By: KL76 on Domenica 08 Dicembre 2013 07:38
Anche Bini Smaghi si e' bevuto il cervello insieme ad Ambrose Evans e GZ?
Mr Bini-Smaghi states that any EMU state leaving the euro would face likely default on external obligations. "The national central bank would not be able to repay liabilities accumulated in relation to other members of the euro system, which are registered in the internal payments system of the Union (known as Target2). The insolvency would provoke substantial losses for counter-parties in other eurozone countries, including central banks and states.". As I understand it, the Bundesbank (and the central banks of Finland, Holland, and Luxembourg, likewise) offsets the Target2 claims on the Club Med bloc by selling securities to banks registered in Germany. It does this for monetary policy reasons.This means that if the euro blows up, the Bundesbank still owes this money to the same private banks, which could be Deutsche Bank, but could also be Nomura, Citigroup, or Barclays. This is not fictitious. The Bundesbank cannot default on these securities.This means that if the euro blows up, the Bundesbank still owes this money to the same private banks, which could be Deutsche Bank, but could also be Nomura, Citigroup, or Barclays. This is not fictitious. ^The Bundesbank cannot default on these securities.#http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100025507/italy-floated-plans-to-leave-euro-in-2011-says-ecb-insider/^