Listening to Kudlow's program, posted last night by gwr, I, too, get the impression that the fed has given up on the strong dollar policy and that it now wants a weaker dollar and a higher gold price. If so, the sinking dollar may be planned/expected with the fed well aware of what's happening. No need to sweat yet as this may be plan X.

Summer's resignation may have been prompted by this, since I believe he was one of the guys instrumental in having gold capped. If capping gold is relaxed or goes out the window and the dollar swoons, which appears to be happening, Summers must feel his usefulness as a policy maker is over. No need to hang around as he may feel he now has egg on his face.

I believe Paul Volcker, the former fed chairman and now close presidential advisor, also believed in capping gold. If he now resigns or backs away, it would be more proof, imo, that the current dollar/gold/inflation scenario is really about to change.

Circus time.