Chapter 261: Europe's First Counterattack (2)

Sure enough, on February 9, this report about Goodman appeared overwhelmingly in the media and on the Internet, and the focus of the financial market suddenly focused on the United States, focusing on the investment bank boss Goodman, and even another blockbuster news inadvertently lost a lot of weight.

Of course, only a few people know that the reason why Goodman's report was published at this time was to divert the attention of the market.

For a time, Goodman was in the spotlight, and of course it was not a good thing to be in the spotlight. After an emergency response, Goodman quickly issued a "disclaimer" statement, declaring that the currency swap agreement designed by the Greek government and other countries at the time was completely compliant and legal. If there is a regulator who wants to access the relevant information, they are always welcome. At the same time, they have also made it tough that they are ready to deal with the charges even if they are ultimately charged.

As soon as this statement was published, it immediately caused a sensation in the entire market. Because anyone with a discerning eye can see that the relevant reports on Goodman Company have the shadow of the European Union behind it, but Goodman, as one of the representatives of American capital, did not choose to give in and bow down because of this, the hidden meaning behind this is very intriguing.

Anyone who understands this incident knows that it is impossible for the two sides to face each other in a torn face, because it is very likely that they will meet and lose both, and more importantly, neither side wants to see their dominant position in the market eroded and coerced by other third party forces.

As representatives of the forces of both sides, these big investment banks or fund companies may have to bear the brunt of the anger from the other side.

The whole thing immediately fermented.

On this very day, the Greek government issued a statement announcing that it would raise around 9 billion euros by May 19 to meet some of the debt dues. With the current financial resources of Greece. They simply can't afford to pay this part of the debt. At the same time, the Greek government's plan to replace the old ones by issuing new ones is no longer feasible because the debt rating has been downgraded.

Because, their practice of auctioning off new treasury bonds turned out to be aborted.

That is, no institution in the market can accept the price set by the Greek government and reduce the price once it is lowered. The Greek government will not be able to raise the funds it needs before May 19, so the Greek government's plan for a new government bond issuance has been scrapped in the face of an impossible compromise between the two sides.

In the statement, Greece officially announced that it would seek help from the European Commission and the IMF, and that the specific application plan is being prepared in a hurry, and submitted to the relevant institutions in the shortest possible time.

This statement undoubtedly verifies the previous reports of the US media and the downgrading statements of the three major rating agencies. That is, Greece is really in a debt crisis.

But this news, which could have caused a sensation in global markets, unexpectedly did not cause market volatility, because that same evening, the European Commission also issued a statement, an almost-for-tat statement, that stabilized market confidence.

This statement from the European Commission was issued in the early hours of February 10, that is. Just the day after Greece's announcement, the European Commission convened. And the deal was reached quickly, and it was released before the market reacted.

It is well known that decision-making within the EU has been slow, because the eurozone was originally a monetary union and later developed into an economic union, but each member state remains an independent sovereign state. Balancing the interests of all parties will inevitably lead to a long period of fighting.

In this case, the European Commission reached an important agreement in just one day, and this speed is naturally very doubtful.

But in any case, this statement issued by the European Commission. Not only did it sweep away the potential impact of Greece's statement, but it also strengthened the confidence of several other potentially dangerous countries.

In the statement, the European Commission announced that it would provide an emergency loan to ensure that Greece would not default on its maturing government bonds. This announcement was accompanied by a large stabilization mechanism. The European Commission announced that it would establish a eurozone stabilization mechanism with a total amount of up to 750 billion euros to avoid the continued spread of the sovereign debt crisis in the future.

The eurozone has even taken great pains to analyze the source of the funding for this stabilization mechanism: the countries of the eurozone will jointly inject 440 billion euros, and the European Commission will contribute 60 billion euros, that is, the whole of Europe will spend 500 billion euros to stabilize the region's debt. The remaining 250 billion euros will be spent by the IMF.

Naturally, this stabilization mechanism has remained on paper so far, and it is expected that it will be difficult to resolve issues such as the amount of funding and the proportion of each country's finances if they are to continue to be resolved by the finance ministers of each country. But the important thing is that Greece's government bond is guaranteed by credit, at least without fear of default.

Two pieces of news, one after the other, appeared on the market. The former is like a pebble thrown in a calm pond, which only causes a little ripple and then quickly disappears. The latter is like a thunderclap on the ground, which quickly boosts the confidence of the market. For a time, the euro, the euro area stock market, and the commodity market all rose in different ranges.

"That's how they boost market confidence?"

