ECB Debasement Is Akin To Work Of Devil – Risk Of “Rapid Currency Depreciation”

Tyler Durden's picture


From GoldCore Gold Bullion

ECB Debasement Is Akin To Work Of Devil – Risk Of “Rapid Currency Depreciation”

Today’s AM fix was USD 1,774.50, EUR 1,361.44 and GBP 1,092.54 per ounce.
Yesterday’s AM fix was USD 1,756.75, EUR 1,344.31 and GBP 1,081.81 per ounce.

Silver is trading at $34.66/oz, €26.76/oz and £21.48/oz. Platinum is trading at $1,632.00/oz, palladium at $666.70/oz and rhodium at $1,300/oz.

Gold climbed $13.00 or 0.74% in New York yesterday and closed at $1,770.60. Silver surged to $35.015 before it also dropped off, but it finished with a gain of 2.23%.

Mephistopheles: Persuaded the Emperor to Print Paper Money 

Gold hit its highest level in 6-1/2 months today after Japan followed Europe and the USA in embarking on stimulus measures to boost its economy, increasing the safe haven’s appeal as an inflation hedge.

The rash of central bank massive liquidity injections is continuing to support gold as traders bet on the inflationary consequences of such significant largesse. 

The BOJ (Bank of Japan) ramped up its asset buying and loan programme, by ¥10 trillion ($127 billion) to ¥80 trillion which led to Japan’s total public debt surging over the 1 quadrillion mark.

1 quadrillion is a very large number and is  ¥1,000,000,000,000,000 or 1 with 15 zeros after it.

Japan could clearly do with their own Jens Weidmann right now.

The most vocal critic of the ECB’s recent ultra loose monetary policy, Jens Weidmann, the influential head of the German Bundesbank, has again attacked current ECB monetary policy.

XAU/EUR Currency – (Bloomberg)

Weidmann has been trenchant in his criticism of EBC policy but has gone further by analogizing recent monetary stimulus to "the scene in Faust, when the devil Mephistopheles, 'disguised as a fool,' convinces an emperor to issue large amounts of paper money."

His criticism has been picked up by media internationally (see news) and has been featured on the front page of the Financial Times (UK edition) today including an image of Mephistopheles and the caption ‘Mephistopheles: Persuaded the Emperor to Print Paper Money.’

XAU/EUR Currency – (Bloomberg)

As the FT reports today “In early scenes from Goethe’s tragedy, Mephistopheles persuades the heavily indebted Holy Roman Emperor to print paper money – notionally backed by gold that had not yet been mined – to solve an economic crisis, with initially happy results until more and more money is printed and rampant inflation ensues.” 

The classic play highlighted, Weidmann argued, “the core problem of today’s paper money-based monetary policy” and the “potentially dangerous correlation of paper money creation, state financing and inflation”.

In yesterday’s speech in Frankfurt, Goethe’s birthplace, he said: “The state in Faust Part Two is able at first to rid itself of its debts while consumer demand grows strongly and fuels a strong recovery. But this later develops into inflation and the monetary system is destroyed by rapid currency depreciation.”

The name Mephistopheles as used by Goethe comes from the Hebrew word for destroyer or liar.  

Mephistopheles is a fallen archangel, one of the 7 great princes of Hell and in Goethe’s ‘Faust.’ Mephistopheles is acting for his overlord Satan and seals the pact with Faust.

Weidmann is suggesting that the ECB’s current monetary policies are a Faustian pact or a pact with the Devil and that they secure short term gain but will end in the disaster of rampant inflation. 

Cross Currency Table – (Bloomberg)

The consensus among many experts today, such as Paul Krugman, is that Draghi and Bernanke are protecting people and economies by their radical monetary policies. This is the same consensus and many of the same experts who said there was no risk from the global property and debt bubbles until they blew up in our face.

It is interesting that many of the same experts who denied there were property and debt bubbles are often most vehement in supporting the very central bankers who helped create this crisis and whose monetary policies of piling debt upon more debt risk worsening the crisis in the long term.

History will not judge Draghi’s supporters and Draghi’s stewardship of the ECB kindly. 

Weidmann is right to warn regarding the real and increasing dangers of inflation and “rapid currency depreciation”.

For breaking news and commentary on financial markets and gold, follow us on Twitter.


