Merkel's Fed Up

clipped from www.bloomberg.com “Social Democrats get hammered for their belief that the voter honors throwing taxpayer money at failing corporations,” Wilfried Prewo told me by e-mail. He is chief executive of the Hannover Chamber of Industry and Commerce, which represents an area of Germany that includes Volkswagen’s home. Days before the vote, German Chancellor Angela Merkel complained publicly that the European Central Bank had bowed to international pressure to buy up assets, mimicking the U.S. She disapproves of the Federal Reserve’s dumping of cash into the global economy. A second recession, or a continuation of the current one, is inevitable as the Fed corrects for its past -- especially if the U.S. continues to abuse the dollar, at home or abroad, for political purposes. What Merkel was trying to get at was that monetary policy should be for money, not for the improvement of gross domestic product. That’s a point that must be reckoned with before the next “morning in America.”