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the world unravels and HEB begins to except gold for a loaf of bread.
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 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 – 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.
http://www.telegraph.co.uk/finance/c...-unravels.html
the world unravels and HEB begins to except gold for a loaf of bread.
The US financial sector has sodomized and infected the world's confidence in financial/paper/conctractual "wealth", so it's understandable that the desireability of Real Wealth like ownership of valuable minerals and land, as a refuge from the storm, would appreciate, even become exorbitant.
This may indeed happen as the US government or the Feds simply print butt-tons of cash to stave off a deflationary spiral. Bernanke has hinted that may be one of his solutions aimed at avoiding such a spiral.
I wonder about the feasibility of completely f***ing the dollar like that because it would completely destroy any foreign demand for new US government debt. That would have far-reaching implications.
The funny thing is, they over the dollar with all the dead presidents just like they over the country that the dead presidents built.
My bag of gold is too heavy to carry further than a couple of blocks. I certainly can't afford to mail it.
Well Citigroup has been so wise with its financial predictions and actions lately, I can't see how they could possibly be wrong.
I clicked on this thread expecting dumbassedness from Chump...I wasn't disappointed.
That's it?
Where's the funny?
Quick, try something like "Citigroup will incredibly profitable next year, and I say that with no qualifiers" or something.
So you have something positive to say about Citigroup's performance of late?
Let's hear it.
Seriously dude, you are so butthurt over being so horribly wrong about the election it permeates your every post.
take it easy, guys. he said he'll be out of work on Jan. 20th.
back to the gold standard.......where have we heard that before?
funny how ron paul's predictions have come true, yet everyone still calls him a crazy old man
politics is as good as tabloids
1st of all...Chump, you and Random Guy's replies caught me totally off guard...never in a million years did I think ya'll would bring up my election predictions....I am truly stunned.
I absolutely love it's performance of late...is that positive enough for you?
Seriously dude, you are so butthurt over being so horribly wrong about the election it permeates your every post.
I'm butthurt that the stupid remain in control of the country...the country can't take much more.
I know you are embarrassed by them. it makes it that much more enjoyable.
What specifically do you love?I absolutely love it's performance of late...is that positive enough for you?
Yes, everyone except you is insane. We've all heard this before when you were wrong.I'm butthurt that the stupid remain in control of the country...the country can't take much more.
Embarrassed? I actually enjoyed the novelty of being completely wrong...
you are funny...BTW, I'm actually disappointed I never made it into your sig.
That is my business. You asked for something positive, I was generous and gave you something positive.What specifically do you love?
Everyone? No...Yes, everyone except you is insane.
Majority of posters on this political forum? Yes.
Majority of practicing registered voters? Also yes.
Insane? No...
Stupid? Yes.
We've all heard this before when you were wrong.
If only I could have been right about Obama winning...like you were.
Yeah, it's a shame I don't care about you as much as you want me too.Embarrassed? I actually enjoyed the novelty of being completely wrong...
So you just made it up. No problem.That is my business. You asked for something positive, I was generous and gave you something positive.
Case in point.Everyone? No...
Majority of posters on this political forum? Yes.
Majority of practicing registered voters? Also yes.
Insane? No...
Stupid? Yes.
The problem with your bringing that up is I don't care all that much. For you, your e-rep is pretty much everything, which makes it fun for us to bring it up every once in awhile. Just pull your string and watch you go....If only I could have been right about Obama winning...like you were.
Trying to think of if I've ever made your sig or not....
Made what up? I'll get defensive as soon as you inform me what I'm supposed to be getting defensive about.
So you just made it up. No problem.
The problem with your bringing that up is I don't care all that much. For you, your e-rep is pretty much everything, which makes it fun for us to bring it up every once in awhile. Just pull your string and watch you go....
Ironically enough...I merely posted in this thread, called you a dumbass, and you've been going every since...
Citi's share went up from a low of $3 to over $8 today. In a week. 166% return in five days is not bad at all.
Go suck a smeagol.
I'm on your side, face. My post is in response to chump's
whottt is such an idiot.
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