Pension Panic in Paris 🔥

It's day 11 of nationwide protests in Paris over the French government’s plan to raise the age of retirement and this morning, things got fiery.

06 Apr

“Gold is money. Everything else is credit.”

— J. P. Morgan

👋 GM, Rallie here. The newsletter that's here for a good time, not a long time. (Seriously, read time is < 3 mins!)

On the menu:

  • 🆘 Pension Panic in Paris

  • 🗞️ Headlines That Hit

  • 🥇 Refresh: Gold & Digital Gold

  • 💯 Top Tweets

The Rallie Recap

🔥 It's day 11 of nationwide protests in Paris over the French government’s plan to raise the age of retirement and this morning, things got heated.

  • Last month the French government triggered special constitutional powers to push controversial legislation through parliament without a vote that would raise the retirement age for most workers from 62 to 64.

  • After almost two weeks of protesting, things hit a boiling point this morning as demonstrators forced their way into the building that houses BlackRock’s office in Paris, taking their anger out on the world’s biggest money manager.

  • About 100 people, including representatives of several labor unions, were on the ground floor of the building chanting anti-reform slogans, setting fires, launching smoke bombs, and damaging property.

  • Jerome Schmitt, spokesman for French union SUD, told CNN affiliate BFM-TV, “The meaning of this action is quite simple. We went to the headquarters of BlackRock to tell them: the money of workers, for our pensions, they are taking it.”

  • The pension changes mean that from 2027 on, the French people will have to work longer to receive full state benefits. The government has said the legislation is necessary to prevent a funding deficit, but the reforms have angered workers at a time of rising living costs and inflation at record highs.

  • BlackRock has had no role to play in the pension reforms, but workers targeted the world’s largest asset manager because of its work for private pension funds.

  • France has also seen rolling strike action in the country which has caused huge disruption to transport services, schools, and businesses since the start of the year.

Headlines That Hit

Rallie Refresh: Gold & Digital Gold

🥇 Gold has been considered a valuable asset for centuries, and for good reason. Read on for some golden nuggets of information about why it's such an important asset:

  • Gold has been used as a form of currency for thousands of years. Ancient civilizations such as the Greeks, Romans, and Egyptians all used gold coins as a means of trade. Today, gold is still considered a safe haven investment, especially during times of economic uncertainty.

  • Gold has a long history of holding its value. Unlike paper currency, which can be printed at will, gold is a finite resource. This scarcity means that gold has maintained its value over time, even during times of inflation.

  • Gold is a good diversification tool for investors. Because gold has a low correlation with other asset classes such as stocks and bonds, it can be used to reduce portfolio volatility and risk.

  • Central banks around the world hold gold as a reserve asset. In fact, central banks are some of the largest holders of gold in the world. This practice provides (some) stability to the financial system and helps to ensure that countries have a store of value to draw upon during times of crisis.

🤔 So why is Bitcoin referred to as digital gold?

  • Like gold, Bitcoin is a scarce resource. There will only ever be 21 million Bitcoins in existence, which gives it a similar sense of scarcity and value as gold.

  • Bitcoin and gold both have a decentralized nature, meaning that they are not controlled by any central authority. Gold is not tied to any government or financial institution, while Bitcoin is not tied to any central bank or regulatory body.

  • Bitcoin and gold are both seen as a hedge against inflation and economic uncertainty. Both assets tend to do well during times of market volatility and can act as a safe haven for investors.

  • Bitcoin and gold are often stored as a form of wealth. Gold has traditionally been stored in physical form, such as gold bars or coins. Bitcoin, on the other hand, is stored digitally in a wallet, but can still act as a store of value.

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DISCLAIMER: This is not financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions.