. First of all, they printed up 500,000 extra Macron ballots. This was discussed before the election but then slipped under the radar.
    2. They then destroyed a vast majority of LePen ballots.
    3. They then forged an extra 500,000 ballots for Macron, that no one cast, but they ended up in the final count
    4. To cover for the huge number of people who could not vote (or have their vote counted with destroyed ballots) The scamming Jewish press then said “record low numbers of people turned out for this election, which was not expected!!

  6. What you designate as “private enterprise” is not “suffocating”: people have been put out of work by EU:HOLLANDE(Macron) policies and have (listen up, now) NO MONEY TO SPEND in small shops, deparment stores or even on decent food. Hundreds of thousands have had their WATER and ELECTRICITY cut off. This is not their fault: it’s against the law: they are being denied the basic necessities of human life. It’s called CAPITALISM, buddy, and if you’re in favor of it show me a video of you living rough on city streets and give us all a few valuable lessons in how it’s done without being jailed, or worse, becoming dead.

  7. What’s more, Hollande said “I will always be at his side”. Where did the victory rally go? At the very idea of Holland’s supervision, any optimism about French economic prospects evaporated.

  8. STOLEN elections and insider trading is the new world order run from a slum in Israel.
    Have YOU heard the latest JOKE from Israel?
    donald trump LOL

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