Chapter 2588 The Debt Crisis Intensifies

The European debt crisis is indeed a big storm in the financial and economic fields.

It turns out that Greece's debt crisis is far from isolated.

After them, in mid-September, Portugal was exposed to the same problems as Greece, the same heavy debts and lack of repayment ability. The government no longer has any capital to deal with the crisis, and what awaits them is a lot of loans.

The funds in Portugal's hands will last until the end of this year at most, but the debts they face from various banks such as the World Bank and the Royal Bank of Scotland are as high as more than 20 billion euros, and domestic banks have a lot of bad debts.

After the news leaked, Portugal also panicked. The government immediately announced that they would drastically cut public spending, and would actively raise funds to try to keep the government from going bankrupt by March next year.

What made Portugal even worse was that the three major rating agencies in the United States rushed to join in the fun and directly transferred Portugal's national credit to the same level as Greece, reminding it of huge debt risks and insolvency.

Then their banks got the same treatment, after downgrading their credit ratings, there was an inevitable run, and then the banks had to shut down, which caused too much panic.

In fact, after Greece announced the reform of shipping, Portugal and other countries followed it to reform. Everyone has already seen that Portugal will be exposed to crisis sooner or later.

It's just that I didn't expect that Portugal would fall so quickly, even saying "fight not to go bankrupt".

Even because Portugal's size is too small, there is no room for maneuver, so once their debt crisis broke out, the situation seemed to be more serious than that of Greece.

The Portuguese knew that their government was about to go bankrupt, and that various welfare measures would stop after next year. They immediately gathered a parade of more than 100,000 people to demonstrate in Lisbon, the capital of Portugal.

This kind of execution is completely more active than the Greeks. If they were half as active as the protesters, they would not be what they are today.

Italy, Spain and Ireland also seem to be restless. Their heads of government have spoken on various occasions, saying that the economy of their own countries has indeed been affected. National debts do exist, but Britain, Germany and France have promised to rescue them, and the first batch of funds will come down immediately, so please don't panic.

However, some things cannot be hidden.

Since these three countries have said that they are in a debt crisis, the people are naturally unstable.

The economic and public instability in these countries has also affected many small countries to a large extent.

Which country has no foreign debt at all?

The United States is the largest foreign debtor country!

But they have a strong dollar financial system. As long as the system doesn't collapse, it's fine.

Now these EU countries are in the euro zone, and their national shocks have directly affected people's perception of the euro. There are countless investors who sold the euro for a while, and the euro has ushered in a serious crisis.

What is the biggest reliance of a currency?

Of course it is its credit!

If everyone believes that your currency is valuable and you can buy things at home and abroad, then your currency is valuable. As for your 100 yuan, is it printed at a paper cost of 0.1 yuan? It has nothing to do with whether it's worth it or not.

The U.S. dollar is such a currency, so the Yankees start printing money every time there is a financial crisis, depreciating substantially. It is called "quantitative easing" in its euphemistic name, but it is actually printing paper to pay back money. Total rogue.

If people don't believe that your currency is valuable, then you can't buy things with your currency, even if you say that the production cost of my banknote is as high as 100 yuan, it is useless.

This is the case with the currency in circulation in many small countries.

So if they want to buy things outside, they can only use US dollars.

How come?

Then use your own real gold, silver, material minerals and other things to exchange!

With banknotes printed on paper, you can get so many good things. Do you think everyone is greedy for Yankees?

That's why Europe united to build an EU and issue a unified currency - the euro, in order to promote it to the world after it is used as a clearing currency within Europe.

You Americans trade paper for resources. I can do it in Europe too!

Therefore, the United States saw it. With that in mind, now that I have the opportunity to step on it, I will do it without hesitation.

Once the euro area is unstable, or even the euro loses its own credit, it is not a problem of the economy and people's instability in these European countries. The dissolution of the EU can be announced directly and the euro will be reimbursed.

Without the qualification of the euro to compete with itself to clear the currency, the United States can continue to print money in exchange for the fruits of labor of people all over the world.

This is the intention of the United States.

The European debt crisis is relatively troublesome, but what is even more troublesome is the fueling of the flames by the United States.

