Mexico Buys 100 tonnes/Global Assault on Paper Gold and Silver continues

Harvey Organ, Wednesday, May 4, 2011

Mexico Buys 100 tonnes/Global Assault on Paper Gold and Silver continues

 

CME Hikes Silver Margins By 17%: 4th Hike In 8 Trading Days 

Nobody could have foreseen this. Nobody. At this point there is nothing left to comment on what is a concerted action to "mitigate" any and all risk in the commodity market but could as well be classified as executive order 6102.5. While we were joking before that soon one will have to post more cash than an silver contract is worth, we are now forced to reevaluate this sarcasm.

CME Margin Hike Is 4th AND 5th - Charting The Parabolic Rise In CME Silver Margin Hikes 

Submitted by Tyler Durden on 05/04/2011 18:48 -0400

Remember when earlier we said the CME had hiked silver margins for the 4th time in 8 days? We lied. In fact, what the CME did was to hike margins for the 4th (effective May 5) AND 5th times (effective May 9). That's right, dear reader, in one release, the CME has performed two concurrent margin hikes, which means today's action is the 5th margin hike in 8 days, a previously unheard of event! As of May 9th, the initial margin is $21,600, or 11% of the contract value, while the maintenance is $16,000. This is nothing short of sheer panic at the CME. At this point we can only wonder if the FDR-style precious metals confiscation executive order will come by way of the CME or the FBI. And for everyone asking, below is the chart of recent CME margin hikes in silver.

Getting Close Now 

And as of today... 

 

 

 

 

The World is Already Dumping the US Dollar Pt 1

Posted by: Phoenix Capital Research

Post date: 05/04/2011 - 13:33

First and foremost, China and Russia agreed late last year to begin trading with one another in their own currencies, NOT the US Dollar. In that step alone, two of the largest emerging markets (and economies) in the world moved away from the US Dollar. Add to this the fact that China just agreed to expedite trade relations with Brazil and you’ve got the beginnings of a flight from the US Dollar and the end of the Dollar’s reserve currency status.

 

 

 

Lars Schall: The war on gold (and silver)

 

Mexico went from 7 to 100 tonnes in a flash; Russia, Thailand bought too

 

Is Mexico starting to buy silver too?

Submitted by cpowell on Wed, 2011-05-04 20:05. Section: Daily Dispatches Could that ever-exploited country have begun to start standing up for itself? Are its authorities finally listening to their unsung patriot, Hugo Salinas Price? Note the Bank of Mexico's refusal to comment about its gold purchase. At least Reuters tried putting a question to a central bank this time.

Guest Post: Failure: Don't Despair, It's The New Normal 

Submitted by Tyler Durden on 05/04/2011 17:31 -0400

As the U.S. economy fails on a systemic level, it is pushing individuals into a deep sense of failure. Feelings that one has failed one's family and oneself can feed a despair profound enough to trigger thoughts of suicide, and for many vulnerable people, thoughts lead to action. In a terrible irony, those who do take their own lives are often those with the highest sense of responsibility and highest personal standards; their sense of failure is crushing in ways that less responsible, more laissez-faire people cannot imagine. The systemic failure of the U.S. economy is pushing many to the brink of despair, as they interpret their own financial failures as personal rather than as the result of a system-wide decline stretching back decades. The need to explain this systemic failure is part of what drives me to write this blog day after day, month after month, year after year--to help people understand the roots of our national and global failings. 

 

 

 

 

Goldman Runs Reality-Based Simulation, Sees Far Lower 2.5%-3.0% GDP Growth In H2 2011-H1 2012 

Submitted by Tyler Durden on 05/04/2011 16:49 -0400

This is about as close as we are going to get an admission from Goldman that growth is about to fall off a cliff. The full announcement will come within the next couple of weeks (assuming Goldman is unsuccessful in its 4th upcoming crude Sell recommendation). "If sustained, the recent oil price increase could thus shave around ½pt off growth for the next two years. Moreover, we showed that further increases from current levels could have increasingly detrimental effects on growth, as “nonlinear” effects might set in as oil prices reach new multi-year highs." And "In particular, the simulations suggest that growth in the second half of this year and the first half of 2012 would only range between 2½% and 3%, well below our forecast of 3½-4%. The implied effect on Q2, however, is small given the lags involved, and the gas price drag weakens notably in the second half of 2012." Must. Not. Cut. Q2. GDP.