SGE raises Silver and Gold margin to "to prevent excessive volitility"

Zoellick: Providing Liquidity Not Enough to End Europe's Crisis

The current liquidity support measures being used by the European Union to stem the region's banking and sovereign debt crisis won't be enough, World Bank President Robert Zoellick told CNBC in an interview on Tuesday.

 

 

Gold: Knock, Knock, Knocking On Record's Door

When it comes to gold, one can now officially skip the foreplay (because apparently there is such a thing s a 2G spot). Unlike two weeks ago when the latest Shanghai margin hike caused gold to temporarily lose its equilibrium and flop, however briefly, somewhere in the lower 1700s, as of tonight it has valiantly processed, and completely ignored, news from the Shanghai Gold Exchange that trading margins for the gold forward contract, Au(T+D), will be raised, temporarily starting Sept 9 to 13 percent from 12 percent, while the daily circuit breaker would be lifted to 10 percent from 9 percent, and has proceeded to rise to within nickels of the all time high, with spot trading over $1910 at last check. Since Europe is about to open shortly, and since the free fall in risk will resume now that virtually every rhetorical gimmick has been used and abused ad inf, it appears that absent the CME doing away with margin altogether, we will see $2G spot within hours.

 

Contagion Spreads To Asia: CDS Update

There are those who may be surprised to find that China is not completely insulated from the latest fun in Europe, America, and all those other places where the ponzi is imploding. To those same people we suggest a casual reading of the following two articles by Bloomberg and MNI - frankly we are too lazy to summarize. As for the market: it already knows whats up. Below is the nth consecutive drift up in most Asian CDS as once again credit predicts and idiots momos react, and after losing a shitload of money, confirm.

SGE raises Silver and Gold margin to "to prevent excessive volitility"

Most likely because after this weeks historical equities crash, these will go the moon? Something big this way cometh. Asia CDS's now ballooning. Good thing I picked up those AIG puts at 3:59 on Friday;)

Click here to read...

Guest Post; The Inception-Style Dream is Collapsing

Following the lovely goose egg of a jobs report last week, markets started the week with an Asian Invasion rout led by the Hang Sang down 3%, and the Kospi shedding 4.4%. The second act of this sonata was Europe getting hammered led by a German Blitzkrieg 1-2 punch with the DAX losing 5.28% but more uniquely, the German 10-yr setting a new record below 2%. With all these trick-or-treats haunting the markets one has to ask, ‘Is the Ticking Time Bomb Going Off and the Inception-Style Dream Collapsing?’ We think so and we will begin by looking to a place that would seem most odd…the institutional players.

Jim’s Mailbox

September 5, 2011, at 2:39 pm
by Jim Sinclair in the category Jim's Mailbox |  Print This Post |  Email This Post

Dear Jim,

The United States Postal Service has long lived on the financial edge, but it has never been as close to the precipice as it is today: the agency is so low on cash that it will not be able to make a $5.5 billion payment due this month and may have to shut down entirely this winter unless Congress takes emergency action to stabilize its finances.

CIGA Rusty Bayonet

Postal Service Is Nearing Default as Losses Mount By STEVEN GREENHOUSE
Published: September 4, 2011
The United States Postal Service has long lived on the financial edge, but it has never been as close to the precipice as it is today: the agency is so low on cash that it will not be able to make a $5.5 billion payment due this month and may have to shut down entirely this winter unless Congress takes emergency action to stabilize its finances.
“Our situation is extremely serious,” the postmaster general, Patrick R. Donahoe, said in an interview. “If Congress doesn’t act, we will default.”
In recent weeks, Mr. Donahoe has been pushing a series of painful cost-cutting measures to erase the agency’s deficit, which will reach $9.2 billion this fiscal year. They include eliminating Saturday mail delivery, closing up to 3,700 postal locations and laying off 120,000 workers — nearly one-fifth of the agency’s work force — despite a no-layoffs clause in the unions’ contracts.
The post office’s problems stem from one hard reality: it is being squeezed on both revenue and costs.
As any computer user knows, the Internet revolution has led to people and businesses sending far less conventional mail.
More…

More Beijing embassy cables show China sees gold as central in currency war

 

 

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