Bill Gross, manager of the world’s largest bond fund at PIMCO, predicted that the Federal Reserve will implement additional monetary easing measures when the current “Operation Twist” program ends in June.
In an interview with Bloomberg, Gross said that he sees the Ben Bernanke-led central bank launching a “twist on another twist going forward.” Specifically, the PIMCO founder said that the Fed will turn its attention from U.S. Treasuries to mortgage securities in order to keep borrowing rates near all-time lows.
Echoing those sentiments on Wednesday was Peter Boockvar, chief equity strategist at Miller Tabak. Writing for Minyanville.com, where he is a contributor, Boockvar noted the following about Fed Chairman Bernanke and U.S. monetary policy:
Bernanke last night continued his good will tour on ABC News explaining to all his belief that current policy is the right thing for the tenuous economy. He’s implied over the past week in various speeches that he’s afraid of repeating the Fed’s mistake of early tightening that led to the recession of 1937-1938. Unfortunately, as seen in the mid 2000’s, there will never be a good time to reduce monetary largesse for an economy that has been conformed to be so highly dependent on the cheap funding of the Fed.
Platinum Group Metals Advances Toward Production
In August, Platinum Group Metals entered into a mandate letter with a consortium of financial institutions – including Barclays Capital and the Standard Bank of South Africa Limited – for a $260 million project finance loan to enhance the development of the Western Bushveld Joint Venture (WBJV) Project 1 Platinum Mine. The Company reported that the Preparation of detailed banking documents for the senior loan facility with the mandated syndicate of banks is ongoing. The completion of this documentation, due diligence, hedging establishment and off take negotiations are expected to be completed during Q1 and Q2 of calendar 2012. The formal mining right record of decision from the DMR is expected before the end of Q1 of calendar 2012. Full Platinum Group Metals News Release.
- In September 2011, the box cut excavation at the Project 1 Platinum Mine in South Africa was completed
- Also in September, a joint engineering study began on potential synergies with the Jinchuan-Wesizwe platinum mine adjacent to the Project 1 mine site
- In November 2011 Platinum Group Metals completed the formal public consultation process and documentation related to its Environmental Impact Assessment for the Project 1. Consultation with Government was subsequently completed in December
- In November 2011 the Company reported drill intercepts in a newly discovered extension of the North Limb grading 3.47 g/t Platinum, Palladium and Gold (2 PGE+Au) over 3.5 meters and 7.00 g/t 2PGE +Au over 5.0 meters at vertical depth of approximately 660 meters on the Waterberg project
