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The Whole Story of the Greek debt crisis

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					The Whole Story of the Greek debt crisis
Early October 2009, the Greek government suddenly announced, in 2009 the
government deficit and public debt to GDP ratio is expected to be respectively 12.7%
and 113%, far exceeding the EU's "stability and growth
pact" under 3 percent and 60 % ceiling. In view of the financial position of
the Government of Greece deteriorated significantly, the world's three
major credit rating agencies Fitch, Standard & Poor's and
Moody's sovereign credit ratings have lower Greece, the Greek debt crisis
kicked off.

Behind Goldman Sachs?

 In late February, the debt crisis of Greece in the EU head turn when busy, Goldman
Sachs contract with the Greek government on gambling exposure.

  Contract, in 2001, Greece hopes to enter the euro zone, but because of their financial
deficits over the euro zone requirements, and thus to help Goldman Sachs. Goldman
Sachs made Greece a "currency swap deal": Goldman Sachs has
accepted the Greek government bonds and the yen 10 billion U.S. dollars to transform
it into a 90 billion euros in debt and 10 billion euros in cash, and to the Greek gaming
and airport future income tax as collateral, the cash will be returned to Greece after
the Greek requirement of 10 years must use the euro arrived yet all of these debts. The
results will make their own book on Greece's 1 billion euros of debt for the
time being disappeared, the national debt down to meet the requirements of 1.2% in
the euro area, and successfully entered the euro zone. The Goldman Sachs investment
bank in addition to getting paid 300 million euros Greek commission, the hand still in
control of Greece, this huge amount of debt.

  However, the question is then a large number of Goldman Sachs Youxiang market
transactions to purchase the CDS (credit default swaps), which is the Greek gambling
debt due in less than capacity to pay after insurance. Therefore, Goldman Sachs will
need in the market to pay to destroy the credibility of Greece, so Greece CDS
Insurance rose sharply, to then hand the CDS when thrown Goldman profit. This is
what occurred in early February this year, capacity to pay on the Greek main reason
for the attack. In fact since July last year, Goldman Sachs in the hands of the Greek
CDS has shot up by 3 times. That is, while Goldman Sachs to help hide debt lucrative
Greece, on the other hand lack of ability to pay gambling Greece, but also earned
pours.

With the sovereign credit rating was reduced, the Greek government's
borrowing costs sharply. Greek Government in 2010 to raise 54 billion euros of
emergency funds, or face bankruptcy "threat." As the huge debt
of Greek economic conditions deteriorated, February 24, 2010, about two million
people in Greece held the largest ever strike to protest the government for emergency
measures to cut expenditure.

 February 25, Standard & Poor's Ratings Services will be
Greece's long-term and short-term sovereign credit rating remained at
"BBB% 2B" and "A-2" the same, and will
continue to include the negative watch list, also warned If the financial situation of
Greece, within one month can not be "better" in the near future
may further cut its rating on 1 or 2 files, which may make long-term rating at junk
Greece edge.

 April 23, the Greek government was forced to the EU and the IMF, the euro zone
will start the rescue operation for the first time in history. According to Greek media
poll published on 23, up to 91% of the respondents worried about the Greek people
start the rescue mechanism will cause the government to implement more stringent
policy of austerity.

