All sovereign need to detox from what artificially favors their borrowings. The withdrawal symptoms will be horrendous

Sir, I refer to your “France’s detox from debt is Macron’s hardest task” July 10.

That is the task of most sovereigns in the world. If you start adding up what tax exemptions’, Basel’s 0% risk weights, and the purchase of sovereign debt through QEs’ really means in terms of subsidizing government borrowing, there is no doubt we are heading for all sovereigns having to, sooner or later, to detox from excessive debt. As the addiction to plenty and cheap debt is very much addictive to governments, I assure you the withdrawal symptoms will be horrendous. But, if they don’t withdraw from this addiction all be so much worse.

A world that in this way de-facto presupposes government bureaucrats can use bank credit for which they are not personally responsible better than the private sector is a world destined to failure.

What do current banks regulations mean? That banks can multiply many times more any net risk adjusted margin when lending to a sovereign than when lending to the private sector… and almost no one seems to find nothing wrong with that.

As the access to plentiful and cheap borrowings is very much addictive to governments, I assure you that the withdrawal symptoms will be horrendous. But, if they don’t withdraw from it we all will be so much worse.

Sir, your silence on this regulatory failure is mindboggling. Or you are statist beyond help, or dumb, or you just don’t have it in you to recognize a mistake.

@PerKurowski