FAST FIVE: Rabobank: "The Key Reason We Are In This Mess Is Due To Volcker"
He didn't just break the back of US inflation: he also deliberately broke the back of US labour power.
He explicitly aimed at breaking the power of organised labour, and just after being appointed as FOMC Chair declared “The standard of living of the average American has to decline”.
When looking at the trend of median rea- wage stagnation in the US–something now broadly acknowledged as the root cause of most of our socio-economic problems, and of our distorted markets–this started with the first oil shock, and became entrenched under Volcker.
In the UK, the Labour Party is running on as 'anti-Volcker' an economic manifesto as possible, and has been flailing in the polls.
The same Telegraph is also reporting “Germany's Hard-Left 'Corbyn Problem' Is Only Just Beginning”, as the coalition SPD's base has been captured by hard-Left activists who wish to repudiate key policies such as the Hartz IV labour reforms, and to embrace a 2% wealth tax, a rent freeze, a 30% rise in the minimum wage, a much higher carbon tax, and to shift to massive fiscal expansion on social housing and infrastructure.