ECB Bond Buying Likened to Work of the Devil – Financial Times via CNBC

Gold Advances to Six-Month High After BOJ Steps Up Stimulus – Business Week

Gold hits 6-1/2-month top, BOJ move extends stimulus rush - Reuters

Gold’s Heading to $2000, Strategists Say; Thanks QE3 – Wall Street Journal

Lonmin deal pressures other S.Africa mining firms - Reuters


Could Fed's QE3 Program Send Gold to $2000? - Bloomberg

When will gold go back to $1,920 an ounce?
– Money Week

New Innovations Boost Silver Demand, But Could Price be Taken Down Again? – Casey Research

Tungsten-Filled 10 Oz Gold Bar Found In The Middle Of Manhattan's Jewelry District – Zero Hedge

Fed Up - GoldSeek

Twenty Four Carat Case For Gold –

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Wed, 09/19/2012 - 09:36 | 2810666 GetZeeGold
GetZeeGold's picture




Pleased to meet you.....hope you've guessed my name.


But what's puzzling you Is the nature of my game...



Wed, 09/19/2012 - 09:39 | 2810693 Colombian Gringo
Colombian Gringo's picture

All fiat currencies  eventually revert to their intrinsic value of zero. Hang all Banksters!

Wed, 09/19/2012 - 10:17 | 2810877 Zero Govt
Zero Govt's picture

"Hang all Banksters!"

that'll more than do as my Nice Thought of the Day

Wed, 09/19/2012 - 09:52 | 2810753 LongSoupLine
LongSoupLine's picture


Mephistopheles is not your name.

I know what you're up to just the same.

-Sting/The Police

Wed, 09/19/2012 - 10:11 | 2810854 Sweet Chicken
Sweet Chicken's picture


Only Sting could get Mephistopheles into a song and make it perfect like that. That's fucking great writing right there!!!

Wed, 09/19/2012 - 10:34 | 2810953 john39
john39's picture

the game is power.

Wed, 09/19/2012 - 11:31 | 2811292 noses
noses's picture

You forgot to add the next three lines. And you might also have added this:

Our so-called leaders speak

With words they try to jail you 

They subjugate the meek

But it's the rhetoric of failure

We are spirits in the material world


Wed, 09/19/2012 - 11:29 | 2811282 noses
noses's picture

Mephistopheles is not your name, 
But I know what you're up to just the same. 
I will listen hard to your tuition, 
And you will see it come to it's fruition. 
I'll be wrapped around your finger.


Hm. Seems correct. 

Wed, 09/19/2012 - 09:44 | 2810667 Mercury
Mercury's picture

It’s not a proper Faustian bargain if the one transacting with the devil isn't the interested party who is going to be most harmed by the ultimate, downstream consequences of the deal.


The public may want to re-examine the nature of their relationship with and the powers exercised by their "servants" in this regard...aka the principal-agent problem.

Wed, 09/19/2012 - 09:36 | 2810676 CheapBastard
CheapBastard's picture

"MORE debt, MORE bubbles and MORE monetary debasement."

Read more:
Wed, 09/19/2012 - 09:36 | 2810677 Jlmadyson
Jlmadyson's picture

They have nothing left.

Wed, 09/19/2012 - 09:38 | 2810678 yogibear
yogibear's picture

LOL, food prices/living costs skyrocket and trigger riots.  This should bode well for the central banksters.

Didn't they string bankers up, in the US,  during the riots of the 1800's?

Everyone knows were the Central Banksters palaces are.

Wed, 09/19/2012 - 09:36 | 2810679 FiatFapper
FiatFapper's picture

Perhaps inflation is the intended purpose; cull the herd via starvation and/or war.

Eugenics is their master-plan, always has been. There's only so many fuckers that can live in Cheyenne mountain.

Wed, 09/19/2012 - 09:43 | 2810712 Seorse Gorog fr...
Seorse Gorog from that Quantum Entanglement Fund. alright_.-'s picture

That IS scary! (...considering I don't have it on my computer)



Wed, 09/19/2012 - 09:46 | 2810726 francis_sawyer
francis_sawyer's picture


Wed, 09/19/2012 - 11:32 | 2811301 noses
noses's picture

So *YOU* are that General Failure who is always reading my disk. Nice to meet you!

