Chapter 2525 Important Favors

Entering August, the air over Europe began to become increasingly tense.

Although the European Union as a whole is a complex organization, but generally speaking, everyone hopes to live a good life, so they are united together in order to enjoy the benefits of economic integration.

It's a pity that in order to take into account the overall situation, the EU does not only exist with a few powerful countries, but has absorbed many small and medium-sized countries. To put it bluntly, it is a poor country.

Greece, for example, is a thoroughly poor country.

Originally, in the 1980s and 1990s, Greece, relying on its own huge shipping team, together with Italy, supported the shipping transportation of the entire world.

However, with the development of the aircraft industry and the continuous recession of the economies of various countries since the Asian storm, as well as the constant competition from Asian fleets such as Japan, South Korea, Huaguo, and Huaguo Hong Kong, the Greek shipping industry has declined For a long time.

As a result, Greece can't even produce a decent industry. The most eye-catching and the most profitable is the tourism industry, and then their overseas Chinese remittances.

It is really admirable that a country with an ancient civilization has been reduced to where it is today.

But if you take a closer look at the Greek way of life, you will see that they did it purely by themselves.

The first point is that the Greeks are very lazy. They are used to lazily working five or six hours a day, spending more time on meals and banquets than on work.

You can say that five or six hours of efficient work is fine, but the problem is that they don't work hard for these five or six hours. At best, it can be regarded as the three hours of labor of Chinese workers.

People are not afraid of being poor, but of being lazy.

If you don't work hard yourself, how can you hope that your work will get better and better?

The second point is that Greece has no interest in any innovation.

Such as heavy industry, such as light industry, such as the electronics industry, such as the network industry... They seem to be born to be a few steps behind, and they don't care about the constant changes in the world's economy and innovation.

The third point is that as a developed country in the West, Greece has a very complete social security system. This has also caused many of their residents to not need to work, and to receive relief funds to live on when they are unemployed. If you are not eligible for the benefits, then go to work for a few months, and then come back to receive benefits.

In addition, Westerners are hypocritical and unwilling to have more children and be more responsible, so the population of Greece has not increased much for many years, resulting in a very serious aging of Greece, which has led to an increase in the number of people receiving relief funds.

wait a minute.

I just said it earlier. Greece itself is not rich, tourism is a pillar industry, and there is almost no heavy industry. How can their government have so much money to pay for various huge social security system expenses?

Is it printing more currency?

of course not!

The greatest value of currency actually lies in its credibility.

The circulation of currency must be circulated internationally in order to enter and exit. If it is only circulated in the country, it will be completely useless except for causing serious inflation.

You issue additional currency to buy things outside. Everyone knows that you Greece is just messing around. How can you accept your currency and wait for the currency's purchasing power to depreciate?

therefore. Greece adopted the simplest and most direct method.

borrow money!

They go everywhere to borrow money, whether it's with EU banks. Or with Goldman Sachs, or with Citigroup, or with the Royal Bank of Scotland... Anyway, they will borrow all they can.

As for what to do if there is no money after borrowing?

It's very simple, just cover the old account with the new account, continue to borrow money to pay back, borrow money to spend!

Ok.

The money borrowed in the name of the country is the so-called national sovereign debt.

If you just borrow money over time without a continuous repayment plan, then this sovereign debt is fine on weekdays. It can always be dragged slowly by relying on finance and taxation.

But once the economic situation suddenly becomes very bad, you can't afford to pay off a debt. It will directly trigger a chain reaction, and all the debts will bring down your government together.

This is the ins and outs of the first debt crisis that broke out in Greece in the previous life.

The problem is that in the European Union, Greece is definitely not the only country that borrows money to live on.

Italy, Spain, Portugal, Ireland... a lot of countries live like this on weekdays.

So when their debt crises broke out one after another, the entire European Union fell into the process of desperately trying to rescue them.

Coupled with the fact that the world's second largest shit-stirring stick, the United Kingdom, across the English Channel, also fanned the flames and dragged down the rescue plan of the entire European Union. As a result, before Xiao Qi's reincarnation, only one country, Ireland, withdrew in name The rescue mechanism, the rest of the countries are still early!

Originally, Europe wanted to take advantage of the subprime mortgage crisis in the United States to develop itself and strive to catch up with the United States.

