Peter
Boehringer
Target-2
AfD
Kompakt, August 7, 2020
[Peter Boehringer is an Alternative für
Deutschland Bundestag member from the western German state of Bavaria. He is chairman
of the Bundestag budget committee.]
The
Target balance is in fact only a symptom of the misconstrued euro’s costs to
Germany – albeit one of the most expensive. Since 2007, Germany itself finances
large portions of its exports in the euro zone with this misused Target
mechanism as a credit vehicle for EU southern countries. It will thus be seen
that at the national economic level a large part of our export production is
given away. The corresponding loss is now for the first time at 13 figures. If
the Bundesbank exchanged its Target requirements at the present rate for gold
(which in fact it had done until 1967), it could, even at today’s high gold
prices, thereby purchase over 18,000 tons (presently it holds a good 3,350 tons).
Besides Germany’s trade balance surpluses with Italy, Spain and Greece, it is primarily the capital flight movement out of the euro southern countries, as
well as, in our opinion, the unconstitutional loan purchases of the ECB’s Corona
PEPP program, which are contributing to the rapid increases in the Target balances.
All of this shows that the divergent euro zone, since the persistent euro
crisis of 2010, is to be held together only through the ECB’s planned economy
measures (primarily the bond purchases from countries which, without the ECB,
are no longer credit-worthy states). The market presently however no longer
honors with its confidence the (illegal) transfer community of the euro, but
acts to exactly the opposite effect.
Although
the ECB is the direct counter-party of the Bundesbank for the Target
settlements, this trillion will never return at value to Germany. The indirect
debtor countries of the Mediterranean area, given the euro’s lack of real
economic competitiveness, are not in a position to settle a trillion euros. The
ECB will, in case of the euro’s dissolution or the expulsion of one of these
southern countries, only be able to print more of nothing and it will then be
paid back in massively devalued or indeed worthless euros.
If one
day it actually comes to a rapid loss of trust in the euro zone, the unlimited
and unsecured Target credit mechanism of the Bundesbank could in a few days
increase by additional trillions. An end of the euro may then mean the
corresponding complete write-off of these trillions. Since 2011, the Bundesbank,
the Federal government and the system economists with preposterous arguments
have denied these risks. The market sees it otherwise and no longer takes part
in the absurd argumentation. The extent of fall of Target is now already in the
long-term planning of many Federal budgets. A corresponding write-off by the
Bundesbank would lead to their immediate insolvency. It may then be that the
Federal government re-capitalizes these with many years’ tax receipts – thus with
the tax receipts of millions of man-years of German work.
Already
for years, the AfD has demanded in many motions the remittance and/or the
recoverable securing of the Target balances – as well naturally the minimization
of the German write-off and tax losses resulting from a German exit from the
euro.
[trans: tem]
