No to the ECB madness

The latest ruling of the Federal Constitutional Court is a drop of bitterness in the idyll of the ECB’s excessive money printing. What Super Mario (Draghi) did and what the IMF-imported Christine Lagarde mercilessly continues – 2.6 trillion euros (since 2015), invested in government, corporate and other securities to boost the economy and inflation – are a blessing for financiers and their customers (plutocracy) and a curse for savers and future pensioners. Roughly speaking, the ECB is buying up the debts of banks and large corporations, but is not worried about citizens’ savings melting away as a result of the negative interest rate, while the bubble is growing in markets overheated by cheap money (including the property market). The owners of real assets are benefiting, while owners of financial assets are losing. Companies that would not have been able to survive under any other circumstances remain in the market as zombies, reducing productivity, the rate of return on capital in the eurozone and their competitiveness in the world.

These trillions of euros are therefore ineffective. After all, the eurozone economy weakened significantly much earlier, before the outbreak of the so-called pandemic. Now the bubble has burst on the stock markets and Lagarde immediately started to take new “measures” from her ivory tower in Frankfurt: money presses are running at full speed, markets are recovering, the economy is still at its worst since the end of the Second World War, unemployment rates very high everywhere, but never mind all that, “The show must go on”, until one day, oh, how unpleasant these German judges!

On 5 May this year, the Federal Constitutional Court announced that the purchase of government bonds is partly illegal. One of the complainants was AfD founder Prof. Bernd Lucke, who once aptly described the ECB that it had created a propagandistic atmosphere in which uncomfortable answers were not allowed.¹⁾Auch die AfD will die Macht der EZB brechen, Frankfurter Neue Presse 2015-03-23.With these decisions, as Lucke said, the Ministry of Truth and the only correct financial policy in Frankfurt “had usurped to impose on the Germans liabilities over which neither the Federal Government nor the Bundestag had any control.”²⁾AfD-Politiker wollen gegen EZB-Beschlüsse klagen, Zeit online 2015-02-13.Earlier, he also criticised the fact that the ECB forced Ireland to bail out the banks at the taxpayer’s expense. Perhaps it is worth listening to the voices outside the mainstream, be it AfD, LKR, or Widerstand 2020, rather than automatically classify them as right-wing extremist, racist, anti-social and whatever? The court replied: Yes.