Introducing the European debt crisis, what is the European debt crisis?

The European debt crisis is the debt crisis of European sovereignty. It refers to the debt crisis that occurred in Greece and other EU countries after the 2008 financial crisis.

The European debt crisis, also known as the European sovereign debt crisis, refers to the sovereign debt crisis that has erupted in some European countries since 2009. The European debt crisis is a continuation and deepening of the subprime mortgage crisis in the United States, and its essential reason is that the debt burden of ** exceeds its own tolerance range, and the default risk is caused.

As early as October 2008, at the beginning of the Wall Street financial crisis, Iceland's sovereign debt problem in Northern Europe surfaced, and then the Central and Eastern European debt crisis erupted.

In December 2009, Greece's sovereign debt problem came to the fore, and in March 2010, it further fermented and began to spread to the "European pig five" (Portugal, Italy, Ireland, Greece, and Spain).

The three major U.S. rating agencies have taken the plunge and downgraded the credit ratings of Greece and other debtor countries one after another. At this point, the international community began to worry that the debt crisis could spread across Europe and thereby erode the fragile world economy.

Let's put it this way, the European debt crisis is a crisis exacerbated by the United States in order to crack down on the euro, because the euro wants to compete for the status of the dollar as the world currency, and the euro area economy is larger than the United States, the United States wants to issue additional currency must suppress the euro, the euro depreciates, people will buy dollars.

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From two aspects, internal factors: structural contradictions within the country, such as over-reliance on export-oriented economies such as tourism, such as Greece. The external factors are mainly the internal defects of the euro monetary system, the contradiction between a unified monetary policy and a decentralized fiscal policy.

The United States has long made the fight against the euro an important goal, and the European debt crisis has the shadow of the United States behind it, and all countries in the world have a large amount of dollars in reserves. If the euro replaces the dollar, it will be a very painful thing for the United States.

Behind the European debt crisis is a deeper contest, that is, the United States and Europe are engaged in a war of currency dominance and debt resources. In fact, the United States continues to maintain the "structural power" conferred by its financial and monetary hegemony. Since the birth of the euro, the euro has been the world's most powerful potential competitor, comprehensively challenging the hegemony of the US dollar.

First, the euro weakens the dollar's position as a settlement currency in the international league. For emerging market countries, the euro offers an alternative to the U.S. dollar as a settlement currency. Since the main export commodities of the euro area are competitive with those of the United States, an increase in the volume of euro settlements will inevitably lead to a decline in the volume of dollar settlements.

The settlement volume is the pricing power, and the decline in the proportion of the dollar settlement volume means that the United States has lost the pricing power in the international market. The best way for the United States to crack down on the euro is to convince the world that the euro is an unsafe product with no sustainable security identity.

As a result, the U.S. rating agencies have recently downgraded the sovereign credit ratings of Greece, Ireland, and Belgium, and have taken turns to create turmoil in the European debt crisis and shorted the euro on a large scale. Although the current US Treasury debt ceiling has been breached, the 10-year US Treasury yield and the 30-year US Treasury yield hit five-month lows, and the US Treasury note was oversubscribed, allowing debt financing to proceed smoothly.

Between internal and external attacks, the European debt crisis is no longer a crisis of the five European countries, and the risk of the debt crisis spreading from the peripheral countries to the core countries is further increasing, and what awaits Europe will be a new round of debt storm.

Isn't it the dollar that wants to hit the euro?