Jim Sinclair’s Commentary
Our bullion delivery man, JB Slear, says:
"No Bank failures for this week… after all, can’t have a failure on Jackson hole day."
Jim Sinclair’s Commentary
Remember all the MOPE about Fed tests of reverse repos as a method of draining liquidity?
Draining liquidity was all the talk on F-TV with the herd of Talking Heads bobbing their heads in agreement without any doubt.
The Fed will tighten? What raving BS. Now is there any further question in your mind that as the Western World economy craters, QE to Infinity will balloon to new heights? It will and illustration number three is the means to Currency Induced Cost Push Inflation.
Have you fully protected yourself and the nearest, dearest? Gold at $1650 looks like a minimum projection.
Fed Ready to Dig Deeper to Aid Growth, Chief Says
By SEWELL CHAN
Published: August 27, 2010
JACKSON HOLE, Wyo. — The Federal Reserve chairman, Ben S. Bernanke, signaled once again on Friday that the central bank was prepared to act if the economy continued to weaken, as yet another economic report confirmed that the recovery had slowed to a crawl.
Mr. Bernanke made clear that while the Fed could take various steps, including large purchases of government debt, “central bankers alone cannot solve the world’s economic problems.” Speaking at the Fed’s annual symposium here, he hinted broadly that political leaders had to take steps to tackle the deficit and the trade imbalance.
Hours before Mr. Bernanke spoke, the Commerce Department lowered its estimate of economic growth in the second quarter to an annual rate of 1.6 percent, after originally reporting last month that growth from April through June was 2.4 percent. Economists had been predicting a steeper decline, and stock prices rose after the markets opened.
While Mr. Bernanke announced no new steps that the Fed would take immediately, he said the central bank was determined to prevent the economy from slipping into a cycle of falling wages and prices, a situation he said he did not think was likely. Instead he predicted that growth would continue modestly in the second half of the year and pick up in 2011.
Mr. Bernanke said the Fed, having kept short-term interest rates at nearly zero since 2008, had essentially four options:
