Citigroup says gold could rise above $2,000 next year as world unravels - Telegraph
Jeez man... Citigroup is saying this. Pretty freaking bleak picture of what's to come. I don't think they're wrong. I think they're openly stating what I myself have been trying to communicate since the middle of the year. Take a hint from Biden and gird your loins. What is being set up around the world is not going to be pretty, and I think everyone within the view of this text needs to be mentally prepared for a potentially very dark period of history.The bank said the damage caused by the financial excesses of the last quarter century was forcing the world's authorities to take steps that had never been tried before.
This gamble was likely to end in one of two extreme ways: with either a resurgence of inflation; or a downward spiral into depression, civil disorder, and possibly wars. Both outcomes will cause a rush for gold.
"They are throwing the kitchen sink at this," said Tom Fitzpatrick, the bank's chief technical strategist.
"The world is not going back to normal after the magnitude of what they have done. When the dust settles this will either work, and the money they have pushed into the system will feed though into an inflation shock.
"Or it will not work because too much damage has already been done, and we will see continued financial deterioration, causing further economic deterioration, with the risk of a feedback loop. We don't think this is the more likely outcome, but as each week and month passes, there is a growing danger of vicious circle as confidence erodes," he said.
"This will lead to political instability. We are already seeing countries on the periphery of Europe under severe stress. Some leaders are now at record levels of unpopularity. There is a risk of domestic unrest, starting with strikes because people are feeling disenfranchised."
"What happens if there is a meltdown in a country like Pakistan, which is a nuclear power. People react when they have their backs to the wall. We're already seeing doubts emerge about the sovereign debts of developed AAA-rated countries, which is not something you can ignore," he said.
Gold traders are playing close attention to reports from Beijing that the China is thinking of boosting its gold reserves from 600 tonnes to nearer 4,000 tonnes to diversify away from paper currencies. "If true, this is a very material change," he said.
Mr Fitzpatrick said Britain had made a mistake selling off half its gold at the bottom of the market between 1999 to 2002. "People have started to question the value of government debt," he said.
Citigroup said the blast-off was likely to occur within two years, and possibly as soon as 2009. Gold was trading yesterday at $812 an ounce. It is well off its all-time peak of $1,030 in February but has held up much better than other commodities over the last few months ľ reverting to is historical role as a safe-haven store of value and a de facto currency.
Gold has tripled in value over the last seven years, vastly outperforming Wall Street and European bourses.
Honestly, the way I see it, from the broad scope of it all, is that we have been on a a credit standard for the past 10~20 years, a bubble that is now bursting as we throw ourselves into the dark pits of debt. They have pledged OVER SEVEN TRILLION DOLLARS in the name of "fixing" this problem. Anybody with more than rocks for brains should realize that fixing a problem created by debt can't be solved through creating more debt. Considering I have heard a number of people in different professions and of different beliefs talk about what is now occurring for years ahead of time, I'm much less tentative toward the scenarios they've been painting for so long. Indeed, it's something anyone with a fair amount of knowledge about the system and history could ascertain.
I really think those at the top realize that our economy, and the world economy with it, are badly damaged. They're trying to slow down the crash and keep something that can be salvaged. On the more extreme side, the way the system was created and implemented may have very well been designed and directed by institutions at the very top of the ladder to intentionally collapse the U.S. and world economies so that they may bring about a New World Order type of system, one of global governance and economics. For sure, with the path we are on, we will see a change in our currency to a global type of currency, likely a shared currency between the American countries.
The destruction and collapse of powerful countries like the U.S. may be brought about specifically to implement such global solutions in the name of saving us all. NWO elite conspiracy or not, they don't even have to enter the equation for one to see where the country is headed. A thorough dissolution of America, what it stands for, its sovereignty, the principles and freedoms this country was built on... are not on a road of sustainability. I think everyone knows the country is changing, but I also believe few grasp how drastic the change IS and WILL BE for a shear lack of knowledge about what it WAS (our history). And it's not a warm and fuzzy change by any stretch of the imagination...