Editor’s Note: The following report is excerpted from Joseph Farah’s G2 Bulletin, the premium online newsletter published by the founder of WND. Subscriptions are $99 a year or, for monthly trials, just $9.95 per month for credit card users, and provide instant access for the complete reports.
WASHINGTON – The narrow victory by socialist Francois Hollande to be France’s next president not only will affect ongoing discussions on very unpopular austerity programs to help bail out the Euro, but could impact the recovery in the United States, analysts say in a report from Joseph Farah’s G2 Bulletin.
These sources say that the election’s initial impact will be measured by the global financial markets in the coming weeks. In recent days since his election, the U.S. markets have shown a moderate but steady decline.
Hollande, who defeated Nicolas Sarkozy, had promised to roll back some of the deficit-cutting reforms that Sarkozy supported and voters felt were too austere. It will have an impact on the agreement that Germany had reached with Sarkozy in pursuing austerity programs.
Experts believe, however, that the effects won’t be severe immediately. These experts also point to a parallel between what is going on in Europe and the debate that is raging in the U.S. presidential election between the more conservative elements pushing for more austerity and those who want more spending.
They add that Europe’s financial problems will continue to have an impact on the U.S. stock markets and the ability of the U.S. to recover from its own economic problems, just as it has over the past two years.
With the European Union being the largest trading partner of the U.S., any financial meltdown now would significantly cut U.S. exports and reduce U.S. factory production.
U.S. banks also are expected to pull back on lending to preserve what cash they have due to what experts now expect to be a worsening financial crisis.
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