As It Turns Out Deflation Is Good After All | Zero Hedge.
Earlier today, in typical German fashion, the chief of the Bundesbank poured cold water on Europe’s latest round of demands that Germany carry the weight of the rebound from the triple-dip on its shoulders, as usual, when Buba President Jens Weidmann Friday rejected calls for a German stimulus plan, saying only structural reforms and more competitiveness would kick-start eurozone economies. “Calls for a public fiscal stimulus plan in Germany to boost the Eurozone economy are amiss,” said Mr. Weidmann in a speech for an economic summit hosted by the German newspaper Süddeutsche Zeitung. He is, of course, right: the longer Europe’s insolvent, uncompetitive governments kick the can and force Germany to do all the hard work, the longer Europe will be unable to get out of a hole that gets deeper with every passing day. In short: Mr. Weidmann refuses to “get to work” for a bunch of corrupt, clueless politicians.
He then proceeded to do something shocking: he was logical. Quoted by the WSJ, he said: “Investment rates that are above the growth potential of a developed economy aren’t likely to boost prosperity—this applies to both public and private investments.”
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