Steven Butler, sell the $US dollar on any rally....video

 Silver Short Squeeze?

It's Getting Plain Silly: MF Global Hikes Silver Margin To 175% Of CME, Or Over 10% Of Contract 

Submitted by Tyler Durden on 04/29/2011 16:55 -0400

Now it's just getting plain silly. Following two margin hikes by the CME, one for 9% and one for 10% this week, now MF Global, run by former Goldman CEO Jon Corzine has joined the fray, and has hiked its silver margin to $25,397. As a reminder, the latest CME margin is $14,513, or about 6% of the contract value of $241,750 assuming a silver price of $48.35. So MF Global's is 175% of the CME! It is obvious that everyone is now hell bent on destroying the parabolic move higher in gold and silver, which is happening for a very good reason: deranged money printing. Although, as yesterday, we very much doubt MF Global, or anyone else for that matter will hike ES margins any time soon. After all, doing anything to stop the Weimar rally^TM in its tracks is treason of the highest degree under Bernanke's dictatorship and is punishable appropriately. In the meantime, can the exchange just make margin trading in commodities illegal and move to all cash? At least that way all the weak momo hands can be relegated to chasing Netflix and other bubbles, making their eventual pop all the more memorable.

 

Zero Hedge speculates on short squeeze in silver

Dear Friend of GATA and Gold (and Silver):
Zero Hedge today cites GATA, GoldCore, and Max Keiser in an intriguing speculation about a short squeeze and cornering in the silver market. It's headlined "GoldCore Questions on Comex Silver Default Due to Secret Buying by Russian Billionaire, Chinese Traders, and People's Bank Of China" and you can find it here:

Second Friday Night Economic Bomb Sends Gold Surging To $1,566 As Ireland Slashes Outlook 

Submitted by Tyler Durden on 04/29/2011 14:16 -0400

And another economic fail, this time an attempt from Ireland to bury bad news on a royal wedding, later afternoon Friday:

• Ireland revises 2011 GDP growth to +0.8% from +1.7%; 2012 to +2.5% from 3.2%
• Irish govt revises 2013 deficit forecast to 7.2% from 5.8%; 2012 to 4.7% from 2.8%.
• Ireland revises 2011 debt/GDP forecast to 111% from 98.6%; 2012 to 116% from 102%

Which only means more stimulus. And since fiscal is out of the question (austerity remember, duh) it means monetary. Which means gold surges to $1,566.

 

Murray Pollitt: Not enough lifeboats as the major currencies fall

 

Gold and silver repudiate Fed, Santelli tells King World News

 

Gold-buying central banks may extend its rally

 

Adjusted for inflation, dollar hits fiat-era low

 

Steven Butler, sell the $US dollar on any rally....video

Beginning is Canadian politics...forward to 2 minutes 50 seconds

Click hear to enjoy this...

 

Fed's secrecy is deceitful and corrupt, Texas professor Auerbach says on Bloomberg TV

 

Markit Responds To Allegations Of CDS Pricing Collusion 

Submitted by Tyler Durden on 04/29/2011 15:41 -0400

Earlier we observed the long-overdue (noted first here in March of 2009) allegations that Markit among any others may be involved in a massive CDS pricing collusion scheme. Now it is Markit's turn to provide its side of the story. 

 

 

 

The Real Inflationary Threat - Decreasing Foreign Reserves: Why the US Should Expect 8% Inflation For The Next Three Years 

Submitted by Tyler Durden on 04/29/2011 15:04 -0400

There is some money which is printed, but does not make it into the money supply. Consider the scenario that the Fed prints a dollar that is then either lost or destroyed. It then cannot be used to buy goods, or be lent out and thus does not create inflation. There is something else which can happen to our money which has the same net effect. Foreign central banks can take cash printed from the Fed and place it on their balance sheet. US dollars on foreign banks balance sheets gives investors confidence that their own currency will not be debased. In other words, the real threat of inflation is not the current printing of money which Bernanke et al have been doing. It is the previous printing of money which has been taken out of circulation. The threat is as great as its ever been. The amount of money in foreign reserves is about one third or more of M2, or every dollar which is held by US bank account (business or retail), and all currency combined.

 

 

 

Europe Closes Week With A Friday Night M.A.D. Cluster Bomb, Warns Of Pervasive Bank Restructuring ^new

Submitted by Tyler Durden on 04/29/2011 12:16 -0400
Even as America has an insolvent government and a debt ceiling to deal with in the only way it knows - Mutual Assured Destruction, Europe still has a insolvent banking system 10 times greater than America's to worry about.  Which explains the following Friday night bomb (because it is past 6pm in Europe). From DJ:

• 15:52 29Apr11 DJN-DJ EU PAPER: LARGE PARTS OF BANK RESTRUCTURINGS YET TO COME
• 15:54 29Apr11 DJN-DJ EU: "DISTINCT VULNERABILITIES REMAIN" IN EU BANK SECTOR
• 15:55 29Apr11 DJN-DJ EU: ROLL-OVER RISK STILL PRESENT IN SOVEREIGN DEBT MARKETS
• 16:05 29Apr11 DJN-DJ EU: EXIT FROM GOVERNMENT BANK BAILOUTS MAY SPUR M&A WAVE
• 16:13 29Apr11 DJN-DJ EU: THREAT OF PRIVATE CREDITOR LIABILITY "BADLY RECEIVED"

Translation of bolded: if you hear gronin', MAD's a-bonin' (taxpayers)

A Letter To Congress 

Submitted by Tyler Durden on 04/29/2011 17:13 -0400



Dear Congressman:

It’s here:  Your moment at the plate.   You’ve whiffed more than a few … and, yes, we’re counting.  But you’ve been gifted another at-bat, and the President’s tired.  Seventh inning stuff is coming out of his teleprompter, and this full-count fastball will be straight, level, and slow.  You won’t see another one like this for five years.

An embattled first term president is faced with an outcome that he must, at all costs, prevent, and he’s done very little ground work ahead of it.  He is about to become the first President in American history to preside over a default on the national debt, unless you vote to let him raise the limit on the financial burden we leave our children.  He would ultimately be crazy to deny any reasonable option, absolutely anything, rather than live with the outcome of his refusal.  Politically speaking, he’s whispered a prayer to the Greek God of Imprudence and Fiscal Insanity, raised a one-finger salute to the nation’s savers through the sunroof of a stolen golden Beemer, and revved it toward the draw-bridge that you were elected to control.