But if there is such a disturbance, let alone three or five years, even ten or eight years, it will not be able to recover. How can it compete with the United States?

The United States is good. It slowly recovered in a few years. It also passed on its losses to Europe and Asia, and continued to instigate internal conflicts in the European Union and various countries. , it is none other than them.

Therefore, Xiao Qi firmly suggested that Europe must know the intention of the United States in advance and know the huge crisis it is facing.

Only if they are prepared, then they will not be busy fighting fires everywhere, ignoring the disasters brought to them by the United States, and ignoring the losses and debts brought to them by Goldman Sachs, Merrill Lynch, Morgan Stanley and other investment banks. Making waves in a crisis.

After the giant meeting of more than 30 people on Huaguo's side, a decision was made soon.

An overly weakened Europe is not in the interests of China.

But a Europe that is not weakened is not in the interests of China.

If they were notified late, it would cause them heavy losses, and it would be difficult to get up; if they were notified early, their losses would be greatly reduced, which would also be detrimental to Huaguo.

Therefore, at the end of July, China's foreign affairs department warned the European Union through various channels, pointing out the major national debt crisis that Greece and other five countries will face.

The European Union is a loose organization. They did not fail to respond to China's warning, but they need to hold a meeting to discuss, and then go to Greece, Italy and other countries to investigate, and let these countries come to talk... and so on. It is fixed. The investigation procedure was decided in August.

Greece, which received the news, even strongly protested the EU's interference in their finances, and adopted a resolute non-cooperative attitude, claiming that their financial situation is good and there is no problem!

Hearing the news of Niu Ruzheng's return, Xiao Qi couldn't help but smile bitterly.

There is nothing wrong with the EU going to investigate Greece and other countries, asking them to confess and discuss how to solve the problem.

But the problem is that countries like Greece will not die until the Yellow River. Before the national debt crisis breaks out, they will not pay attention to the people of the European Union at all, and they will think that they are too much. Impossible to be honest with the EU.

That's what they did in their previous lives.

Then when the debt crisis broke out, they cried and begged the EU to save them and give them money to tide over the crisis.

As a result, when the EU gave them money and put forward conditions for them to rectify, Greece firmly refused, claiming that the EU was taking advantage of the fire, and they only wanted money and no conditions.

Ok.

If you look at what Greece has done, you will know that this is a complete bastard who only asks but does not pay.

Therefore, when the powerful countries of the European Union held meetings later, Britain satirized France and Germany. Why did you take this thing in? Didn’t you invite a father to raise it?

Seeing Greece doing the same thing now, Xiao Qi knew that Greece would not be able to escape this time.

But fortunately, Britain, France, and Germany all attach great importance to the opinions of China. When they are actively checking the financial status of EU countries, they are also cleaning up their various financial problems.

Especially the "credit default swap insurance" business that Xiao Qi emphasized, many banks in the three countries of Britain, France and Germany have been involved.

Once the debt crisis in Greece and other countries breaks out, these banks will be the first to suffer, and their losses will definitely be much greater than the subprime mortgage crisis.

If there is no adequate preparation, there will be more than a few banks that will close their doors!

Regarding this point, Britain, France and Germany were inspecting at the beginning, but banks in other countries also inspected it. After all, the banking industry is the foundation of finance. If all banks close their doors, the impact on a country will be too great. Now, it is not impossible for the government to be kicked out of office immediately.

Xiao Qi couldn't help but breathe a sigh of relief when he heard the EU countries' actions.

In the previous life, the EU countries suffered the biggest loss from the banking industry, which dragged down various industries.

If they can reduce the losses in the banking industry, then even if many countries encounter debt crises, the EU will have to spend much less effort to help them.

You know, take Germany, the most powerful country in Europe, for example. While helping Greece and other countries, they are still dealing with the major debt losses of their own major banks. It is really not easy.

Prepare in advance in this life. If the losses are reduced, Germany will increase its efforts to rescue other countries, thus making great contributions to ending the European debt crisis as soon as possible and restoring the vitality of the European Union.

This happens to be in the interests of China.

The European Union has suffered major losses, but it has not been injured. It will be able to recover in three to five years. It will not only be able to continue to compete with the United States after recovery, but it will also give China a few years of development and transformation time.

As a result, Huaguo will become the big winner of this global financial crisis! (to be continued ~^~)