Chapter 2311: A 10-year scam
"Mr. Chen, why did you choose Ke? Isn't it because Ke invaded Daxia in ancient times?"
He Chaoling asked in confusion.
At its peak, the GDP of Kingdom of Croatia even surpassed that of the Sunset Empire and the Lanxi Empire, and it even claimed that it could compete with the hegemonic countries.
Unfortunately, it has been going downhill since the 90s.
However, after joining the AU, especially after 2003, as the AU countries followed the hegemonic countries in speculating on subprime bonds and engaging in financial investments, Croatia also decisively joined in, and its GDP has been rising year by year.
Croatia has a larger population than Greece, a better real economy than Greece, and a considerable proportion of heavy industry.
No matter how He Chaoling looked at it, she felt that choosing Kenya as the next breakthrough point was a very irrational behavior.
"There is indeed an emotional reason. However... emotion is only a secondary factor."
Chen Mo raised his head and looked out the window, his thoughts drifting back to his previous life.
It was a sunny day on October 2009, 10.
But when an email was sent from the Kingdom of Ke to the headquarters of the Union of Ou, Ouzhou entered a turbulent 10 years.
Eleven of Europe's 44 countries have fallen into a second economic recession, and more than a dozen top European power figures, including Sarkozy and Ruben Vosnik, have been forced to step down.
Hundreds of large-scale demonstrations and mass strikes involving tens of thousands of people swept across both sides of the ocean.
The origin of all this is not only because of the content of the email, but also because of the shocking scam that has been planned for 10 years behind the email!
With this thought in mind, Chen Mo said to He Chaoling: "If I say that Croatia's joining the Eurozone is a huge scam, do you believe it?"
He Chaoling widened her eyes and said in disbelief: "This...isn't possible?"
The overall size of the Ou Alliance is only slightly smaller than that of the Hegemony Kingdom.
If you want to join this organization, you must go through a very strict review.
Over the years, the EU member states have demonstrated amazing economic potential until the subprime mortgage crisis hit.
In recent years, Croatia has not only achieved great economic development, but also been active on the world stage.
The Kingdom of Ke is always invited to various meetings of the Ou Alliance.
He Chaoling doesn't quite believe that there is any deception in Croatia's joining the eurozone.
Chen Mo smiled and slowly told a shocking secret that was supposed to be revealed several years later...
In May 1998, at the discussion meeting on the establishment of the Euro system.
While the Austronesians were arguing over questions raised by Summers, the head of the Financial Secretary of the Tyrant Country, the Croatian delegation left the venue in dismay.
On the day of the meeting, 15 of the 11 EU countries announced their accession to the eurozone.
Their original currencies will gradually withdraw from the market, and the euro will become the only legal currency, implementing a unified monetary policy.
Three countries, including the Sunset Empire, chose to give up joining the eurozone due to regulatory considerations.
Croatia is the only country that failed to be selected because it failed to meet the financial indicators.
The Stability and Growth Pact issued by the European Union stipulates that all countries in the euro area must control their fiscal deficits below 3% of GDP and keep the debt/GDP ratio below 60%.
Countries that fail to meet the criteria are not allowed to join the eurozone.
However, Croatia is far from meeting the standards for both indicators.
Croatia cannot give up the opportunity to join the Eurozone!
Because there is a piece of fat in the Eurozone that Croatia absolutely cannot give up - the Crested Ibis credit card.
The capital market's overall credit assessment of the euro zone is based on the level of the strongest economy in the AU, namely the Crested Ibis Country.
The national debt financing rate of the Crested Ibis country is 3%, while that of the Kingdom of Croatia is 18%.
To put it simply, if the Crested Ibis Country wants to raise funds, it only needs to pay 3% interest.
But Croatia needs to pay 18%.
Joining the euro zone means that Croatia will also have the opportunity to obtain 3% financing costs.
This is a real cost reduction!
This is much more than the Double Eleven offer of 200 off for purchases over 100.
But when Croatia looked at the 1997% debt target and 99.5% deficit target in 6.4, unable to sleep at night, tossing and turning...
"Friends" from across the ocean extended a helping hand to it.
Gaosheng Investment Bank, a top investment bank under the foundation, sent people to Croatia, saying that it could help Croatia join the Eurozone.
The Croatian top leaders asked, how can we join the Eurozone?
The man who was promoted smiled faintly and said two words: "Come and cheat!"
That’s right, the people at Gaosheng Investment Bank planned to use “scams” to get Croatia, a country whose fiscal indicators are far from meeting the standards, to join the Eurozone!
Gaosheng tailored a "Financial Optimization Project" for Gaosheng from two directions.
The first direction is to “eat the food of the next year in the current year”.
Gaosheng will sell Croatia's lottery industry and aviation taxes for the next decade in advance in exchange for cash to hedge Croatia's debts.
The second direction is called currency swaps.
Croatia issued a 1000-year government bond worth 10 billion euros.
Gaosheng converted this national debt into the hegemonic currency at the exchange rate, and then Gaosheng paid back 1100 billion euros to Croatia regardless of the exchange rate.
This operation is equivalent to Gaosheng lending 100 billion euros to Croatia.
However, if the country borrows money directly, it will increase its debt in 1998 and its finances will still not meet the target.
Gaosheng's operation is equivalent to postponing the debt until 10 years later.
10 years later, it was exactly 2008!
Croatia used the 100 billion euros to repay part of its debt and "optimize" Croatia's fiscal indicators.
Croatia's fiscal deficit indicators in 1998 and 1999 were 4.1% and 3.4% respectively.
After the magical modification of Gaosheng, the reported indicators were only 2.5% and 1.8%.
When the top leaders of Croatia saw this number, they immediately gave a thumbs up: "When it comes to deception, we still have to rely on the capitalists of the hegemonic country!"
Satisfied, the Kingdom of Ke paid Gao Sheng a commission of 30 billion Ba Guo currency and handed over part of the Kingdom of Ke's industries to the foundation for management.
But both sides knew that they were simply hiding the 1998 debt into the future.
On New Year's Day 2001, Croatia finally joined the Eurozone as it wished.
From then on, the economy began to soar.
From Croatia's perspective, the deal is over.
But Chen Mo, who has the memory of later life, knows that the foundation actually instructed Gao Sheng to go to the Will Bank of the Red Ibis Country to customize an insurance product for whether Croatia can repay 10 billion euros in 100 years.
This product is similar to CDs.
If Croatia can repay the 10 billion euros in 100 years, Gaosheng will pay high premiums to Deutsche Bank every year for 10 years.
If Croatia fails to repay the loan, Deutsche Bank will have to pay tens of billions of euros to Gaosheng.
Therefore, no matter whether Keguo can pay off the debt or not, Gaosheng will make a profit.
Of course, in order to make greater profits, Gao Sheng hoped that Keguo would not be able to repay his loan.
Anyway, Croatia cannot pay back the money, and it has high-quality assets that can be mortgaged.
According to the original historical process, the country of K would really be driven into bankruptcy by Gaosheng, and then severely "fleeced" by the foundation.
But what the Foundation could not have imagined was that a person who had traveled from the future was ready to intercept...
