Rebirth of England.

Chapter 713 Noose
Although she didn't know the Chinese saying "Every autumn rain brings a new chill", Bonnie, standing at the door of the building at this moment, also realized that London was about to enter the cold season again.

After getting into the car and turning on the roof light, Bonnie took out the documents and started looking at them.

She knew that after returning home, she would first spend time with her two children, and would definitely not have time to deal with these official duties, so she simply used the time on the way to finish reading it.

Bonnie opened her phone and saw the WoawChat message from Barron:

"I'm going home tonight."

With just these few words, a smile appeared on Bonnie's face.

"Ok."

……

10月20日，希腊政府突然宣布，2009年政府财政赤字和公共债务占国内生产总值的比例分别达到12.7%和113%，远超欧盟《稳定与增长公约》规定的3%和60%的上限。

Once this news was disclosed, it caused panic in the entire market.

As for why the Greek government is suddenly so honest...

The announcement was made by the new Greek Prime Minister George Papandreou, who claimed that his predecessor had concealed a large fiscal deficit, so he disclosed the news shortly after taking office.

It was 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 not so easy to solve. In order not to be a scapegoat, he had to make it public.

In this situation, Greece has no other choice but to continue the "old tradition"...

It means solving the current debt problem by borrowing new debt to repay old debt.

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

This sovereign debt crisis will not only spread to Greece, but will also soon spread to the PIIGS countries and drag down the economies of France and Germany, the two core countries of the Eurozone, making him a fortune...

Similarly, the rope around the Rothschild family's neck has begun to tighten.

The reason why Greece has fallen to its current state can be entirely attributed to its own fault.

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

But what needs to be understood is that what Goldman Sachs did was simply to hide Greece's huge debt. These debts did not disappear, and the Greek government still needs to continue to pay high interest.

In addition, the work of Goldman Sachs Group also earned them $300 million from the Greek government. The 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 euro zone.

But after joining by cheating, the Greek government was able to finance at a lower interest rate by virtue of its status as a eurozone country, and thus borrow a large amount of money.

If the borrowing they made - that is, the sovereign debt they issued - could have been invested in domestic economic development, then joining the euro zone would have been a good move for Greece, and it would not have developed to its current point.

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

Yes, Greece is a "democratic country". After joining the euro zone, they took advantage of relatively low interest rates to issue sovereign debt on a large scale. Apart from using new debts to repay old debts, most of the remaining funds were used to improve people's welfare.

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

But this whole process just shows the short-sightedness of Western cooking.

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

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

What Greece did was like a country using loans to enjoy itself. Not only did their domestic production level not improve, but their competitiveness declined due to high welfare benefits. Eventually, after the subprime mortgage crisis, they were unable to conceal the situation and fell into a debt crisis.

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

In fact, Barron had already started planning for this earlier...

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

At that time, one of the measures taken by Goldman Sachs to embellish Greece's financial data was to lend $10 billion to the Greek government.

Goldman Sachs was also very cautious. After lending the money, they "insured" the loan - they reached an insurance agreement with a German financial institution, paying the other party a considerable "insurance premium" every year, and the other party needed to provide a guarantee for the $10 billion loan.

That is to say, if the Greek government is unable to successfully repay the one billion US dollars in the end, then this financial institution will need to pay the full amount of the one billion US dollars to Goldman Sachs!
It looks like Goldman Sachs is giving them money for free, because after all, Greece is taking out this loan in the name of national sovereignty. It is impossible for such a country to be unable to repay a loan of 10 billion US dollars, right?
Therefore, the other party was very happy to sign this insurance agreement with Goldman Sachs, and was able to receive a considerable amount of "insurance premium" from Goldman Sachs every year...

So there is nothing new under the sun...

I guess 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, it has continued to borrow a large amount of sovereign debt until now, 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 has now become a subsidiary of the LCR Rothschild Group...

(End of this chapter)