{"id":27695,"date":"2017-11-07T07:04:06","date_gmt":"2017-11-07T12:04:06","guid":{"rendered":"http:\/\/olduvai.ca\/?p=27695"},"modified":"2017-11-07T07:04:06","modified_gmt":"2017-11-07T12:04:06","slug":"italy-target2-imbalance-hits-record-e432-5-billion-as-dwindling-trust-in-banks-plunges","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=27695","title":{"rendered":"Italy Target2 Imbalance Hits Record \u20ac432.5 Billion as Dwindling Trust in Banks Plunges\u00a0"},"content":{"rendered":"
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Italy Target2 Imbalance Hits Record \u20ac432.5 Billion as Dwindling Trust in Banks Plunges\u00a0<\/span><\/a><\/h3>\n<\/div>\n
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Contrary to ECB propaganda, Target2 imbalances are a direct result an unsustainable balance of payment system. The imbalances represent both capital flight and debts that can never be paid back. If you think Italy can pay German and other creditors a record \u20ac432.5 Billion, you are in Fantasyland.<\/section>\n<\/div>\n<\/header>\n
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The interesting aspect of Italy’s new record Target2 Imbalance<\/a> is that it comes just as Dwindling Trust in Italian Banks<\/a> is on the rise.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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Just 16 percent of Italians have confidence in the country\u2019s lenders, down from an already meager 17 percent in June, according to a poll by the SWG research group of Trieste on Friday. Only 24 percent trust the Bank of Italy, plunging from 36 percent in June.<\/p>\n

One likely reason: a tortuous bank crisis that caused losses for savers and led the government to rescue three lenders with taxpayers\u2019 money this year. The vanishing confidence is likely to show in campaigns for national elections expected by next spring.<\/p>\n

Supporters of the populist Five Star Movement and anti-migrant Northern League have the least confidence in lenders and the Bank of Italy among those with a definite opinion, according to the survey of 1,000 adults conducted Oct. 23-25.<\/p><\/blockquote>\n<\/div>\n<\/div>\n<\/div>\n

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Confidence in Banks Plunges<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n

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The eurosceptic Five Star Movement just happens to have the largest share of the vote in recent polls.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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Target2 Discussion<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n

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Target2 stands for Trans-European Automated Real-time Gross Settlement System. It is a reflection of capital flight from the \u201cClub-Med\u201d countries in Southern Europe (Greece, Spain, and Italy) to banks in Northern Europe.<\/p>\n

Pater Tenebrarum at the Acting Man blog provides this easy to understand example: \u201cSpain imports German goods, but no Spanish goods or capital have been acquired by any private party in Germany in return. The only thing that has been \u2018acquired\u2019 is an IOU issued by the Spanish commercial bank to the Bank of Spain in return for funding the payment.<\/em>\u201d<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n","protected":false},"excerpt":{"rendered":"

Italy Target2 Imbalance Hits Record \u20ac432.5 Billion as Dwindling Trust in Banks Plunges\u00a0 Contrary to ECB propaganda, Target2 imbalances are a direct result an unsustainable balance of payment system. The imbalances represent both capital flight and debts that can never be paid back. If you think Italy can pay German and other creditors a record […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[16903,63,7976,195,233,282,1464,14648,13390,655,16902],"class_list":["post-27695","post","type-post","status-publish","format-standard","hentry","category-economics","tag-balance-of-payment","tag-banks","tag-capital-flight","tag-debt","tag-ecb","tag-european-central-bank","tag-italy","tag-michael-shedlock","tag-mishtalk","tag-propaganda","tag-target2"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/27695","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=27695"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/27695\/revisions"}],"predecessor-version":[{"id":27696,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/27695\/revisions\/27696"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=27695"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=27695"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=27695"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}