[A-List] Financial Disaster Will Lead to Civil Disorder in 2009 or 2010

[Bill Totten]

Says Secret Citibank Memo

by Mike Adams

Natural News (November 28 2008)


An internal memo from a top Citibank analyst reveals what the banks
really think about the global financial situation, and the outlook is grim.

"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 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.

The timing on all this? Sometime in either 2009 or 2010, said the analyst.

This coincides with predictions I've made here on NaturalNews.com, where
I've publicly predicted price inflation of twenty to forty percent in
2009, and the financial collapse of the United States government
(sometime before 2025) due to an irreversible debt burden.

I've also predicted that when the people wake up and realize their
dollars have been looted by the Treasury and turned into worthless
pieces of paper, there will be riots in the streets.

These events have already been set into motion. It is now only a matter
of time until they bubble to the surface. On the day the mainstream
taxpayers actually figure all this out, don't be caught out in public.
Stay home.

>From Telegraph.co.: 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 ...

__________________

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.

by Ambrose Evans-Pritchard

Telegraph.co.uk (November 27 2008)


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.

(c) Copyright of Telegraph Media Group Limited 2009

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/3526645/Citigroup-says-gold-could-rise-above-2000-next-year-as-world-unravels.html


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