Dear CIGAs,
Gold is headed to and through $1200. This is the Mantra and truth. All "smoke and mirror" reactions are buys. That is the entire review. I do not think this, I know this.
Why, you ask?
History was made last week but so few understand it and less understand how to protect themselves.
The events of last week are so serious that saving newspapers for generations to come will amaze people who read them in the future. Some of the questions you will hear are:
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How in the world did people not see the great dollar-destructive inflation coming?
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How could they possibly stay in the dollar?
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How could people have not bought gold?
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You have to be kidding. Funds were short up to their eyeballs in junior gold shares. These juniors are the only means of getting new reserves. Why did investors in juniors fail to take definitive action to stop the lending of their shares to the shorts?
- Why didn't everyone keep their hard earned dollars in gold?
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Why were the OTC derivative manufacturers not arrested for first degree financial murder?
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Why did so many educated people fail to see "This was it"?
- Why did so many educated people not understand the unwinding of the entire financial system was accelerating?
The facts of the debacle:
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The largest bank failure in US Financial history occurred because of OTC derivative losses.
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The two giant real estate financiers, Freddie and Fanny, are balance sheet insolvent. In English this means both companies are busted, all because of OTC derivatives.
- The damage to the financial system’s estimated size is predicted to be $1.6 trillion dollars. This number shocks people, but it is still far below the real number. Once again we should all give thanks to the OTC derivative Geeks.
