The Powers That Be Don’t Want Sovereign Bonds… They Want Gold
by Phoenix Capital Research
Last week I outlined the issue of collateral and how it is the most critical issue in the financial system today. For a review of that article, click here now.
If you want further evidence that the financial elites are already preparing for a default from Spain and a collateral crunch, you should consider that the large clearing houses (ICE, CEM and LCH which oversee the trading of the $700+ trillion derivatives market) have ALL begun accepting Gold as collateral.
Gold as Collateral Acceptable for Margin Cover Purposes
From 28 August 2012 unallocated Gold (Loco London) will be accepted by LCH.Clearnet Limited (LCH.Clearnet) as collateral for margin cover purposes.