Dear CIGAs,

Yesterday was the equivalent of a Mt. Everest summiting when it comes to financial incredulous.

1. The Chairman of the Federal Reserve checkmated himself in a rather self-destructive manner. If he raises the discount rate by ? point, the impact on the credit market problems will be to tear back the curtain of silence, exposing the reality of a continuous debacle. If he fails to raise rates the dollar will tank. If he raises rates and that event is factored into the dollar it will be meaningless. Knowing no further increases are possible, the dollar will rally and reverse downward, turning in a negative day immediately or in overnight US trading.
2. The market in gold and silver yesterday was completely a product of the "24 Points" of how the metals dealers (COT) work. Today the INCREDULOUS was seen as the Dow peeled off 200 plus points, sending a message past the Fed directly to the White House. There may be a trip to the shed for the entire Federal Reserve Board.
3. Rather than a reduction of risk to the economy as outlined in four major addresses yesterday, the fall off in consumer demand will challenge the 1930s. You can bank on that. That is quite bearish for the US dollar and bullish for gold if the nitwits that comment publicly would take one minute and review the Formula.
4. The gold price was a fishing line yesterday and will shortly take the form of a Rhino Horn.
5. The price of gold will reach $1200 in 2008.
6. Gold will rise to at least $1650 by January 14th, 2011