because the bundesbank because of their historical position. they've been also central bank that has constantly expanded its own balance sheet and certainly led to credit expansion but over the life of his existence from one thousand nine hundred eight zero nine hundred ninety nine the bundesbank has done much less than most of these other central banks and therefore has given germany a hard currency which has worked very well for german business so the german population is very concerned about these changes in policy so obviously i mean i'm concerned about all this money printing so and i think it will lead to a major disaster so i'm sympathetic to the bundesbank position the question however is will that we change the dynamics in europe because it's quite clear that other european countries will run into trouble the german taxpayer will not be willing to foot the bill so the four back option as in any other location is jeff. central bank printed and the big question is if the bundesbank can we stop this happening well finally speaking in germ

that's what the head of the bundesbank is saying. we'll discuss next. ♪ [ male announcer ] introducing a reason to look twice. the entirely new lexus es and the first-ever es hybrid. this is the pursuit of perfection. oh, hey alex. just picking up some, brochures, posters copies of my acceptance speech. great! it's always good to have a backup plan, in case i get hit by a meteor. wow, your hair looks great. didn't realize they did photoshop here. hey, good call on those mugs. can't let 'em see what you're drinking. you know, i'm glad we're both running a nice, clean race. no need to get nasty. here's your "honk if you had an affair with taylor" yard sign. looks good. [ male announcer ] fedex office. ow save 50% on banners. >>> you're watching "worldwide exchange." >> welcome back to the program this morning. as we've been discussing, the global currency war has found a new frontier in the british city of bristol. according to the bbc, more than 350 firms have signed up to launch an independent currency. it's seen as a direct challeng

on the other hand the bundesbank is focusing on inflation. in many ways their mandate dictates the way they will behave and that's right and proper. >> silvia. >> in terms of when ecb policy stands, i was let's say mildly surprised that everybody is just full of praise and doesn't see the pitfalls of it or doesn't want to focus on the pitfalls of it. i wonder whether the ecb is not putting itself into a path where we can't disentangle themselves from political -- from a political agenda anymore. they're now saying we will only dispense bond buying to countries in need if they embark on certain political programs. politicians are quite happy about that because the ecb is inverted to doing dirty work. but should the ecb be happy with it? >> it's hard for the ecb just to give funds out to the periphery without any strings attached. otherwise there will not be a structure reform and therefore the long term issues surrounding the competitive position will never be addressed. so my sense is the ecb is trying to come up with the best long term polic

so this was the text from which the president of the bundesbank drew his remarks. and as you noted more and they were. condemned this morning in a gentle fashion i guess by the still condemned by one of these very very fine thoughtful. f.t. columnists wolfgang one shell but what mr monk shall i think fail to mention is that the doctrines of modern central banking his phrase. haven't worked don't work and in theory i submit cannot work. he. he charges the president obama spent with fear mongering to which i say. that our modern central banks by suppressing interest rates by manhandling the yield curve by. overriding the price mechanism by printing money by the box carful our modern central banks have contributed to a constant state of apprehension among people who have money to save invest. what is it going to be worth we don't know as chairman bernanke he candidly admitted during his in a speech in jackson hole wyoming at the end of august he said we are quote learning by doing now those those are fear mongering words yeah i think so especially first savers so in t

members, only germany's bundesbank objected to draghi's plan. in a statement today, the bundesbank said its president regards the purchases as "tantamount to financing governments by printing bank notes." nick colas says the draghi plan buys time, but it still doesn't solve europe's growth problem. he's chief market strategist at convergex group. nick what do you think of this, does the program make sense, is it a good step? >> it is a very solid step and i think you saw the markets respond to that today. it's open-ended. it goes out through three years. and it does buy the euro quite a bit of time to help some of the countries that are really on the periphery and still quite troubled begin to address the longer-term problems. >> but it doesn't solve all the problems. i mean it does pump in a lot of money into these struggling economiesment but it doesn't deal with all the spending issues and getting the debt down. and it doesn't deal with how to get these economies growing again, right? >> that's absolutely true. all it does is buy some time. b

