Of Roberto Pecchioli

Source: Heretically
Ambrose Evans-Pritchard is probably the best economic journalist in Europe. From the columns of the conservative Daily Telegraph, his gaze sweeps over the business international without blinders and, above all, without becoming a megaphone for the interests of the upper levels. His recent speech should prick up the ears of observers and decision-makers in our country. Evans claims that a creeping flight of capital from Italy is underway. The proof is our liabilities in the Target2 system of the European Central Bank. In a month, increased by 39 billion up to 465 billions of euros. One of the causes would be the possibility that the issue becomes operational (which Evans sarcastically calls subversive) day Minibot, the parallel currency intended for Public Administration payments, but usable in general, since every means of payment works on a fiduciary basis, that is, if people are willing to accept it.
The worry (or the secret hope) of the markets is that Italian private savers, holders of very significant sums,join the exodus. The first consideration is that capital flight comes from large investors, by funds and investment banks, supported by the ECB itself. It therefore has an eminently political character, exactly like the manipulation of spread, not in the hands of metaphysical markets, but the Central Bank's blackmail weapon.
Another consideration concerns Target2. What is hidden behind this vaguely warlike name? (target means target)? We quote the ECB website verbatim. Target2 is a payment system owned by the Eurosystem which also manages it. It is used by central and commercial banks to process euro payments in real time. It is compared to a hydraulic network that allows the currency to flow into the economy and is defined as "an indispensable brick of EU financial integration" used by national sections of the ECB such as Bankitalia and others 1.700 credit institutions. Although very important, it remains an accounting tool, used as a truncheon by those who control it.
On another plane, resembles Swift, the consortium dedicated to international payments, which blocked the Vatican bank IOR in the days preceding the abdication of Benedict XVI. Both tools, but structured as centers of power, links in a financial chain of command from which not only people are excluded, but also the States. In Germany there is strong controversy over Target2: the credit of the federal bank, Bundesbank, has risen to the astronomical figure of 956 billion. Professor Marcello Minenna, system expert, he declared: “Target2 imbalances demonstrate that there is something fundamentally wrong with the construction of the Euro. It is a measurement of pressure which, if you keep adding, at a certain point the container will break". The same conclusions as Paolo Savona, new minister after the shameful pantomime that involved him.
Therefore Target2 has degenerated into a mechanism aimed at financing capital flight from Southern Europe, the infamous PIGS (Portugal, Italy,Greece, Spain), but also, pleasantly, pigs, in the English translation of the acronym. If "meaning must be drawn from the facts", since Target2 is a body of the Eurosystem which also takes care of its management, the oxen did not escape on their own, but someone opened the stable doors. Even a former senior BIS official, Bank of International Settlements, the dome of the central banks, he states, about the huge German surplus: “These are large-scale credits that no government has ever approved. The situation cannot go on like this, indefinitely".
They play dirty on the skin of the Member States and their citizens. The legendary Bundesbank extends its credits automatically, outside government control. Strange moan, if it comes from the oligarchs who built the current system, making it autonomous, independent by law to the point of removing its leaders from the jurisdiction of any State, freed from the laws, prerogative of the sovereigns. Meanwhile, Mario Draghi, which we continue to define as Italian even though the central superbankers possess passports and diplomatic immunity, he took care to threaten Italy, demanding payment of the Target2 debt in euros in the event of exit from the common currency. Sign of contempt of the law of money which states the opposite, as well as the political use of Target2, whose sums,by Draghi's unquestionable decision, the new Lord, they would be a real debt. Eurozone taxpayers knew nothing about it, despite the money coming out of their pockets.
Nevertheless, continues Evans-Pritchard, Target imbalances 2 they should be “just a technical accounting adjustment, provided that the euro keeps all countries united". Impossible, if the ECB is not only completely autonomous and unquestionable in its action (the unelected “monetary authorities”., autonomous and self-referential), but it is not even a real central bank, since it is not a lender of last resort and there are no European treasury bonds. Tremonti fought in vain, Paolo Savona is the voice of those who preach in the desert.
The conclusion is that Italy is under blackmail, large investors use the Target2 “plumbing network” as a pipeline to Germany, the public bonds of derelict Greece have one spread lower than ours. A blackmail that will be very difficult to escape, especially combined with the nuclear weapon of public debt. On purpose, in the ten terrible years of Lorsi's care, Greek debt has gone from 109 al 191 percent. Someone lost, the unfortunate Hellenic people, someone else won, the monetary authorities, the markets, IMF and World Bank. All this in a context of disturbing decomposition of the Union, as the divisions at the G7 made clear, mutual accusations, the controversies on the capital issue of immigration/invasion, the rancorous battle over Brexit, the debate on the euro that opened in Germany, the divergent opinions on American tariffs, the threatening possibility in an anti-Italian key that Dr. Draghi, one of the yacht Britannia, bring forward the end of the virtual liquidity injection, il quantitative easing.
It's a test, the umpteenth, of the dramatic funnel into which the world has found itself since it handed over the monetary function to the banks, in the absence of constraints, reserves, possibility of state intervention. Fish always stinks from the head, you can't cure the effects without removing the causes, nor is it permissible to believe the cheaters who ensure the neutrality of the currency.
We need to listen more to poets than to economists, probably. When money was still constituted or represented by gold and silver, Francisco Quevedo, at the time of Spanish hegemony he wrote like this: A powerful knight is Don Dinero/ he is born in the Indies honored/ where the world accompanies him/ he comes to die in Spain/ and is buried in Genoa.” Powerful knight is Don Denaro, born honest in the Indies, where the world accompanies it, he comes to die in Spain and is buried in Genoa. The precious metal was mined in the colonies of the Catholic Kings who transferred it to their homeland, but they had to cede a large part of it to creditors, the Genoese usurers who financed the kingdom. Nihil sub sole novi, nothing new under the sun.