Chapter 737

More than half a year has passed since the merger of Germany and Germany. After the reunification of the motherland, the East German people gradually lost the excitement before the merger, and their life returned to the plain. Facing the strong commodity impact of Western consumerism, the East German people began to feel at a loss.

The first time the East German owned a credit card, they soon replaced their furniture with the West German style. The rubbish heap under the residential building is full of replaced furniture. With the 1:1 exchange between the East German mark and the West German mark, everyone made a small fortune. And the money is not in the hands of the East Germans. It was sent back to the capitalists in West Germany.

At an average household savings level of 7000 marks, the money is not spent at all. But compared to the money. The changes in work make the East German feel deeply helpless.

A large number of East German teachers lost their jobs, and many East German soldiers left the army. A large number of factories and enterprises in East Germany began to close down. Almost all the doctors in the hospital went to West Germany to open clinics. Under all kinds of social impact, the East Germany began to have a wave of unemployment and brain drain.

Those respected teachers, intellectuals and model workers in the East German era are no longer popular. Many people live a miserable life in order to support their families. The education and skills they acquired in the East Germany era can not be used in Germany after reunification, so many people are abandoned by the times and society. Become a useless person.

Kohl's optimistic estimate is that in five years, the former East Germany will be as developed as the West Germany. But the mark 1:1 exchange, though seemingly generous, has caused a serious decline in purchasing power in East Germany.

The German mark is the most important currency in Europe, as the most dynamic country in European economy. The Deutschmark plays an important role in Europe. Within the EC, we have developed a complex linked exchange rate mechanism based on the Deutsche mark. According to this mechanism, the currencies of all countries will be exchanged with the Deutschmark as the intermediary, and the fluctuation of the exchange rate can not exceed 5%. The Bundesbank actually plays the role of the European Central Bank. But in fact, this is a man-made shackle for the exchange rate between countries. Since the fluctuation can't be more than 5%, once the currencies of these countries are attacked in the foreign exchange market, the governments of these countries will have to take out the mark to keep their exchange rates. And this is the attack flaw that Xie liaosha valued.

The German economy is still digesting the mess left by East Germany, but the excessive currency has flowed into the hands of the East German people. At this moment, it is the weakest time for the German economy. Now the Bundesbank is actually the European Central Bank. If there is something wrong with the central bank, can the rest of the countries continue to pay for inflation in Germany.

Shortly after the end of the last Gorky meeting, seryosa split the Bank of Columbia into a series of branches. Soon, the business of the Bank of Columbia in Poland began to be listed in the UK in the name of the Bank of Poland. After the listing, the Bank of Poland was sought after by European investors. Then, seryosa split the Czech bank and Slovak bank one after another. When the shares of these banks are sold on the European private market, many old financial companies in Europe and the United States are very interested in it. Xie liaosha firmly controls these banks through a series of shareholding. At the same time, they also got a lot of cash. The cash will be the ammunition for shailyusha's next attack.

With shariosha diluting Gorky's stake in Bank of Columbia's European operations to 40 percent, shariosha has $2 trillion in cash reserves. But the money is just the beginning.

Using these funds as collateral, he began to make a large number of local currency loans in EC countries. In the UK, he borrowed 40 billion pounds from the Bank of England and about 50 billion francs from the Central Bank of Paris in France. These money are short-term loans with high interest rates, but they need to be repaid in local currency after maturity. So as long as Xie liaosha shortens the currencies of these countries, when the time comes to repay the loans, the exchange rate difference will be Xie liaosha's income.

It's all going on quietly. With the further development of CBC's splitting business in Europe, almost every country in the member countries of the unified market has set up relevant banks. Irish banks began to receive loan applications from Bulgarian banks, and Irish pounds were largely lent at high interest rates. Romania borrowed a lot of lira from the Central Bank of Italy. Hungarian banks are targeting the Danish krona. Polish banks gained a lot of pounds after listing in the UK, while at the same time lending more pounds from the UK. Czech banks and Slovak banks are targeting the rest of the world. The Luxemburg franc, the Belgian franc, the Danish krona, the Greek drachma, the Dutch guilder, the Spanish peseta, and the Portuguese Escudo all became the lending targets of seryosa.

At this moment, Xie liaosha only let go of the German mark. Because although mark has weakness now, he is still the most difficult to overcome. The main currencies of the 12 EC countries are now very much like the serial ships in the romance of the three countries. If seryosa were the first to attack small currencies like the Belgian franc and the Luxembourg franc. Then other countries will come to the rescue. Shariosha is about to face a united 12 nation central bank of the European community. But what if every country is on fire? He bet that central banks will never provide any support to their neighbors until they solve their own problems. Although shariosha is still dealing with 11 of them. But he bet that Germany would probably choose to stay out. Because the central banks of 11 countries will be rescued at the same time to maintain exchange rates, the real amount of money that the Bundesbank will have to spend will be astronomical.

Because the banks of seryosa have been split into several small caravans, and most of these banks come from the lack of funds in Eastern Europe, the lending behavior of these banks has not been paid enough attention by the central banks. In order to attract these countries to join the EC, many countries even offer very preferential policies in terms of loans. However, although the loan interest is not small, but the mortgage reserve has dropped a lot. Xie liaosha is very grateful to these European central banks who don't know how powerful they are. I sold them and helped count the money!

In the final analysis, there is fierce competition between the EC and the unified market. Whoever loses or wins depends on who can attract more countries. Seryosa's unified market can help Eastern European countries stabilize their economies, but what if the Eastern European countries have their wings hardened and go to the European Community? In fact, he hopes to bring more countries closer to the unified market. However, before the disillusionment of the European community, the unified market of shariosa was always faced with greater threat.