tag:blogger.com,1999:blog-5882645467378797266.post1346067171474523862..comments2023-07-17T11:55:51.363+02:00Comments on ObservingGreece: Target2 Claims Revisitedkleinguthttp://www.blogger.com/profile/12491174042954678023noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5882645467378797266.post-71699615697220481192018-03-31T09:52:12.776+02:002018-03-31T09:52:12.776+02:00TARGET2 "merely reflects persistent imbalance...TARGET2 "merely reflects persistent imbalances in current accounts and capital accounts"?<br /><br />https://www.richmondfed.org/~/media/richmondfedorg/publications/research/economic_brief/2012/pdf/eb_12-08.pdf<br /><br />Current account in 2008 for Greece was around 30bn deficit, but today is less than 1-2bn.<br /><br />Or what Hans-Werner Sinn suggested.<br /><br />http://www.faz.net/aktuell/wirtschaft/wirtschaftspolitik/im-gespraech-oekonom-hans-werner-sinn-wir-sitzen-in-der-falle-11653095.html#Drucken<br /><br />https://voxeu.org/article/fed-versus-ecb-how-target-debts-can-be-repaid<br /><br />And TIPS(retail payments ecosystem) as a part of TARGET2<br /><br />https://www.ecb.europa.eu/paym/intro/news/articles_2017/html/201706_article_tips.en.html<br /><br />https://www.ecb.europa.eu/paym/pdf/consultations/tips-coexistence_of_tips_with_other_instant_payment_services.pdf<br /><br />https://www.ecb.europa.eu/press/pr/date/2017/html/ecb.pr170622.en.html<br /><br />https://www.ecb.europa.eu/press/key/date/2017/html/ecb.sp171130.en.html<br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5882645467378797266.post-21819179331851525192018-03-27T15:59:03.943+02:002018-03-27T15:59:03.943+02:00To keep accounting principles straight I meant to ...To keep accounting principles straight I meant to say "fairly uncollectible German Target2 claims". The credits are a benefit to the borrowers of which Germany is not one of them.<br /><br />D.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5882645467378797266.post-16976486039683025732018-03-27T14:43:10.922+02:002018-03-27T14:43:10.922+02:00So, let's say the next global crisis hits in a...So, let's say the next global crisis hits in a year from now and the only way to shore up Italy is to increase its Target2 liabilities from 400 Bil. euros to 800 Billion.<br /><br />In such case, Germany receives an even bigger but fairly uncllectible Target2 credit and life goes on until the entire global system debt which is 300% of the global GDP already goes bust.<br /><br />I would say within the next 5 years the global finance system will experience a major crisis from which it will be unable to recover. And creditors will end up with some worthless paper credits which will be written off as part of a global reset.<br /><br />Dean.Anonymousnoreply@blogger.com