From: "Asher B. Edelman" < To: Subject: Another Systemic Dislocation - The International Banking System again on the Brink Date: Sun, 25 Sep 2011 14:50:29 +0000 Having trouble viewing this email? Click here Another Systemic Dislocation: The International Banking System Again on the Brink September 25, 2011 By Asher B. Edelman The Banking System has suffered a collapse (then revived by the American taxpayer). It is, once again, on the cusp of collapse. With the help of the taxpayer the International Banking community survived the mortgage and mortgage derivatives' crisis. It survived the steep decline in equities. A huge effort is contemplated to save the banks from Sovereign default (so far only contemplated). AND NOW: On Friday the gold market declined 6%, the silver market 18%. Margin required on gold futures contracts (derivatives), as of Friday, was $7,000 per contract, or 4% of the value of the contract which leaves most futures contract holder accounts in deficit at the close of business Friday. These margin requirements are even lower in many of the banks and exchanges in the rest of the world. Silver margins were $15,500 per 5,000 ounce contract worth about $180,000 at Thursday close and $150,250 at Friday close, leaving many silver derivative futures contract holders with a $15,000 deficit plus a $25,000 margin requirement to pony up Monday morning or be sold out. Copper and platinum have similar stories. Banks not only will have to collect margin from clients or sell the clients out, but also absorb the usual losses from their own speculative derivatives' positions (larger than at any time in history, including the pre mortgage derivatives' crisis). This week will be telling. Certainly we will see an attempt to rally the commodities markets and soothe the fears of Sovereign defaults. It will be difficult for the American government that cannot even agree to a temporary budget bill to be of assistance; even more difficult for t