Who Can Break the French Government?

Chamath Palihapitiya says the investors he calls bond vigilantes can break the French government. They can make French debt impossible to finance, drive long-term rates so high that France cannot borrow, and force an economic reset and a grand bargain inside France.

French people, he says, will see on television, TikTok, X, Facebook, and Instagram that France spends twice as much as communist China. The claim that socialism is a better communism, and that France should spend more like communist China or communist Russia, will not hold. A reset done the right way would take on the pension system, student to teacher ratios, hospital wait times, building permits, and rent adjusted inflation. He says France will not get that kind of reset. Whoever holds power will pin the blame on somebody else and keep power for the next five or 10 years. In the middle of a reset, people give away their rights.

He says the only cure left is AI abundance, the panacea nobody wants to believe. Anyone in France, he says, would hear it as a bunch of oligarchs.