Video: Germany will leave the euro unless the ECB is reformed
My friend Lars Schall sent me this link. I think you have to put this in context by looking at what Der Spiegel was saying about a Greek exit. What is clear is that the taboo that Angela Merkel broke in responding to the proposed Greek referendum has put a lot of things in motion that weren’t previoulsy in motion. Everyone is talking about the end of the euro. That tells you something.
The video from GoldMoney below takes Marshall Auerback’s tack that the Germans (and the Dutch) leaving the euro zone may be the best solution, but for reasons of preserving the German desire for price stability.
GoldMoney writes below the video:
Prof. Markus C. Kerber, Professor at TU Berlin, and James Turk, Director of the GoldMoney Foundation, talk about the lack of accountability of the ECB and how it compares to the Bundesbank. Prof. Kerber explains that the system of checks and balances is broken down when it comes to the ECB and tells of the public outcry in Germany when the Bundesbank tried to sell its gold. He explains that Germans are committed to sound money and stable monetary policy and are outraged by the lack of faith to the rules of the treaty, especially in May 2011 when the ECB started buying bonds on the secondary markets.
The resignation of Stark is seen as a wake up call to the Germans, as he was one of the founding fathers of monetary union. The last straw was the buying of Italian and Spanish bonds. Everybody understood then that the ECB was not the Bundesbank.
This interview was recorded on September 30th 2011 in Vienna.