Where is Paul Volcker?

Mr. Obama’s economic team consists mostly of recycled agents and bureaucrats from the last 20 years.

Ben Bernanke is the key guy. He’s supposed to be independent. He has been on the Board of Governors of the Federal Reserve System since 2002 except for a brief stay as Chairman of the President’s Council of Economic Advisors in 2005. He is now numero uno at the Fed even though his fingerprints are on most every bad decision (they are legion) that the Fed and their foolish previous chairman (remember the Maestro?) of so many years made. Ben is an academic; no real life experience in a competitive market environment.

Larry Summers was a staffer for the above council in the early 80’s and he also advised the Dukakis presidential campaign in the late 80’s. How’s that for a primo reference? He’s been at the Treasury Department in several jobs including the top job and he actually was the president of Harvard for a while. To his credit, we surmise, he departed because of a no confidence vote from the faculty. He had the cojones to suggest, among other things, that faculty member Cornel West was a bit of a goldbricker. West split and so did Summers. He has knocked around in some Wall Street jobs; some say riding his resume and reputation for cleverness.

Peter Orszag is running the office of management and budget. He has had several Washington jobs and also worked at his consulting firm and one or two of those think tanks. Peter appears to be the designated optimist of the new administration. He has already had to revise some of his rosy estimates but TheFundamentals guesses that viewing the world through those rosy glasses may be part of his job description. He’s 40 years old. He joins Timothy Geithner (48 y.o.) as having no real competitive experience. They are politicians and can’t wait to put out press releases proclaiming some terrific results from some government bailout/stimulus program. Two vital jobs. Budget is about spending money; Treasury is financing.  These guys are trying to look good for the boss. Ask them about risk taking, meeting a payroll and competing for business.

Paul Volker joined the Fed in the 50’s and worked there for a while and also worked in the banking business. He also worked at Treasury and spent time as an academic. He made his bones in the early 80’s as chairman of the Fed. Inflation was awful. The great JCarter, president and now blanket racist name caller, was befuddled. Volker came along and raised interest rates until inflation was defeated. Not popular. He was independent. He was strong. He ignored the politicians. He got the job done. He is a grown up among children. He is the one eyed man in the land of the blind. He has significant Wall Street experience. TheFundamentals doesn’t know where he comes down on the issues of DEFICITS = DEBT = DESTRUCTION. We just know he had the cojones to right the ship when it was badly off course 30 years ago. Paul, “Are you OK with the course we are on now?  With the direction the above gang is leading us?” You like this “Win with inflation” program?   Hello. Paul, ‘Where are you?”