Depression Or Inflationary Spiral? - Either Way Gold Is Headed Through The Roof According To An Inte

An internal Citibank memo says that the next few years will see economic turmoil of unprecedented magnitude. According to the memo, we will either see an economic depression, accompanied by civil unrest, riots and possibly war, or we will be caught up in a massive inflationary spiral as the governments of the west flood their economies with liquidity:

futurestorm.blogspot.com...

Buy gold now before it skyrockets

I think inflation is pretty much guaranteed,with a period of stagflation,consider the current state a "repression".

[edit on 1-12-2008 by all2human]

[edit on 2-12-2008 by all2human]

The last depression was caused by the contraction of the money supply. This is partly why gold was called in and exchanged for notes. Gold was being taken out of circulation and hoarded and/or sent overseas because its worth exceeded what a dollar was worth.
Our current situation is similar. We've a contraction in money supply, ie the credit crisis but we're broke and solving it this time by printing more money, and lots and lots of it.
This is identical to what happened to Germany in the 20's.
When you add money to the money supply, it dilutes the value of those dollars in circulation. It's called inflation and due to sheer amount of dollars in this case, in the range of trillions of dollars, it will only create hyperinflation.

One thing is for sure. You won't want to invest in toilet paper in the future because that's about all our dollars will be good for !

I agree that it is a good time to buy gold

I got some gold kuggerands about a month ago for like $760 an ounce after commision. I'm ready to buy more now but with the prices at mid to low 800s not counting the dealer commision, it's hard to buy more. I am hoping it goes back down into the 700s so I can buy more. Anyone think there is a chance it goes back down a little?

Originally posted by Kingfanpaul
I am hoping it goes back down into the 700s so I can buy more. Anyone think there is a chance it goes back down a little?

Hi KFP. I think Bears might respond in the affirmative, citing ongoing deflationary forces linked to recent Dollar firmness. OTOH, Bulls might point to reckless monetary policy...paper Gold's relative strength when measured against most asset clases, and strong physical demand...as a courier of mounting support.

Right now, I'm focused primarily on Dollar movement. Random technical clues like this one from Le Metropole Cafe' Bill Murphy can also be valuable.

In the December 18 session on the TOCOM Goldman Sachs COVERED an absolutely gob-smacking 1,307 gold short contracts which reduces their short position to just 495 contracts and leaves their long position unchanged at 1,337 contracts and makes them NET LONG – REPEAT, NET LONG 842 contracts. This is an absolutely stunning development! This is the largest net long position they have held ever since I have been tracking the TOCOM data which is almost 3 years. Considering Goldman’s role in the Cartel and links to the Treasury this is of earth shattering significance. It should also be noted that for ANY trader to be buying 1.3 tonnes of gold in a single day it deserves attention, when it is Goldman Sachs it has special significance.

*Sorry; no link available, but the GS TOCOM open interest can be verified by scrolling this page.

GL

deflation OR hyper-inflation are beyond 2009 imho....

i see the conflicting blocs pushing against one-another to leave the market at the 8,500 average,

see, the geo-political strategic workings are maneuvering the theater of operations to the Afghan-Pakistan /central Asia area

and that strategy takes precedence over the Detroit big-3 or the bailout scams...


even the temporary buying of gold & silver bullion to cover the COMEX paper metals will have a long term restraining on PM going-to-the-moon...

the 'skys-the-limit-on-PMs' outlooks, which a lot of these finance enthusiasts/economists are telling eager ears... is not going to be realized for several years !
and by then the Gov't will seize all those paper ETFs of PMs
to help stabilize the then Deflating Asset Economy(DAE)
from irrational exhuberance of inflated Gold/PM valuation....


blah, blah....

Peter Schiff has been predicting Gold will hit 2G next year. Has this guy been wrong so far?
When the US dollar suffer inflation, people will dump T bills as they lose value, besides putting more pressure on the dollar, it will also drive more people into Gold as a safe haven.

I just bought 5 1oz gold philharmonic's on Wednesday. Honestly, and maybe it was stupid, but I didn't really care what the price was, or does right now.

I just felt the need to have something other than just money in the bank.

Deep down, my gut is saying: "Don't wait, and have to tell yourself...I knew it."

If next year they spring the Amero on us, God only knows what the exchange rate for a Dollar verses an Amero is going to be. What if it's $80.00 US for 1 Amero?

I feel that they will have to establish a price for Gold in Amero's that will be relative to today's prices, so they can keep thier wealth in gold intact.

Plus, having a few gold coins in your pocket is like keeping your bank account with you.

Like Schiff says, use your dollars now while you can still buy something with them.