Tag Archive: Target2

“It’s A Perfect Storm Of Negativity” – Veteran Trader Rejoins The Dark Side

After many months of fighting all the naysayers predicting the next big stock market crash, I am finally succumbing to the seductive story of the dark side, and getting negative on equities. I am often early, so maybe this means the rally is about to accelerate to the upside.

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Italian Euro Exit: Why it Might Come in some Years and Why it Will Help the Euro Zone and Italy

Italy has three options: 1. exit the euro zone and devalue the currency; 2. remain in the euro zone and devalue salaries. 3. go for Japan-like decades-long slow growth with stagnating wages, but also with falling inflation and (positive news!) falling bond yields.

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L’Allemagne est le patron-sponsor de l’Eurosystem.

Lors des échanges commerciaux et interbancaires, il y a des banques émettrices de monnaie et vis-à-vis une banque réceptrice. Normalement, à la fin de la journée, tout cela devrait être ramené à l’équilibre. Ceci n’est plus le cas depuis la crise américaine de 2007 (subprimes) comme nous le voyons sur le graphique ci-dessous de quelques pays de la zone euro.

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1) SNB

SNBCHF.com most important posts about the Swiss National Bank

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Negative Rates for Bundesbank TARGET2 Surplus?

The ECB surprised with negative rates on excess reserves, on the deposit facility and even on TARGET2. We clarify whether the Bundesbank, as a member of the euro system, must pay negative interest rates on its huge TARGET2 surplus.

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Germany: Last European Country with Lots of Cash Under Matresses

In June 2014, the ECB decided to introduce negative rates on the excess reserves of banks. We explain that German banks had already removed most excess liquidity before the ECB meeting of June 2014, and they will continue to do so. Hence hardly any German bank will pay negative rates after the recent ECB decisions at that meeting.

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Why negative interest rates are contractionary, the base money confusion

From FT Alphaville: Excess reserves do not mean banks are not lending, and enforcing negative rates may do more harm than good because it is ultimately contractionary rather than expansionary.

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Target2 Balances and SNB Currency Reserves. They are Both the Same Concept

We show that Target2 imbalances and the SNB currency reserves represent the same issues, namely current account surpluses/deficits and capital flight. Therefore it makes sense to compare them, in total and by inhabitant.

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The Big Swiss Faustian Bargain: Differences between SNB, ECB and Fed Money Printing Explained

Potential losses due to money printing are for the Fed: 1.2% of GDP, Bundesbank: 5% of GDP, SNB: 12% of GDP.

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The Eurozone crisis between euro-morons and zombie-bankers



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Target2 Explanation and Discussion



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German constitutional court needs 3 months to decide about the injunction

The German constitutional court will need up to 3 months for the injunction. Weidmann's critic on the ESM in detail. Estimations of German liability between 900 bln. and 2 trillion EUR.

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The Northern Euro introduction: A retrospective from the year 2030

  A retrospective from the year 2030 on two decades of failed european integration policy and 10 years of successful disintegration policy The following essay shows that currency regimes come and go over the time. Nothing is stable with the time, especially the use of a currency. What has never happened in history is the use …

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