Angela Merkel has confirmed that Jens Weidmann, her chief economic adviser, will become the next president of Germany’s central bank. The 42-year old will take the helm on May 1, becoming the youngest president in the Bundesbank’s history. – FT
As time passes, the rifts between the Bundesbank and the ECB grow wider. So do the rifts between what German citizens want and what German chancellor Angela Merkel is willing to do to "save the euro".
Merkel increasingly (and as expected) does what she need to do to preserve he legacy, consequences (and Germany) be damned.
Please consider Merkel tries to calm storms over Greece, ECB policy
Berlin (AFP) - The head of Germany's central bank on Saturday voiced his "scepticism" about the ECB's decision to launch a trillion-euro bond-buying programme in a bid to ward off deflation and boost the eurozone economy.
There's been no shortage of headlines out of Germany this week, showing just how much the country is now pitted against other eurozone countries, central bank authorities and international institutions.
The Bundesbank's Jens Weidmann appears to have no clue that the ECB (and thus the Bundesbank) is failing in its mission to stabilize inflation at a level "near to but below 2%/year", and no desire to actually have it accomplish its assigned mission:
"The concept of an independent central bank clearly focused on price stability is neither old-fashioned nor outdated," exclaimed Bundesbank head Jens Weidmann. As The WSJ reports, he criticized the European Central Bank’s decision to buy private-sector bonds and signaled his fierce opposition to purchasing government bonds, underscoring his reluctance to back additional stimulus measures to combat weakness in the eurozone economy.
With EURUSD hardly budging, constantly disappointing economic data (from periphery to the core now), and central bank transmission mechanisms that are entirely clogged and useless for anything but stuffing the pockets of bloated bank balance-sheets with domestic sovereign debt, it is no wonder Germany's Bundesbank has said 'enough'. "If we pursued our own monetary policy... it would look different," explained Bundesbank chief Jens Weidmann.
Earlier today, we noted that Germany (or at least the Finance Ministry) has thrown its support behind a Greek referendum on euro membership. The idea is that if Greeks vote to remain in the currency bloc, they are essentially also voting to accept that their lifestyles are about to get a lot more austere in exchange for Germany’s willingness to help the country avert an outright economic collapse.