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
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.
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