Chapter 731 Kicked
The most important thing is that under the current legal framework, the European Central Bank has no obligation and cannot rescue Greece. ECB President Trichet also stated that they have no plans to adopt changes Methods to rescue.
In the Maastricht Treaty related to the Eurozone, there is an article called the "no-bailout clause" - this article clearly stipulates that the European Central Bank and the central banks of member states are prohibited from providing financial assistance to member states. or the public sector institutions of the Community to provide overdrafts, or loans similar to overdrafts; the European Central Bank and the central banks of member states are prohibited from purchasing bonds directly from these institutions; the European Central Bank is prohibited from accepting or seeking rescue instructions from other institutions, etc.
Although there are many countries, including the core countries of the Eurozone such as Germany and France, from time to time exceeding the deficit level of 3% of GDP stipulated in the Stability and Growth Pact, they all It relies on its own strength to reduce the deficit to within the prescribed level.
Therefore, for Trichet, the current crisis in Greece is not new. What they have decided now is not to participate in the rescue, but only to implement the convention.
In fact, since the sovereign debt crisis broke out in Greece at the end of last year, Greece, the European Central Bank and other countries in the euro zone have been engaged in a game over whether to rescue Greece.
The reason why European Central Bank President Jean-Claude Trichet still insists on a no-bailout attitude is that, in addition to the non-bailout clauses in relevant treaties, his main concern is the moral consequences that will arise if Greece is bailed out. risk.
Even though, as Trichet said, there was a "no-bailout clause" in the Maastricht Treaty, after all, before that, there had not been a subprime mortgage crisis in Europe or the world. Such a devastating economic crisis, and in addition to Greece, which actively hopes that the European Central Bank will provide corresponding rescue, other countries, especially the five European pig countries such as Ireland and Spain, are also inclined to rescue Greece. Help...
After all, they know their own affairs. These "European Pig Five" countries also know their own economic situation. If the European Central Bank can pass the bailout for Greece, then if they themselves also have a sovereign crisis, The debt crisis can also require the European Central Bank to rescue...
Spain is still the current EU rotating presidency, and their attitude towards Greece's bailout is relatively positive.
But the moral hazard that the European Central Bank is worried about is that they don't want to bail out Greece too easily - after all, it is obvious that the main responsibility for the mess that Greece has caused lies with the Greek government.
Even when they were able to join the Eurozone, they did so by "cheating".
Then they will naturally worry that if they bail out Greece too easily, it will be equivalent to passing on part of the losses caused by Greece's own "death" to the entire euro zone countries.
This will even have a negative impact on other countries' compliance with the Stability and Growth Pact - if you can bail out Greece, you will be able to bail out other countries that are seeking death in the future, especially those in the Euro that are not in a good economic situation. In a small country, who is willing to work hard to develop the economy? Just lie down and eat the big ones.
Therefore, at the current stage, the attitude of the European Central Bank and some countries is still to require the Greek government to respond to the crisis by reducing its own spending and try to optimize their dangerous debt structure by relying on its own strength.
According to information obtained privately by Barron, European Central Bank President Jean-Claude Trichet told French Finance Minister Christine Lagarde that Greece will implement fiscal austerity policies in accordance with their requirements, strictly control government spending, and be completely unable to do so. They won't consider bailing out Greece until they get money through the market.
And the European Central Bank is different from the Federal Reserve. Even as the president of the European Central Bank, Trichet cannot handle many things with one word.
After all, unlike the Federal Reserve, which is backed by the United States, the European Central Bank does not have a unified political environment or a coordinated government agency behind it.
Although both are independent financial stability agencies, the European Central Bank is completely different from the Federal Reserve in terms of decision-making. The decision-makers of the European Central Bank are representatives from the central banks of each member country and officials from the finance ministries of each member country. These representatives and officials directly take orders from their own governments and bear the political and social pressure of their respective countries.
This has resulted in the European Central Bank's hesitation and hesitation at the decision-making level. In the face of the intricate political and economic interests of its member states, the European Central Bank is like a giant beast with its hands and feet tied. It can only shake its hair but cannot wave its claws.
Barron, who has been waiting for an opportunity, and the Wall Street capital that cooperates with him, will naturally not let go of the European Central Bank's hesitation at this time.
The media they control has been sparing no effort in carrying out relevant reports, exaggerating the seriousness of the debt crisis in Europe, especially Greece - in addition to Greece, many other countries, including Portugal, Spain, and Italy In order to join the Eurozone, countries such as Ireland and Ireland carried out varying degrees of "financial operations" on the issue of government debt levels...
The countries with the most backward economic development in the EU in 2008 It also suffered the greatest damage during the financial crisis.
So after the Greek sovereign debt crisis broke out, they tried their best to let the public understand that it is not just Greece that is facing problems, the entire Eurozone is likely to erupt into a subprime mortgage crisis after Greece took the lead in detonating the sovereign debt crisis. A more serious economic crisis.
Correspondingly, affected by these, the euro exchange rate continued to plummet, and the stock indexes in the entire European market were falling...
At the end of January, the "Wall Street Journal" took the lead in publishing a relevant report, pointing out that in NM Rothschild After the Bank of Germany caused heavy losses due to the illegal operation of a certain trader, its parent company LCR Rothschild Group is likely to face huge compensation. According to relevant sources, many institutions, including Goldman Sachs Group, JPMorgan Chase, and Citibank, have purchased the loans they issued to many European countries, including Greece and Ireland, starting in 2001, through the same German institution. corresponding credit default swap bonds (CDS), and this German institution has been acquired by LCR Rothschild Group and became its wholly-owned subsidiary.
This means that if these countries are unable to repay these loans within the specified period, then according to the original CDS bond rules, the LCR Rothschild Group will act as the underwriter to repay these loans!
According to estimates from the Wall Street Journal, the funds involved will exceed 10 billion euros!
This reminds people of the incident that triggered the bankruptcy of American International during the subprime mortgage crisis. The reason was also the underwriting of CDS bonds by their investment department.
After the "Wall Street Journal" report, many media outlets including the United States, Britain, and even continental Europe reported this amazing news.
Obviously, at a time when the European Central Bank has been keeping silent and refused to reveal the issue of bailout for Greece, the sovereign debt crisis in Greece has intensified.
If it is true as the report said, then I am afraid that Greece’s debt default is not impossible, and it even seems more and more likely...
Then LCR Ross What Childe Group is facing may be a desperate situation - after all, it has only been more than a year since the fall of American International Group.
(End of this chapter)