Chapter 2790 Play the final trump card!
At this time, the Eurozone's attention was all focused on Croatia, and they did not notice that Chen Mo had already started stealing the house.
Three days later.
The country suddenly announced that it would cost 1000 billion euros to rescue the country's five largest banks, which would increase the country's deficit ratio to 32% of GDP!
As soon as this data was released, it shocked the entire capital market!
Aiguo was one of the first countries to experience the subprime mortgage crisis and the bursting of the real estate bubble.
Patriotic China is the first country to transfer the debts of national banks into public debts. In simple terms, it means letting the entire people repay the debts of the banks!
However, today bank debt is seven times GDP. How can patriots possibly afford it?
Originally, Aiguo wanted to continue hiding the truth, at least to hide the debt problem until after this unprecedented battle between bulls and bears.
Until Chen Mo's short sellers suddenly turned their guns around and aimed their fire at Aiguo!
Aiguo finally couldn't bear it anymore. The debt problem was so big that it was about to collapse, and it had no choice but to ask the Oumeng for help.
After receiving the call for help, Baize approved 850 billion euros in aid without any hesitation.
The successive debt defaults of two member countries finally made Bai Ze and Oumeng realize that there are big problems within Oumeng!
After learning from the painful experience, Bai Ze called all his allies together and announced: "We must carry out a systematic action to prevent the crisis from spreading and launch a major counterattack against the short sellers!"
After consulting with all the economic experts and think tanks of various countries, Baize worked out a way to counter Chen Mo's short selling and save the crisis - the Troika Plan!
Two days later, the AU Stability Mechanism was approved at the AU Summit, which was broadcast live around the world.
When answering reporters' questions, Bai Ze described his rescue plan in a popular way: "To put it simply, the Eurozone is regarded as a class. In order to prevent students from suddenly having no money and wanting to drop out, everyone contributes a little money to set up a small treasury, and lends money to whoever is in need. The original capital of this small treasury is 7000 billion euros. The Crested Ibis Country pays the most, accounting for 27%, so the Crested Ibis Country has the strongest voice..."
The OU Stability Mechanism, the OU Central Bank and the "Private Rescue Fund" established by the Foundation Lord together form the OU Troika to provide blood transfusions to countries in crisis.
For borrowing money, the EU Stability Mechanism can give Croatia and China a preferential interest rate of as low as 1.5%, and the repayment time can be extended.
In comparison, their already double-digit interest rate government bonds are much, much cheaper.
Obviously, under normal circumstances, this mechanism will surely enable Croatia and Patriotic countries to quickly get out of the crisis, but the condition is that the recipient countries must cut fiscal spending, so the previous high welfare and other lavish projects will have to be cut.
Croatia and the Patriotic Democratic Republic readily agreed to join the AU stability mechanism two days before it was approved, and embarked on a five-year fiscal reduction plan.
Bai Ze couldn't wait to announce the news to the public, and announced loudly: "The economic crisis of the Ou League has been controlled and resolved.
There will be absolutely no problems with the Euro, please rest assured!"
But the news was announced only one hour later.
Portuguese officials announced that they only had 20 billion euros in cash left, and had no way of repaying the hundreds of billions of euros of debt that was due in 10 days, so they could only publicly ask the European Union for help.
In the eurozone, the third country has fallen!
Baize and a group of other main gods could only grit their teeth and accept Portugal's debt, allowing it to join the Ou Meng stability mechanism and use aid to solve the debt problem.
Sunset at the Imperial Palace.
Listening to the news reported by her subordinates, Aisha couldn't help but sigh: "Bai Ze is really good at it. He can actually come up with the Troika plan."
Diana nodded: "Well, I didn't expect that the Euro Index really stabilized him temporarily. Although the price paid was terrible, it is still acceptable compared to the direct outbreak of the European debt crisis."
After a pause, she looked at Chen Mo: "Dear, if we don't have the Sunset Owl card, is it impossible to play anymore?"
Chen Mo smiled and pinched her smooth face: "Wrong, Bai Ze's Troika plan was wrong from the beginning!
Even without the Sunset Tide Gull card, we can still continue to short!"
Diana's eyes lit up: "What do you mean?"
"Baize thought that the Troika could prevent the European debt crisis, but he didn't notice that he made a huge mistake - the paradox of thrift!" said Chen Mo.
"The paradox of thrift, what is that?" Aisha asked in confusion.
“When an economy encounters a crisis, companies go bankrupt and lay off employees, people lose their jobs, and everyone starts to live frugally, companies make even less money, and unemployment increases.
To break this vicious cycle, the government needs to inject liquidity and use all policies to encourage people to consume and encourage enterprises to expand production to form a virtuous cycle. "
"But now the monetary policy of eurozone countries has been suppressed by the EU central bank, and the fiscal policy is required to be frugal by the EU's stability mechanism. There is no money to subsidize the people and enterprises, which will form a vicious cycle of more fiscal austerity, less money for enterprises, and higher unemployment."
Chen Mo smiled and shrugged: "So, stabilizing the Euro index is only temporary. Even if we do nothing, the European debt crisis will still break out.
This is because the underlying logic of Ou Meng itself is wrong, and it has nothing to do with whether we short or not. "
Diana: “Should we wait then?”
Chen Mo shook his head: "It will take too long for the European debt crisis to break out naturally. We can't wait any longer."
Chen Mo took a deep breath and said to Aisha in a commanding tone: "Aisha, play your last trump card!"
