Forgot to include this info in the post below. The London Telegraph quotes a leaked internal memo from Tom Fitzpatrick, the chief technical strategist for Citigroup in which he validates the "Troops + Recession=Mayday" scenario:
The bank said 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 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," he said.
"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," he said.
Collapse of 2009
Gerald Celente has been in the news lately, mostly because he makes accurate predictions. I'll let the article take it from there:
The country’s top trends forecaster, who accurately predicted the “panic” of 2008 nearly a year before it unfolded, is now ominously suggesting that next year will come to be known as “the collapse of 2009″.
Gerald Celente, CEO of Trends Research Institute, sent out a letter to his subscribers announcing that he had purchased a domain name called “Collapseof09.com”.
Around this time last year, Celente sent the following message to his subscribers:
"In 2008, Americans will wake up to the worst economic times that anyone alive has ever seen. And they won’t know what hit them. Just as they were in a state of shock on 9/11, they’ll be frozen in fear when the Economic 9/11 strikes at the heart of Wall Street.
Dismiss this trend forecast at your own peril. If you believe everything will be all right, and that the ship of state is sailing along just fine, toss this out and go about your business."
Having correctly forecast the “Economic 9/11″, Celente is warning that people should prepare for something much worse in 2009.
As we reported last month, Celente recently told Fox News that by 2012 America will become an undeveloped nation, that there will be a revolution marked by food riots, squatter rebellions, tax revolts and job marches, and that holidays will be more about obtaining food, not gifts.
Celente’s accuracy is widely heralded since he correctly predicted the 1997 Asian Currency Crisis, the subprime mortgage collapse and the massive devaluation of the U.S. dollar.
In 2007, Celente forewarned that “giants (would) tumble to their deaths,” which is exactly what we have witnessed with the collapse of Lehman Brothers, Bear Stearns and others.
Celente has stated that the current financial downturn will ultimately lead to nothing less than revolution.
“There will be a revolution in this country,” he said. “It’s not going to come yet, but it’s going to come down the line and we’re going to see a third party and this was the catalyst for it: the takeover of Washington, D. C., in broad daylight by Wall Street in this bloodless coup. And it will happen as conditions continue to worsen.”