Wed, 09/19/2012 - 09:37 | 2810688 Dr. Engali
Dr. Engali's picture

I'd like to see krugman's investments. He probably own a bunch of gold that's why he calls for more and more printing.

Wed, 09/19/2012 - 09:39 | 2810689 Dr. Engali
Dr. Engali's picture

delete double post. I was thinking like a keynesian and thought the more posts the better.

Wed, 09/19/2012 - 09:40 | 2810701 fonzannoon
fonzannoon's picture

Kind of like how the fed guy fisher owns a ton of GLD even though he says QE is bad. He knows the deal.

Wed, 09/19/2012 - 09:53 | 2810752 Dr. Engali
Dr. Engali's picture

Yeah I'm still trying to figure out why Fisher holds the fake paper gold instead of the real thing. Maybe he just trades that, or he is so arrogant he doesn't believe the system could blow up.

Wed, 09/19/2012 - 09:45 | 2810709 Cognitive Dissonance
Cognitive Dissonance's picture

Mrs Cog would say I was thinking like a male. More/bigger is better.

Of course more is better, right?........Right?..........RIGHT? :)

<At least we agree that physically owning more Gold and Silver is better.>

Wed, 09/19/2012 - 09:40 | 2810694 falak pema
falak pema's picture

Just ECB work; or the whole shooting match since Gl-Steagall revoke, derivatives banksta kingdom, + sub-prime bubbles + Tarp write-off + QE 1,2, twist, 3 and current merry-go -round of REhypoth to infinity?

The devil has been in the details of this Reaganomics mindset change since the day Wolfowitz said : THe US bestrides the world like a colossus...and a colossus, as everybody knows, can do what he likes; ad nauseum! 

Wed, 09/19/2012 - 09:45 | 2810721 francis_sawyer
francis_sawyer's picture

We're all Mephistophelesians now...

Wed, 09/19/2012 - 10:36 | 2810970 Jason T
Jason T's picture

no, we're all the serfs who'll have to suffer the consequences of the actions of the nations leaders taking the advise from the "money printer Mephistophelion's" of the world to print money and run deficits, to turn the ill into a good of course.

watch Faust summon the devil 


Wed, 09/19/2012 - 09:55 | 2810762 MFLTucson
MFLTucson's picture

Look at the market today with gold and silver down and confetti up and tell me that the US sytem is not 100% rigged.

Wed, 09/19/2012 - 09:57 | 2810763 MFLTucson
MFLTucson's picture

JP Morgan given more money to game the Gold market, watch and you will see this tribe at work for the devil.

Wed, 09/19/2012 - 10:10 | 2810764 Anasteus
Anasteus's picture

Hmm, Mephistopheles, at least we know the origin of central bankers' incentives. A nice picture up there... but grey beard would suit him better.

Wed, 09/19/2012 - 09:57 | 2810773 shovelhead
shovelhead's picture

This Faustian tale crys out for a WB7 Beezelbub Ben.

Wed, 09/19/2012 - 10:33 | 2810939 helping_friendl...
Wed, 09/19/2012 - 10:34 | 2810948 MinnesotaMD
MinnesotaMD's picture

All that is left is to declare the end of the world, thereby guaranteeing the world lives through the hellacious suffering to come.

Wed, 09/19/2012 - 10:36 | 2810974 helping_friendl...
helping_friendly_book's picture

We survived the 1970's and we will survive the 2010's. It should recover by 2020!

Wed, 09/19/2012 - 12:31 | 2811546 dadichris
dadichris's picture

Things are different now than in the 70s namely the ability of the real world to absorb and service exponentially more debt.  We may be able to kick the can down the road one more time but it will be the last time. 

Wed, 09/19/2012 - 11:19 | 2811225 luckylongshot
luckylongshot's picture

A group of non elected banksters, representing groups with a history of crimes against humanity longer than anyone elses, putting the general public into poverty...yeah that does make it onto a list of what the devil might be responsible for...

Wed, 09/19/2012 - 11:21 | 2811239 My Days Are Get...
My Days Are Getting Fewer's picture

These are Weidmann's remarks - and, unfortunately, I can not find

a canned English translation.

