Gold surges to all time record high as double-dip recession fears grow
Paul Joseph Watson
Prison Planet.com 
Tuesday, June 8, 2010
A top investment banker has warned that the economic fallout of the sovereign debt crisis could get so nasty over the next five years that people would be wise to abandon the markets and instead buy land, barbed wire and guns.
With gold smashing through its all time record high this morning on the back of fears over a double dip recession, analysts are turning increasingly bearish on the markets. Anthony Fry, senior managing director at Evercore Partners, told CNBC  that the bond markets could turn nasty over the next few months and said that the current problems created by the European debt crisis could be with us for at least five years.
“Look at the current situation. You have Greece, now you have Hungary and huge issues surrounding Spain and Portugal,” he said, warning of a “nightmare scenario” of hyper-stagflation, where inflation rises dramatically but asset prices deflate.
“I don’t want to scare anyone but I am considering investing in barbed wire and guns, things are not looking good and rates are heading higher,” said Fry.
RBS Chief Strategist Bob Janjuah echoed Fry’s sentiments , predicting that governments would inject at least $15 trillion dollars more qualitative easing into the system and that investors should get into gold to offset the depreciating value of fiat currencies.
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“Over the next 6 months we will see private sector deflation pushing 10-year yields down to 2 percent,” he said. “This will see the policymakers mistakenly attempt to kick-start the economy and market with a global quantitative easing program worth between $10 and $15 trillion dollars.”
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Janjuah pointed out that, while gold has dramatically risen in value over the last ten years, the S&P 500 and the Dow Jones have both remained flat over the course of a decade.
Gold hit a record high of $1,251.85 dollars an ounce this morning  as investors continued to flock to the precious metal as a hedge against economic turmoil and the very real possibility of a double dip recession.
With U.S. debt moving towards parity with GDP, members of Congress and leading financial experts are warning that the United States will be in the same dire situation as Greece within 7-10 years unless the federal government implements radical austerity measures.
The backlash to those austerity measures usually takes the form of rioting and violence, as we have seen unfold in Greece.
Top historians, social and financial analysts, along with police bodies are all predicting  that Europe and America are set to experience a summer of rage, with social discontent building as a result of economic hardship.
“Far be it for me to make a dicey situation dicier but you can’t smell the sulphur in the air right now and not think we might be on the threshold of an age of rage,” wrote historian Simon Schama in his recent Financial Times column .