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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: Bearcatbob who wrote (150251)	4/28/2011 11:06:55 AM
From: Dennis Roth	9 Recommendations Read Replies (1) of 206181

>> ...he has an unworkable dual mandate... ...by law he has to keep money cheap... << The dual mandate didn't bother Paul Volker or any other Fed Chairman that chose to ignore it. All they have to do is explain to Congress that by keeping inflation under control they are promoting higher employment in the long run. Volcker raised the federal funds rate, which had averaged 11.2% in 1979, 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.[9] en.wikipedia.org Easy money is popular. Sound money is hard. Sometimes a Fed Chairman has to do the hard unpopular thing to do the right thing. There are no legal penalties for violating the dual mandate. Volker wasn't arrested.

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