Chapter 76 6. Snipe the crisis arc of European currency

After the gourd was pressed, the ladle was raised again. When the strategic goal of the controlled disintegration of Eastern Europe and the Soviet Union was basically achieved, Germany and France, the core of old Europe that had always been excluded from the core of power, became restless.After losing the huge external threat of the Soviet Union, it immediately wanted to start a new stove to develop the euro, so as to distinguish itself from the British and American financial forces.Once the euro is established, it is bound to seriously shake the hegemony of the dollar system.LONDON | The currency clash between the Wall Street axis and the German-French alliance is intensifying.

The root of the problem lies in the disintegration of the Bretton system in 1971, which caused serious disorder in the world monetary system.Under the Bretton system of the indirect gold standard, the currency exchange rates of major countries in the world are almost highly stable, and there is no serious imbalance in trade and finance among countries, because countries with deficits are bound to lose real national wealth, thus making the country The decline in the credit capacity of the banking system will automatically lead to austerity and recession, consumption will shrink, imports will inevitably decline, and the trade deficit will disappear.When the people start to save, bank capital starts to increase, the scale of production expands, trade surpluses appear, and the total wealth of the society increases.This beautiful natural cycle and control system has been repeatedly verified by all human social practices before 1971. There is nowhere to hide serious deficits, currency risk hedging is almost unnecessary, and financial derivatives do not exist.Under the constraints of gold, all countries must work honestly and hard to accumulate wealth, which is the fundamental reason why international bankers hate gold.

After losing the golden needle, the international monetary system will naturally be in chaos. After the man-made oil crisis caused a strong demand for the US dollar, and the ultra-high interest rates since 1979, the US dollar has gradually gained a firm foothold.As the reserve currency of the world, the price of the U.S. dollar is so up and down, and its control is completely in the hands of the London-Wall Street axis. The European countries that are forced to follow the currency roller coaster are naturally full of bitterness.Therefore, at the end of the 1970s, German Finance Minister Schmidt approached French President d'Estaing to discuss the establishment of a European monetary system to eliminate the troublesome exchange rate instability in trade between European countries.

In 1979, the European Monetary System began to operate, and the effect was good. European countries that had not yet joined expressed their interest in joining.Fears that this system might evolve into a unified European currency in the future began to haunt the London/Wall Street elite circles strongly. What is even more disturbing is that since 1977, Germany and France began to intervene in OPEC affairs. They planned to provide high-tech products to specific oil-exporting countries and help these countries achieve industrialization. In exchange, the Arab countries guaranteed Western Europe Long-term stable oil supply and depositing oil revenue into the European banking system.London has been resolutely opposed to Germany and France's plan to start anew from the very beginning, and refused to join the European monetary system after all efforts failed.

At that time, Germany still had a bigger conspiracy, which was to finally complete the great cause of reunification. A unified and strong Germany is bound to eventually dominate the European continent.For this purpose, Germany began to approach the Soviet Union, and was prepared to maintain a moderate and mutually beneficial relationship and cooperation with the Soviet Union. In order to deal with the attempts of Germany and France, the counselors of London︱Wall Street put forward the theory of the arc of crisis, the core of which is to unleash Islamic radical forces to destabilize the oil-producing regions of the Middle East, and the aftermath can even affect the Muslim regions in southern Soviet Union. This plan not only hit the prospect of cooperation between Europe and the Middle East, hindered the pace of European unified currency, but also contained the Soviet Union, and prepared for the future military intervention of the United States in the Gulf region. It really killed three birds with one stone.

National Security Adviser Brzezinski and Secretary of State Vance did a good job. The situation in the Middle East was severely turbulent. The Iranian revolution broke out in 1979, and the world experienced the second oil crisis.In fact, there has never been a real shortage of oil supply in the world. The 3 million barrels of oil per day that Iran cuts off can be fully made up by the production of Saudi Arabia and Kuwait, which are under the strict control of the United States.The oil and financial oligarchs on Wall Street in London allowed oil prices to skyrocket, of course, in order to further stimulate the demand for US dollars. They control the oil industry with one hand and the issuance of US dollars with the other. On the contrary, through the alternate operation of both hands, the world will be turned upside down!

