An internal memo from a top Citibank analyst reveals a grim outlook.
“The world is not going back to normal after the magnitude of what they [Federal Reserve] have done. When the dust settles this will either work, and the money they have pushed into the system will feed through into an inflation shock,” wrote Tom Fitzpatrick, Citibank’s chief technical strategist.
He goes on to explain that the massive money creation efforts by the Federal Reserve and other central banks will end with one of two things: A resurgence of inflation, or a fall into “depression, civil disorder and possibly wars.” Either outcome, he says, will cause the price of gold to skyrocket. Gold will push to well over $2,000 per ounce, he explains.
According to the analyst we should expect this in either 2009 or 2010.
December 20th, 2008 at 8:06 am
The thought just occurred to me recently, sort of an “ah-ha” moment, that the crisis Joe Biden was referring to for president elect Obama over the next few months may not be a possible act of terrorism, but just could be what can only be described as a financial 911 in the 2009-2010 timeframe. I’ve done some research on this nagging feeling I’ve had, and the hits seem to bear some weight. Astrogically, with Pluto now heading out of Sagittarius and into Capricorn, the pressure may be easing somewhat, but my gut feeling tells me there’s still more to come. I am not into astrology, as I do find it somewhat boring, but I think it is a good source of info occasionally. However, I do suspect things may not calm down as quickly as suggested, and we’re in for a very bumpy ride over the next couple of years economically. I’m becoming concerned over the possibility of another depression similar to the one in the 1930s, especially with the big 3 automakers experiencing such a demise and now facing “orderly bankruptcy” – it can only trickle down more, may even catastrophically.