Chart technical analysis indexes from anonymous and insider traders dow jones nikkei CAC40 Forex Gold ....      
► Not yet registered ?   ► Forgot your password ?  
We consider that ad revenue should go to our visitors.
We offer 1 gold or silver coin every friday.
With 100.000 visitors/day we will offer 1 bar gold in our Money quiz.
Support us ! Help us grow !
Donation counter If you are satisfied with our free
Services & Contest
Make a donation
Need :
76,495.00 $
Received :
40 $

Subscribe now
Fill the registration form
confirm your account
Discuss try to win
and play on
our free contest

New York: 12:13
Tokyo: 01:13
London: 17:13
Berlin: 18:13
Paris: 18:13
Hong Kong: 00:13
Riyadh: 19:13
Zürich: 18:13



Author Message ▼ Last message
mart.j     posted : 04/09/10   10:28 pm

Paul Volcker

From Wikipedia, the free encyclopedia

Paul Adolph Volcker (born September 5, 1927) is an American economist. He was the Chairman of the Federal Reserve under United States Presidents Jimmy Carter and Ronald Reagan (from August 1979 to August 1987). Since February 2009, he has been Chairman of the Economic Recovery Advisory Board under President Barack Obama.

click to enlarge

Early life

Volcker was born in Cape May, New Jersey and grew up in Teaneck, New Jersey, where his father was the township's first Municipal manager. Volcker graduated from Teaneck High School.

Volcker's undergraduate education was at Princeton University; he graduated in 1949. He earned his M.A. in political economy from Harvard University's Graduate School of Arts and Sciences and Graduate School of Public Administration in 1951 and then attended the London School of Economics from 1951 to 1952 as a Rotary Foundation Ambassadorial Fellow, under the Rotary's Ambassadorial Scholarships program.

Volcker has received honorary degrees from several educational institutions including: Hamilton College (1980), University of Notre Dame, Princeton University, Dartmouth College, New York University, University of Delaware,[4] Fairleigh Dickinson University, Bryant College, Adelphi University, Lamar University, Bates College (1989), Fairfield University (1994), Northwestern University (2004), Rensselaer Polytechnic Institute (2005), Brown University (2006), Georgetown University (2007), and Queen's University at Kingston in Canada (2009).


In 1952 he joined the staff of the Federal Reserve Bank of New York as a full-time economist. He left that position in 1957 to become a financial economist with the Chase Manhattan Bank. In 1962 he joined the U.S. Treasury Department as director of financial analysis, and in 1963 he became deputy under-secretary for monetary affairs. He returned to Chase Manhattan Bank as vice president and director of planning in 1965.

From 1969 to 1974 Mr. Volcker served as under-secretary of the Treasury for international monetary affairs. He played an important role in the decisions leading to the U.S. suspension of gold convertibility in 1971, which resulted in the collapse of the Bretton Woods system. In general he acted as a moderating influence on policy, advocating the pursuit of an international solution to monetary problems. After leaving the U.S. Treasury, he became president of the Federal Reserve Bank of New York from 1975 to 1979, leaving to become the chairman of the Federal Reserve in August 1979.

In 1975, Mr. Volcker also became a senior fellow in the Woodrow Wilson School of Public and International Affairs at Princeton University.

Chairman of the Federal Reserve

Paul Volcker, a Democrat,was appointed Chairman of the Federal Reserve in August 1979 by President Jimmy Carter and reappointed in 1983 by President Ronald Reagan.

Volcker's Fed is widely credited with ending the United States' stagflation crisis of the 1970s. Inflation, which peaked at 13.5% in 1981, was successfully lowered to 3.2% by 1983.

The federal funds rate, which had averaged 11.2% in 1979, was raised by Volcker to a peak of 20% in June 1981. The prime rate rose to 21.5% in 1981 as well.

Volcker's Fed elicited the strongest political attacks and most widespread protests in the history of the Federal Reserve (unlike any protests experienced since 1922), due to the effects of the high interest rates on the construction and farming sectors, culminating in indebted farmers driving their tractors onto C Street NW and blockading the Eccles Building.

Nobel laureate Joseph Stiglitz said about him in an interview:

Paul Volcker, the previous Fed Chairman known for keeping inflation under control, was fired because the Reagan administration didn't believe he was an adequate de-regulator. .


After leaving the Federal Reserve in 1987, he became chairman of the prominent New York investment banking firm, J. Rothschild, Wolfensohn & Co., a corporate advisory and investment firm in New York, run by James D. Wolfensohn, who later became president of the World Bank.

