Chapter 713 The Noose
Although she didn’t know the Chinese saying “One autumn rain and one cold”, at this moment Bonnie was standing at the door of the building, and Bonnie also realized that London was about to usher in another It's cold season.
After getting into the car and turning on the lights on the roof, Bonnie continued to take out the documents and started reading.
She knew that when she got home, she would first accompany her two children. She would definitely not have time to deal with these official duties, so she would simply use the time on the road to read it.
With a "ding" message, Bonnie turned on her phone and saw the WoawChat message sent by Barron:
"I'll go home tonight."
With just one sentence, a smile appeared on Bonnie's face.
“Okay.”
……
On October 20, the Greek government suddenly announced that the proportion of government fiscal deficit and public debt to GDP in 2009 Reaching 12.7% and 113% respectively, far exceeding the upper limits of 3% and 60% stipulated in the EU's Stability and Growth Pact.
Once this news was disclosed, it caused panic in the entire market.
As for why the Greek government is suddenly so honest...
It is because it was the new Greek Prime Minister George Papandreou who announced this. He claimed that his predecessor concealed a large fiscal deficit. , so the news was disclosed shortly after taking office.
It was also because after this guy finally succeeded in the election and came to power, he found out that he had inherited such a mess, and it was really not that easy to solve. In order not to be a "scapegoat", he had no choice but to make it public.
Under the current situation, Greece has no other choice but to continue the "old tradition"...
It is to solve the current debt problem by borrowing new debt to repay old debt.
After seeing the news, Barron had a smile on his face, because he knew that Greece’s economic collapse had entered a countdown...
And not just Greece, this A sovereign debt crisis will soon spread to the five European Pig countries and drag down the economies of France and Germany, the two core economies of the Eurozone, making him a fortune...
Same, set in Rothschild The rope around the necks of the De family has also begun to gradually tighten.
The reason why Greece has fallen to this point can be said to be its own fault.
As mentioned earlier, in order to meet the requirements and join the Eurozone, Greece at that time could be said to have exhausted all methods...
They hired Goldman Sachs Group to help them optimize their financial data, so that on the surface It hid a large amount of liabilities and successfully joined the Eurozone.
But what needs to be known is that what Goldman Sachs did was just hide Greece’s massive liabilities. These liabilities have not disappeared and require the Greek government to continue to pay high interest rates.
In addition, Goldman Sachs' work also allowed them to receive a reward of $300 million from the Greek government. Greece's domestic economic level is relatively weak among European countries, and the competitiveness of various industries is very insufficient. Under normal circumstances, they are not qualified to join the Eurozone at all.
But after joining through cheating, by virtue of its status as a euro zone country, the Greek government was able to raise funds at lower interest rates and borrow large amounts of money.
If the borrowings they make, that is, the sovereign debt they issue, can be invested in domestic economic development, then joining the Eurozone may be a good step for Greece. Chess will never develop to where it is now.
But the problem is that Greece, to put it bluntly, has "no princess life, but princess disease."
Yes, Greece is a "disaster country". After they joined the Eurozone, they took advantage of relatively low interest rates to issue sovereign debt on a large scale, and the money they borrowed was not only "repaying old debt with new debt" In addition to "debt", most of the remaining funds were used to improve people's welfare.
It sounds like it is a relatively happy thing for the people of Greece...
But this whole process just reflects the short-sightedness of Western-style cooking.
Just like if you take a loan and use it for production and operation or real estate investment, then maybe this is a rewarding thing for the individual to make good use of financial means.
But if the money you borrow is purely for personal enjoyment and cannot bring any return at all, then all you can get is short-term pleasure, but the accumulation of debt will eventually ruin the future.
What Greece did was like a country using loans to enjoy itself. Not only did their domestic production level not improve, but high welfare benefits led to a decline in competitiveness. Finally, after the subprime mortgage crisis, Unable to hide it, it fell into a debt crisis.
The most interesting thing is that during every general election during this period, their different factions would compete for voters with better welfare benefits, thus creating a vicious circle that developed out of control.
In fact, Barron's plan for this had already begun earlier...
This starts with Goldman Sachs Group's "packaging" of Greece.
At that time, in order to embellish Greece's financial data, one of the measures Goldman Sachs took was to lend $1 billion to the Greek government.
The Goldman Sachs Group is also very cautious. After they lent the funds, they then "insured" the loan - they reached an insurance agreement with a financial institution in Germany and provided it to them every year. The other party pays a large amount of "insurance money", and the other party needs to provide guarantee for the US$1 billion loan.
That is to say, if the Greek government cannot successfully return the billion U.S. dollars in the end, then this financial institution will need to pay the full amount of the billion U.S. dollars to Goldman Sachs Group!
This looks like Goldman Sachs gave them free money, because after all, Greece took out this loan in the name of national sovereignty. How can you imagine that such a country cannot even repay a billion-dollar loan? Bar?
So the other party happily signed this insurance agreement with Goldman Sachs Group, and gets a lot of "insurance premiums" from Goldman Sachs Group every year...
So there is nothing new under the sun. ...
It is estimated that their mentality is the same as when the investment arm of American International Group insured subprime mortgage bonds...
And the Greek government subsequently joined in After the Eurozone, and until now, a large amount of sovereign debt has been borrowed one after another, and this institution has "picked up" such money several times...
Well, it is worth mentioning that this German financial institution has now been acquired, and they have now become a subsidiary of the LCR Rothschild Group...
(End of this chapter)
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