Weidmann then mentions Act 1 of Goethe's Faust Part II - it's a very long read to get that far.  I am going to paste some quotes from Act 1, to give you the flavor of Weidmann's remarks - this is the scene where the emporer realizes that the state coffers are bare - and he needs to get money now:



In this world, what isn’t lacking, somewhere, though?

Sometimes it’s this, or that: here what’s missing’s gold.                    

True you can’t just rake it up from the floor,

But wisdom knows the mines where one gets more.

In mountain veins, foundation walls,

Coined and un-coined golden hoards,

And ask me, now, who’ll bring it to the light:                       

One gifted with Mind’s power and Nature’s might.


By this I recognise a most learned lord!

What you can’t feel lies miles abroad,

What you can’t grasp, you think, is done with too.

What you don’t count on can’t be true,                                            

 What you can’t weigh won’t weigh, of old,

What you don’t coin: that can’t be gold.

The Emperor

You won’t sort out our faults like that,

Will Lenten sermons make men fat?

I’m tired of the eternal ‘if and when’:                                                 

We’re short of gold, well fine, so fetch some then.


[Later, the Emperor signs a paper]


The Chancellor (Coming forward slowly.)

 I’m happy enough to do so, in my old age. –

See and hear the scroll, heavy with destiny,                                    

That’s changed to happiness, our misery.

‘To whom it concerns, may you all know,

This paper’s worth a thousand crowns, or so.

As a secure pledge, it will underwrite,

All buried treasure, our Emperor’s right.                                         

Now, as soon as the treasure’s excavated,

It’s taken care of, and well compensated.’

 The Emperor

 I smell a fraud, a monstrous imposture!

Who forged the Emperor’s signature?                                                     

Have they gone unpunished for their crime?                                   


The Treasurer

Remember! You yourself it was that signed:

Last night. You acted as great Pan,

Here’s how the Chancellor’s speech began:

‘Grant yourself this great festive pleasure,

The People’s Good: a few strokes of the feather.’                           

You wrote it here, and while night ruled the land,

A thousand artists created another thousand,

So all might benefit from your good deed,

We stamped the whole series with your screed,

Tens, Thirties, Fifties, Hundreds, all are done.                                

You can’t think how well the folk get on.

See your city once half-dead with decay,

Now all’s alive, enjoying its new day!


Though your name’s long filled the world with glee,

They’ve never gazed at it so happily.                                              

Now the alphabet’s superfluous,

In these marks there’s bliss for all of us.


The Emperor


And my people value it as gold, you say?

The Court and Army treat it as real pay?

Then I must yield, though it’s wonderful to me.                    

Wed, 09/19/2012 - 18:34 | 2813155 earleflorida
earleflorida's picture

"Since swords were formed a deadly trade to ply,`Twas right them in the shape of tongues to make.".... yet

"Poor greedy wretch! where'er he drags himself- Death him pursues, while he is pursuing pelf.".... scorned

"Green branches thou may'st render straight- The attempt to straighten dry wood comes too late."....whence

"Kings are but guardians who the poor should keep, Though this world's goods wait on their diadem, Not for the shepherd's welfare are the sheep- The shepherd rather is for pasturing them."closure

Quotes: Eastwick   *[Oriental Quotations__Arabic and Persian c. 1911] 

thankyou tyler



Wed, 09/19/2012 - 12:57 | 2811504 Anasteus
Anasteus's picture

It's still closer to what The Protocols of the Learned Elders envisioned over 100 years ago. What was formerly considered a despiteous conspiracy theory is now becoming an increasingly plausible explanation. Just brief scanning of table of contents is astounding.

I've read this document several times, indeed a painful reading. But what I've found extremely illuminating is the analysis of western people mentality, thoroughly explaining why we could get into such a mess.

Wed, 09/19/2012 - 14:27 | 2812120 payment expert
payment expert's picture

there is no way to maintain heavy social wealth with out these massive print.

take also in consideration the unrecoverable monies paid to save the Greeks.


Wed, 09/19/2012 - 14:38 | 2812192 Grand Supercycle
Grand Supercycle's picture

Due to QE3 and short covering spikes, all these daily charts are extremely overextended & significant correction expected very soon ~ SPX, NZDUSD, GBPUSD, AUDUSD, COPPER, CRUDE, GOLD, SILVER.

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