Mover Mike

On Sept 21, I wrote Who is Pierre Lassonde?
Pierre Lassonde is President of Newmont Mining, the world's largest gold producer. Dorothy Kosich at Mineweb reports on a conference call in which Lassonde comments on Dr. Ben Bernanke. Bernanke was nominated to head the Federal Reserve and take Alan Greenspan's place upon his retirement.

During a conference call to discuss Newmont's third-quarter financial results, Lassonde described Bernanke as a "reflationist" with a Chicago School-economist orientation (The Chicago School is renown for its belief in the power of markets).

Lassonde predicted that there will be a slowdown in the U.S. economy, which will motivate the Fed to become "commodative," which will be good for gold. Meanwhile, he noted, "China continues to defy expectation" in terms of demand.

Gold "supply continues to be challenged," Lassonde forecast as the production of Newmont and other international gold mining companies is down. As a result, he predicted the gold price will reach $525 an ounce before the beginning of next year.

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