But that is not the real reason for the about face in German monetary policy: what it really is getting at, is to telegraph that the Bundesbank is now most likely open to far more aggressive intervention by the ECB, whose LTRO has now failed miserably, and nothing short of outright monetization (in the primary market: the secondary market purchase program: the SMP is also a failure) will prevent the collapse of the union, especially once Greece leaves.
In other words, the stage for the world’s next epic monetization episode is now being set, with a hapless Germany, dragged kicking and screaming into. And why not: just ask any central planner – “it is for their own good.”
via “Turning Point In European Monetary Policy” – Is Germany About To Embrace Inflation? | ZeroHedge.
