Friday, October 10, 2008

The Global Inflationist, Interventionist Volcker

Paul Volcker, who as Fed Chairman, slayed the out of control inflation of the late 1970's-early 1980's, is, of late, showing that deep down his allegiances still belong to the insiders.

In today's Wall Street Journal, for example, Volcker hails the interventionist measures proposed by Henry Paulson at Treasury, and hails an increase in global inflation:

First of all, there is now clear recognition that the problem is international, and international coordination and cooperation is both necessary and underway. The days of finger pointing and schadenfreude are over. The concerted reduction in central bank interest rates is one concrete manifestation of that fact.

More important in existing circumstances is the clear determination of our Treasury, of European finance ministries, and of central banks to support and defend the stability of major international banks. That approach extends to providing fresh capital to supplement private funds if necessary.
These comments clearly demonstrate that Volcker has no strong anti-inflation spirit deep in his soul. It is obvious, now, that he did not slay the inflation of the 70's, for the people and because it was the right thing to do, but because the Rockefeller grroup wanted that inflation slayed.

Volcker is a founding member of the Trilateral Commission, is the current Chairman of the Board of Trustees of the influential Washington-based financial advisory body, the Group of Thirty. He is also a member of the Trust Committee of Rockefeller Group, Inc. and also currently serves as Chairman of the Board of Trustees of the International House, an international Rockefeller organization designed to nurture future generations of Rockefeller operatives.

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