Saturday, February 12, 2011

Bundesbank President to Banksters: Take This Job and Shove It

Germany's central banker, Bundesbank President Axel Weber, will leave office on April 30, the German government reports. The resignation comes after Weber angered German Chancellor Angela Merkel this week by letting Bundesbank colleagues know he intended to leave the central banking and no longer wanted to become ECB president.

Merkel and Weber met just before the announcement.

 Merkel had been counting on the respected Weber to succeed ECB President Jean-Claude Trichet, whose term ends in October. Now, it is unlikely that a German will be named to that spot. With a German at the head, Merkel had hoped to better stick handle EU financial affairs and claim to German voters that Germany had things under control, re bailouts and the like.  But, Weber probably smelled a trap.

It's well known that Weber had grown disillusioned with the prospect of leading an ECB where the majority of other euro-zone central bankers objected to his hardline views, especially his vocal opposition to the ECB's policy of supporting crisis-hit countries by buying their bonds.

It is unlikely that the propping of financially over-extended EU countries is going to end anytime soon and Weber's presence at the head of the ECB would only result in a false comfort for those concerned about the matter. It simply appears that Weber did not want to play that role. 

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