Yes, there is a hell of a mess. 1) incredible overreach by The Federal Reserve and the resulting asset bubbles, 2) unsustainable spending and budget deficits by BOTH political parties, 3) unsustainable pension liabilities and healthcare promises. To name a few.
And perhaps the “hell of a mess” is finally being noticed by investors in the form of the crashing Smart Money Flow Index as The Fed normalizes interest rates after 10 years in the monetary wilderness.
Budget deficits? The Federal government has been running budget deficits for a long time, but the deficits took an enormous leap during the financial crisis and subsequent tax cuts (no one in DC ever wants to cut spending).
Like growth in mandatory spending (entitlements).
Medicare (net of premiums) is the biggest culprit.
And then we have the unsustainable Federal, state and local pension funds.
So, Volcker is correct. The US is one hell of a mess, thanks to uncontrolled Federal spending and Federal Reserve policies.