The Man Who Vanquished Gold

By Joseph T. Salerno – Re-Blogged From Gold Eagle
[As I remember from those days, Volker’s FED consistently was behind the curve. He raised rates only when market rates kept shooting higher. And, after being several points below market rates, he kept raising rates until the market turned, leaving the FED several points above market rates. –Bob]

The flood of obituaries that noted the passing of Paul Volcker (1927–2019) last week have almost all lauded his achievement as Fed chair (1979–1987) in reining in the double-digit inflation that ravaged the US economy during the 1970s.

Volcker was referred to as the “former Fed chairman who fought inflation” (here);  “inflation tamer” and “a full-fledged inflation warrior” (here); and the “Fed chairman who waged war on inflation” and led “the Federal Reserve’s brute-force campaign to subdue inflation” (here).  Mr. Volcker certainly deserves credit for curbing the Great Inflation of the 1970s.  However, he also merits a lion’s share of the blame for unleashing the Great Inflation on the US and the world economy in the first place.  For it was Mr. Volcker who masterminded the program that President Nixon announced on August 15, 1971, which  unilaterally suspended gold convertibility of US dollars held by foreign governments and central banks, imposed a fascist wage-price freeze on the US economy, and slapped a 10 percent surcharge on foreign imports.

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Last Hawk Flew To Heaven

By Arkadiusz Sieroń – Re-Blogged From Gold Eagle

Tall Paul Has Gone

A great man passed away. Literally. Paul Volcker – who died on Monday, probably due to prostate cancer complications, at 92 – stood 6 feet and 7 inches high, or more than 2 meters. But Volcker’s impressive height wasn’t the only thing he could boast of. Our Readers are aware that we are not fans of central bankers, but we have to admit that Volcker not only literally but also figuratively cast a long shadow across the Fed, standing out by both past and current standards.

First of all, Volcker was probably the last Fed Chair that we could even remotely describe as the monetary hawk ready to fight inflation. As David Stockman wrote

Volcker accomplished this true anti-inflation objective with alacrity. By curtailing the Fed’s balance sheet growth rate to less than 5 percent by 1982, Volcker convinced the markets that the Fed would not continue to passively validate inflation, as Burns and Miller had done, and that speculating on rising prices was no longer a one-way bet. Volcker thus cracked the inflation spiral through a display of central bank resolve, not through a single-variable focus on a rubbery monetary statistic called M1.

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If This Really Is A Recovery, Why Aren’t We Using More Electrical Power?

(Mark uses a “Bird’s Eye View” chart style, which shows the change from the previous high. All new high’s are at 100%, with pullbacks obviously less than 100%. It’s different, but informative. Bob)

By Mark J Lundeen – Re-Blogged From http://www.Gold-Eagle.com

Janet Yellen may not have raised interest rates this week, but Mr Bear couldn’t care less.  We can see it in the market.  In bull markets double-digit declines from an all-time high are reasons to buy.  But EARLY in bear markets, recoveries from double digit declines are reasons to sell as we’ve seen since about mid-July.  In the table below recoveries from double-digit Dow Jones declines last just a day or so before the market comes under selling pressure, again driving the Dow Jones down 10% or more from its May 2015 last all-time high.

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Gold, The Fed, Exter’s Pyramid – When John Exter Met Paul Volcker

By Mark O’Byrne – Re-Blogged From http://www.Gold-Eagle.com

GoldCore are blessed to have many well connected, informed and enlightened subscribers and clients throughout the world. On a daily basis, we receive interesting tidbits and insights from all corners of the world.  A common thread in the dialogue with our growing 31,824 email subscribers and wider online and social media following is a genuine concern about the economic, financial and indeed monetary outlook for the world.

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