Mario Draghi, the head of the European Central Bank, has announced that the ECB will soon begin a program of “unlimited” bond buying from economically troubled member countries. Spain and Italy look to be the first up.
This is quantitative easing European style. Europe has stepped up its printing.
Draghi says that this will save the euro and that despite the worries from Germany, the action won’t spur inflation.
Germany’s Bundesbank was the sole objector to Draghi’s plan on the ECB’s 23-member Governing Council. Bundesbank President Jens Weidmann issued a statement after Draghi’s press conference saying the bond program is “tantamount to financing governments by printing banknotes” and may encourage them to postpone necessary reforms.
But hey, what do the Germans know about money right?