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Editor’s
note: On November 4, 2005, Dr. Joe Duarte’s Market IQ
analyzed the riots in France and commented on the similarities
between the increasingly dangerous situation in France, where
young Muslims, have been rioting for several days in response to a
situation in which a young man was electrocuted after being chased
by the French police.
By
November 6, the mainstream media was reporting that French
President Jacques Chirac was making the return of law in France a
“priority” and that plans were being made for a significant
crackdown.
In
this analysis, Dr. Duarte draws some significant conclusions about
the increasingly dangerous situation in France, and the parallels
to the situation in the Palestinian occupied territories.
Today’s
Analysis: Tightrope In France.
The
French government is treading softly as it weighs possible courses
of actions against rioters in Paris. There are internal political
agendas at work along with the potential for France to become a
staging ground for jihadists.
As
of November 3rd, there had been seven straight nights of rioting
in Paris. According to the New York Times “Gunshots were fired
at police officers and firefighters in three separate incidents
Wednesday night, said Prefect Jean-François Cordet, the
government's top official in Seine-St.-Denis, a department north
of Paris that includes a belt of working-class neighborhoods with
a large immigrant population from North Africa and the sub-Saharan
region. In the clashes on Wednesday night, a police station was
ransacked, a garage was set on fire and a shopping center and two
schools were vandalized, Mr. Cordet said. Riot police forces have
used tear gas and rubber bullets to repel the attacks.”
The
Times added that a commuter train was attacked on Thursday on a
“line linking Paris to Charles de Gaulle airport after
stone-throwing rioters attacked two trains,” adding that
“rampaging gangs have torched more than 200 cars in the past
week, and dozens of firefighters and police officers have been
injured, none seriously, since the deaths of two youths.”
According to Stratfor.com, the French government is taking a
cautious approach as it balances a significant number of
variables. “At the highest level, there have been meetings (some
of them over breakfast) and statements calling for calm. Prime
Minister Dominique de Villepin postponed a visit to Canada in
order to deal with the issue, but government officials are
proceeding slowly and carefully, fearing action that could further
enflame the rioters or cause them to spread. The deployment of the
riot police, however, is a sign of growing concern among the
leadership.”
Stratfor
also points to the internal squabbles in the French government,
where Prime Minister Dominic de Villepin, and Interior Minister
Nicholas Sarkozy, who are likely to be rivals in the next French
presidential election. Sarkozy has been more aggressive than de
Villepin in his approach, in keeping with his “law and order”
motif, while de Villepin continues to present himself as a
diplomat.
The
mainstream media, although reporting the events, has failed to
give significant background. The rioting, as is well known, has
been sparked by the electrocution of a young man who was being
chased by the French police. But, France, as much of Europe, has a
simmering problem with its Muslim immigrants, whose unemployment
percentages are higher than the non immigrant population in the
E.U.
According
to Stratfor.com: “France's overall unemployment rate is running
at 9.2 percent, but the rates among people of "foreign"
origin is higher, at 14 percent, according to the French National
Institute of Statistics and Economic Studies. The trend holds
among university graduates. Overall, unemployment for those with
degrees is 5 percent, but five times higher -- 26 percent -- among
"North African" university graduates.”
Conclusion
Stratfor
makes two significant points about the situation:
1) “There is a potential threat here not only to the safety of
Parisians, but to French society at large. The unrest among the
French Muslims could be an opportunity for foreign militant groups
to exploit the tension and possibly stage attacks inside France. A
number of groups are known to have active networks in France,
including Algerians, Chechens and some connected to the jihadist
insurgency in Iraq.”
In
our opinion, it’s not too far fetched a thought to consider this
situation in France as one worth watching closely.
The
conditions for a major uprising are in place:
1) Large amounts of resentment in a young Muslim population, whose
role models are likely to include the likes of Osama bin Laden,
and Al–Zarqawi.
2) A rather striking example of maldistributed wealth.
3) Catastrophic levels of unemployment, likely accompanied by
equally high levels of despair and hopelessness.
4) And an excuse to let it all out has appeared.
In
our opinion, the riots in Paris are likely to be the benchmark
through which Western governments and jihadists take a measure of
each other’s tactics, abilities, and potential strengths and
weaknesses.
Yes,
we are calling the Paris riots the first battle of what is likely
to be the next round of the jihad, the transplantation of what
goes on in the Gaza strip, to the streets of Europe. It may not
come today, or tomorrow. Hopefully, it won’t come at all. But,
this is at the very least, the test case of what’s a more likely
outcome than anyone wants to publicly admit at this time.

© 2005 Joe Duarte, M.D.
Dr. Duarte's Bio and Archive
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Joe
Duarte, M.D.
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Joe
Duarte M.D. is founder and Editor in Chief of Joe-Duarte.com. Dr.
Joe Duarte's Daily Market I.Q. is a premium service that provides
daily intelligence, trading strategies, and technical analysis at www.joe-duarte.com.
Duarte offers free analysis and news coverage at www.intelligentforecasts.com
. Dr. Duarte is a board certified anesthesiologist, a registered
investment advisor, and President of River Willow Capital
Management. He is author of "Successful Energy Sector
Investing" and "Successful Biotech Investing"
(Prima/Random House). Duarte's analysis appears regularly in major
outlets including CBS MarketWatch
and Investor's Business Daily.

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