Former Fed Chairman Paul Volcker 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. On Thursday the Wall Street Journal reported bluntly that "Mr. Volcker thinks a crisis is likely." Volcker believes that investor confidence could fade "at some point," he said, with "damaging volatility in both exchange markets and interest rates." He believes a serious economic crisis is likely unavoidable as the U.S. economy is struggling with what Volcker sees as a hopelessly unsustainable relationship with the rest of the world.
