(Hi Bill, OH YES Tim Geithner will save the world! Funny thing, as far as I know this is the first time in 20 years or so that Gold and the S+P have traded at parity. Next stop is Dow/Gold parity.)

To all; WOW is my description of the last 3 days. I left for two days and got back to very high winds that took cable and internet down for about 24 hours. I got up this morning and went to a satellite internet location, pulled up some quotes and PRESTO, a new world? In just 3 days the banks and previously investment banks have completely imploded!

I took a look at Citibank and and refreshed the quote twice thinking it was wrong [$3.83]. This gives them a $20 Billion market capitalization! This is PEANUTS, last year Warren Buffet had a net worth of $50 Billion. Citi has a balance sheet of something close to $2 Trillion or roughly 100 times what the market says they are worth. While perusing the other financials such as GE, Bank of America, Goldman and Morgan Stanley, and even the Treasury Bank [JP Morgan], I got the feeling that game over has finally arrived. The reflation that I’ve have talked about for quite a while now must begin or there will be nothing left to reflate. If we were to have similar action again next week then market closures will surely domino around the world.

Think about what has happened in just 2 weeks time, most financial stocks have shed 50% value or more, this has been a crippling event. There are no options left, Every kitchen sink has been thrown and every rabbit pulled. Now surely the Treasury and Fed will come under the global financial microscope. This cannot go on without serious money asking serious questions about the solvency of the U.S. government. We all know the answer, it is now as simple as 2+2. However, this answer is most unbearable. The U.S. will take the entire system as we know it down, all the while with a smiling Mad Magazine face…What, me worry?

All the spin, all the PPT support, all the Gold suppression, all the borrowed and printed money, all of the accumulated BULLCRAP for years and years are now coming home to roost. Low inflation, low unemployment, low interest rates, strong Dollar policy, fiscal stimulus, monetary stimulus, Warren Buffet is buying, Sovereign cash infusions, the Fed’s balance sheet, Treasury’s TARP, etc. etc., nothing has worked. It couldn’t work. No matter how hard they tried, Humpty Dumpty couldn’t be prevented from falling and cracking his head wide open. He accumulated ar too much baggage. No Ponzi scheme can ever go on forever and forever has arrived.

At this point YOU MUST OWN GOLD. The sentiment has changed metal has disappeared across the globe and a force majeur looks to be a lock. The day of financial reckoning that had to come because of pure mathematics has arrived and all that remains is the final act of a failed 30+ year Ponzi scheme. The last thing to fail is the money and the final act always involves the money. In fact come to think about it, the Dollar and Gold are truly the only two assets left still standing. Handicapping this fight from here is so easy as the Dollar has “ball and chain” encumbrances all over it while Gold has no liabilities whatsoever. “The last man standing” will be the foundation of worlds’ banking system for many years to come. Choose your fighter wisely as backing the loser in this fight will certainly be financial death. Regards, Bill H.