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Kauder warns against inflation

For years on end, Union faction head Volker had not reckoned on inflation. Not even when he worriedly pointed out that the ECB, one year ago and shortly before the permanent ESM rescue package came into effect, had given more than € 1 trillion to banks. Kauder assumed that if the ESM worked, the ECB could concentrate solely on the task of keeping the currency stable, although it would have been nice if some politician had explained exactly what this means.
Now, after an educational sojourn in Japan, Kauder is suddenly warning against inflation which could be triggered initially only in Japan, a long way away from Germany and above all a long way away from Europe, by starting to print more banknotes. Kauder sees only one way out of the problems facing Japan: Structural reforms, which would bring permanent growth. This is the only way for Japan and other countries, according to Kauder (BILD report, 23rd May 2013), or to put it another way: We in Europe should not print money like the Japanese.
It is amazing where politicians get their information. The way they handle it can be nothing more than intentional stultification of the people. The EMU is in recession. The ECB has so far always printed money (without any objection from politics), reduced (or increased) the interest rate or issued loans in return for other loans, in order to manipulate the financial markets (e.g. shares, gold), and the official line is then always the same: to keep the currency stable.
The structural reforms of which Kauder speaks are long overdue. And quite otherwise than Mr. Kauder might think, because he would then no longer have any post in German politics, but could concentrate on the extermination of ants in his front garden or other difficult problems, which also require a certain degree of association from reality, which Kauder has already learnt in his long political career. Oh, what good times those were!
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