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:

• How in the world did people see the great dollar-destructive inflation coming?
• How could they possibly stay in the dollar?
• How could people have not bought gold?
• 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?
• Why were the OTC manufacturers not arrested for first degree financial murder?
• 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:

1. The largest bank failure in US Financial history occurred because of OTC derivative losses.
2. 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.
3. 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.

Freddie and Fanny are to be rescued by smoke and mirrors designed to look like private sector investments.

This weekend the US Treasury and The US Fed are calling all banks and financial institutions that have populated the Begging Bowl Fed Loan Window to stay solvent to buy the multi-billion dollar bond issue scheduled to be auctioned on Monday. That is a joke as these institutions will have to buy them for their own account if they don't have insane clients to stuff with this paper. The question is where are these busted financial entities getting the funds for the bail out? Are these funds coming from the various Federal government entities that can buy any US security or bond?

I am offering a special award for the CIGA able to name the most Federal Entities that are by law allowed to purchase US securities and US Bonds.

The award is an air blast ping pong ball gun you can fire at financial TV when some damn fool is telling the public when gold or energy reacts that they are both all washed up. Your family and/or office associate will be pleased if you stop yelling at the screen and simply took aim at the idiot talking head.