Jim Walker, founder and CEO of Asianomics, provided a very bearish economic outlook for 2011 that included further gains for gold, the resignation of Fed Chairman Ben Bernanke, and the end of the euro “in its current form.”
“We’re advising people to be long gold, I think that continues to go up, certainly through the first nine months of next year,” Walker stated in a CNBC interview, “We’re kind of expecting that at that point that Ben Bernanke will resign and I think the gold price will fall on the back of that and then resume its rise.” He did not provide a target price however for the yellow metal.
His rationale for Bernanke’s resignation is based on significant deflation in 2011, as the Fed’s quantitative easing programs are unable to prevent deflation from taking hold of the economy. Accordingly, Walker remains bullish on U.S. Treasuries.
As for the euro and European sovereign debt crisis, Walker stated that “I think the euro is finished in its current form. I think there will be an exodus of countries from the euro that just can’t stand the pain” of the austerity measures being implemented in many of the PIIGS nations.
“They are democracies after all,” Walker continued, “and people vote out governments that inflict pain on their population.”
Information from Gold Alert
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