Europe: What is target 2?

Target 2 is a financing mechanism that has been corrupted into a debt generating mechanism. By this mechanism, the debts of Southern Mediterranean countries have been transferred to German banks.


Let's say an Italian company wants to buy something in Germany. The Italian company borrows the money from the Italian Central Bank, which then borrows the money from the ECB. The ECB then borrows the money from German banks, where the debt accumulates. So, it becomes a mech to transfer money from Germany to other countries while promoting the sale of German goods.


Spain has borrowed E328B, Italy E368B and Greece and Portugal each about E150B. But, this will be repaid, no? Not a chance.