All I can say is wow. Some plain spoken sense coming from a politician. I don't think there is much I can add to this remarkable series of statements, outside of can we make a trade? Bernanke would make an excellent head of state for Germany; I assume they manufacture helicopters and printing presses there? Keep in mind if you are not familiar with Germany's history, people there speak from experience ...
Via FT.Com
- Unconventional monetary policies being pursued by the world’s main central banks could aggravate rather than ease the economic crisis, Angela Merkel, Germany’s chancellor, suggested on Tuesday.
- Her surprisingly strong attack on the US Federal Reserve, the Bank of England and the European Central Bank was remarkable coming from a leader who had so far scrupulously adhered to her country’s tradition of never commenting on monetary policy.
- “What other central banks have been doing must be reversed. I am very sceptical about the extent of the Fed’s actions and the way the Bank of England has carved its own little line in Europe,” she told a conference in Berlin. “Even the European Central Bank has somewhat bowed to international pressure with its purchase of covered bonds.”
- Ms Merkel’s decision to ignore one of the cardinal rules of German politics – an unwritten ban on commenting on monetary policy out of respect for central bank independence – suggested Berlin is far more concerned about the ECB’s approach than has so far been apparent.
- Berlin is anxious that central banks will struggle to re-absorb the vast amount of liquidity they are pouring into the markets and fears the long-term inflationary potential of hyper-loose monetary policies.
