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.

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Germany to review Bundesbank Gold reserves

Image: ponsulak / FreeDigitalPhotos.net *

“There is increasing nervousness amongst the German public, German politicians and indeed the Bundesbank itself regarding the gigantic risk on the balance sheet of Germany’s central bank and this is leading some in Germany to voice concerns about the location and exact amount of Germany’s gold reserves.”

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