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Showing posts from September, 2018

TARGET2 IS A PAYMENT SYSTEM OF UNPAID BILLS IN THE EUROZONE

In Spain we know it well. Every time there's a switch of political parties in any Administration (Municipal, Regional or Central State) and the opposition party takes over the helm, the news about unpaid bills emerge. It's commonly known as " bills hidden in the drawer ". So, a new Administration starts its mandate with the coffers in negative territory. This causes many troubles to the private contractors working for the Administrations because their bills are due during months or years. But the authorities in the Eurozone have come up with a brilliant idea. Let's use the Central Banks to advance the payments to the creditors using the money printing press but, as the new bank notes in circulation would show up in the statistics provoking depreciation of the currency and thus, inflation, it's better to conceal it issuing Book Money, which is not legal tender and therefore, it cannot show up in any statistic. In my previous article a talked widely about