Bundesbank President Jens Weidmann has recently discussed with other senior officials at the...


Bundesbank President Jens Weidmann has recently discussed with other senior officials at the bank the possibility of resigning, due to his opposition to Mario Draghi's plans for the ECB to resume the buying of eurozone government debt, Germany's Bild reports. However, unlike his predecessor Axel Weber, Weidmann has stayed so that he can fight the program from within.

Comments (12)
  • User 353732
    , contributor
    Comments (5158) | Send Message
     
    It is a rare central banker who has the integrity and moral fiber to resist currency debasement via the unconscionable expansion of fiat money. In most the EU, the US, China and Japan such central bankers no longer exist.
    31 Aug 2012, 05:23 AM Reply Like
  • American in Paris
    , contributor
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    The key issue facing the world is not currency debasement. In fact, currency debasement at an annual 2% rate is far superior to a zero inflation rate.

     

    Inflation does not in general make people poorer. The purchasing power of a household depends on relative income - how fast their income is growing relative to the things they buy and consume.

     

    You have made thousands of comments - most of them are populist nonsense.
    31 Aug 2012, 08:39 AM Reply Like
  • schatzl
    , contributor
    Comments (391) | Send Message
     
    That's all fine and dandy, yet countries like Austria that have experienced stagnant wages over the last ten years have seen their real disposable household income shrink by an aggregated 30%. Yes, that is less income BECAUSE of inflation. The same holds true to a lesser extent for Germany.

     

    Rising wages is nowhere guaranteed, quite the opposite holds true for the vast majority in the West. Globalisation forcing a harmonisation of wages across continents, which invariably hurts the low income employed the most and given the pressure for countries to compete on the global arena, governments will do so over the politically much easier way of currency debasement instead of cutting wages.
    31 Aug 2012, 09:13 AM Reply Like
  • anonymous#12
    , contributor
    Comments (545) | Send Message
     
    Austerity is doing wonders in Europe....more unemployment, more poverty, record wealth in a few hands....the perfect utopia for tea baggers.

     

    Weidman should know that Europe needs stimulus, not more self-flagellation.
    31 Aug 2012, 09:39 AM Reply Like
  • Leftfield
    , contributor
    Comments (4060) | Send Message
     
    "The key issue facing the world is not currency debasement."

     

    Sure, and the imminent housing crisis was not the key issue it became until after the crash and then the usual lamestream suspects made their customary claim that "no one saw this coming." For which they socialized their losses and the mess their policies created onto the backs of productive taxpayers, as usual.

     

    The largest bubbles in world history are Treasuries and Western fiat currencies. But we will hear that they are "just fine" until their manipulated faux values move more in line with reality: Far lower.

     

    Even Weimar Marks fluctuated and stabilized several times during their descent.
    31 Aug 2012, 10:50 AM Reply Like
  • TruffelPig
    , contributor
    Comments (4206) | Send Message
     
    I beg to differ - Weidmann treats the Euro as if were the D-Mark. That is not possible due to the spread in interest rates on bonds. Only a better fiscal integration can help and in the short term fighting the spread. Weidmann comes years too late - he should have prevented the Euro-zone.
    31 Aug 2012, 06:43 AM Reply Like
  • American in Paris
    , contributor
    Comments (5495) | Send Message
     
    I agree. Weidmann is a German dinosaur whose thinking is overly influenced by the Weimar Republic. Of course, monetary policy should be used to smooth the business cycle.
    31 Aug 2012, 08:39 AM Reply Like
  • mickmars
    , contributor
    Comments (1312) | Send Message
     
    So, as an American, would you be okay with the Federal Reserve printing $50 billion and giving it to California with no strings attached? And, when they blow through that, give them more?

     

    That's what Weidmann is being asked to do in Europe.
    31 Aug 2012, 09:11 AM Reply Like
  • TruffelPig
    , contributor
    Comments (4206) | Send Message
     
    Lol - I am not an American. I am actually a German. And please come with more realistic examples.
    31 Aug 2012, 09:32 AM Reply Like
  • schatzl
    , contributor
    Comments (391) | Send Message
     
    1. If you are German, you should know it was never Weidmann's responsibility nor part of his scope to decide on the creation of the Eurozone. That was very much a French initiative (or reunification blackmail if you will) taken up by Kohl and Waigel.

     

    2. mickmars makes a salient point. The Fed does not touch Californian bonds, but it's ok with you that the ECB buys Greek/Spanish or whatever bonds?

     

    3. do you pay taxes in the European core? Because I pay way too much and I vehemently oppose any socialisation of peripheral and banking debt and I vehemently oppose a centrally planned economy not dissimilar to 70 years of soviet era economic disaster. Who in his right mind believes central banks (with what democratic legitimisation?) can control national economies, let alone on a continental scale?

     

    As long as Weidmann stands firm, not all is lost.
    31 Aug 2012, 10:18 AM Reply Like
  • mickmars
    , contributor
    Comments (1312) | Send Message
     
    Was responding to "American in Paris".

     

    But, while we're on the subject... please explain the difference to me.
    31 Aug 2012, 10:23 AM Reply Like
  • mickmars
    , contributor
    Comments (1312) | Send Message
     
    Now, Schatzl have a heart. How will the French retire at 60 without your donations?
    31 Aug 2012, 10:35 AM Reply Like
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