Who wants to hear how bad it really is demand for our money? What politicians trying to conceal? The payment system “Target” pulls Europe into the abyss. It is not easy one to listening to people, who are not just like uncomfortable, but in their superior attitude seem difficult to understand. Just weeks ago, Hans-Werner Sinn and a few comrades, thanks to their criticism of the decisions of the EU summit on Euro crisis, did not received the approval of the Germans.
“Target” is the name for the author of the problem in Europe. It is the abbreviation for acting belligerently a problem, which in its entire length for letters is causing confusion. Trans-European Automated Real-time Gross Settlement Express Transfer System – it is the name of the payment system, through which the international interbank payments are settled in the euro area.
Transfer target and measures the money transfers between the national central banks of the euro countries due to international transfer orders, the private and public financial institutions provide their respective commercial banks, the author writes. For example, the Greeks can continue ordering goods from their rich neighbours of the EU – the money is guaranteed by the government’s own central bank. S
mall catch: It must also be economical for all parties to work. Today, there are about one trillion euro target loans in the euro area, i.e., claims on the ECB system with obligations of Spain, Italy, Greece, Ireland, Portugal and Cyprus are facing. Alone at the Bundesbank target receivables of EUR 727 billion euros have been earned. Sense reckons that in the case that the debtor cannot pay back, you have to write off the debts. The goods and property objects that were acquired with the target money in the core countries come, never to return.
In a bankruptcy or exit from the crisis countries of the euro zone, Germany would lose 43 percent of its claims, those 416 billion euros. If the euro breaks up, all 727 billion euros would be gone – a loss that would affect each citizen. The target system is above all because the Bundesbank did not have the opportunity to collect their target demands. The loans would be repaid only if German awarded new loans to euro-abroad or investment properties and goods, which are purchased there.