Chapter 713 Noose

Although she didn't know the Chinese saying "an autumn rain brings a chill", Bonnie was standing at the door of the building at the moment and realized that London would begin to usher in the cold season again.

After getting into the car, she turned on the roof light and continued to take out the documents and began to read them.

She knew that when she got home, she would first accompany her two children, and she would definitely not have time to deal with these official business at that time, so she simply used the time on the road to finish reading them.

With a "ding" message sound, Bonnie turned on her mobile phone and saw the WoawChat message sent by Barron:

"I'm going home tonight."

In just one sentence, Bonnie smiled.

"Okay."

...

On October 20, the Greek government suddenly announced that the government's fiscal deficit and public debt accounted for 12.7% and 113% of GDP in 2009, 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 so honest all of a sudden...

It's because the person who announced this was the new Greek Prime Minister George Papandreou, who claimed that his predecessor concealed a large fiscal deficit, so he disclosed this news shortly after taking office.

It's also because after this guy finally won the election and came to power, he found that he had taken over such a mess, which was really not so easy to solve. In order not to be a "scapegoat", he had to make it public.

At this point, Greece has no other way but to continue the "old tradition"...

That is, to solve the current debt problem by borrowing new debts to repay old debts.

After seeing this news, Barron smiled, because he knew that the economic collapse of Greece has entered the countdown...

Not just Greece, this sovereign debt crisis will soon spread to the five European pigs, and drag down the economies of France and Germany, the two core countries of the euro zone, so that he can make a fortune...

Similarly, the rope around the neck of the Rothschild family has begun to tighten gradually.

And the reason why Greece has fallen to this point can be said to be self-inflicted.

As mentioned earlier, in order to meet the requirements and join the eurozone, Greece at that time could be said to have tried every possible means...

They asked Goldman Sachs to help them optimize their financial data, thereby hiding a large amount of debt on the surface and successfully joining the eurozone.

But it should be noted that what Goldman Sachs did was just to hide Greece's large amount of debt. These debts did not disappear, and the Greek government still needed to pay high interest.

In addition, Goldman Sachs' work also allowed them to receive $300 million in remuneration from the Greek government.

The domestic economic level of Greece itself 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 by cheating, relying on the status of a eurozone country, the Greek government can finance at a lower interest rate and borrow a lot.

If the borrowing they made, that is, the sovereign debt they issued, could be invested in domestic economic development, then joining the eurozone might be a good move for Greece, and it would not have developed to the current level at all.

But the problem is that Greece is, to put it bluntly, "not destined to be a princess, but suffering from princess syndrome".

Yes, Greece is a "democratic country". After joining the euro zone, they took advantage of relatively low interest rates to issue sovereign debts. In addition to "repaying old debts with new debts", most of the remaining funds were used to improve the welfare of the people.

It sounds like it is a relatively happy thing for the Greek people...

But the whole process just reflects the short-sightedness of Western democracy.

Just like if you borrow money to use for production and operation or real estate investment, then perhaps this is a rewarding thing for individuals to make good use of financial means.

But if the money you borrow is entirely for personal enjoyment and cannot bring any return, then you can only get short-term pleasure, but the accumulated debt will eventually ruin the future.

And Greece's approach is like a country using loans to enjoy. Not only did their domestic production level not improve, but their competitiveness declined due to high welfare benefits. Finally, after the subprime mortgage crisis, they could not hide it and fell into a debt crisis.

The most interesting thing is that during this period, every time there was a general election, different factions would compete for voters with better welfare benefits, which created a vicious cycle and developed to an uncontrollable level.

In fact, Barron's layout for this had already begun earlier...

This first started with Goldman Sachs' "packaging" of Greece.

At that time, in order to modify Greece's financial data, one of the measures taken by Goldman Sachs was to lend $1 billion to the Greek government.

The Goldman Sachs Group was also very cautious. After they lent the funds, they "insured" the loan - they reached an insurance agreement with a financial institution in Germany and paid the other party a large sum of money every year. "Insurance money", and the other party needs to provide guarantee for this 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?

Therefore, the other party was very happy to sign this insurance agreement with Goldman Sachs Group, and was able to receive a large amount of "insurance premium" 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...

Moreover, after the Greek government joined the Eurozone, and until now, it has successively borrowed a large amount of sovereign debt, 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...