As a reminder the Comex option expiration is January 26.
21 January 2011
US Dollar Index Drops to Strong, 'Must Hold' Support
A significant break of support here negates the double bottom formation.
It is not so much that gold and the dollar have moved lower together, but rather, the euro rally took quite a bit of risk buying off gold, at least from the continent. Asia remains a firm buyer and will most likely do so.
When the perception of sovereign risk changes again back from optimisim to gloom, I would expect both the dollar and gold to strengthen. Unless that gloom begins to encompass the buck, and acknowledge the yawning chasm of state and municipal defaults which the Yanks and their ratings agencies are so far blithely avoiding, deflecting the concerns to Europe.
This soft shoe dance that Ben and Timmy have done so far is getting a bit thin.
And it was almost funny to see the Amazing Krugman wagging his printing finger at China over the threat of impending inflation. Physician heal thyself.
GE's Jeff Immelt To Replace Paul Volcker
In case there was any question remaining in your mind as to what is really happening.
It should be noted that GE was the number one corporation in lobbying, spending $40 million on the purchase of political influence last year.
Obama is looking more like Herbert Hoover every day, but without the Great Engineer's accomplishments.
As someone said, it could have been worse, Obama could have chosen Lloyd Blankfein as his advisor. But that would have been a demotion for Lloyd, and a probable lessening of his existing impact on public policy.
NYT
Volcker Out, Immelt In on Economic Board
By SHERYL GAY STOLBERG and ANAHAD O’CONNOR
January 21, 2011
SCHENECTADY, N.Y. — President Obama will name Jeffrey R. Immelt, the chief executive officer and chairman of General Electric, on Friday to run his outside panel of economic advisers, replacing Paul A. Volcker, the former Federal Reserve chairman, who is stepping down, the White House said.
Mr. Immelt will chair a new Council on Jobs and Competitiveness that Mr. Obama intends to create by executive order. In a statement issued shortly after midnight, Mr. Obama said he wants the council to “focus its work on finding new ways to encourage the private sector to hire and invest in American competitiveness.”
The council will be a reconfigured version of the board Mr. Volcker chaired, the President’s Economic Recovery Advisory Board. That body, created by Mr. Obama when he took office in the thick of the worst economic crisis since the Great Depression, is set to expire on Feb. 6...
"The liberty of a democracy is not safe if the people tolerate the growth of private power to a point where it comes stronger than their democratic state itself. That, in its essence, is fascism - ownership of government by an individual, by a group."
Franklin D. Roosevelt
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