Here comes infinite stimulation to support the Administration. Gold goes to a new high.
Bernanke Departure With Duke Heralds Cascade of Fed Appointments By Joshua Zumbrun – Jul 11, 2013 10:00 PM MT
Elizabeth Duke’s resignation from the Federal Reserve Board and Chairman Ben S. Bernanke’s potential departure in January could set off a series of vacancies and appointments that give President Barack Obama the opportunity to leave his mark on the Fed for a decade or longer.
Duke announced yesterday she is leaving the board in August, and Obama signaled last month that he expects Bernanke to leave when his current term expires next year, saying the central bank chief had stayed in his post “longer than he wanted.”
“There’s an opportunity for the president to shape the composition of the board for a long time,” said Roberto Perli, a Washington-based partner for Cornerstone Macro LP and a former senior staff economist in the Fed’s division of monetary affairs. “Obama is unlikely to nominate someone who differs from the current policy framework. It cements the fact that monetary policy is likely to remain very accommodative for the next couple of years, if not longer.”
The pending vacancies at the Fed will require confirmation by the Senate, which has posed an obstacle to previous financial regulatory appointments by Obama, including at the central bank.
Nobel-prize winning economist Peter Diamond was unable to win confirmation to the central bank in 2010 amid Republican opposition.
The Senate approved Bernanke for his second term with the thinnest margin of any recent chairman, as senators registered outrage at bailouts during the financial crisis.
Jim Sinclair told an audience of 591 in Vancouver that the gold price correction was over. Thursday, 11 July 2013
‘This is probably a historic day for the gold price,’ he said. ‘With the $1,275 barrier broken we are back on the way up.’
The gold price jumped after Fed chairman Ben Bernanke said ‘highly accommodative’ monetary policy will be needed for the ‘foreseeable future’ following a speech in Cambridge, Massachusetts after US markets had closed.
Gold going up
But Mr. Sinclair noted that technical indicators had been pointing to a change of direction this week. He expects gold to retest its all-time high of $1,923 by August 2013 and advance to $2,400 before succumbing to another correction.
Further out he has $3,200-$3,500 in his sights with much higher prices likely if the physical metals takeover from the futures pit as the price setting mechanism for precious metals, something he says might happen in three months’ time when the Comex inventories get too low for it to continue.
After the four-hour long meeting he sat down with ArabianMoney to give us some additional insights into how the gold market will move in the year ahead, and the full text of this interview and our notes from his main presentation will be available only to subscribers to our sister newsletter (subscribe here).
Mr. Sinclair is one of the most widely followed gold commentators in the world and advised the legendary Hunt Brothers in the late 1970s when they cornered the silver market driving silver to $50 an ounce, a price still unrepeated today. His website www.jsmineset.com is one of the most popular gold resouces.
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