However, within the Tianyu Fund, the European Commission's approach has aroused a lot of doubts, and when Jiang Shan saw the news, he almost couldn't believe his eyes, and ran directly to Zhong Shi's office, crying and laughing, and asked, "Zhong Sheng, have you seen the news?" With a mere 750 billion euros, I am afraid that the national debt of two or three countries is not enough, how dare you say that it is necessary to stabilize the entire eurozone? ”

"And most importantly, it will take at least two to three months for the European Commission's decisions to become a reality. In this case, how can they stop the spread of the crisis? ”

"It's so funny! It is incredible that such a statement can be fully believed by the market! Are investors all fools? ”

In the end, he couldn't help but complain loudly.

"Then do you know why they chose to release this statement at this time?"

Zhong Shi did not answer the rhetorical question, and looked at Jiang Shan with interest, "For pillar countries such as Germany and France. There is no sign or possibility of any downgrade in their debts at all. In this case, they can look at the Greek joke, after all, it is not a good thing for a country like this to leave the European Union. ”

"Aren't you afraid that other countries will have ideas?"

Jiang Shan blurted out, "Who doesn't understand this truth?" If the European Commission does let it go, the eurozone as a whole could be in danger of falling apart. This is obvious. So no matter how much their opposition shouts, it probably won't stop them from paying for it. ”

"You're right, but not quite!"

Nodding slightly, Zhong Shi pointed to his head, "I think so, the main reason why the European Commission made a decision so quickly is not because it is afraid of the euro division falling apart, but because of the debt crisis in Greece, which has jeopardized the strong position of the euro." ”

"The reason?"

Jiang Shan's whole face suddenly wrinkled. After thinking hard for a while, he hesitated and said, "In order to compete with the US dollar for the dominance of the world currency, they originally integrated a euro economy and used the power of Europe to fight against the US dollar and strive for the right to issue world currencies." It turns out that when the economic crisis broke out in the United States, the euro had a tendency to replace it. The United States also saw this, which is why it is desperate to sabotage Europe. Is that the case? ”

"Not bad!"

Zhong Shi slapped his face twice and praised Jiang Shan's analysis. "The euro was created to counter the dollar. In the past, the world's common currency was the US dollar, and although the amount of money issued by the Federal Reserve was strictly controlled every year, it is not difficult to see that even if it is 1% more than 1% of the annual issuance, the number of dollars in circulation in the world is strictly controlled. It can also bring great benefits to the United States. It's a slow drain of the world's wealth. During this time, the exchange rate mechanism within Europe continued to consume wealth, and the gap between the two sides will only widen. That's why Europe's elites designed the euro as a common currency, and even if they lose the right to issue money, they need to reduce this unnecessary internal friction. ”

"When the euro becomes another strong currency. It is also invisibly absorbing the wealth brought by the world, which is the same as the dollar. Moreover, compared to the United States, the entire eurozone economy is larger, with a smaller total amount of money, that is, a higher gold content. ”

"In recent years, the foreign exchange reserves of many countries have quietly transformed from a single dollar to a form of joint holding of multiple currencies, which means that the hegemony of the dollar has been seriously challenged. The U.S. government has been helpless about this, but now there is an opportunity to somehow pass on this crisis while it is being hit hard, and Europe, which has always been eyeing the status of the dollar, is the best place to transfer. ”

Naturally, Europe's elites know this. It's just that so far, they haven't agreed on it internally, but if they do, we probably don't have much of a chance. However, because of the decision-making mechanism of the European Commission, so far, they have not reached an agreement, and it is difficult to reach an agreement. So we have a lot of opportunities. ”

"What should we do?"

At this time, Jiang Shan understood it thoroughly, and then asked, "Zhong Sheng, according to your estimate, how far will the whole thing develop in the end?" It can't really be the breakup of the eurozone, right? ”

"Of course not!"

Zhong Shi categorically denied, "The eurozone will definitely not disintegrate, just look at today's reaction!" As for what we are going to do next, we have to discuss with the US side before making a decision! ”

"Why didn't it disintegrate?"

Hearing Zhong Shi's words, Jiang Shan's heart was even more confused, "According to general logic, if there is really a large-scale debt crisis, the biggest possibility is that the eurozone will be dissolved, and countries will use their own currencies to repay their national debts." No, this is contrary to the original purpose of the euro! ”

"Have you forgotten?"

Regarding Jiang Shan's words, Zhong Shi sneered and retorted disdainfully, "If Europe really comes to that point, won't they use this trick of the United States to deal with them today?" Isn't it enough to pass on the crisis? ”

"Is this okay?"

Jiang Shan gasped, but the next moment he was puzzled again, "This is indeed possible, but according to the scale of its economy today, where can it transfer the crisis in the end?" ”

"The most likely thing is that it and the United States have reached an agreement that the two sides will jointly take action in a certain region and divide up the interests there, which will not only smoothly pass on their own crises, but also join hands with the United States again to establish a friendship based on understanding."

Looking at Jiang Shan, whose face was getting more and more gloomy, Zhong Shi said expressionlessly, "The truth is cruel, right?" But that's the nature of the world! (To be continued.) )

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