Goldman Head

In terms of real effect, though, I think the return of a Goldman head to Treasury actually increases the odds of a “soft landing,” or at least the illusion of one.

With a savvy poker player like Paulson at the helm, Washington will fare better in the stealth reflation game. Smooth Hank will surely be able to “explain” things to Japan’s central bankers and China’s lever pullers in a way that bumbly-fumbly old Snow never could.

Marc Faber‘s commentary to Bloomberg last month may prove prophetic:

“If the Dow Jones goes up three times in the next 10 years, I think gold prices will go up by a minimum 10 times to something like $6,000 an ounce.”