– Bundesbank Text: Weidmann Reiterated Bond-Buy Criticism (Financial Market News, Sep 6, 2012):
FRANKFURT (MNI) – The following is a statement issued by the Bundesbank on Thursday:
“In the most recent discussions, as before, Bundesbank President Jens Weidmann reiterated his frequently substantiated critical stance towards the purchase of government bonds by the Eurosystem.
He regards such purchases as being tantamount to financing governments by printing banknotes. Monetary policy risks being subjugated to fiscal policy. The intervention purchases must not be permitted to jeopardise the capability of monetary policy to safeguard price stability in the euro area.
If the adopted bond-purchasing programme leads to member states postponing the necessary reforms, this will further undermine confidence in the political leaders’ crisis-resolution capability. This underscores the crucial importance of ensuring both credibility in the promised conditionality and the resolute determination to immediately terminate intervention purchases if the underlying conditionality is no longer assured.
The announced interventions in the government bond market carry the additional danger that the central bank may ultimately redistribute considerable risks among various countries’ taxpayers. Such risk-sharing, however, can be legitimately authorised solely by democratically elected parliaments and governments.”
ECB (and Federal Reserve) banksters are totally in love with the weapon of last resort, the so-called ‘Nuclear Option’ or ‘Quantitative Easing’ (QE).
Quantitative easing = printing money = creating money out of thin air = increasing the money supply = inflation = hidden tax on monetary assets = theft!
One man – Jens Weidman – opposing the thieves:
“By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”
– John Maynard Keynes
And now the irresponsible deficit spending and (unlimited) bankster bailouts can go on and on. Who will benefit and who will lose?
“When a country embarks on deficit financing and inflationism you wipe out the middle class and wealth is transferred from the middle class and the poor to the rich.”
– Ron Paul
“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. … This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.”
– Alan Greenspan
And the ECB’s ‘Hyper Mario’ will have to monetize TRILLIONS in bad debt!!!
Weimar (hyperinflation) all over again?
In less than one year the Eurozone will be much worse off than before.
Only the stock markets will be happy (for a while).
Bundesbank chief Weidmann: He’s obviously in the Governing Council voted against the bond purchase.
Bundesbank-Chef Weidmann: Er hat im EZB-Rat offenbar gegen den Anleihenkauf gestimmt. Geholfen hat es nichts
Google translation: Financial markets cheer the death of the Bundesbank (Welt, Sep 6, 2012):
ECB President Draghi breaks with brazen principles of German monetary policy. The central bank is pumping unlimited money in the bond markets. Stock markets cheer – for Germany begins the nightmare
As it was, the word that everyone had been waiting indefinitely. Which it was used, Mario Draghi, President of the European Central Bank (ECB). Unlimited wants the ECB to buy in the future decision of the Central Council of Euro-bonds with countries to stabilize the ailing financial markets in the monetary union.
Polleit holding gold for the investment of the hour, because unlike central bank liquidity, do not let any physical precious metals increase.
Full original article: Finanzmärkte bejubeln den Tod der Bundesbank (Welt, Sep 6, 2012):
EZB-Präsident Draghi bricht mit ehernen Prinzipien der deutschen Geldpolitik. Die Zentralbank pumpt unbegrenzt Geld in die Bondmärkte. Die Börsen jubeln – für Deutschland beginnt der Albtraum.
Da war es, das Wort, auf das alle gewartet hatten: unbegrenzt. Der es benutzte, war Mario Draghi, der Präsident der Europäischen Zentralbank (EZB). Unbegrenzt will die EZB nach Beschluss des Zentralbank-Rats künftig Staatsanleihen von Euro-Problemländern kaufen, um die schwer angeschlagenen Finanzmärkte der Währungsunion zu stabilisieren.