Bundesbank's Jens Weidmann Discusses The ECB's Role As An Overthrower Of European Rulers, Bashes EFSF Incompetence

Tyler Durden's picture

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bartek's picture

ECB broke the law prohibiting it from monetizing government debt. ECB is now a criminal organization. There is no proof that much talked about sterilization is actually being done.

SamAdams1234's picture

There is a long and bright history of the overthrow of Italian leaders:


Death of SilvioJ. Ceasar.

trav7777's picture

Italy suffers from a "lack of confidence"???  ROTFL, this guy is an idiot

DutchR's picture


EFSF is just stage 1 


For the real transfer of power there has to be a little more instability so that the ESM (due to be launched in mid-2013) can be in total control.


 (The European Stability Mechanism (ESM) is a permanent rescue funding programme to succeed the temporary European Financial Stability Facility and European Financial Stabilisation Mechanism.)

How does the ESM work: http://en.wikipedia.org/wiki/European_Stability_Mechanism

the details: http://consilium.europa.eu/media/1216793/esm%20treaty%20en.pdf

or for the 2.0 generation: http://www.youtube.com/watch?v=gNa5k0KCVbw



*copied from another thread

Mr. Anonymous's picture

WTF, Tyler? You act like this guy's the second coming of the wise Solomon, but he sounds like just another banker hack to me.

"It’s the task of governments to ensure that banks in Greece are solvent."

Maybe I'm just too simple to be a central banker, but I think the solvency of Greek banks is the task of Greek banks and the Greek nation.  The real task, IMO, is for the Greek banking system to wind down insolvent Greek banks in an orderly fashion, even as it busts the bondholders whose initial investment are learned to be imprudent.  Oh, wait.  That's capitalism, something modern 'Kapitalistas', er central bankers, just don't do. 

Atomizer's picture

IMHO, I'll bet the crackhead EU leaders migrate to the BRIC's for short term financing.

EU Crackheads gone WILD!!!! (Fightin for da Monya)


During Tuesday's upcoming meeting, Lagarde has promised to offer a 40% Groupon discount to offset a 40:1 EU bailout agreement.

Motley Fool's picture

JW: It’s not about helping Italy or penalising Italy. The ECB Governing Council has always stressed that the Securities Markets Programme is about ensuring the monetary policy transmission process., But it comes with risks. The risks are reflected in our balance sheet.


Why yes they are. :P

sampo's picture

USA blackmails Germany with it's gold, says Jim Rickards


pain_and_soros's picture

FT: Is the Italian bond market dysfunctional at the moment?

JW: What we see is a reaction to the political problems in Italy and the lack of implementation and I wouldn’t consider that as dysfunctional.



FT: In principle, the ECB could buy up a lot more bonds and keep the yields where it wanted ...

JW: We have a mandate and we have to stick to our mandate. Fixing an interest rate for a country is certainly not compatible with our mandate. You would guarantee a certain refinancing cost for a government and you could not argue that this was not monetary financing.

The stated purpose of the SMP is to cope with dysfunctional markets and it’s not to ensure a specific spread for a specific country.


I suspect he is fluent in English so the above is not due to a translation issue.  I would say that is pretty good double-speak for a "non-politician"


Market Efficiency Romantic's picture

'pretty good double-speak for a "non-politician"'

Before being named head of Bundesbank, he was Merkel's closest economic adviser in the German government.

I first wondered, why she nominated him, but he now seems to the perfect mix of economist/politician to cope with the political traps.

catch edge ghost's picture

Sure, my incentives are muted but my cage is gilded.  I have these central bankers right where they want me!

ich bein ein jelly donut.

slewie the pi-rat's picture

moral hazard!

thus spake glans weedMan from weimarTM

YearZero Institute's picture

Look the ECB, one way or the other, is going to be the `lender of last resort`.

What we have is the Eurozone nations doing a complicated dance so they can tear up their own bollocks constitution, plus a possible wrecking of the German economy (which has benefited from the inequalities in the EU). Not surprisingly this is taking forever.

Likely these changes will happen at the point of complete disaster.

Then all eyes will be back on the US and the UK...



trav7777's picture

the UK is in the process of printing the Pound into oblivion.  The damned thing used to be an actual pound, now how much sterling does it fetch?

Peak oil is austerity by force

JR's picture

Everyone keeps talking about the European economic union and ignoring the fact that the bankers want a political union so that they can eliminate the  opposition to their personal economic program.  That’s what central planning always wants; it wants no disagreements and no opposition and in the end it wants command authority to force the politicians and the people to obey its central planning dictates.

Germany does not benefit from a political union; she benefits from an economic union. If there is a political union, then the morality and the standards and the productivity of Germany is watered down as she combines with other states that are not interested in the same workplace and community high standards of the German people.

And, of course, the bankers are interested in a political union because they can dictate to the states what the different states can do.

Now that the eurozone’s bloom has faded, and the recession’s come along, the bankers are worried they don’t have enough control to force these countries to fall in line.

And so in Germany there has developed these two different opinions: One view is that of the German banks in league with the French banks in league with the multinational corporations based in Germany and France that exercise huge control over the politicians such as Merkel and Sarkozy and the publications such as Der Spiegel. All are part of the banker establishment.  Their view is that the economic eurozone unit is their lifeblood and if that is damaged they are damaged, as in turn are the politicians.

The other view in Germany is that of the people, which is:  What happened? We have a good life, we’re producing, all is fine and now they say no, things are going to be rough; you’ve got to pay up more in order to save the eurozone because it’s so important to you.  And the Germans are wondering why it’s so important all of a sudden. It’s one thing to have a multinational corporation job, but it’s another to have to knuckle under and change your way of life. The last thing the Germans want in this world is to be controlled from Brussels. They want Germany for Germans.

This observation can be learned from watching Britain’s opposition to joining in with the eurozone people; they see that it’s the end of England and the beginning of The United States of Europe and they don’t want a part of it.

And that’s why the bankers can’t allow a vote; the people will vote their stupid ethnic values, i.e., family, religion, community and freedom, when they should be voting for spending, big government, and borrowing…

schadenfreude's picture

Excellent post. You summed it up pretty well.

i-dog's picture

Agreed. Summed it up very well.

time123's picture

Nice post. I enjoyed reading it.


In my opinion, all the recent negativity in the press regarding the European debt crisis has created a tremendous buying opportunity for US stocks. 


The Invetrics system just gave a long term "Buy" signal as of the close of 11/11/11 with a new DJIA target of 13,500! You heard it here first.




time123's picture

Sorry, that was a typo. I meant to say 15,500 which is about 27.6% higher!




time123's picture

Looks like we are moving higher today! The Invetrics long term Buy signal of 11/11/11 will likely get confirmed!



AndrewCostello's picture

EFSF is just one more manipulation in a long line of manipulations to keep the fraud of the world economy going.

If we were all honest, we'd revalue gold to match the money supply and pay off all this "paper debt" in one go, then start fresh with a monetary system that is backed by hard money.