Tuesday, November 15, 2011

Is Germany BREAKING ? - ECB


Guardian Live: Reports that Peter Bofinger an economic adviser to German Chancellor Merkel has stated the following, “ .. has broken ranks and conceded that the European Central Bank should become the "lender of last resort" ”. Is this a trial balloon folks by the Germans, to see how the markets and the German people, react, one can postulate that that a adviser would not have stated the above without a green light from the Chancellor. But as stated it’s a trial balloon, the Germans are VERY wary of this kind of printing money policy by the EBC, brings back the memory of hyper inflation of Weimar Germany and the raise of Hitler, the idea would have to get through the German Parliament and the German Supreme Court, the German Parliament has made it clear it wants to okay any EU polices of the Chancellor. If the ECB did print money it would help Italy and Greece, save the Euro, but it would mean in essence that Germany would have to bailout the EU all the time, lets see if this balloon goes up or gets shot down in Berlin.

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