Yesterday we mentioned how the influential German magazine Der Spiegel had a big cover story on the dangers of inflation.
Just from the cover, it was clear that it was a classic piece of anti-inflation German media.
Well, the story is now online and in English, and it does not disappoint, referring up top to the “Inflation Monster.”
Photo: Der Spiegel
There probably isn’t going to be too much in there that will shock anyone. It basically goes: Central banks are printing money to ease the debt crisis. That will create inflation and crush the lower classes. And Germans are right to be worried.
One interesting thing is, it’s very PIMCO-y, with a big chunk devoted to financial repression, along with several quotes by PIMCO’s top man in Germany.
The conclusion ends with a cute story about a video game that’s apparently housed at the German bundesbank:
Anyone paying a visit to the Bundesbank’s money museum can see how difficult this is. All it takes is to step up to a podium and move a joystick. When you pull back on the stick, liquidity is withdrawn from the economy, and when you push it forward the economy supplied with fresh capital. Two light pillars demonstrate how the money supply circulates and the corresponding volume of goods develops. The goal is to achieve a highly fragile balance. Whoever moves the stick too forcefully is immediately punished by the computer: “Sorry: Complete failure!”