Chapter 731: Kick

The most important thing is that under the existing legal framework, the European Central Bank has no obligation and cannot rescue Greece. ECB President Trichet also stated that they have no plans to rescue Greece through workarounds.

In the Maastricht Treaty related to the euro area, there is a clause called the "no-bailout clause" - this clause clearly stipulates that the European Central Bank and the central banks of the member states are prohibited from providing financial assistance to the public sector institutions of the member states or the Community. Providing overdrafts, or loans similar to overdrafts; prohibiting the European Central Bank and central banks of member states from purchasing bonds directly from these institutions; prohibiting the European Central Bank 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 target of 3% of GDP stipulated in the Stability and Growth Pact, they all rely on their own strength to reduce their deficits. reduced to within specified levels.

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 hazard that will arise if Greece is bailed out.

Even though, as Trichet said, there was a "no-bailout clause" in the Maastricht Treaty, after all, before that, no economic crisis as devastating as the subprime mortgage crisis had broken out in Europe or the world. , and in addition to Greece, which actively hopes that the European Central Bank will provide corresponding assistance, other countries, especially the five European pig countries such as Ireland and Spain, are also inclined to provide assistance to Greece...

After all, they know their own affairs, and 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 debt crisis, they can also ask the European Central Bank to Rescue...

Among them, 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 through "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 can bail out other countries that are seeking death in the future. So, especially those small euro zone countries with poor economic conditions, who would want to What about working 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.

Moreover, the European Central Bank is different from the Federal Reserve. Even as the president of the European Central Bank, Trichet cannot deal with many things in one fell swoop.

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 they are both independent financial stability agencies, the ECB is completely different from the Fed 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, Italy, Ireland and other countries, initially In order to join the euro area, "financial operations" have been carried out to varying degrees on the issue of government debt levels...

These countries with the most backward economic development in the EU also suffered the most damage from the 2008 financial crisis.

Therefore, 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 have an economic crisis more serious than the subprime mortgage crisis after Greece took the lead in detonating the sovereign debt crisis.

Accordingly, affected by these, the euro exchange rate continued to plummet, and the stock index of the entire European market was falling...

At the end of January, the Wall Street Journal took the lead in publishing relevant reports, pointing out that after NM Rothschild Bank suffered heavy losses due to the illegal operations of a trader, its parent company LCR Rothschild Group is likely to face huge compensation. According to relevant sources, many institutions including Goldman Sachs, JPMorgan Chase, and Citibank have purchased corresponding credit default swap bonds (CDS) from the same German institution since 2001 for the loans they issued to many European countries including Greece and Ireland. At present, this German institution has been acquired by LCR Rothschild Group and has become its wholly-owned subsidiary.

This means that if these countries cannot repay these loans within the prescribed period, then according to the original CDS bond rules, LCR Rothschild Group will repay these loans as the underwriter!

According to the Wall Street Journal's estimate, the funds involved will exceed 10 billion euros!

This reminds people of the incident that caused the bankruptcy of American International during the subprime mortgage crisis, which was also caused by their investment department underwriting CDS bonds.

After the report of the Wall Street Journal, many media including the United States, Britain, and even the European continent reported this shocking news one after another.

Obviously, when the European Central Bank has been silent and refused to reveal the issue of aid to Greece, the sovereign debt crisis in Greece has intensified.

If it is really as the report says, then I am afraid that Greece’s debt default is not impossible, and it even seems that the probability is getting higher and higher...

Then the LCR Rothschild Group will probably face a desperate situation-after all, it has only been more than a year since the fall of American International Group.