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May 15, 2011

Dominique Strauss-Kahn stark naked (2)

Q: So, what does it all mean?
A: The end of Strauss-Kahn's (DSK) career, of course, and more.
Q: He could deny it; then it's his word against hers.
A: Well, first, he left his cell-phone behind, so he fled the scene. Equally important, a famous person is always guilty until proven innocent, especially in America.
Q: Could it be a conspiracy?
A: Sure, as always. He was the most important threat to Sarkozy's bid for a second term, so Sarkozy could have tried to engineer the whole thing. However...
Q: ...however...?
A: It would have been difficult for Sarkozy to do so, even with the French secret services at his disposal. It's unlikely the maid was an agent, since she was working at the hotel on a permanent basis (presumably), and it was unforeseeable that DSK would stay there...well, who knows, changing my mind, perhaps he's always staying there, in the same suite, in which case they actually could have planted her there, perhaps paying off the service manager to have her assigned to this suite (soon to be dubbed the Kahn suite). And so on and so forth.
Q: But the cell-phone?
A: Élémentaire, cher Watson. DSK will deny this is his phone, but the records, oh là là, the records, the most beautiful cell-phone records in the history of the French secret services.
Q: We're in full conspiracy mode now?
A: I'd say 60-40.
Q: Which way?
A: Don't know yet.
Q: Will the Euro collapse?
A: It's in the cards. Expect a weakening of the Euro tomorrow, just for starters.
Q: Why?
A: Sarkozy's ratings are the lowest in the history of the French presidency. He's unlikely to get re-elected, even if the whole thing was his conspiracy. So it's either a socialist next time (to our American readers: DSK was a member of the Socialist Party, no, the SOCIALIST party), but, with the exception of DSK himself, all other contenders are unreconstructed dinosaurs, real tax-and-spend ideologues, all of them, or it's Marine LePen from the Front National. France's standing as a debtor will be weakened, and the markets might fear its collapse, comparable with other members of the Club Med.
Q: This could mean the end of the Euro.
A: Yes, if France does not get its act together, the Euro will collapse.
Q: How about the extreme right?
A: Yes, good question. Marine LePen, the new, charming leader of the Front National is collecting followers left and right with her compassionate xenophobia and an economic program from the dark ages.
Q: How so?
A: Her economic program calls for France leaving the Euro, and for erecting high import barriers to save domestic jobs. To do that, France would have to leave the European Union.
Q: Is that going to happen?
A: Possibly not, since the French farmers would lose their European subsidies, and so on. But I would not rule out a debt spiral triggered by weakening French credit scores (rising interest rates on French sovereign debt raise the deficit, etc), which leads to France's exit from the Euro, the end of the Euro, the end of the European Union...
Q: The end of the world as we know it?
A: It looks bad. But 500 years from now, the only thing we will remember is that the 3rd world war was caused by a man stepping out of his bath room stark naked.

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