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.