The Economic Catastrophe That Germany Can't Forget Correction:
An earlier version of this story incorrectly quoted former
Bundesbank president Helmut Schlesinger as criticizing the bond
buying program of the ECB. In fact, he was criticizing the bond
buying program of the US Federal Reserve. For troubled European
countries, the European Central Bank could be like a giant ATM.
After all, the ECB has the unique ability to print unlimited
amounts of euros. It could lend that money to the governments in
need. The problem with this idea? Europe's biggest economy hates
it. Cue inflation-fearing, deep-pocketed Germany. The thought of
hitting up a central bank's ATM would send many Germans fleeing
in panic. To understand why Germany is so freaked out about a
central bank lending money to troubled governments, you need to
go back nearly 100 years — to when the German central bank did
just that. After World War I, Germany was deep in debt. Soldiers
back from the war needed money for pensions. War widows needed
compensat