Nuff said.
"he doesn't see how the U.S. can keep borrowing and consuming while letting foreign countries do all the producing. It's a recipe for American economic disaster."
Can't say I disagree.
The only significant threat the US economy has ever faced is a federal government that grows too much, regulates too much, and taxes too much.
I agree with Volker. The Federal Government needs to cut their spending.
ping
Volker is an idiot. The US economy is the most productive economy in the world.
What is really being said here is that the U.S. NEVER looks out for #1.
Perhaps they do but #1 is anybody but the U.S. Look at China. They guard their borders and structure everything they do for the benefit of China. The United States ALWAYS structures every deal for the benefit of other nations, as they want to be politically correct and seem embarrassed that --at one time--we were the most powerful nation on earth.
China is nationalistic, and that is why they have had a quantum leap in closing the gap with the United States. The United States is globalist and even is the charity provider for the rest of the world. Nearly every international action taken by America is for the benefit of some nation other than the United States.
Volker is mincing words--this is what he is really saying. This is why we will have a crisis.
Was it Paul Volcker who wrote a book WITH George $$oro$? Or maybe he wrote the foreword. Either way it does seem that he supports this demon influenced anti-american.
Volcker has as much crediblity as one will give him. Being old enough to remember when he was chairman, I now find it hard to consider him particularly insightful (at the time, he did make perform as a functional place-holder in the best country-club RINO sort of way). Considering his performance in OFF, I now view him far less sanguinely, and tend to think that steampower's assessment may be correct.
LOL...and we are supposed to believe this guy, who didn't see anything wrong with Annan's role in the Oil for Food scandal? Go home, Volcker. You are just another old sell-out, who still wants MSM interviews.
Volcker is is absolutely correct. All one has to do is read up on the articles over at financialsense.com and prudentbearfund.com and you will see the gathering economic storm clouds quite clearly.
I think Volcker is talking as much about consumer debt as government debt. It is a concern. We put more money in the economy by borrowing and then send it overseas to buy foreign products.
Think about this situation in the exreme. Imagine an economy which consists entirely of money which is created by deficit spending. All of that money is then converted into foreign currency and used to purchase foreign goods. That money wouldn't be worth very much in exchange, would it? The only thing keeping us out of trouble is that our economy is growing fast enough to keep us out of trouble - for now.
Current Chairman Alan Greenspan disagrees.
Well, I think that Americans can keep borrowing as long as interest rates remain low. When they go up, the borrowing will cease. Also, money will begin to move from the stock market to the bond market. As capital becomes more difficult to borrow, one can imagine that the job market would be hurt.
Meanwhile, as the state takes increased responsibility for all aspects of our lives, while also fighting a war on terror, spending is at an all time high. To acquire the funds, the fed taxes us at near an all time high on the one hand, on the other, it borrows the shortfall, also from us.
The whole situation does seem kind of negative. I could wish for the state to play a much smaller part of life.
Hey Volker, I got some Euros I'd like to sell you :)
He is right. Greenspan knows it too, that's why he cannot explain why his fed rate increases don't appear in the 10 year note. Greenspan keeps saying our economy is strong, the market through the 10 year says they see weakness/recession. I don't think Greenspan can figure out how to take out the housing bubble without throwing the rest of the economy into recession - all these refi's, now we have interest only mortgages inflating the bubble, we pushed the string with fiscal policy - we give Intel tax cuts and they build plants in China, and we give consumers tax cuts and they use a good portion of each to buy imported goods - doesn't leave much fiscal policy left to stimulate our own economy.
something has to give. politically, this may all fall apart and give Hillary a clear walk to the white house.
Sounds like a perfect description of the French and German economies.
Just when you thought it was safe to come out of the shower.........
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.