My Take: This is a very important article from Bloomberg. Paul Volcker, who is known for crushing inflation in the early 1980′s by spiking interest rates into the double digits, is seen in many circles as perhaps the best U.S. Central Banker of the modern era. As a guy who was willing to take the hard steps to avoid a dollar collapse and restore America back on a path to prosperity. That is the myth. Reality is a lot different. Besides the fact that his actions merely created a temporary respite on the terminal path of the fiat dollar, all that happened from the early 80′s until now was the blowing up of the biggest credit and derivatives bubble in human history. A ponzi scheme of counterfeit money so monstrous that nothing short of a total reset of the global monetary and financial system globally will suffice to end this nightmare. The fact that the “problems” keep resurfacing is simply a function of our failure to reset the system. Until that happens, nothing will ever get better on a consistent basis.
In any event, the title of this article makes Volcker sound like he is really in favor of a system overhaul, yet if you read it you realize that is not the case. He is merely calling for tweaks here and there and seems to even be calling for MORE power in the hands of bureaucrats and Central Bankers.
For example, when talking about the global trade imbalances that have been built up he offers as a solution: “Possibilities for forcing countries to correct imbalances may include stronger surveillance by the International Monetary Fund or financial penalties and incentives, Volcker said. He also urged the study of a multiple-currency reserve system.”
I mean, this guy has some nerve. More power to the IMF? This proves to me Volcker is a total globalist who wants to march toward the fiat feudalism of a one-world fiat currency like the SDR. The reason I say this is because he knows full well that using gold naturally prevents all of the trade imbalances from ever occurring. I am not talking about a Bretton Woods phony “in theory gold standard,” I am talking about if nations used gold for international trade. If we were under such a system the trade imbalances, credit bubble and derivatives nightmare could never have ever gotten to where it is. Amazingly, Volcker’s brilliant solution is to give more power to those that got us into this mess, hoping they can make the right decisions this time. That represents a march toward more Central Planning as well as feudalism for the masses and this clown wants more of it as a solution!
Read the full article here.