years ago in two thousand and eleven alone though over eight million marks were brought to the bundesbank to be changed into crisp new currency but where is that cash coming from. he had to dismiss any one of my other leave relatives gave me the school and as a gift so i decided to send them into something it could spend on television. we've had them lying around the house for ages we've only just got around to getting democrats changed or there are all those though who say they won't part with their marks as a minister yeah i've got some i keep them as a souvenir and i'm not going to change them into europe and according to the bundles bank there's still more than thirteen billion dollars each marks in circulation they say they get returns from as far away as brazil and new zealand so unlike some euro zone members the bank won't place a time limit on accepting old money. so we will continue to take them as long as people can bring them in something of a tradition here that currency from years and years ago always be exchanged for legal tender there are conspiracy theory. though who say t

mario draggy speaking to german business leaders, he addressed the opposition from the bundesbank. >>e personally an enormous respect for the bundesbank, and many of the concerns that were expressed are entirely shared. by me and the rest of the governing council, although we may have different views about the response. the benefits of this do not accrue only to countries in difficulty. they accrue to the euro area as a whole. this is particularly true for an open and outward looking country like germany. german industries is a sector deeply imbedded in the wider european economy. the stability of the euro is key to its sustained prosperity. for this reason, ecb actions to maintain price stability for the whole euro area are directly in its interests. >> speaking of central bank policy, it wasn't just plasser pouring cold water on what the fed can achieve. the federal reserve doesn't have the right tools to address america's economic problems. speaking to cnbc, he said expectations for the fed are too high and warned corporate profit margins are set to shrink. >> if you look at the da

>> i believe, with the bundesbank being so, so critical of bond buying in any shape or form, and then masters i think it would be hard to turn back now. it is a credibility issue. melissa: yeah. >> i think one of the reasons why the markets have accepted this plan. you know what? the ecb on paper anyway isn't going to be stupid about the bond buying plan. it will not just give money away. we'll take it at face value. you're right, there is not great precedent with greece but i think that is what they will try to avoid. melissa: i don't know. there must be a price to pay down the road. maybe i'm buying gold from now on. kathleen brooks, thanks so much. >> thank you. melissa: last night elizabeth warren said the game was rigged against hard-working americans. up next we'll ask lou dobbs who the game is rigged against and which party is looking to even the playing field. lori: look at the story in the bond market today. the 10-year yield way up to 1.68%. you heard melissa and kathleen discuss the bond buying program in europe. we have great, well, better economic news on the jobs front.

think the proposal was rhetorical because the costs to the german financial institutions and the bundesbank who have so much exposure were germany to leave -- >> the real point to sort of illuminate the fact that germany can't, that it basically can't exit, has then to be more cooperative or to demonstrate more leadership in the sense of commit to go whatever it takes i guess? almost a draghi language here. >> i don't think he was suggesting that he didn't care which one they chose. i think he very much would like to take the leadership view. and ice probably been happy this they've come around so much with respect to ecb policies, with respect to policies versus the periphery. >> but talking about the costs to germany of leaving the euro is kind of short term, it would be a major court in the short term, but if you take the view that persisting with the euro just continues to force upon the euro a system that fundamentally doesn't work, surely it's worth to take the short term pain for something that will work the next three decades? depends on what your short term is. you could make a str

speaking of germany, had this really interesting moment this morning where bundesbank president jens weidmann, who has been quite controversial lately with his criticism of the european central bank, at an anniversary talking about -- in some essence likening what they are doing to a faustian bargain, basically a deal with the devil. that's generating a lot of commentary this morning, but not necessarily affecting action across the market too much. a quick look at commodities. that's where things are happening this morning. the saudis are perhaps pumping more oil, upward of ten million barrels a day. nymex and brent falling. brent down more than .6 of a percent. london did say it reached an agreement to raise minors. keep an eye on anglo-american platinum, reporting violence, rubber bullets being fired into the crowd. supply side issues are going to be -- are going to play to the platinum price for quite some time. this issue is not over yet. back to you. >> thank you for not disappointing when it came to belize. we knew you had something up your sleeve. >> argentina is greece ten ye