Show Me the Money

As you will note below, both I and Mr. Fitzpatrick beleive we are in for some extremely difficult times ahead. Congress does not have the money to bail out the entire economic system without catastrophic consequences, but they are trying anyway. They at best, in my opinion, are only prolonging the inevitable. Unless you have a super product that will even be profitable during this difficult period, money will almost be impossible to raise. I'm in the same boat so I am very discouraged at this point. Don't give up if you thing you have a great product. It must however be profitiable to someone who is going to take the risk. Bill and Melinda Gates Foundation are giving grants in specific areas of healthcare.

I believe this is pretty important information, so I suggest everyone read it and feel free to pass it on.

I'm attempting to both alert and substantiate the prognostications of Mr. Fitzpatrict and some of the information that I've stated below. So if anyone has any collaborating info, send it to me at: skiprob@comcast.net

The article at the bottom of the page is reported from the research notes of Tom Fitzpatrict, reported by numerous news organizations – He is the chief technical strategist at Citigroup Global Markets Inc. in New York. If you goggle his name you will see numerous entries on numerous issues from major media sources.

What is interesting is that he points out two separate situations that could occur.

1. either a resurgence of inflation; will feed into an inflation shock

2. or a downward spiral into depression, civil disorder, and possibly wars; deflationary meltdown, civil unrest and massive political instability internationally, and possible wars

I've been asking the question, as two which way it was going to go for about three years now and no one would really answer it with any level of certainty. In hindsight we can reasonably conclude why. The ability to throw an endless stream of fiat money at the problem which has historically led to one of the two potential results. The problem is that we have never really experienced these specific circumstances. Never has one currency been so highly leveraged while in the position of being the world's reserve currency. To a major degree we are in uncharted water.

What is additionally interesting is that he points out that gold is going to hit $2000 an once. He doesn't say, its going to hit X if it goes this way and Y if it goes the other way. He appears to contend that it is going up either way and many agree with him.

So why then is the posted price of approx. $720.00 for gold and $10.20 for silver, on the American and London exchanges? Try buying gold or silver coins and take delivery. Many sources are saying that for immediate delivery you'll pay close to $16.00 for silver and over $1,000 for gold and many outlets don't have any inventory left. These premiums above spot are at least 5 times higher than I've seen in my life time.

Several fairly influential people in the gold trading markets are writing about December's futures contracts coming due with sizable request for "Actual Delivery" by some extremely large players, that they say COMEX doesn't have the physical store to accommodate the requests. So what they are saying, because of this, the paper price of gold is most likely being manipulated by those whom are trying to keep the prices down to lower their potential loses. Apparently, the sudden worldwide meltdown in all financial markets caught some big players with their pants down. Gold & Silver, despite its forced exchange with fiat currencies around the world, through legal tender laws, apparently is still the "Big Daddy" of money. Fiat currencies seem to come and go, but gold and/or silver have been a worldwide medium of exchange for millenniums and history usually repeats itself.

Now here is the really, really interesting part. Several U.S. banks are believed to be the entities that may be caught up in the potential COMEX gold futures squeeze. JP Morgan being on the top of the list. All hearsay but the Fed Bank, U.S. Banks and US Treasury have the greatest incentive in maintaining a strong U.S. dollar, weak gold and silver prices and may have been thrown off by the recent problems.

The Citigroup report is extremely bullish for gold. Gold is likely to rise above $2,000 an ounce regardless of the long term macroeconomic scenario that unfolds, Citigroup said in a research note. "For those who refer to gold as 'that useless piece of yellow metal that has no real value and earns nothing' (and have done for years) they might want to look at financial market charts more closely," writes Tom Fitzpatrick of Citigroup in New York. Citigroup warns that 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 through into an inflation shock." If they are unsuccessful, Fitzpatrick warns of a deflationary meltdown, civil unrest and massive political instability internationally, and possible wars. – IBT Commodities

H. Skip Robinson