If Bernanke is not reappointed it will be interesting to see who Obama picks. Lawrence Summers? Will Bernanke go to work at Goldman Sachs or become a lobbyist? - MBC
http://www.dailypfennig.com/
"...a classic case of "The Markets do what they're supposed to do... Just not when" There are more than a handful of very well educated people and well respected investor types that have see the writing on the wall for the dollar... But... The markets have decided that it's just not the right time...
The reason this whole idea came to light for me this morning is a story that appeared on the Bloomie: "Buffett Says U.S. Federal Debt Poses Risks to Economy, Dollar."
Calling it the "gusher of federal money"... Buffett had this to say... "The U.S. must address the massive amounts of “monetary medicine” that have been pumped into the financial system and now pose threats to the world’s largest economy and its currency." (Now that Warren Buffett is saying it maybe some more will finally start to listen! - MBC)
The folks over at PIMCO (Pacific Investment Management Co), the world's largest bond fund, also believe that the dollar will weaken as the U.S. pumps "massive" amounts of money into the economy. They even go further, in a letter to customers, saying that the drop of the dollar will come mostly against the emerging market currencies. "the greenback is losing its status as the world's reserve currency, said Curtis Melbourne, a PIMCO portfolio-manager. He went on to say... "Investors should consider whether it makes sense to take advantage of any periods of U.S. dollar strength to diversify their currency exposure."
"...Speaking of Central Banks... The cartel, I mean the Fed Reserve, has been keeping very quiet recently... I think that since Big Ben Bernanke told Congress that he had no idea where $500 Billion dollars that left the Fed went, he's doing damage control... He is up for re-appointment in January, and that statement won't be a gold star on his resume', eh? I was reading my friend, John Mauldin's weekly letter this past weekend, and he mentioned that some pretty important people that are "in the know" made a bet that Big Ben won't get re-appointed by the President in January... WOW! One and done for the helicopter Ben? I'll have to see that to believe it, as he has gone along with all the back room deals, brokerage sales, and changes to power that the administration is orchestrating... Whatever administration it was or is... Doesn't matter folks... There's been no change, except for the different color of lipstick on the pig..."
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