Paul Vocker, good guy or bad?

[Mega]

Well, he had balls!

I wonder if America will have to balls to fight inflation like this again?
Mike

[Spartacus]

Re: Paul Vocker, good guy or bad?

raising rates that high would cause an all out depression.

It's not the same situation Volcker was in. total and per capita Debt is far, far far, higher than in his time.

and no one on earth understands the current financial system. Probably no 100 people together understand it, or can understand it.

Well, he had balls!

I wonder if America will have to balls to fight inflation like this again?
Mike

[metalman]

Re: Paul Vocker, good guy or bad?

Well, he had balls!

I wonder if America will have to balls to fight inflation like this again?
Mike

no balls at all. he didn't have 40 million households a paycheck away from bankruptcy. a bunch of banks shitting the bed. wars to finance. the vietnam fiasco was over. the usa was in the catbird seat. all he had to do was rip the inflation rug out from under opec and the unions.

not this time.

[jk]

Re: Paul Vocker, good guy or bad?

we're not ready for the reincarnation of volcker. first we need 5-10 years of inflation and recession - the former to shrink current debts to manageable proportions, the latter to retard the accumulation of new debt. 10 years from now people will look back on the bubble values of real estate and say "if only they'd held on, it would have worked out," because current prices of everything will look cheap in nominal terms. then we'll be ready for paul ii.

[c1ue]

Re: Paul Vocker, good guy or bad?

Volcker also didn't have SWFs or BRICs to worry about.

In Volcker's time, the US currency was 100% controlled by the US.

As we are seeing unfolding now, this is no longer true.

At least to me, I believe the only reason we're not seeing Fed rates in the 3% range is due to dire threats from the existing dollar holders around the world.

[metalman]

Re: Paul Vocker, good guy or bad?

Volcker also didn't have SWFs or BRICs to worry about.

In Volcker's time, the US currency was 100% controlled by the US.

As we are seeing unfolding now, this is no longer true.

At least to me, I believe the only reason we're not seeing Fed rates in the 3% range is due to dire threats from the existing dollar holders around the world.

exactly. this is as "volcker" as it's gonna get.

[jk]

Re: Paul Vocker, good guy or bad?

exactly. this is as "volcker" as it's gonna get.

i disagree. we need years of partially hidden inflation before society agrees that inflation is the biggest problem around. that's when rates will go to the sky.

[metalman]

Re: Paul Vocker, good guy or bad?

i disagree. we need years of partially hidden inflation before society agrees that inflation is the biggest problem around. that's when rates will go to the sky.

"society?" what you talking about? "society" doesn't decide anything. the money decides. the question is, whose money?

the usa is exporting inflation as if it were still large and in charge... screw russia and china and europe. but the days when the usa could get away with that are over. us trade partners will defend themselves. it's when they cry uncle for domestic political reasons that something happens, the opposite of the 1980s volcker dynamic. it's not usa inflation that's the force change it's the dollar inflation that ain't here but over there.