{"id":39829,"date":"2018-10-29T05:46:50","date_gmt":"2018-10-29T10:46:50","guid":{"rendered":"http:\/\/olduvai.ca\/?p=39829"},"modified":"2018-10-29T05:46:50","modified_gmt":"2018-10-29T10:46:50","slug":"paul-volckers-fed-criticism-hints-at-potential-recession","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=39829","title":{"rendered":"Paul Volcker\u2019s Fed Criticism Hints at Potential Recession"},"content":{"rendered":"
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Paul Volcker\u2019s Fed Criticism Hints at Potential Recession<\/a><\/h3>\n
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\"paul<\/p>\n

From Birch Gold Group<\/a><\/em><\/p>\n

In the 1980\u2019s, amidst out-of-control inflation, former Fed chairman Paul Volcker employed a controversial economic strategy of high interest rates to combat the issue.<\/p>\n

In that case, the economic band-aid, dubbed \u201cThe Volcker Rule\u201d, worked.<\/p>\n

Volcker is 91 now, and as reported<\/a> in the New York Times<\/em>, his respect for the Fed is \u201call gone.\u201d In a recent interview about his memoir, not only did Volcker take the opportunity to travel down memory lane, he also lambasted the Fed\u2019s \u201c2 percent rate target<\/a>\u201d:<\/p>\n

\u201cI puzzle at the rationale,\u201d he wrote. \u201cA 2 percent target, or limit, was not in my textbook years ago. I know of no theoretical justification.\u201d<\/p>\n

With a laugh, he told me that he believed the policy was driven by fears of deflation. \u201cAnd we haven\u2019t had any deflation in this country for 90 years!\u201d<\/p><\/blockquote>\n

During the interview, he also made an eerie blanket statement summarizing his thoughts about the U.S., the Fed, and the economy.<\/p>\n

He stated clearly, \u201cWe\u2019re in a hell of a mess in every direction<\/em>\u201d. Talking about the stability of banks later in the interview, Volcker revealed an unsettling thought (emphasis ours):<\/p>\n

They\u2019re in a stronger position than they were, but the honest answer is I don\u2019t know how much they\u2019re manipulating<\/strong>.<\/p><\/blockquote>\n

He finished the interview<\/a> saying, \u201cWe need stronger supervisory powers<\/em>\u201d. It\u2019s tough to disagree with that.<\/p>\n

Especially after the Dow dropped 1,400 points<\/a> two weeks ago,\u00a0and<\/em> a slight recovery dropped<\/a> dramatically again this week, the worry in the markets is clear.<\/p>\n

On October 3, the Dow sat at 26,828. Market optimists were singing the praises of a market on the way to the top. But things have turned around dramatically.<\/p>\n

Today, the Dow closed at 24,984, for an overall drop of 1,844 points<\/strong> in only 22 days<\/a>. It has lost almost everything it gained in 2018.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Paul Volcker\u2019s Fed Criticism Hints at Potential Recession From Birch Gold Group In the 1980\u2019s, amidst out-of-control inflation, former Fed chairman Paul Volcker employed a controversial economic strategy of high interest rates to combat the issue. In that case, the economic band-aid, dubbed \u201cThe Volcker Rule\u201d, worked. Volcker is 91 now, and as reported in […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[63,18769,303,22653,431,927,534,1921,5987,1264,5545,3650],"class_list":["post-39829","post","type-post","status-publish","format-standard","hentry","category-economics","tag-banks","tag-birch-gold-group","tag-fed","tag-interest-rate-target","tag-interest-rates","tag-manipulation","tag-monetary-policy","tag-new-york-times","tag-paul-volcker","tag-recession","tag-stability","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39829","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=39829"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39829\/revisions"}],"predecessor-version":[{"id":39830,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39829\/revisions\/39830"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=39829"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=39829"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=39829"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}