Another brilliant move of Brzezinski was to play the China card. In December 1978, the United States formally established diplomatic relations with China, and China soon returned to the United Nations.This action seriously stimulated the Soviet Union. The Soviet Union immediately felt that it was enemies on all sides, with NATO in the east, China in the west, and the arc of crisis in the south.The Soviet Union, which couldn't help but fight a cold war, immediately interrupted the already fragile cooperative relationship with Germany. When the Berlin Wall came down in November 1989 and Germans celebrated reunification, Wall Street had a different feeling in their hearts. An American economist commented:

Indeed, when the financial history of the 1990s was written, analysts might have compared the fall of the Berlin Wall to the long-feared earthquake-like financial shock in Japan.The fall of the wall means that hundreds of billions of dollars of capital will flow to a region that has been insignificant in world financial markets for more than 60 years. Although Germany has not been a major source of foreign investment in the United States in recent years, and the United Kingdom has become the largest foreign investor in the United States since 1987, Americans should not take it lightly. It is possible to make such a large investment in the United States.

The feeling in London was stronger, and Thatcher's counselors even exclaimed that the German Fourth Reich had appeared.The editor of the London Sunday Telegraph commented on July 22, 1990: Let's assume that a unified Germany will be a benign giant, so what?So what if we assume that a united Germany taught Russia to be a benign giant too?In fact, the threat is only going to get bigger.Even if a united Germany were determined to compete by our rules, who in the world could effectively prevent Germany from usurping power? In the summer of 1990, a new intelligence service was formed in London to substantially increase intelligence activities against Germany.British intelligence experts strongly suggested that their American counterparts should recruit members from the old East German intelligence personnel to build up American intelligence assets in Germany.

The German side is grateful for Russia's final support for German reunification and is determined to help Russia rebuild its paralyzed economy.The German finance minister envisioned a bright future for a new Europe. A modern railway connects Paris, Hannover and Berlin, and finally leads to Warsaw and Moscow. A unified currency and a harmonious economy will ensure that there will be no more wars and gunpowder in Europe. , only a dreamlike future. But this is by no means the dream of the international bankers. What they are thinking about is how to defeat the mark and the unformed concept of the euro, and they must not allow the successful reconstruction of the new Germany.

This is the background of Soros attacking the pound and the lira under the planning of London︱Wall Street in the early 1990s. In 1990, the British government ignored the opposition of the City of London and brazenly joined the European currency exchange system. Seeing that the euro system was gradually taking shape, it would inevitably become a major hidden danger in the London-Wall Street axis in the future, so international bankers planned to break it down. The way of play is to strangle the euro system in its cradle. In 1990 the Berlin Wall came down and Germany was reunited.The ensuing huge expenditure was unexpected in Germany, and the German central bank had to raise interest rates to deal with inflationary pressure.Britain, which joined the European currency exchange system in the same year, is not doing well. The inflation rate is three times that of Germany, and the interest rate is as high as 15%. The bubble economy in the 1980s is on the verge of bursting.By 1992, due to the pressure of twin deficits in the United Kingdom and Italy, the currencies had shown a trend of being significantly overvalued. Speculators led by Soros saw this opportunity and launched on September 16, 1992. The total attack, the total value of shorting the British pound was as high as 10 billion U.S. dollars. At 7 o'clock in the evening, Britain announced its surrender. Soros won as much as 1.1 billion U.S. dollars in this campaign, kicking the pound and the lira out of the European currency exchange system in one fell swoop.Immediately afterwards, Soros took advantage of the victory and marched to defeat Franc and Mark in one go. In this gamble of up to 40 billion US dollars, he did not take advantage of it.Soros was able to borrow such a huge amount of funds with a leverage of twenty-five times, and the powerful secret financial empire behind it played a decisive role.