This article may be of interest to some of you investors who falsely believe there is a bright future ahead. Although this topic does not affect GCHC directly, it does give a glimpse of the disaster that awaits the US & the world if the "dark knight" does not dump his current group of spenders.
"Mr. Paul Volcker. This is a man not to be taken lightly. His stellar career of sixty years included witnessing the collapse of the Bretton Woods Agreement, but his claim to fame arose out of his dogged fight against inflation.
This writer vividly recalls that when Mr. V was Fed Chairman, he annihilated US inflation rates, bringing them down to 1 percent from 15 percent, all by pushing the Fed Funds rate up to 20 percent. What the US got following his bold actions – was an environment sterilized of the inflation virus, and two decades of sub-5% inflation. Not to mention dynamic growth. All the while, the doomsayers were gearing up for Weimar-style hyperinflation, famine, and martial law in the USA. Sure thing. They are still calling for the same, today.
Well, Mr. Volcker is baaaack! “V” for vendetta, some say. Anti-inflation stance, and all. More importantly, he is back with the same vigilant attitude when it comes to big banks. Bloomberg reports that:
“Volcker was vindicated yesterday when Obama proposed limiting trading activities of financial institutions to prevent another crisis, adopting recommendations of the 82- year-old former Federal Reserve chairman. Obama called it the “Volcker Rule.”
“This represents somewhat of a shift from the positions of those in the administration in favor of deregulation,” said Joseph Stiglitz, a Nobel laureate and frequent critic of the administration. “Volcker has been pushing for this for a year, and it was one of my biggest disappointments that his idea wasn’t picked up by decision-makers until now.”
