Volcker and Squeezing the Trigger
Tonight's offering, submitted for your approval and acceptance...
Paul Volcker, former chairman of the Federal Reserve from 1979 to 1987 weighed in with an OpEd in the Washington Post. The article was adapted from a speech in February at an economic summit sponsored by the Stanford Institute for Economic Policy Research. The points are valid and well known by the public. I read a transcript back in February and was struck by the following comment.
"I think we are skating on increasingly thin ice. On the present trajectory, the deficits and imbalances will increase. At some point, the sense of confidence in capital markets that today so benignly supports the flow of funds to the United States and the growing world economy could fade. Then some event, or combination of events, could come along to disturb markets, with damaging volatility in both exchange markets and interest rates."
In the past, I have loosely alluded to a potential source of this triggering "event" in Iran Next? amongst other missives.
A good sniper exhibits patience by waiting for the target to cleanly line up in the cross hairs. The terrorist leadership is well funded and educated. Perhaps they are waiting for the dominoes to "line up" economically, before they squeeze the trigger that starts the chain reaction.
This would be interpreted by fanatic muslims as the ultimate act of economic terrorism, perpetrated against the supposed "Great Satan". This is a disquieting and very realistic possibility, not to be lightly dismissed with the wave of a hand. Tonight's food for thought which can be found filed under the letter I; which stands for Irony, in The Naybob Zone.
Skating on Thin Ice
Paul Volcker, former chairman of the Federal Reserve from 1979 to 1987 weighed in with an OpEd in the Washington Post. The article was adapted from a speech in February at an economic summit sponsored by the Stanford Institute for Economic Policy Research. The points are valid and well known by the public. I read a transcript back in February and was struck by the following comment.
"I think we are skating on increasingly thin ice. On the present trajectory, the deficits and imbalances will increase. At some point, the sense of confidence in capital markets that today so benignly supports the flow of funds to the United States and the growing world economy could fade. Then some event, or combination of events, could come along to disturb markets, with damaging volatility in both exchange markets and interest rates."
In the past, I have loosely alluded to a potential source of this triggering "event" in Iran Next? amongst other missives.
A good sniper exhibits patience by waiting for the target to cleanly line up in the cross hairs. The terrorist leadership is well funded and educated. Perhaps they are waiting for the dominoes to "line up" economically, before they squeeze the trigger that starts the chain reaction.
This would be interpreted by fanatic muslims as the ultimate act of economic terrorism, perpetrated against the supposed "Great Satan". This is a disquieting and very realistic possibility, not to be lightly dismissed with the wave of a hand. Tonight's food for thought which can be found filed under the letter I; which stands for Irony, in The Naybob Zone.
Skating on Thin Ice
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