  April 27, Standard & Poor's sovereign credit rating of Greece
down to "junk." At the same time, Greece has also led to the
debt crisis began to crisis in other European countries, including Belgium, Portugal,
and Spain have high budget deficits forecast the next three years. In addition,
Germany and other euro zone countries have begun to feel the economic impact of the
crisis, as the euro fell sharply, with European stock markets into a nosedive, the euro
is facing 11 years since the establishment of the most severe test.
Crisis in the United States and Europe overtly Greek: together for the euro curb
inflation
Crisis in the United States and Europe overtly Greece
With international commodity prices continued to rise, the U.S., Europe is under the
increasingly heavy pressure on inflation.
How to curb inflation? Americans understand that when the economy recovered from,
by means of control price hike is "seek death." Then to manage
the price, and no means of interest rates, how do? Recent signs that the United States
and Europe are joining forces with non-rate measures to check inflation.
In Europe, Greece and even Portugal, Spain and other countries of the debt is
becoming a tool, often for things out. This is not because the so-called
"debt crisis" more serious, but the United States, Europe and
trying to achieve "controlled" to "suppression of the
euro, very dollar" purposes. Why? Because international commodity prices
are generally denominated in dollars, the dollar could effectively inhibit the rise in
commodity prices, depreciation of the euro can increase the competitiveness of
euro-zone exports.
In fact, the "euro, dollar," the intention is also available from
Germany, France, the European Central Bank, the European Union and the IMF on
the "debt crisis" statement made by a series of topsy-turvy get a
glimpse: save them for a moment that, while it is extremely hesitant; moment that
provide assistance payment of 110 billion euros, he says that this is
"reserve fund"; when the market when a sharp defeat, they
came up with 750 billion euros of the package. Why? Actually, they want the euro,
dollar, market performance but do not want too much, do not want investors to lose
confidence in Europe.
By Warren Buffett's statement, the Greek "debt crisis"
only "a hard look at the film", he simply dismissed. Because the
history of some countries (such as Mexico, South Korea, etc.) occurred in the external
debt crises, Greece owed is "local currency debt", will not lead
to national bankruptcy.
Now the world's largest debtor is the United States, its a bit better than the
Greek debt ratio is low, why does not the debt crisis? All the U.S. dollar because of its
debt obligations, big deal it wants to print money debt. Greece is the euro, the debt
owed, as long as the commitment to the European Central Bank, "Greece
can use their mortgage debt to the European Central Bank", the debt crisis
is over. But doing so will hurt the interests of other EU zone countries, but also
because of this, Germany, France and other countries can use their right hands,
through their own position about the euro currency. In fact, the euro depreciated
against Germany and France are beneficial because they can take to strengthen their
export.
In the United States, following frequently checked after Goldman Sachs, Morgan
Stanley, which is why the concealed illegal commodities transactions being
investigated. May 11 came news said: Bank of New York Mellon's
department and two former executives of New York State Attorney General 安德鲁
库奥默 allegations, saying the customer to conceal the financial Jupian Bonademai
Randolph's investment company.
Wall Street has gorgeous scenery now why the financial giant to face such a powerful
monitoring? This, of course with these institutions in the financial crisis in the
shameful role, Dan in my opinion, this objective at least played a second role:
inhibition of Wall Street giant on the arbitrary manipulation of commodity prices.
Market that the U.S., Europe and the effectiveness of joint operations: from the time
point of view, the recent commodity price collapse occur, it is in Goldman Sachs,
Morgan Stanley checked, the so-called European "debt crisis"
led to the euro , when the dollar.
So, not to the debt problem in Europe too seriously, do not let Goldman Sachs and
other Wall Street financial institutions have been investigated as a contribution to
American International. Important is how we should do.
Representation point of view, inhibition of commodity prices can help China avoid
the threat of imported inflation. But China must not be taken in, if we think that
Europe and the United States have made contributions to the world, we should also let
the yuan appreciate or "tightening", it will be a historic mistake.
At this point, our most important traditional industries by accelerating the integration
of international advantage to keep traditional industries, give new strength to achieve
a new value-added strategic industries, pushing growth pattern.
Greek debt crisis of the three revealed
http://www.sina.com.cn 2010 年 05 月 03 日 06:55 International Online
International Online reports (Xinhua Wu Ruolei): Euro Group Chairman, Juncker of
Luxembourg 2, after the meeting in the euro zone finance ministers announced at a
press conference, the euro zone decided to start on the Greek rescue mechanism. This
indicates that the Greek settlement of the debt crisis of the dawn appeared decisive.
The European countries of Greece, the debt crisis is a headache now finally turning
the corner, but the crisis has left the world what? Can be said that there are three more
important, the first thing is, the EU began to establish their own credit rating agencies
have a plan. The issue of the international credit rating, Standard &
Poor's Corporation has been the three U.S. companies dominate the
international credit rating industry, their credit ratings on the various types of capital
markets has a significant effect on various subjects directly related to the level of
financing costs in the market, The Standard & Poor's has recently
been lowered Greece, Portugal and Spain's sovereign credit rating, leading
to capital market volatility. EU Internal Market and Services Committee member
Michel Barnier in the media a few days ago had expressed the hope that credit rating
agencies to take responsibility, rigor and impartiality. Obviously, this statement is
quite upset, after all, the subject matter of the region outside agency ratings, but
people saying you will be able to sideline it really could not stand the taste of the
European Union. Therefore, Barnier sure that the European Union in the future will
strengthen supervision of the international credit rating agencies, also will consider
the establishment of Europe's own credit rating agencies.
The second effect is that the debt crisis to remind the European countries of Greece,
must strictly fulfill the euro, "Stability and Growth Pact"
obligations. Guo Qu Greece joined the EU using a one-time credit received
preferential survival for many years, but it did not on this treaty strictly enforced,
while other euro zone countries had not made too many queries, and now to the
extension had to Greece a moment of huge relief. As the cost of relief, that is, the
trustworthiness of the euro. Can see the future, European countries can not leave
things to chance, must be strict compliance.
The third impact is the Greek expansion of the debt crisis to Europe, other countries
began to worry about recurrence of the crisis. For example, rising deficits Portugal,
Spain, into a debt crisis, there is also a debt-ridden Italy. Although non-euro area by
the British on their own currencies to devalue sterling to release financial pressure,
but the UK's budget deficit is very serious. The EU requires its member
states to control the government deficit to gross domestic product in the
country's 3%, the UK deficit is expected this year is 12.6%! And, just
mentioned, like Britain, Spain or even the "good luck" because
Spain is not only not on the national currency - the euro to control, and its economic
scale is much larger than Greece, once the crisis, the EU 肯定 need to spend more
money to it and pulled up. If the case is slightly missed in this process, the whole field
of European mortgage crisis is likely transformed into a more 宏观 economic events,
Bingqiangweixie to all its liabilities countries, including Britain even the U.S.. This is
the worst debt crisis in Greece this possibility: the world's economic
impact.

				
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posted:9/1/2010
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