With my trusty pan...
Posted on 11/27/2008 7:39:01 AM PST by Travis McGee
Citigroup says gold could rise above $2,000 next year as world unravels Gold is poised for a dramatic surge and could blast through $2,000 an ounce by the end of next year as central banks flood the world's monetary system with liquidity, according to an internal client note from the US bank Citigroup. 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
(Excerpt) Read more at telegraph.co.uk ...
Gee, they’ve had such a great track record up till now...
The US Gov’t: For the wealthy foreigners, by the US Taxpayer
mark
Ping
ambrose always skates on the edge.
Wouldn’t put all my eggs in that basket, but it might not hurt to have some actual gold around. And some lead.
great, i have been getting creamed on my gold etf. I should accumulate more position.
Thats what printing 8 trillion dollars does. BERNANKE?
When the price is above a certain poin, its worth doing gold panning tourism.
Putin’s and Chavez’ plans won’t work on 50 dollar oil, maybe they will be forced into more drastic measures or they will crawl back into their holes.
You don’t suppose Citi has a big position in gold? Priming the pump....or is it pimping?
This whole system is going to crash and burn, and I cannot say that I will not cheer it on.
But the funny thing is, they’ll be able to blame Bush and the Republican party (with good reason).
Interesting timing, coming from CITI.
The meddling in the markets will only serve to prolong the pain. Hiding the cod liver oil under your tongue will not save you from the flavor.
Yeah, and Citigroup “could” go t*ts up if we don’t give them a $700 bil bailout.
Tell the friggin Rothchilds we want our damn gold back.
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