Bundesbank's Weidmann Likens Draghi's OMT To "Devil's Work"

Bundesbank's Weidmann Likens Draghi's OMT To "Devil's Work"

Submitted by Tyler Durden on 09/18/2012 - 23:04 European Central Bank Ongoing grand plans to flood the economy market with money have reminded Bundesbank's Jens Weidmann of the scene in the play Faust - when the devil (Mephistopheles) 'disguised as a fool', convinces an emperor to issue large amounts of paper money - which solves the kingdom's financial problems in the short-term but ends rather badly in rampant inflation. As The Telegraph notes, without specifically mentioning Mario Draghi’s bond-buying programme, he said: “If a central bank can potentially create unlimited money from nothing, how can it ensure that money is sufficiently scarce to retain its value?” He added: “Yes, this temptation certainly exists, and many in monetary history have succumbed to it,” Mr Weidmann warned.