Volcker: U.S. Economic Crisis Imminent

NewsMax.com ^ | june 10, 2005

[moose2004]

Sounds like a perfect description of the French and German economies.

[Gaffer]

He was also appointed to the fed in 1979 by Jimmah Carter; that's why I don't put much credence into what he says.

Reagan had to keep him on because you can keep swapping out people in this position or the patient will get killed by "too many doctors."

[verity]

Just when you thought it was safe to come out of the shower.........

[oldbrowser]

Volcker: U.S. Economic Crisis Imminent

"Mr. Volcker thinks a crisis is likely."

Volcker believes that investor confidence could fade "at some point,"

I hate it when the headline says one thing and says the opposite in nearly every sentence.

[Smokin' Joe]

That is much like two roomates, each paying the 'bills' for 6 months out of the year. If one doesn't pay the rent or utitilities, and the other has to pay up or get cut off, the one will have spent less.

Clinton administration neglect of our armed forces has had to be remediated, all they did was defer the payments until a Pubbie got elected.

That way, if they are successful at some point, the Dems can sieze the white house, claim they have a strong military, and that they maintain it far more cheaply than the Republicans, all the while subjecting the military to cuts or no increases matching pace with inflation (works out about the same).

The same economic ploy occurred when Dubya inherited the sliding Clinton economy, and promptly was blamed for it.

[Smokin' Joe]

Volcker's Fed is credited with ending the United States' inflation crisis of the early 1980s. They achieved this by constricting the money supply through a sharp increase in interest rates. By 1985, inflation was considerably lowered from 9 percent in 1980 to 3.2 percent in 1983. This disinflation was predictably accompanied by a decrease in GDP growth (i.e. a recession), and by an increase in unemployment, which rose to the highest levels since World War II.

Oil prices crashed in 1982, and again in 1986. Just might have had something to do with it.