Freegold Forum

bailouts4ever wrote:Yes, all brakes are gone. But yesterday I heard a bunch of "experts" say that with the CME "raising" the margins prices would drop next week. What was misunderstood though is that CME unexpectedly lowered the margins...

So what are the implications for this move? If we try to develop a scenario my best guess is that lowered margins work like a fire starter. Lowered margins will attract more liquidity, allow investors to turn a bigger wheel and thus lead to a higher risk of failure. But where else should all the funny money go?

Why though should that end our current monetary system? This move was intended to prolong it. More of the same is the game!

Because in the end the excessive money creation and creation of debt will start a beginning in the faith of people in this system. And when the people are going to loose their faith, all things will go quick...real quick.

IMO this lowering of the margins implies that there is more risk on trades. A greater leverage is possible. This is going to enlarge the difference between value's and price more and more.....with in the end the confidence of people evaporating...

Boefke wrote:

bailouts4ever wrote:Yes, all brakes are gone. But yesterday I heard a bunch of "experts" say that with the CME "raising" the margins prices would drop next week. What was misunderstood though is that CME unexpectedly lowered the margins...

So what are the implications for this move? If we try to develop a scenario my best guess is that lowered margins work like a fire starter. Lowered margins will attract more liquidity, allow investors to turn a bigger wheel and thus lead to a higher risk of failure. But where else should all the funny money go?

Why though should that end our current monetary system? This move was intended to prolong it. More of the same is the game!

Because in the end the excessive money creation and creation of debt will start a beginning in the faith of people in this system. And when the people are going to loose their faith, all things will go quick...real quick.

IMO this lowering of the margins implies that there is more risk on trades. A greater leverage is possible. This is going to enlarge the difference between value's and price more and more.....with in the end the confidence of people evaporating...

Has everything to do with MF Global default and upcharge decrease is imo temporarely. Margin requirements are not vanashing, only temporarely upcharge.

In light of the issues customers transferring out of MF Global are facing, while still maintaining appropriate risk management protections for the market, CME Clearing is setting the “initial” margin upcharge to zero.

When this is all over, margins requierements will be back to normal.
If not, Houston we have a problem ...

It is interesting to see that at the G20 summit there seem to have been talks about how the German Bundesbank gold can be used as a collateral within the EFSF in order to push the striking power by another 15 billion Euro.

http://www.faz.net/aktuell/wirtschaft/e ... 18707.html
http://www.handelsblatt.com/politik/int ... 03324.html

This raises quite a few questions:

1) Are these reports a joke or reality?

2) How grim must the situation look like if the 440 billion construction has to be boosted by 3.4 percent (15 billion) with the help of German gold reserves?

3) For what reason is there talk about German but not French, Italian, Spanish or Greek gold?

4) Will that really help to stabilize European solidarity?

See that's what I meant. After it was confirmed that the use of BBK gold and SDRs has really been discussed during the G20 meeting the Bundesbank is pissed and refuses cooperation.

http://www.ftd.de/politik/europa/:einsa ... 25975.html
http://www.zerohedge.com/news/g-20-dema ... e-stick-it

While Merkel and her "good weather government" published a lukewarm refusal on this, I will make a prediction here. If the ECB, Euro-zone members, G20 or whoever decide on touching (German) CB's gold as a collateral HELL WILL BREAK LOOSE in Germany! Just read the comment section to the Handelsblatt article and you'll have a general understanding of how the feeling amongst the people is...

http://www.handelsblatt.com/politik/int ... 03324.html

I've read some comments, and think the people reacting in such way are right also.

But for you, to sleep well.....the gold doesn't belong to the government, but to the Bundesbank. As you stated often before that you were curious for the measures to be taken by governments.....here is where it ends. As it is not said Angela was with the idea of bringing in German gold, the Bundesbank is clear in it's statement..No Way!

And why should only Germany bring in gold? As every country joining the Euro needs to bring in gold, the ECB has gold (claims) in it's possession. Why not ask the ECB to bring in a part? Is this a thing like :,,everybody is equal, but some are more equal than others.....maybe.

Perhaps nice to know in this subject. Did you know that there are reports of the possession of gold by the German people private, is multiple times higher than the gold held by the Bundesbank? As this is very hard to measure, and figures can differ a lot, it is very well possible that's really higher.....and in the end, this is what really matters after the next phase transition into "freegold".

So I understand your worries (and also of the whole German population ) but maybe it's not necessary too much about this one here,

I've been working through the first phase of FOFOA's latest post.

So far it's great to read and enjoy the clearness this man is trying to let us see.....

But this came from FOA's gt3. So good, to read this once in a while...

It's the Physical Gold Advocate's "advantage", because while he is waiting for the real value to emerge, the real value that we know existed in antiquity has never gone away! It just doesn't have a marketplace to show it. It will.

I use the phrase; "our advantage of owning the metal", because buying physical gold for today's currency,,,,,,, is like buying a lifetime wealth option that never expires. The commission one pays for this gold coin position, in the form of what we call today's price,,,,,,, may one day go to almost zero as our paper market structure fails from the discovery of real price.


Think I'm going to finish this post today.....it will be late

Boefke wrote:I've been working through the first phase of FOFOA's latest post.

So far it's great to read and enjoy the clearness this man is trying to let us see.....

But this came from FOA's gt3. So good, to read this once in a while...

It's the Physical Gold Advocate's "advantage", because while he is waiting for the real value to emerge, the real value that we know existed in antiquity has never gone away! It just doesn't have a marketplace to show it. It will.

I use the phrase; "our advantage of owning the metal", because buying physical gold for today's currency,,,,,,, is like buying a lifetime wealth option that never expires. The commission one pays for this gold coin position, in the form of what we call today's price,,,,,,, may one day go to almost zero as our paper market structure fails from the discovery of real price.


Think I'm going to finish this post today.....it will be late

Maybe you should consider opening a special fofoa thread like I did with Armstrong and maybe it’s worth wile considering to translate some postings into Dutch like I did. But I have to warn you, it’s a helluve job ….

If I had the time I probably would. It's hard to grasp the core of this post, and in Dutch it would be easier....sure about that.

But like I said, simply don't have the time.....

Maybe when I'm retired, and have the time again for some fishing and all that kind of stuff....but it's quite hectic these day's, and that's an euphemism.

But don't worry......time is filled with the blessings of live.

Made it halfway of the post, and have to go on tomorrow, but it's again an eye-opener.

Fofoa: Moneyness

wmiddelkoop willem middelkoop
The Euro agenda is moving from what's fixable to what's savable. We're hearing less about rescue and more about exit. A year ago any talk1/2

wmiddelkoop willem middelkoop
of exit was dismissed as the ramblings of idiots..it couldn’t happen under the treaty. Now, even politicians are saying it 2/2 #uitgoedebron

zit geen woord chinees bij ...

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