In April 2004, the United Nations assigned Volcker to research possible corruption in the Iraqi Oil for Food program. In the report summarising its research, Volcker criticized Kojo Annan, son of then-UN Secretary-General Kofi Annan, and the Swiss company Cotecna Inspection SA, Kojo's employer, for trying to conceal their relationship. He concluded in his March 2005 report that "there is no evidence that the selection of Cotecna in 1998 was subject to improper influence of the Secretary General in the bidding or selection process". However, while Volcker did not implicate the Secretary General in the selection process, he did cast serious doubt on Kofi Annan, whose "management performance...fell short of the standards that the United Nations Organization should strive to maintain." Volcker was a director of the United Nations Association of the United States of America between 2000 and 2004, prior to his being appointed to the Independent Inquiry by Kofi Annan.

As of October 2006, he is the current Chairman of the Board of Trustees of the influential Washington-based financial advisory body, the Group of Thirty, and is a member of the Trilateral Commission. He has had a long association with the Rockefeller family, not only with his positions at Chase Bank and the Trilateral Commission, but also through membership of the Trust Committee of Rockefeller Group, Inc. (RGI), which he joined in 1987. That entity managed, at one time, the Rockefeller Center on behalf of the numerous members of the Rockefeller clan. He currently serves as Chairman of the Board of Trustees of the International House in Manhattan, NY. He was a founding member of the Trilateral Commission and is a long time member of the Bilderberg Group.

In January 2008, he endorsed Democratic Presidential Candidate Barack Obama for President.

On April 8, 2008, he was the featured speaker at "The Economic Club of New York" and spoke about the issues and causes of the 2008 US recession, and critiqued the 2008 US financial system and the 2008 Federal Reserve policies.

Volcker is currently an economic advisor to President Barack Obama,heading the President's Economic Recovery Advisory Board. During the financial crisis, Volcker has been extremely critical of banks, saying that their response to the financial crisis has been inadequate, and that more regulation of banks is called for.Specifically Volcker has called for a breakup of the nation's largest banks, prohibiting deposit-taking institutions from engaging in riskier activities such as proprietary trading, private equity, and hedge fund investments.

On January 21, 2010, President Barack Obama proposed bank regulations which he dubbed "The Volcker Rule", in reference to Volcker's aggressive pursuit of these regulations. Volcker appeared with the president at the announcement. The proposed rules would prevent commercial banks from owning and investing in hedge funds and private equity, and limit the trading they do for their own accounts.

Volcker has been known to defy the stereotype of a Wall Street insider. A profile in The Week magazine for February 5, 2010, claimed that Volcker

doesn't even buy the conventional wisdom that "financial innovation" is necessary for a healthy economy. In fact, he likes to say, "the only useful banking innovation was the invention of the ATM."

On April 6, 2010 at the New-York Historical Society's Global Economic Panel, Volcker commented that the United States should consider adding a national sales tax similar to the Value Added Tax (VAT) imposed in European Countries, stating "If, at the end of the day, we need to raise taxes, we should raise taxes". The value added tax does not replace current taxes but is an additional tax on top of existing sales taxes. In European countries, the tax averages 20% with a 25% maximum by law.
[edit] World Justice Project

Paul Volcker serves as an Honorary Co-Chair for the World Justice Project. The World Justice Project works to lead a global, multidisciplinary effort to strengthen the Rule of Law for the development of communities of opportunity and equity.

Personal life

As a child, Volcker attended his mother's Lutheran church, while his father went to an Episcopal church. Volcker married Barbara Bahnson, the daughter of a physician, on September 11, 1954. She died on June 14, 1998, having suffered from lifelong diabetes, as well as rheumatoid arthritis. They had two children, Janice, a nurse and a Georgetown University graduate,and James, a research assistant and a New York University graduate who was born with cerebral palsy, as well as four grandchildren. Over Thanksgiving, 2009, he became engaged to marry Anke Dening, a long-time assistant. They eloped in February 2010.

Volcker is an avid fly-fisherman, having recounted, "The greatest strategic error of my adult life was to take my wife to Maine on our honeymoon on a fly-fishing trip."Volcker is also known as "Tall Paul" for his height of 6 feet 7 inches (2.01 m),standing exactly a foot (30 cm) taller than his wife when they first met.
AUTHOR REQUEST: Please don’t forget to share our analysis if you like it. Social media is extremely important to companies producing analysis and content!!
Christina     posted : 06/10/10   09:00 pm


If the general investing public ever perceives that the Federal Reserve is about to launch a new program of mass inflation, one which is comparable to what it did in October of 2008, then investors will begin looking for historic inflation hedges. Commodities have historically increased in price during times of mass inflation. This especially includes gold and silver. It has also included oil.

