Paul Volcker, former chairman of the Federal Reserve, is a well-respected man in the world of banking. Volcker caused a stir recently when he characterized the current financial climate as being “a mess in all directions.”
Volcker listed a number of reasons for his lack of optimism. These reasons include a general lack of respect for the government and its institutions, a Federal Reserve that seems to be making arbitrary decisions, and lawmakers that act to serve the elite.
Volcker laments that it is difficult for a Democratic nation to operate properly when the citizens are distrustful of the government. He named the military as the only institution that the citizens of the country still respects.
Paul Volcker is best known for being the Fed Chairman that sank America into the recession that plagued the country in the 1980’s. The man known as ‘Tall Paul’ would later conquer the inflation that had destroyed the American economy. This accomplishment was enough to restore prosperity to the homes of many citizens.
The ‘Volcker Rule’ is the namesake of ‘Tall Paul’ and works on the premise that no excessive risk-taking should take place with regards to large corporations on Wall Street.
A book that is set to release on October 30 by Volcker expresses is discontentment with the current economic and political landscape in the country. The book is especially critical of the effect ‘big money’ is having on the governing of the country. Volcker expressed a belief that the government cannot function as intended while millions of dollars are being spent to exert an influence over the political process.
Volcker, who is not in the best of health these days, is also very upset with the Federal Reserve. Volcker specifically pointed to the two percent target for inflation by the Feds as unjustified. Volcker says that the Fed is an institution that the American people have no confidence in at this time.
Volcker also wishes to dispel the myth that it is not the role of a United States president to influence interest rates. He pointed to 1984 when he attended a meeting with President Ronald Reagan, and James Baker, former chief of staff. During the meeting, Volcker was told directly that there would be no interest rates increase before the election. Volcker says that order came straight from President Reagan.