While new EU Commissioners-designate prepare for their public hearings at the European Parliament and everyone (else) is counting the seconds for the outcome of the US elections, my journeys have taken me to Spain, Paris, London, Germany, and Brussels.
"The name of the game, moving the money from the client's pocket to your pocket." - Mark Hanna, The Wolf of Wall Street
I have witnessed a global struggle with budgets that would make even the most seasoned financiers raise an eyebrow. Michel Barnier, the old but new French Prime Minister has finished in hospital to fix his backbone after delivering his budget - a traditional right-wing politician, he is raising taxes for the rich... that must be painful indeed. Brussels is seeking the next Paracelsus to turn iron into gold for the upcoming multiannual financial framework (MFF, the EU budget), aspiring to follow Prince Charming Draghi’s ambitions of competitiveness and a unified European capital market. Meanwhile, in Spain the budget may only get approved because the governing coalition is closing ranks after its extreme left member party sacked its spokesman, who is involved in a #MeToo mega scandal.
The film that inspired us is The Wolf of Wall Street*, a cautionary tale of excess that somehow makes us root for the bad guy (not to mention the casting).
"The real question is this: was all this legal? Absolutely fucking not." - Jordan Belfort
My conclusion: As I have observed the fiscal manoeuvring across Europe and beyond, the wolf of wall street’s depiction of the stock market's allure and pitfalls mirrors our current economic landscape. Many of today's politicians and financial leaders seem to chase short-term gains at the expense of long-term stability, much like the characters in the movie. However, the film also shows the consequences of such behaviour, serving as a cautionary tale for our current fiscal policies.
Moreover, the movie's energy and drive, while misplaced, can inspire us to approach financial literacy and economic reform with the same passion. If we could channel such enthusiasm into educating the public, empowering women in finance, and creating more equitable economic systems, we might see a transformation as dramatic as Belfort's rise – but this time, benefiting society as a whole.
In essence, The Wolf of Wall Street reminds us that knowledge is power in the world of finance. It's up to us to ensure that this power is distributed more evenly and used for the greater good, rather than concentrated in the hands of a few modern-day wolves.
"I've been a rich man, and I've been a poor man. And I choose rich every fucking time." - Jordan Belfort
A few examples show how budgets are at the core of politics:
The French Résistance: Michel Barnier's budget proposal has stirred controversy, the Élysée Palace grapples with pension reforms and budget proposals that have sparked nationwide debates and protests.
"Hard work beats talent every time." - Jordan Belfort
Yet budgets are not just a matter of partisan politics. Far from it. As public coffers strain under mounting pressures, the libertarian approach gains traction. The shift towards privatization and reduced public spending is making many citizens feel vulnerable and turn to populist political options. Let us look at some key figures to show how this plays out:
Budget Deficits (% of GDP, 2023 estimates):
Public Debt (% of GDP, 2023 estimates):
Stock Market Performance (YTD as of October 30, 2024):
Sovereign Credit Ratings (S&P):
Corporate Bond Yields (10-year, average):
These figures paint a picture of a global economy grappling with high debt levels and varying degrees of fiscal strain. While stock markets in some regions show resilience, the underlying economic fundamentals suggest potential vulnerabilities. The divergence in credit ratings and bond yields across countries reflects the complex interplay of fiscal policies, economic growth, and investor confidence in an increasingly interconnected global financial system.
"Was all this legal? Absolutely fucking not." - Jordan Belfort
Despite or rather because of its importance for government policies, the budget is tightly regulated in the world’s three main trading powers:
"I'm not gonna die sober!" - Jordan Belfort
As we watch this grand fiscal opera unfold, with fear gripping the average citizen and driving them towards extreme political movements, perhaps it's time we reconsidered our approach to financial education and empowerment. The real challenge is not just balancing budgets but furthering citizens’ financial literacy. We need to foster a new generation of informed investors, particularly empowering women to play a larger role in shaping the real economy.
Let's not forget that budgets originated as a tool for the State to serve its citizens, not the other way around. Imagine a world where financial literacy is as common as reading and writing, where citizens can hold their governments accountable for fiscal decisions. As we navigate these turbulent financial waters, remember: the path to a stable and equitable economic future lies not in excess or exploitation, but in knowledge, empowerment, and sustainable investment in the real economy.
Until next time, dear readers, stay informed, stay engaged, and remember that in the world of high finance and politics, it's not just about business - it's about creating a society where everyone has a fair shot at prosperity.
*Inspiration of the movie
The Wolf of Wall Street serves as a stark reminder of the power and peril of financial systems unchecked by ethics or regulation. Just as Jordan Belfort exploited the financial ignorance of his clients, our current economic challenges often stem from a lack of widespread financial literacy.
05/06/2024
My travels this month have taken me to Dubai, Brussels, Madrid, and Paris. I was struck, like all of you, by the violent clashes on the rise in universities and capitals all over the world.
15/07/2024
My travels this month have taken me to Amsterdam, Cannes, Paris, Brussels, and Rome. While times are still troubled - it is after all the year of the 1001 elections - the dream of protectionism is coming true.
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