While as a standalone article, the news item below is nothing more than a report on recent gold trading, BUT buried within the body is the red italicized script quoted below. This could be the opening salvo in a coordinated overt central bank effort to maintain fiat paper money competitiveness with gold. Know that the equity margin requirement is the primary tool in the central banks' war chests to beat down the competitive appeal of competing monies such as gold and silver. Even the wording is deceptive - to say the purpose is to "check volatility" is a boldface lie - there is no volatility, only a sharp upward bias commensurate with all the world's paper declining in value.
This is not just a "Japanese thang". The world's central banks (cb's) co-ordinate monetary policy clandestinely, and the US Fed is a co-conspirator at every step, nodding their approval at junctures such as commodity margin adjustments.
Americans still don't get it, but the world is fleeing all paper. The US$ came very close in April of 1987 to having a full-fledged flight on its hands, but ratcheting-up futures margin requirements broke the back of silver.
The way I see it this time is that there are none or next to no inventories to make good on contract commitments. I can envision the futures markets either shutting down with settlements in "cash", but no metals delivery. How would miners get their product to market? Why through their 'friendly government' who will require all sales be made to a respective government agency, a la South Africa. The governments would then retain for themselves what they perceive as the need to maintain "confidence" in their paper, and distribute 'excess' through a certified and regulated network of key insider companies, like the silver users association members, for example. The private banking cartel itself would be a key player in this theft. Ownership information and private trading data records would then be recorded and submitted to authorities. Retail coin dealers as we know them now would be virtually regulated out of the market. Very little difference from gun control. Bottom line is this: the gold and silver that you have in your possession NOW may be all you'll ever get!
Anybody know where Homestake Mining sold its production after the US gold confiscation of 1934?
Gold "experts" you can be sure will offer one explanation that the cb's are doing this so they can acquire gold at depressed prices to recover their leased and sold gold they've squandered over the past two decades. Don't buy it! They don't need to - as we've said previously ad nauseum - the power of what's money is in the control of same, not ownership! What is interesting is that the cb's are taking preventive measures so early in our bull run. Perhaps we're closer to the cliff's edge than imagined.
It would be to the benefit of free citizens of the world if private consortiums were established now to buy directly from our miners. In-place precious metals depositories such as James Turk's Gold Money would be a candidate to venture such an alternative. These are just my initial thoughts, but hopefully one of the economic newsletters can use some of their subscribers' monies to build an archival report of previous margin requirement increase activity. It would be very enlightening to observe government activity (thru the SEC/CFTC) in the great gold bull run of the 1970s and '80s!!
I hope by now you've all read Ed Vieira's REVITALIZING THE MILITIA CAN PROMOTE MONETARY REFORM
- - CV
http://za.today.reuters.com/news/NewsArticle.aspx?type=businessNews&storyID=2005-12-12T164050Z_01_ALL223052_RTRIDST_0_OZABS-MARKETS-PRECIOUS-20051212.XML
"...The Tokyo Commodity Exchange (TOCOM) said on Monday it would impose an extraordinary trading margin on gold futures from Wednesday to check volatility in the market, a decision that initially knocked gold from its highs..."
-- Posted Monday, 12 December 2005
