Tyler Durden has picked up on a piece published in German’s Spiegel today that indicates Germany is preparing to make a 180 degree shift in its monetary policy and embrace massive inflation, its Weimar history be dam**d.
QE to INFINITY….AND BEYOND!!!
When we presented the latest chart of the Bundesbank’s record TARGET2 imbalance last night we had one simple message: we hope Germany is prepared for the rout its central bank will soon experience once the Eurozone’s members start dropping like flies. Today it appears that Germany has decided to go with the flow, and in what Spiegel classifies as a “turning point in monetary policy” notes that Germany, in an abrupt shift to its Weimar-impacted history, is getting ready to embrace inflation. What this likely means is that the ECB is about to set off on its most aggressive monetization experiment ever, which also explains why all of Europe is trading diggy limit up this morning: it is not on the latest batch of horrible news – it is on the return of speculation that the ECB is, with the Bundesbank’s blessing, baaaack. [Read more...]