Sinclair states that like former Chairman Alan Greenspan who retired immediately preceding the collapse of the housing bubble leaving Bernanke holding the bag, if Bernanke steps down a year from January, it will indicate a monetary mushroom cloud of EPIC PROPORTIONS looms on the immediate horizon and Bernanke has no tools to prevent it.
From Jim Sinclair:
Believing what you read in the pre-election weeks, especially what is attributed to friends, is risky business. However, let us assume that there is some truth to this. What would it mean?
When Greenspan’s term was up what did it mean? It meant pretty much the end of the monetary system was at hand, and Bernanke was Greenspan’s bagman for the fallout. If Bernanke leaves then the monetary mushroom cloud is visible in the horizon and he has no tools to prevent it. The new Chairman could be nothing else but Bernanke’s bagman for a disaster of colossal proportions.
If Bernanke leaves, the jig is up.
No tools exist in any tool bag other than QE to handle national bankruptcy and the attendant conditions. There can be no other interpretations. That could be the signal for those who have contingent plans to grab the “Bug Out” of whatever type bags and run financially or physically.
Bernanke probably won’t stand for third term at Fed: NYT October 23, 2012 7:14 AM ET
(Reuters) – Federal Reserve Chairman Ben Bernanke has told close friends he probably will not stand for a third term at the central bank even if President Barack Obama wins the November 6 election, the New York Times reported.
Republican presidential nominee Mitt Romney has already said he would not re-nominate Bernanke if he wins the presidency. Bernanke’s term as chairman ends in January 2014.
Bernanke, who was first appointed to run the U.S. central bank by former president George W. Bush and was given a second term by Obama, has declined to comment publicly on whether he would accept another four-year term.
“I am very focused on my work, I don’t have any decision or any information to give you on my personal plans,” he told a news conference last month after the Fed announced a new and open-ended round of bond buying to support the U.S. economy.
The Fed’s unconventional efforts to spur growth have been criticized by many Republicans and some economists who argue that they threaten future inflation and abet profligate spending in Washington.
Treasury Secretary Timothy Geithner has already made it clear he wants to leave by the end of the year.
Former Treasury Secretary Lawrence Summers would be at the top of Obama’s list to replace Bernanke, although his reputation for not being a team player could count against him, New York Times columnist Andrew Ross Sorkin wrote.