Achtung! German democracy is in danger!
June 04, 2009
– Comments (8)
Clearly, Germany is no longer a democracy after this speach by the Chancellor. We don't understand it yet, but soon NY Times will explain it to us, and then we'll see why it's the case.
"June 2 (Bloomberg) -- German Chancellor Angela Merkel said she’s skeptical about the monetary policy tools the U.S. Federal Reserve and the Bank of England have introduced to fight recessions in their economies.
“I view with great skepticism what authority the Fed has and the leeway the Bank of England has created for itself,” Merkel said in a speech in Berlin. “We have to return jointly to more independent central bank policies.”
The chancellor said the European Central Bank “already bowed somewhat to international pressure” when its governing council last month authorized direct purchases of covered bonds. ECB President Jean-Claude Trichet on May 7 said the ECB will buy 60 billion euros ($85.5 billion) of covered bonds, or Pfandbrief.
Merkel is stepping up rhetoric against policies she says have contributed to the financial crisis that’s thrown Germany into its deepest recession since World War II. Economy Minister Karl-Theodor zu Guttenberg today said the time was over when former Federal Reserve Chairman Alan Greenspan’s era “was celebrated as the new paradigm.”
Central banks must return to a “policy of reason,” Merkel said. “Otherwise we’ll be back in the same spot in 10 years time.”
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