The latest Target2 Chart from the ECB is from May. Newer totals are available in some individual countries.Debtors, primarily Italy and Spain, now owe Germany close to €1 trillion. Realistically, this money cannot and will not be paid back except by a central bank bailout.The economists are all over the map. Some say trade with Italy is stopping, not true. Some say this is a fictional debt, not true.
The choice for Italy is to pay 2.5% on this debt for all of eternity, they will not.
The choice for Germany is to negotiate a bailout. Germany has no escape, they are huge owner of the ECB and any bailout the ECB does reflects on future interest income in Germany.
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