The Golden Truth: My Mistake On CME Margin Hikes...

Thursday, May 5, 2011

My Mistake On CME Margin Hikes...

Kudos to a heads-up from a reader of this blog who mentioned this in the comment section and shame on me for assuming the CME is anything but completely sleazy and corrupt: Yesterday's Advisory Notice noticed contained yet a 5th margin hike, effective NEXT Monday. That will raise the margins on silver to $21,600. This is truly laughable now.

So it's the FIFTH margin increase in TWO weeks. The good news is that the market is pricing that one in already. So unless they do ANOTHER one, the running of the stops may be over and we should just get the "after-burner" effects of all the morons who watch Fox/CNBC/Bloomberg piling onto the short side because some idiot says it's time to sell.

The 200 day moving average for silver is 28.32. I don't know if we'll go that low but in the past ugly attacks like this end up being 200 dma corrections. Perhaps the physical market will prevent that this time, I don't know. Every mo-mo, fast-money hedge fund trader will be assuming a 200 dma correction so perhaps that's already priced in. We'll know when we know, but these so-called dip-shit experts DO NOT KNOW.

Here's a modest proposal to the Comex: How about letting the MARKET determine where the price of silver should be? To claim the U.S. has free markets is just an outright lie - like a lot of other things being propagated by our Government and by Wall Street and by the media.

1 comment:

danteThursday, 05 May, 2011
A lot of people don't like MK but how do you disagree with this assessment of his? So who's determining value in the markets?..the markets or insiders playing to certain interests?...I think we know what that answer is with regard to silver and gold!
MK...
"This is perfect. A Chinese dot-com – trafficking in worthless virtual money – whose demand is manufactured by crooked banks on Wall St. (especially Goldman looking to juice the Facebook IPO) is given SEC protection from sellers (by limiting short-sales) while silver – rising due to huge global demand – and breaking free from the fraud that is Goldman/JPMorgan/SEC/CME is given CME protection from buyers (by raising margin rates). This is a perfect illustration of the fraud that happens when banks like Goldman and JP Morgan act as bankers, market makers, and regulators. Free markets are shredded to make room for the oligarchy. But f*** ‘em, the CME is doing my work for me by committing acts of heinous financial terrorism that is recruiting millions more to the SLA. "

http://maxkeiser.com/
SEC Steps In To Bail Out Chinese IPO Bubble, Activates Short Sale Rule 201 In Plummeting RenRen
http://www.zerohedge.com/article/sec-steps-bail-out-chinese-ipo-bubble-activates-short-sale-rule-201-plumetting-renren
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Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.