Whether it is the three major rating agencies or American newspapers and magazines, they are all adding to the psychological burden of the European people and causing a major blow to the euro zone and the European Union.

Goldman Sachs and other Wall Street investment banks and fund companies are another method used by Americans.

In addition to the national debt crisis, countries such as Greece, Italy, and Spain, and even Germany, France, and the United Kingdom, still have credit default swap insurance.

Now Greece and Portugal are obviously about to default on their debts, so the credit default swap insurance purchased by these investment banks before, the banks will have to pay the full amount of compensation, and the funds involved are at least more than 50 billion euros!

Don't think that all banks are rich. The interest rate difference between deposits and loans in European and American banks is very small. It is impossible for banks in Huaguo to make a lot of money just by eating the interest rate difference.

Firstly, foreigners don’t save much money, and secondly, even if they save money, banks will directly take it out for various investments. The financial products that have been popular in the past decade or so are good things that banks think have great potential for value-added.

Including things like subprime mortgage bonds, before the outbreak of the subprime mortgage crisis, they all had annual dividends and gradually increased in value. They were known as "stable and reliable financial products."

So in the last subprime mortgage crisis, European banks knelt down once, and now they have more targeted credit default swap insurance. How can they get compensation for a short period of time when they have very little cash?

If you can't pay such a large amount, you will have to go bankrupt and liquidated.

In the past ten days from the beginning of September to the present, eight small and medium-sized European countries have closed down due to credit default swap insurance, and another twenty or thirty are in a severe situation, which makes the local people Panic.

As a result, under the dual effects of national debt crisis and credit default swap insurance, European stock markets plummeted, and many companies followed suit.

Even companies from other countries with large interests in Europe have been hit hard.

For example, the six major financial groups in Japan suffered heavy losses.

Many companies that did business with them went bankrupt before the transaction was completed, and now the money owed to them, as well as some fields they invested in, have completely stagnated.

Coupled with the sharp drop in the European stock market, the Japanese stock market also plummeted. Many clubs of the six major consortiums once again felt what a financial winter is.

Among them, Itochu Corporation, which claims to have done business all over the world, suffered particularly heavy losses.

They have a lot of investments in Italy, Greece, and Spain, including telecommunications, land, commerce, and so on.

Now that these countries are on the verge of collapse, it has dealt a huge blow to their business development.

After this situation was fed back to the Japanese stock market, the stock of Itochu Corporation fell sharply, falling sharply for a week, reaching a serious decline of 27%, and nearly 30 billion US dollars of funds were evaporated, setting a record since the establishment of Itochu Corporation. worst fall.

On behalf of Chairman Ito Rentaku, he apologized to all shareholders for this, and resigned from ITOCHU Corporation on September 24, retaining only his own shares in ITOCHU Corporation.

The Ito family, one of the three ruling families of Itochu Corporation, has also fallen into a downturn.

He was replaced by Naito Hirataka, the second-ranked director of general affairs.

As soon as Naito Hirataka came to power, he assured everyone that Itochu has strong economic strength, and the losses in Europe are nothing. As long as Itochu is given a month, it will definitely make up for this part of the loss, increase its cash flow, and try its best to get out of the crisis. the impact.

But Japanese economists and stockholders don't believe him very much.

After all, ITOCHU's losses are just the beginning, and so many European countries will suffer. Unless ITOCHU withdraws from these countries, there is no way to stop the losses.

But Europeans are very xenophobic. Once ITOCHU withdraws at this time, they will never be able to enter this market again, and the work they have done for so many years will be in vain.

After all, Europe is still one of the most developed groups on the planet, and ITOCHU is of course reluctant to give up.

If you are reluctant to give up, it means that you have to bear huge loss expectations.

Although ITOCHU Corporation has a lot of interests in the Greater China region, but according to the current situation of the European debt crisis, I am afraid that it still cannot get rid of huge losses, right?

Therefore, the stock of Itochu Corporation is still falling.

The employees inside Itochu Corporation, including a group of bigwigs, are waiting to see if Naito Hirataka has the ability to bring the precarious Itochu Corporation back on track.

However, Naito Akinobu, who has been looking forward to having the Naito family in power, is very happy at this time.

Because the business he discussed with Xiao Qi before has finally reached the point where he can discuss it in detail again!

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