Rebirth: Dominate The World, Starting From The School Network

Chapter 1225 The Thunder Goldman Sachs Laid For Europe 10 Years Ago

Ross and John Paulson were in a high-end hotel in New York, plotting to go to Europa to recreate the arrival of the space god.

at the same time.

In a conference room on Wall Street.

The Goldman Sachs team is meeting overnight, preparing to launch a plan that has been planned for more than ten years.

Back in May 1998.

Financial dignitaries from various European countries gathered in Brussels, where the EU headquarters is located.

They decided to establish the European Central Bank and issue a single currency for the 5-year-old European Union - the euro.

While various countries were happily discussing the details of the euro, Summers, America's deputy finance minister who was invited to the meeting, suddenly asked————Can the Europeans here tell me that a bank in Yeshiban is in serious trouble? Dilemma, what will happen? What responsibilities should Spain’s supervisory authorities, the Bank of Spain, the European Central Bank and Brussels each bear?

In an instant.

The originally lively venue became silent.

After an awkward silence, the Europeans quarreled.

No one gave a convincing answer.

Everyone present did not expect that Summers' question would become a reality 10 years later.

And it was also when the Europeans were arguing in full swing that the Greek delegation left sadly.

On the day of the meeting, 11 of the 15 EU member states joined the euro zone.

Yingguo, Ruidian and Danmai will not join the euro area for the time being due to political considerations.

And Greece is the only 683 country that was passively defeated because its financial indicators did not meet the standards.

Because I want to enter the Eurozone.

The country's own fiscal deficit must be controlled below 3% of GDP, and the ratio of debt to GDP must be controlled below 60%.

Greece has failed to meet both indicators, but it is impossible for Greece to give up the opportunity to enter the euro zone.

Because there is a piece of fat in the euro zone that Greece cannot give up - the Hans credit card.

The capital market's overall credit consideration of the Eurozone is based on the country with the strongest economy - the country of Hans.

The interest rate on Hansi's government bond financing is 3%, while that of Greece is 18%.

Joining the Eurozone means that Greece will also have the opportunity to obtain 3% of financing costs.

This is a real cost reduction, much more than the 100-50.

When Xiwa looked at the debt indicator of 99.5% and the deficit indicator of 6.4% in 1997, he tossed and turned and couldn't sleep at night.

‘Friends’ from across the Atlantic extended a ‘helping hand’ to Xiwa.

The name of this ‘friend’ is Goldman Sachs, the famous top investment bank today.

Goldman Sachs tailored a "financial optimization project" for Xiwa from two directions.

The first direction is ‘Yin eats Mao Liang’.

Goldman Sachs sold Greek's lottery industry and aviation tax revenue in advance for more than ten years in exchange for cash, which was a mistake for Greek.

The second direction is currency swap trading.

Greece issued a 10-year treasury bond worth 10 billion euros, which was converted into gold by Goldman Sachs at the exchange rate. Then Goldman Sachs paid back 110 euros to Greece regardless of the exchange rate.

The essence of this operation was that Goldman Sachs lent 1 billion euros to Greece.

But borrowing money directly will increase Xiwa's liabilities for that year.

According to Goldman Sachs' operation, the liabilities will not be reflected until 10 to 15 years.

Greece used the 1 billion euros to pay off part of its debt and optimize Greece's indicators.

therefore.

Greece's deficit indicators for 1998 and 1999 were 4.1% and 3.4% respectively.

Goldman Sachs' modified report was only 2.5% and 1.8%.

This meets the requirements for entry into the Eurozone.

Satisfied, Xiwa paid Goldman Sachs a commission of 300 million meters in gold.

But both Goldman Sachs and the Greek government are very clear that they are just hiding the current debt into the future.

On January 1, 2001, Greece got its wish and joined the Eurozone.

This transaction is over from Xiwa's point of view.

But not from Goldman Sachs’ perspective!

Goldman Sachs went to Deutsche Bank to formulate a CDS (which can be understood as a kind of insurance) based on whether Greece can repay 1 billion euros in 10 years.

Goldman Sachs customized CDS with a total price of 1 billion euros for 20 years.

If Greece can pay off 1 billion euros of debt in 10 years, Goldman Sachs will have to pay an annual premium to Deutsche Bank for 20 years.

If Greece fails to recover, Deutsche Bank will need to compensate Goldman Sachs for billions of euros.

FFLX.

Regardless of whether the Greek wax can pay off (cibd), Goldman Sachs will definitely make a profit.

certainly.

For the sake of greater profits, Goldman Sachs certainly does not want Greece to be able to repay the money.

However.

Unaware of this, Xiwa is using practical actions to help Goldman Sachs achieve its original aspirations.

After obtaining a financing cost of 3%, Greece began borrowing crazily. The ratio of debt to GDP exceeded 100%, and it never came down again.

From 2001 to 2009, 70% of Greece's economy was driven by debt.

Greek people are immersed in the environment of debt issuance and enjoyment.

On the other side of the ocean, Goldman Sachs began its next step of planning.

In 2005, Greg Lippman developed trading CDS.

So Goldman Sachs immediately went to Deutsche Bank and customized tradable CDS for Greek government bonds.

After all, Goldman Sachs knew everything about Greece's debt situation.

After Greece entered the Eurozone, it showed no restraint, spent extravagantly, and intensified its efforts. Sooner or later, there will be a debt default.

If Greek government bonds default, the unit price of tradable CDS will skyrocket, and Goldman Sachs can sell them at a high point.

Goldman Sachs made a perfect move and planted a big thunder in the Eurozone. By the way, it also made 300 million gold from Greece. Then it asked Deutsche Bank to insure the thunder and made the European economy the strongest. The largest bank in the country—Hans Country was also pulled down.

If a thunderstorm explodes and Europe collapses, he can earn huge compensation and profits, and he can also accept customers who have fled Europe. Killing three birds with one stone is a huge win.

After accumulating a large number of CDS, Goldman Sachs began to lie dormant, quietly waiting for the day when the thunder exploded.

But the real situation is more serious.

The guarantor of Greek government bonds is the European Central Bank, and the largest holder is Gaul, the EU's second largest economy.

If Greece's national debt really collapses, the entire EU may be buried with Greece.

But Xiwa didn't care about this.

The two presidential administrations from 1996 to 2009 all issued debts to survive. They had the same idea - how to reduce the fraudulent debts is a matter for the next presidential administration.

The debt bubble that was blowing bigger and bigger finally ushered in the day when it burst.

After the subprime mortgage crisis broke out, Greece's tourism and shipping industries suffered a devastating blow.

Tourists from the United States and the European Union decreased by 19.3% and 24.2%, and tourism revenue increased by 30.2%.

The economic downturn has brought about a sharp drop in tax revenue, that is, a sharp drop in fiscal revenue.

In order to maintain the welfare system and daily expenditures, the scale of Greek debt issuance has increased sharply, fiscal revenue has plummeted, and fiscal expenditures have increased sharply, leading to a sharp increase in the fiscal deficit.

On October 6, 2009, George Papandreou officially took office as the new Prime Minister of Greece.

When he saw the real debt situation of Xiwa, he felt dizzy.

He knew very well that in the context of the economic crisis, Xiwa, whose income had plummeted, was unable to pay so many debts on time, and Xiwa would face bankruptcy.

His only hope is to seek support from the EU headquarters.

then.

On October 20, Greece sent a distress email to Brussels. .