Citigroup Predicts Bleak Future For World

Citigroup is a US bank most notable recently for needing a bailout from the government so one would be lead to believe that an internal memo from the bank predicting a bleak global future would be covered by the American press.  Not so, of course, because American journalism is dead.  The UK’s Telegraph ran the story today and it verifies what many of us have been trying to warn the good people of this country about:  we’re up shit creek.  For too long people have looked the other way as a non-government entity prints the currency for this country.  The people paid attention briefly when the first $700 billion bailout was trotted out, but it seems that they have given up and are just letting the government hand out money to everybody who comes asking.  And our government officials themselves have for too long handed out money to whoever and helped themselves to taxpayer’s money without any regard to what this might bring for the future.  Well, Citigroup is not looking the other way anymore since the credit woes have hit home for them and America better wake up.

The Citigroup memo detailed the damage caused by the financial excesses of the last quarter century and admitted that the recent economic downturn throughout the world was forcing the world’s leaders to take some risky steps that had never been tried before.  The bank predicts that these gambles most likely will end in one of two ways: a downward spiral into depression, civil disorder, and possibly wars or a resurgence of inflation.  In either case something extraordinary is going to happen in the area of gold.  It is going to shoot up, possibly into the $2,000 range. 

Citigroup’s chief technical strategist Tom Fitzpatrick said, “They are throwing the kitchen sink at this.  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.”  Forget about confidence in the market, the dollar will have no value.  It already really has no value right now because it is backed by nothing except the good faith and credit of the government and we already know that is worthless.  We are a debtor nation. 

Tom Fitzpatrick continued, “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.”  We are one of those AAA-rated countries, but even China isn’t lending to us anymore.  That is one of the reasons that the credit market is jammed and not moving. 

We also cannot ignore the fact that this week the Commission on the Prevention of WMD Proliferation and Terrorism has warned that the United States can expect a terrorist attack in the form of either nuclear or germ warfare within the next five years.  The Commission which is headed by former Senators Bob Graham of Florida and Jim Talent of Tennessee, gave the terrorist attack report to Vice-President-elect Joe Biden.  The report states, “The biological threat is greater than the nuclear; the acquisition of deadly pathogens, and their weaponization and dissemination in aerosol form, would entail fewer technical hurdles than the theft or production of weapons-grade uranium or plutonium and its assembly into an improvised nuclear device.”

I really am trying to hold onto some kind of hope that we are going to come through this most recent trouble in one piece, but as I watch daily our government officials make poor decision after poor decision and steal more of our hard earned money and as I look to an Obama administration that promises to “spread the wealth” and make us more patriotic by paying more taxes, I cannot help but feel as though we are being taken for a ride we want to get off but will not be allowed to.  And that is the beginning of Fascism in America.  If you need me, I’ll be burying my gold out behind the apartment.


2 responses to “Citigroup Predicts Bleak Future For World

  1. Yes, it’s a neverending cycle, it seems. Why won’t someone make it stop?!?

    I’d prefer not to think about it, but as you point out, the ramifications are bigger than most think.

  2. Something to read to the children, after you put the last piece of “government-issued” wood on the fire.

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