{"id":36502,"date":"2018-08-07T07:23:48","date_gmt":"2018-08-07T12:23:48","guid":{"rendered":"http:\/\/olduvai.ca\/?p=36502"},"modified":"2018-08-07T07:23:48","modified_gmt":"2018-08-07T12:23:48","slug":"debate-over-target2-continues-twilight-of-the-euro","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=36502","title":{"rendered":"Debate Over Target2 Continues: Twilight of the Euro"},"content":{"rendered":"
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Debate Over Target2 Continues: Twilight of the Euro<\/a><\/h3>\n<\/div>\n
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The Target2 debate continues. Eurointelligence Promotes Still More Silliness.<\/p>\n<\/section>\n<\/div>\n<\/header>\n
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I previously commented on Target2 in Eurointelligence Displays Stunning Ignorance Regarding Target2<\/a>.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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Eurointelligence blasts Faz for inaccuracies while spreading a pile of its own through the mouth of Mark Schieritz who says (translated) Do not be afraid of the trillions bomb<\/strong><\/a>.<\/p>\n

Schieritz says: “The claims and the liabilities are fictional quantities. They exist virtually, in the balance sheets of central banks, not in the real world<\/em>.”<\/p>\n

One can stop there knowing full knowledge that Schieritz’s article is complete nonsense.<\/p>\n

In the real world, Target2 imbalances are a measure of capital flight and loans that cannot be paid back. Even if there once was adequate capital for loans made by Italian banks, that capital vanished long ago.<\/p>\n

Now, Italian depositors are very fearful of bail-ins and have pulled there money out of Italian banks.<\/p>\n

That is the “real world”. Real people have real fears, and they should. Anyone holding money in Italian banks is a fool. I gave the same warning about Greece well ahead of capital controls. I make the same case again now, regarding Italy.<\/p><\/blockquote>\n<\/div>\n<\/div>\n<\/div>\n

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New Eurointelligence Nonsense<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n

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Here are a couple of new clips from Eurointelligence to discuss.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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Against Target2 Hysteria<\/strong><\/p>\n

Martin Hellwig<\/a> joins the debate on Frankfurter Allgemeine’s Sunday edition with a rejoinder to earlier columns by Hans Werner Sinn (which we covered) and Thomas Mayer (which we didn’t) on the danger to the Bundesbank from its near-trillion-euro claims on the eurosystem, and on the danger to the eurosystem from its near-half-trillion claims on the Bank of Italy. Hellwig argues that Sinn confuses deliberately with the smoke and mirrors of double-entry book-keeping, and is whipping up an unjustified panic over Target2.<\/p><\/blockquote>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n","protected":false},"excerpt":{"rendered":"

Debate Over Target2 Continues: Twilight of the Euro The Target2 debate continues. Eurointelligence Promotes Still More Silliness. I previously commented on Target2 in Eurointelligence Displays Stunning Ignorance Regarding Target2. Eurointelligence blasts Faz for inaccuracies while spreading a pile of its own through the mouth of Mark Schieritz who says (translated) Do not be afraid of […]<\/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":[195,280,20884,281,21150,21149,13390,16902],"class_list":["post-36502","post","type-post","status-publish","format-standard","hentry","category-economics","tag-debt","tag-euro","tag-eurointelligence","tag-europe","tag-mark-schiertz","tag-micheal-shedlock","tag-mishtalk","tag-target2"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/36502","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=36502"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/36502\/revisions"}],"predecessor-version":[{"id":36503,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/36502\/revisions\/36503"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=36502"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=36502"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=36502"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}