France's threat to the US's economic recovery
Before deriving pleasure from France’s present economic and political turmoil, President Donald Trump might want to consider that France’s current bond market crisis could have serious adverse spillover effects for the U.S. economy. This is not least because France is Europe’s second-largest economy and has a $4 trillion public debt, some eight times the size of that of Greece.
TL;DR
- France's economic and political turmoil could adversely affect the U.S. economy.
- France is Europe's second-largest economy with a $4 trillion public debt.
- The U.S. shares similar issues of unsustainable public finances and a chronic budget deficit.
- These factors have led to the highest U.S. long-term Treasury bond yields in 20 years.