Euro Crisis Crucible: Rift Grows Between Germany's Bundesbank and ECB

[sysop]

<div class="spClearfix"><span class="sysopImage"><img src="http://cdn3.spiegel.de/images/image-291962-thumb-itia.jpg" /><span class="spCredit">REUTERS</span></span><span id="sysopText">There are growing divisions among European Central Bank leadership about how to handle the euro crisis, not to mention between the ECB and the Bundesbank, Germany's central bank. While ECB head Mario Draghi is pleased with his recent decision to flood the markets with cheap money, Bundesbank President Jens Weidmann warns of the dangers.

http://www.spiegel.de/international/...819255,00.html</span></div>

[tnt_ynot]

The overwhelming praise for Dr. Drag from the ECB is coming from the financial sector whose skin he is saving. These are the same people who drove Europe into the debt crisis based on their greed. And little Timmy G. from the Treasury loves it because it postpones the disaster till after his boss' try for re-election. It is wonderful to recall that Dr. Drag was head of the treasury and the National Bank in Italy as it gorged itself on debt. Timmy during that time had a love affair with his boss Greenspan as the then beloved and praised Fed boss guided the USA to the brink. Yes, gotat to love the bank mafia as they BUY TIME with a SELL OUT of the taxpayers as described at : http://euro-meltdown.blogspot.com/

Anthony

[pmoseley]

This article clearly demonstrates the dangers of the ECB coming under the undue influence, if not the eventual control, of the Bundesbank. The situation where both are in the same EU state and the growing financial power of the Germans means safeguards must be put in place to prevent the Bundesbank, or at least Germans, from controlling the ECB. It is particularly important to make sure this happens before Dhragi is replaced by a German! The regular and almost uncritical celebration by Der Spiegel of everything German is really beginning to smell of things other than roses.

[alfredmifsud]

The behaviour of the Bundesbnak Chief shows that Germany is not committed to a Monetary Union and simply wants a fixed rate of exchange system.

No other reason can explain for going public with concerns of losses if the Euro system were to blow up.

If Germany is committed to a moentary union it should respect the collegiality of its governing Board and support the College decisons even where they have private disagreements to them. Otherwise they should go back to their DM and restor stability to the Euro which is suffereing from German chronic surpluses as much as from Grekk chronic deficit.

In 7 year time if the BUBA chief makes it to the top spot at the ECB he would expect collegiality. If we make that far we will owe it to Draghi not to him.