“Yellenomics” looking inevitable

Posted | 24/09/2013 / Views | 1573
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We now have a situation where the 3 front runners beside Janet Yellen have all pulled out of contention to replace Bernanke as the US Fed chairman (it’s like no one wants to be the fall guy for what’s coming, huh?).  Yellen is as ‘dovish’ as they come and whilst gold and silver came off Friday night on either the comments of a few Fed Governors that they’ll likely taper in October (heard that before?) OR the bullion banks spooking the market lower to stock up their already incredible long position at lower prices; what seems certain is come January we will have a chairman who is pro money printing.  We expect a somewhat turbulent ride until then but as for JPM et al, it just presents good buying opportunities along the way.  We’ll leave you with a quote from Yellen before the 2010 Financial Crisis Inquiry Commission to give you more comfort in owning gold:

I did not see and did not appreciate what the risks were with securitization, the credit ratings agencies, the shadow banking system, the S.I.V.’s — I didn’t see any of that coming until it happened.