Needless to say, in the finest traditions of this blog that title has very little connection to the content of this post except that it is concerned with the warning words of Herr Jens Weidmann,' ze boss of ze' German Bundesbank and therefore a man of whose opinion on financial matters one should take seriously. And he, himself, is being very serious according to the FT which reports that Herr Weidmann is concerned that politicians are increasing their efforts to subvert the independence of their central banks with the aim of bringing about a devaluation of their currencies in order to give their nations a distinct advantage in the competition for overseas markets. You might call it 'the Lance Armstrong effect'! He points the finger at Hungary and Japan but warns that it could spread.
Mario Draghi, the boss of the European Central Bank needs to be watched like a hawk because one suspects that the likes of 'Mr. Rompoy-Pompoy' would love to shove his hand up the back of Draghi's beautifully cut Italian suit and pull his levers! Meanwhile, I can't wait to bid good riddance to Mervyn King, our useless and compliant Governor of the Bank of England who had about as much fight in him as a soggy sandwich! Now all eyes are on Mr. Mark Carney, the most famous Canadian since, er, well, I can't think of any famous Canadians, who is about to take over at the BoE. He shouldn't have much trouble slapping those posh public schoolboys into place but how will he stand up to 'Bruiser' Balls in a couple of years time?
Suffice to say that even the possibility of a global exchange rate war makes me shiver!
Thanks to Drudge for the pointer.
