Chapter 1653: Currency war

When the battle in Belgrade suddenly showed a strange calmness, another storm intensified over Europe.
This storm is precisely the Miou currency war that was detonated by Soros.
Starting from the pound sterling to the lira, and then swept through the Greek drachma, Belgian birang, Swiss franc, Spanish bud peseta, grape bud escudo...
The currencies of the countries listed in the "euro zone" have been attacked almost without exception!
Since the end of World War II, although there has been a long period of cold war between the two powers contending for hegemony, there was no real fight. Old Europe has been at peace for more than 50 years, and because Europe was actually the main area where the two powers confronted during the Cold War. Countries are sparing no effort to pursue the development of economy, science and technology, and military power. It can be said that every day is trembling, and every string is tightened. However, after the disintegration of Soviet Russia, the biggest threat suddenly disappeared. People, especially People in the developed countries of Western Europe inevitably relax.
This slackness does not matter. The extreme individual liberalism, hedonism and other ideological trends immediately flooded. People began to pursue enjoyment but were unwilling to work hard for it. Political parties, in order to vote, conform to and contribute to this social trend, continue to use Various campaign policies to increase welfare and reduce labor intensity were used to attract voters. The final result was that a large number of so-called "high welfare societies" were established in Old Europe.
Is high welfare good?
Of course good.
In this kind of society, people don't have to worry about medical care, education, birth, old age, sickness and death, and even if they don't have to do anything, they can go through the entire process from cradle to grave smoothly.
And this kind of social system is also one of the "Western superiority" that some "common knowledge" has been advocating in the Chinese public opinion circle since it was reformed.
So the question is, everyone wants to enjoy the superior social welfare, but where does the money to maintain these welfare come from?
These European countries do not have the ability to use financial means to lure up the wool of the world like the Americans. The looting of a little wealth saved by the world in the early years was also exhausted because of the two world wars. There is no good way to do it. Think about it, only increase the tax rate.
As a result, European companies generally have to bear relatively high taxes, which leads to an increase in the cost of corporate products in the international market and a decline in competitiveness. The decline in competitiveness will make it difficult for companies to expand and their profitability will decline. Fiscal revenue also declined, so the government had to raise the tax rate again in order to maintain the necessary expenditure... This is a perfect loop.
Therefore, European companies are particularly willing to open factories abroad, especially outside Europe.
After all this developed, it was actually difficult for the government to maintain higher and higher social and public welfare expenditures, but how can ordinary people care about those benefits that have fallen into their pockets, how can they easily give up? "It's easy to change from frugality to luxury, but difficult to change from luxury to frugality" understand? Moreover, in a parliamentary government with multi-party campaigns, it is impossible for anyone to openly stand up and bear the consequences and responsibilities of reducing the welfare of the people-then do you want to vote? Therefore, in order to maintain such high welfare, various countries have to sit back and watch their fiscal deficits accumulate day after day, and then use their noses to borrow debts.
The end result is that European governments, with the exception of a few countries, are almost invariably in debt.
On the one hand, government debt is high, and it is urgently needed to stimulate economic growth and expand commodity sales, especially exports, to obtain fiscal revenue. On the other hand, because the domestic currency is locked in the exchange rate by the strong euro, it has lost an extremely important financial tool for self-regulation. …Haha, this situation is really a good time for Soros and others to start. As a "cold-blooded financial animal", if you don't take the opportunity to make a big vote, I am sorry for himself!
What's more, the black hand behind the scenes is now not limited to Wall Street. There is also a guy with a darker heart, a harder hand, and a huge energy who has also joined for ulterior purposes. Look at the aggressive posture and don’t bring new life. The "Euro" strangled in the cradle is not finished!
On the surface, the "EU" is powerful. Gaul and Hans, who constitute the "dual core" of the "EU", are even more important industrial powers on the Blue Star. However, the attackers used very cunning tactics this time. It avoided the head-on confrontation with Gaul and Hans, but directed its troops directly at the small countries in the "EU."
Even if the country is small, no matter how rich the per capita is, the overall strength is limited after all, so the ability to resist risks is also poor, and it is easier to fall in an attack.
As a result, a large number of small countries in the "EU" suffered.
The worst of them is the so-called "Three Baltic States".
Estonia, Latvia, and Lithuania, the three former Soviet-Russian republics, have developed better because of their geographical advantages when they were in the former Soviet Russian system. The industry is relatively developed, and various indicators are in the former Soviet Russian system. Both of them are among the best, and they are also the first countries to declare independence from the former Soviet Union.
However, their industrial base is completely inadequate compared to the old industrial countries in old Europe. After leaving the former Soviet Union, they have lost a vast market. They had a relatively difficult life. The
converters’ enthusiasm
has a psychological effect and particularly pursues everything in the West—from the political system to the economic system, they all copied it in every way, and they were also particularly keen to ask for NATO membership. Therefore, the government was clearly insufficient in its ability and wanted to learn from others. What kind of "welfare social system" reflects the superiority of the former Soviet Russia, so that the government debt will be heavier, under the baptism of this round of storms, it is only natural to give up resistance and lie down first.
The original currencies of so many countries are lying down. How can the euro issued on the basis of these currencies stand alone?
As a result, the nascent euro suddenly turned around after a brief "good situation" in the initial issuance period. The exchange rate against major international currencies fell by more than 10% in less than a week, even against the US dollar. Once fell below the 1:1 mark, the lowest was 1:0.99!
As the saying goes, "buy the rise and not buy the fall." Central banks that originally planned to list the euro as the country’s second largest international reserve currency saw this trend of the euro and suspended their buying actions, intending to stabilize first. Let's talk about the direction of the wind-after all, whose money is not caused by the wind, right?
And look at the trend, this euro, I'm afraid the pill!
At this time, the people of the "EU" could not sit still. After conducting intensive internal consultations, they launched a series of internal and diplomatic actions in order to stop the decline of the euro. Countries in difficulty must formulate effective plans to cut budgets and reduce debts to a reasonable range; for example, send heavyweights to attack and lobby, and the two most important lobbying teams naturally rush towards America, and China.
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