The No-See-Um Market Crisis emerges in France!

<p><u><strong>Blain’s Morning Porridge 2nd, October 2026 </strong></u></p><p><em>“The French are a nation which believes in equality, but only with those who are above them.”</em></p><p><em><strong>The French Bond market threatens to become a crisis as yields widen and its’ politics look increasingly a zero-sum game. While we’ve been watching the antics in DC and the price of oil due to Iran, we’ve missed how swiftly a new European debt crisis has been brewing. If it deepens, it won’t be a simple repeat of 2010-12, which nearly crushed banks and triggered defaults. Europe’s second largest economy in crisis, and dispute with Frankfurt, could trigger even more massive instabilities. </strong></em></p><p><strong>Key Takeaways:</strong></p><p>·      France could be the no-see-um that triggers a new European Debt Crisis. While we’re all aware its overborrowed, and politically unable to address the problem, the wider issue is how it could morph into a more systemic and deeper crisis for Europe and the Euro.</p><p>·      Widening bond spreads demonstrate the loss of confidence in the French politics.</p><p>·      Blain’s Sovereign Virtuous Trinity theory predicts a crisis: France’s political competency is under pressure, and its bond market looks unsustainable. The only immediate positive is the Euro is controlled from Frankfurt… </p><p>·      That raises the issue France is not a Financial Sovereign Nation – it borrows in the Euro, a currency it does not control, nor print to bail itself out in crisis.</p><p>·      Both likely candidates in next year’s elections are Eurosceptics – raising the probabilities of a France vs ECB bust-up, damaging the Euro and stability.</p><p>·      There is a chance France enters a debt doom-loop as its yield cross the threshold into chaos – potentially triggering a very different European Sovereign Bond crisis – the last one saw smaller, peripheral nations at the centre. </p><p>·      Europe need unity in the face of external threats, geopolitical shifts, and the Trump “betrayal” of Nato. France wants unity, but only on its terms. </p><p><em><strong>Continued/ </strong></em>go to <a href="http://www.morningporridge.com/"><u>www.morningporridge.com</u></a> for access to the full story.</p><p><em>If you subscribe to the full Morning Porridge you get the email every morning and links to videos and podcasts…</em></p><p><br></p>