Citigroup Chief Technical Strategist: "The world is not going back to normal after the magnitude of what they have done"

OK, for those of you already in the shelter, here's reason to stay there for a bit longer, care of Citigroup:

"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.

"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.

"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.

"We continue to believe that a move of similar percentage to that seen in the 1976-1980 bull market can be seen, which would suggest a price north of $2,000."

- Tom Fitzpatrick, Citigroup Chief Technical Strategist, leaked internal client report, November 2008

And then here's Glenn Beck's comments on these comments:
You must prepare your household, you must prepare your ch
"I'm telling you you are running out of time to prepare.ildren, you must do logical, well thought out things to be able to prepare your family and please do not do them in a panic fashion. I don't tell you these things to panic you. I tell you this with a sense of urgency so you may move with a sense of urgency and it is the same reason why CitiBank is telling you this today.

"They say it's either going to be inflation or a downward spiral into Depression, civil disorder and possible wars. They are talking about this on a global scale. They don't say that this is the United States but, gang, there's trouble coming.

"Americans, your gut is telling you this. Don't dismiss it. Follow your gut. If China would make that one move, no one's lending us any more money. So all of the things that we borrow has to be purchased with something else. You want prescription drugs? Okay, we can't borrow the money from China anymore. We need $500 billion more, half a trillion dollars more for a stimulus package so we can train people to go out and buy a new television set to keep the economy going? No one is going to borrow no one is going to lend us that $500 billion. We're at the end, gang. We're at the end of that game. So how do they pay for it? They print it because governments can do that."

- Glenn Beck, now in full freak-out mode, December 2008

And remember, it hath been foretold.