We have seen increasing discussions of the possibility of quantitative easing by the Federal Reserve, and we have also seen rising prices for precious metals. Oil has not fallen significantly below $80 a barrel for any length of time. Yet there is not much of an economic recovery, so the demand for commodities appears to be based on a fear of quantitative easing.

Paul Volcker has to know this. He knows enough about central banking to understand the function of the monetary base. He warns about future policies of quantitative easing that may produce inflation, but I am certain that he understands that the Ethiopian is already in the fuel supply. The existing monetary base, when coupled with increasing bank credit, is all it takes to double the operational money supply, thereby doubling prices as denominated in dollars.

Volcker is warning the Federal Reserve that any attempt to overcome the existing recession by another expansion of the monetary base by the purchase of Treasury debt or anything else may produce the negative effects in the economy. It is not simply that another round of monetary expansion will, in and of itself, produce inflation. The problem is more deep-seated. Any expansion of the money supply that has the effect of restoring confidence in the economic future will set off the inflation that Volcker fears.

I\'m happy to receive any constructive criticism about my trades. I\'m always ready to learn more.
Luck i m your father     posted : 05/11/10   09:36 pm


UPDATE 1-Volcker: future inflation risk limits QE effect

Fri Nov 5, 2010 12:44am EDT

* Former Fed chief remains sceptical on benefits of QE

* Favours faster currency appreciation for surplus countries (Updates with quotes)

SEOUL Nov 5 (Reuters) - Former U.S. Federal Reserve Chairman Paul Volcker on Friday repeated his scepticism about the benefits of the Fed's latest quantitative easing, citing concern about long-term inflation.

He told reporters after a lecture in Seoul that short-term U.S. interest rates had almost no room to go down further, while long-term bond prices were under pressure from increasing concern about future inflation.

"It's hard to have a big impact on the short-term interest rate that is already zero, and on the bond-market ... two things are working in opposite ways on the interest rate," he said, referring to concerns about long-term inflationary pressure.

He declined to elaborate on the U.S.-led pressure on China to allow the yuan to appreciate CNY=CFXS rapidly as a way of reducing global imbalances, but sounded in favour of faster appreciation of currencies in countries with surpluses.

"An underlying problem in the international monetary system generally has been that most countries like to be in surplus. You want to feel comfortable but it's impossible for everybody to be in surplus," he said. (Reporting by Yoo Choonsik; Editing by Chris Lewis)
Christina     posted : 19/11/10   09:13 pm

So, What Could Make Gold Go Down?

In the late 1970s, then Fed Chairman Paul Volcker, wielding an ax made up of high interest rates, lopped the head off the gold bull. Leading up to Volcker’s draconian solution, I can well remember the broadly held impression that gold could only go higher. His extreme actions changed that impression almost overnight.

That scares me, because there is a similar – albeit not nearly so widespread – meme going around today.

Let me share with you a couple of “out of the box” ideas for how the U.S. government might torpedo gold’s further advance today, in the same way that Volcker did back then. (As for the rest of the world’s governments – sorry, but it’s everyone for themselves at this point.)

* Overt debt default. In this scenario, Uncle Sam rolls out of bed one morning and announces that Treasury debt will henceforth be redeemed at only pennies on the dollar. To lessen the domestic political blowback, perhaps he announces a process whereby domestic holders are redeemed at a higher rate than foreigners… or maybe he most disadvantages debt held by those foreigners labeled as currency manipulators. There is much historic precedent for this extreme action – and, other than some negative consequences over a relatively short initial period of time, countries that have defaulted have suffered no lasting effect. Case in point, both Russia and Argentina now have debt-to-GDP ratios well under 10% – among the lowest in the world. In concert with resolving the debt, the government could promise a new regime of austerity, as well as issue a new dollar with at least some limited backing. Change-o, presto, problems solved, and gold heads into the tank.
* Tired of dealing with the “gold vigilantes,” Uncle Sam simply outlaws gold ownership. Hey, it’s happened before. But what about the price of gold in this scenario? Our own Terry Coxon comments…

Prohibition would force U.S. holders to sell, which by itself would tend to depress the price. However, I’d bet on the price going up because the prohibition would be a signal to the rest of the world that the dollar’s sponsor had gone completely off the rails. Still, who knows, maybe an international consortium of nations could agree to ban gold – kind of like how they all now ban heroin? Unlikely, but desperate times call for desperate measures.

