GLENN: Welcome to it. I'm glad you're here. This is my favorite season of the year and it's, this is an important time for America to renew herself and to reconnect. Please, please find the real meaning of Christmas this year. Don't make it about the stores and the buying of stuff and everything else. Please use this to reconnect with what the real meaning of Christmas is and that is helping others, serving others, finding yourself, starting all over again. You know, you may lose everything, I may lose everything but we still have each other and we still have our families, and tomorrow we're going to do a special show just on the real meaning of Christmas and I want to tell you some of the amazing stories that I have heard in the last couple of days from people that will, holy cow, if they can do it, you can do it. Overcoming our hardest obstacles. That will be on tomorrow's program.
Now, the reason why I am so impressed and I believe that the clock is ticking and I have a renewed sense of urgency. I want you to listen to this. I want you to listen to this news story. I'm going to read it verbatim and I want to see if any of this sounds familiar. Citigroup says gold could rise over $2,000 next year as the world unravels. Again, Citigroup says gold could rise over $2,000 next year as the world unravels. Gold is poised for a dramatic surge and the blast through $2,000 an ounce by the end of next year as central banks listen carefully as central banks flood the world's monetary system with liquidity. This is according to an internal client note from U.S. bank Citigroup. The bank said that the damage caused by the financial excesses of the last 25 years was forcing the world's authorities to take steps that they had never tried before. This gamble was likely to end in one of two extreme ways, with either a resurgence of inflation and trust me, gang, trust me they're not talking about regular inflation or a downward spiral into Depression, civil disorder and possibly wars. Both outcomes will cause a rush for gold. Quote: They are throwing the kitchen sink at this, said Tom Fitzpatrick. The bank's chief technical strategist. Quote: The world is not going back to normal after the magnitude of what they have done. When the dust settles on this, the world will, it will see that it will either work and the money they have pushed into the system will feed through 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 and the risk of a feedback loop. We don't think that this is the more likely outcome. I do. But each week as it passes and each month passes, there is a growing danger of a vicious circle as confidence erodes. This will lead I'm still quoting from Citigroup: This will lead to political instability. We are already seeing countries on the periphery of Europe under severe stress. Some leaders remember, Citigroup is talking about the crazy edges of Europe. But see if any of this sounds familiar. Some leaders are now at record levels of unpopularity. There is a risk of domestic unrest starting with strikes because people are feeling disenfranchised, end quote. May the heavens open up and sing praises, hallelujah, finally someone with some credibility is talking about disenfranchisement. Quote: What happens if there is a meltdown in a country like Pakistan, which is a nuclear power? People react when they have their backs against the wall. We're already seeing doubts listen to this: We are already seeing doubts emerge about the sovereign debts of developed AAA rated countries, which is not something you can ignore. So you know, developed AAA rated countries are countries like America. Gold traders are paying close attention to reports from Beijing that China is thinking of boosting its gold reserves from 600 tons to near 4,000 tons in a way to diversify away from paper currencies. What does that mean? Whose paper do they hold? Ours. They hold our currencies. If they are talking about going from 600 tons of gold to near 4,000 tons of gold, they need to sell their currencies and their treasuries. What does that do to the American dollar? "Oh, no one will ever do that because they need us." Everyone is in survival mode. Mr. Fitzpatrick said Britain had made a mistake selling off half its gold at the bottom of the market between '99 and 2000. People have started to question the value of government debt, end quote. Meanwhile, our leaders are saying pay no attention to debt. Meanwhile, the Fed which unbeknownst unfortunately to a lot of people, the ones who hold our treasury notes, the ones who it's backed by the Fed that is a treasury note, a promise the Fed will not release any information on how much gold it holds. The Fed won't allow any accounting on what they actually have. Citigroup said the blastoff was likely to occur within two years and possibly as soon as 2009. Gold was trading yesterday at $812 an ounce. It is well off the all time peak of $1,030 in February, but has held up much better than other commodities over the last few months referring to its historic role as a safe haven store of value and a de facto currency. Gold has tripled over the last three years in value, vastly outperforming Wall Street and European, it says bonuses here but it can't be bonuses, stocks.
Okay, look, here's the thing. Citi does this sound familiar? Does this, have you heard this maybe a year ago from anybody? This is a huge, huge development. This is Citigroup saying this and when somebody like Citigroup says this, it causes a shock to the system. It causes a shock to the market. So hear me clearly. They are not telling you the full truth, just like the President won't tell you the full truth because they know what it means if they panic. They know what it means if they say something that causes people to panic. This is the next level in getting people prepared for what's coming.
Let me go through this piece by piece. Gold could blast through $2,000 an ounce by the end of next year. It is going to blow through. You mark that down, Stu, if we're still on the radio in 12 months, it will go through $2,000 an ounce. The bank says it's caused by the financial excesses of the last 25 years. That is true. The gamble is going to end in one of two extreme ways: Either with a resurgence of inflation they are not talking about inflation. Study the Weimar Republic. They are talking about hyperinflation. You cannot inflate the world's money supply to the point that we have. They are lying to you. They are trying to take this down let's look at them in the best possible light. They are trying to take this system down as slowly as they can so you can prepare, but I'm telling you you are running out of time to prepare. You must prepare your household, you must prepare your children, 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. They are throwing the kitchen sink at this. This is what I told you a year ago. I said there's going to come a point to where they're going to open up these valves so far that nothing will react. The stock market won't react, nothing will. And they've got to turn those valves the other way because if they don't turn them the other way and shut this money supply off and do it quickly, you are going to have massive inflation. Well, not only have they not shut those valves off, they've opened them up even more. You cannot do these things. No matter what our arrogance tells us that, "oh, well, we've got it under control; oh, well, this will happen or this will happen," these people are trying to change the course of a hurricane and they're making it worse, unless you prepare. I told you a year ago, I told you when I pulled out of the market, I got a phone call, this is over a year ago and I said I pulled everything out. And I got a phone call and they said, you're telling people to pull out of the stock market, you are only making things worse. I said nobody's listening to me, nobody's listening to me at this point. I'm just telling you what I've done, you make your own decision. But you know what and I prayed about this because I felt I almost felt in a way like a betrayer of my country because I thought, how am I pulling my money out? We need to be able to have jobs, we need to be able to build. And it came to me, there must be someone with something left to be able to restart. You must protect your family. You must protect these things because you're going to need to be able to restart. There's got to be somebody left to be able to say, "Okay, let's pick ourselves back up." The world is not going back to normal. This is a quote: The world is not going back to normal after the magnitude of what they have done. That's Citigroup: The world will not go back to normal after the magnitude of what they've done. This is what I told you three weeks ago when I said the G20 were meeting. I said they're dropping framework. It's a new world order. They know. They know what's coming. They are saying, "We just need to see what we can do." No, they are not. They are dropping in the new world order. If I know it, if my sources are good enough and I'm smart enough, a guy who never took an economics course in my life, can look at all of these things and say, wait a minute, wait a minute, wait a minute, no way out, you're blocking all the exits, you know they do. They see it. This will lead to political instability, and they talk about European countries like Hungary, there is risk of domestic unrest starting with strikes.
Gang, Amy just called in 15 minutes ago. She was a caller. She just called in, and I specifically and I didn't point it out then. I hadn't read this article. I didn't point it out then and I wasn't wildly overt. Anybody who has ears heard. I said, listen to her voice. I said that for a reason, because I want those who are listening, those who have ears to listen and eyes to see. I needed you to hear Amy, a regular person just like you, so angry and so sad on what's happening. She knows it. 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.