France surprises with return to expansion

"The preliminary estimate of Markit's composite Purchasing Managers' Index (PMI) for France was 51.6 in March, up from February's 47.9 reading and above the 50 level that indicates expansion."

Economists expected France to go through another month of contraction but it turned its economy around that surprised most people. This is a step in the right direction. Overall GDP growth for the Eurozone was 0.3% at the end of 2013, the first step in the right direction. Now that France has joined in, Eurozone growth is gaining traction.

This came after Francois Hollande was criticised for running down the French economy. Either he paid attention to the criticism or he's ignoring his monetary advisors. I believe that all countries should ignore their monetary advisors unless they regard money as a medium of exchange and nothing else. Money does not make money! People do.

It's possible for a number of people to make products or provide services without money and still make a profit. OK they'd need money for living expenses but it's not millions. I'm not talking about getting the means of production on traditional credit terms; I'm talking about getting into agreement with suppliers and distributors that they'll be paid after the products/services have been sold and the money received. This is a sort of partnership where all the players share the profits and the risks.

There seems to be that a paradigm shift is happening away from monetary policies - after all, it was monetary system that caused this financial crisis. This is closer to the WPM's dream of reforming the monetary system and getting rid of derivatives trading once and for all. We'll still use money as a medium of exchange but the focus will be on value production which is done by "we the people". Already some organisations are treating their employees as assets despite the fact that their accounts are putting the salaries in the liabilities column.

I read an article about Hyman Minsky who explained that the cause of instability is stability itself. Although this has its merits, I believe that the problem was caused by the use of mathematical models to determine the monetary make up of the financial system. Most managers and politicians didn't know how these complex instruments worked and enabled those that do to rig the system in their favour.

This is another reason to dismantle this system and a return to a value-based system without the rocket science that bamboozles everyone.