How long has this lull lasted? Thursday, the 4th february saw the return of fear in the financial markets. The debts of developing countries have created a lot of panic. Whether it’s in countries like Greece, Portugal or in Spain. What I find extraordinary when listening to JC Trichet (head of the ECB), Ben Bernanke (from the FED), the Spanish Prime Minister, or the Bank of England, is that they keep repeating the same discourse that we have been hearing from the bankers for a little over a year now. How pathetic. The same central bankers and politicians were demanding the truth from the banks concerning their actual situation. They must play fair and finally tell us the truth now. What will Spain do now with its 20% unemployed, with no budgetary room to maneuver? What will happen to American power if it loses its triple-A standing? The truth about markets, and the truth about power, is simply that no one is telling us the truth.

However, some members of Congress and Joe Bidden, the American Vice President himself, acknowledge the fact that the U.S. debt raises a national security issue.

The response of supporting the concept of consumption is fundamentally the most stupid idea that anyone could have been imagined. This demagogic shortsightedness will widen even further the deficits of developed countries and will simply strengthen the Chinese and Indian industrial and commercial machines. Fiat asked Rome to stop paying car scrap allowance! All for what? Gain 6 months, one year for something that will eventually happen? All these astronomical sums that today’s parents are transferring shamelessly on to their children! Do they really care for them or are they simply simple-minded, glued to the radiators of the Euro and the Dollar, in a class were the best would be the Brazilians, Indians and Chinese?

The financial and monetary wars are perhaps not very far away. Obama took a tougher stance with China last week, but isn’t it too late for America? Europe can still do it, but it has no economic government. So what will happen? Cyber attacks, massive sale of currencies, bull operations on the Brazilian Real, border closures… I do not know, but this is probably the most disturbing part of the crisis which is just now beginning. And when we see the politicians who have not been able to confront the banks seriously, how can we imagine they will be able to reform the state, in short, to reform themselves? Here, we are at the top of the pyramid in regards to responsibility. After this there is nothing. And courageous politicians, well, there are few of them around.
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In this context, deflationary pressures on intermediary prices and sub-contractors is not yet over. I return now to the realities of my management, tactics and strategy. Companies like Pentalog must remain focused on their business model and control their prices. The companies which benefit from government contracts and nationalized companies, everywhere, will see their orders drop and then collapse literally, starting in 2011 because of the failure of the states. Central banks are on the verge of running the printing presses at full speed. Otherwise, how does one support Greece? What to say, in the context of the huge volume of demand in our industry (Pentalog has never had so many requests for a month of January in its history)? But isn’t this just a “technical” recovery following a year of downturn? Certain projects must be started! We feel the febrility in every decision that our big accounts must undertake. Only those working in Asia are a little more confident in themselves.

I have no regrets over our past strategies that have enabled us today to dispose of an economic situation and financial margin which allows us to have significant growth opportunities. We will remain very attentive, torn between these tremendous opportunities and the obligation to be careful.