* The U.S. adopts a gold standard. In this scenario, Uncle Sam, his back against the wall, agrees to henceforth link the dollar to gold at some fixed price. With concerns over unlimited government spending capped, gold might hold at the fixed price while awaiting further signals. Of course, what that fixed price might be is anyone’s guess – although it would almost certainly be a lot higher than it is today. Our own Marin Katusa has identified one possible sleight of hand that could be deployed should the U.S. decide to return to a gold standard – and that would be to nationalize all the nation’s gold deposits, then use the inferred resources in the ground as backing for the currency. An interesting thought, as it would greatly reduce the price of gold necessary to reach full backing of the dollar.

While each of those three scenarios carries further implications, they may just pass the test of being politically feasible – which, in this government-dominated world of ours, is all-important.

Unfortunately, only the first – overt default – would actually make a dent in solving the gargantuan overhang of debt that now torments the global economy. As such, only overt default mitigates the need for the government to continue its insane deficit spending or the debt monetization required to support that spending.

In the end, it’s hard to imagine that there’s a way the government could get out of this situation without the country – and the world – going through a crash for the history books.

[David, Doug Casey, and the other editors of The Casey Report spend a lot of time analyzing the economic status quo and envisioning potential scenarios for the near future. This big-picture view of world politics and the global economy enables them to find profit opportunities for their subscribers… even in the midst of a once-in-a-generation crisis
I\'m happy to receive any constructive criticism about my trades. I\'m always ready to learn more.
mart.j     posted : 21/01/11   08:39 pm

In case there was any question remaining in your mind as to what is really happening.

Obama is looking more like Herbert Hoover every day, but without the Great Engineer's accomplishments.

As someone said, it could have been worse, Obama could have chosen Lloyd Blankfein as his advisor. But that would have been a demotion for Lloyd, and a probable lessening of his existing impact on public policy.

Volcker Out, Immelt In on Economic Board
January 21, 2011

SCHENECTADY, N.Y. — President Obama will name Jeffrey R. Immelt, the chief executive officer and chairman of General Electric, on Friday to run his outside panel of economic advisers, replacing Paul A. Volcker, the former Federal Reserve chairman, who is stepping down, the White House said.

Mr. Immelt will chair a new Council on Jobs and Competitiveness that Mr. Obama intends to create by executive order. In a statement issued shortly after midnight, Mr. Obama said he wants the council to “focus its work on finding new ways to encourage the private sector to hire and invest in American competitiveness.”

The council will be a reconfigured version of the board Mr. Volcker chaired, the President’s Economic Recovery Advisory Board. That body, created by Mr. Obama when he took office in the thick of the worst economic crisis since the Great Depression, is set to expire on Feb. 6...

"The liberty of a democracy is not safe if the people tolerate the growth of private power to a point where it comes stronger than their democratic state itself. That, in its essence, is fascism - ownership of government by an individual, by a group."

Franklin D. Roosevelt
AUTHOR REQUEST: Please don’t forget to share our analysis if you like it. Social media is extremely important to companies producing analysis and content!!
mart.j     posted : 09/11/11   09:50 pm

SINGAPORE (Reuters) - The Volcker rule is too long and complicated and financial lobbyists are to blame, said the man who gave his name to the new regulation on bank trading.
"It's much more complicated than I would like to see," said Paul Volcker during a university talk in Singapore on Wednesday.
The Volcker rule is meant to prevent American banks from making big bets on markets with their own money or from backing private equity and hedge funds.
The 300-page proposed version of the rule, due to come into force next year, was released by the Federal Deposit Insurance Corp and other federal regulators last month.
Volcker, former chairman of the U.S. Federal Reserve, said lobbying by the financial industry had made the proposed regulation much more complex than it needed to be.
"There is no set of lobbyists in the United States bigger, more important and more rewarded than the financial lobbyists," he said.
However he added that the basic principle prohibiting banks engaging in proprietary trading is still contained in the law, whose purpose was reinforced last week by the collapse of brokerage MF Global.
The U.S. firm filed for bankruptcy after risky bets on debt from troubled euro zone nations scared away clients and investors.
"It reinforces the point - I don't want the banks doing the kinds of things they were doing," he said.
(Reporting by Rachel Armstrong; Editing by Erica Billingham)
AUTHOR REQUEST: Please don’t forget to share our analysis if you like it. Social media is extremely important to companies producing analysis and content!!
▲ Top      
You must be registered to join