Every institution has its share of “Bozos”

In the US, at the Fed, for the past few years the “bozos” were represented by Charles Plosser of the Philly Fed and Richard Fisher of the Dallas Fed. Luckily their “voices” were never heeded.

It´s very different in Germany. The “bozos” over there are skippered by Finance Minister Schäuble and Bundesbank president and member of the ECB governing coucil Jens Weidmann; and both are powerful SOBs! (With a history).


On 15 November 1984 Schäuble was appointed as Minister for Special Affairs and head of the Chancellery by Chancellor Helmut Kohl. When in 1986 Soviet press belabored Kohl for having, in a magazine interview, made a comparison between the propaganda skills of Mikhail S. Gorbachev and Joseph Goebbels, Schäuble was reported to have counseled the Chancellor against writing Gorbachev an apology for the remark, saying it would be misunderstood as a sign of weakness


Marsh wrote that Weidmann was saying the European Monetary Union (EMU) “has to go in one of two directions. Either it takes the path of a fiscal union in which member countries fuse together their economic and financial systems into a much more robust framework that will protect them from internal dislocation. Weidmann says, coolly, this is somewhat unlikely. Or EMU remains a looser grouping of countries that will face the discipline of the financial markets if they fail to produce economic convergence,” namely exit from the EMU and default, looking particularly at Greece. Marsh also noted that Merkel is committed to the first course and so may come into conflict with her one-time economic adviser Weidmann.

This gives an idea of what the “Bozo boys” are up to.


One thought on “Every institution has its share of “Bozos”

  1. Somewhere in the last 30 years, the call for tight-money became a dogma, a pseudo-ideology, a type of deontology. In Germany and in the U.S., the right-wing a generation ago was not obsessed with inflation or the nirvanas of deflation.
    In a peculiar way, the right-wing today seems to hold robust growth and prosperity as suspect….joining the lesser elements of the left wing.

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