http://www.321gold.com/editorials/thomson_s/thomson_s_011210.html

12. I mentioned to you not to fall in love with the Chinese Gman. Peng Junming is an analyst at China Investment Corp, China's $300 sovereign wealth fund. He is quoted this morning as saying the US dollar has bottomed and is a buy. Then he backtracked and it was just his personal views, not an official statement. I suspect he's been involved in building a long USD position for the fund, and he's trying to talk his positions higher... positions that may be in danger of going underwater . He may already be underwater.

13. UBS bank notes that it is American institutional firms that ultimately determine the value of the US dollar, as their combined size totally dwarfs all central bank and sovereign fund assets. In their world, Mr. Peng (or is it Mr. Penguin?) isn't very worrisome. And since the fundsters just busted out of their long USD trade, I suspect they are not too keen to re-enter it based on Mr. Penguin's gold-bashing statements. Statements that clash with those of the Chinese Central Bank, that they seek to increase their gold reserves by 800%, buying steadily over the next ten years .

14. I have been emphatic to subscribers that 2010 is the year the banksters push institutions into gold and a dollar crisis, not a new bull market, is the more likely event . Here's a statement from the man the gold community hailed as a friend. Peng Junming: "China should have the right attitude about investing in gold. There is no urgent need for China to increase gold buying for now, because prices are high." My message to the Chinese Gold Market Menace, Mr. Peng: You're going down, bud, Gold Bullion is going to clean your clock . Cover out your failed USD positions before you drown your investors.

15. The banksters are pounding the "buy gold now " gong to their institutions now, as the new year is underway. I mentioned a few weeks ago about Morgan Stanley calling "sovereign default risk" and "inflation" two key themes for 2010. With money printing the solution to the default risk problem. Translation: Higher Gold Prices. Citibank is even more clear. Their top technical analysts have a $2100 minimum target for gold, and a $6000 max target (which is mine as well). They state the US Paper Buck could face a further 25%-30% meltorama before its horrific bear market comes to an end.

16. Further, Citibank's statements about the USdollar are aggressive and ridiculing to the USD bulls. Their actions to kick off 2010 come just days after my prediction that 2010 sees gold on the Major Offensive .

17. The public, and Citibank's own clients, will likely look for a zillion reasons why their personal portfolio of "safety with growth" junk bonds and income distrusts can't fall down, why nothing can go wrong for them personally. It all boils down to a fear of change. And the golf ball advisors will tell them what they want to hear. When all that is left are ashes, the golf ball advisors will again be there for them. Handholding them as the losers liquidate it all in failure and rationalizing their actions.

18. One thing that the Penguin got correct is that China is likely to start raising rates before the US does. Remember all the "tough guy" talk from China about how they would keep the Yuan down against the dollar? What happened to that? Gone. What do you think rising rates in China will do to their stock markets, their economy, to the Chinese real estate party? After the carnage begins there, will it spill over to America? Of course it will.

19. Citibank's top technicians envision a situation where the US stock markets slop around in 2010, but end the year 2013 (hello, earth to Joe Public Idiot Investor, are [you?] listening?) around 40% (!) lower than where they are now! They see the euro at 1.80 and gold between $2000 and $6000 . When Citibank talks, thousands of institutional money managers listen. When the gold-bashing Penguin talks, well, let's see who listens besides Joe Public Investor. We all know what he'll do after reading the Penguin's gold scare story: Race straight to the garbage can and throw all his gold in there. Inside the garbage the banksters wait with open arms. I'm in there too with my arms open. Are you?