Is The CME Preparing For An Eventual Comex Default?
Thursday, April 14, 2016 7:14
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Full article at:
http://news-uncensored-fresh.blogspot.be/2016/04/is-cme-preparing-for-eventual-comex.html
Orwell would blush over what’s being done to our system if he were alive. – Investment Research Dynamics…I think a lot of precious metals futures contracts are going to undergo a disappearing act. – John Titus of BestEvidence
The CME curiously reported that it received notice from the Federal Reserve that it is authorized to open an account at the Fed which would “allow it to better safeguard cash deposited by its traders” CME/Fed Account.
This is event is notable for several reasons. First and foremost is the fact that the CME was designated as a “systematically important” financial institution as part of the Dodd-Frank “hoodwink the taxpayer” Act. If anyone can explain to me why a corrupted derivatives clearinghouse and trading exchange is “systematically important,” I will receive the explanation with an open mind.
To be quite frank, no bank is systematically important, especially the big banks which are continuously wrist-slapped for committing criminal acts of fraud and screwing the public. As has been demonstrated, the “systematically important” designation is nothing more that a guarantee to the banks that Taxpayer money will be tapped to ensure bonus payments may remain uninterrupted in the event of a bank collapse.
Another puzzling aspect of the CME’s decision to open a custodial account at the Fed is in the CME’s statement that the Fed account will allow it to better “safeguard” cash deposited by its traders. Note that the account is limited to “clearing members proprietary margin” accounts. This would be the cash put up by Comex clearing members – like the Too Big To Fail Banks (JP Morgan, Goldman, Citi, HSBC etc) – against margin requirements.
Why is a Fed custodial account any better than a custodial account held by a big bank?
Is this an unintended signal from the Fed that the big banks are no longer safe as custodians of cash deposits?
Read more at:
http://news-uncensored-fresh.blogspot.be/2016/04/is-cme-preparing-for-eventual-comex.html
