Bundesbank’s Weidmann: Comparing ECB’s unlimited bond buying program to scene from Dr. Faust

Delacroix, Illustrationen zu Goethes Faust, Faust allein / Wikimedia *

German central bank chief cites Faust
saying money printing is the work of the devil

By Peter Cooper, Arabian Money, 19 September 2012

Head of the Bundesbank, Jens Weidmann has shocked Europeans by appearing to compare the ECB’s unlimited bond buying program to a scene from the important German literary work Dr. Faust where the devil persuades an emperor of a small kingdom to print money to solve his financial problems and it ends in financial disaster.

It is a clever literary reference as Germany celebrates the 200th anniversary of the birth of Goethe, the German equivalent to Shakespeare who wrote Faust. It’s also a clever reminder that nothing is new in history and that money printing always ends up badly.

No different this time

Basically the initial impact of money printing is deceptively reassuring, people have money to spend again and things look very positive. But then the reality of price inflation become more and more apparent until their wealth is completely inflated away by paper money.

You can’t actually create prosperity by printing money, only the illusion of wealth and the economic distortion it creates will eventually destroy those caught up in this illusion with inflation and devaluation.  Complete article HERE

Related article:

Former German Constitutional Court President Says ECB Bond Purchases Are Anti-Constitutional, LaRouchePAC, September 18, 2012 – In a remarkable article published the FAZ Sunday edition, Frankfurter Allgemeine Sonntagszeitung, Paul Kirchhof, former president of the German constitutional court, voices confidence that the court will rule against the ECB’s planned new purchasing of sovereign bonds, as not covered by the Constitution of Germany.

* The publishing of this image does not imply that the author endorse this article. – This work is in the public domain in the United States, and those countries with a copyright term of life of the author plus 100 years or less.

*** More articles and videos from CanadaNewsLibre HERE !

Disclaimer: The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of CanadaNewsLibre. The contents of this article are of sole responsibility of the author(s). CanadaNewsLibre will not be responsible or liable for any inaccurate or incorrect statements. The CNL grants permission to cross-post original CanadaNewsLibre articles and videos on community internet sites as long as the text & title are not modified. The source and the author’s copyright must be displayed. http://canadanewslibre may contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of “fair use” in an effort to advance a better understanding of political, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than “fair use” you must request permission from the copyright owner.

ↄ⃝  Copyleft CanadaNewsLibre 2012

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s