Eurozone Debt Imbalances Aren’t Sustainable Yet They’re Unfixable Due to Germany’s Constitution

What cannot go on forever, won’t. But what’s the resolution?

by Mike ‘Mish’ Shedlock
Mish Talk

What is TARGET2?

TARGET2 is the real-time gross settlement (RTGS) system owned and operated by the Eurosystem.

The use of TARGET2 is mandatory for the settlement of any euro operations involving the Eurosystem. The Eurosystem consists of the European Central Bank (ECB) and the national central banks of the 19 European Union member states that are part of the Eurozone.[2] Participation in TARGET2 is mandatory for new member states joining the Eurozone.

Under the TARGET2 system all debt is treated alike even though it is a measure of capital flight. The ECB disputes my last statement but it is what it is.

Continue Reading at…