Jim Sinclair sent an email alert to subscribers over the holiday weekend regarding the Eurozone’s proposal to take down shadow banking and asset rehypothecation.
Sinclair states the proposal is a direct blow to the global banksters:
Now we have a proposal which when adopted would be a Euroland Blockbuster. A direct kick in the slats of Shadow Banking, something that will never occur in the USA. Euroland would unravel the collateral chains of Shadow Banking there, if you can call it that, a knee capping.
Sinclair states the Eurozone’s latest proposal is more evidence that the Euro will ultimately prevail over the USD, to the contrary of US MSM MOPE: This is, in the final analysis, more evidence that the Euro in whatever form it ends up, two or one, will take ascendancy over the dollar, certainly if these proposal become solid action.
Sinclair’s full alert is below:
From Jim Sinclair:
For those who love to condemn the euro, please be rationale for a moment. In Euroland there has been much government inflicted economic suffering. In the Union of the Dollar, the USA, there has been nothing but stimulation and banksters getting free passes. As horrible as it is, Euroland has kicked off the confiscation of depositors funds called bail-ins. In Euroland the gold held in reserve is valued at market prices. In the USA the gold reserve is valued at a phony $42 and change. Gold will be worn as a neckless around the neck of the Euro.
The USA is a monetary union of individual states that are in as much financial difficulty, some more, as any member of the European Union. Mainstream media’s greatest success is to condemn Euroland while applauding the dollar and hiding the financial condition of the majority of states. That is total nonsense. When it is all done and finished Euroland took measures that no state of the USA will ever take.
Now we have a proposal which when adopted would be a Euroland Blockbuster. A direct kick in the slats of Shadow Banking, something that will never occur in the USA. Euroland would unravel the collateral chains of Shadow Banking there, if you can call it that, a knee capping. The USA has emasculated new bank regulations, making a fool of Volcker’s name of part of it. The USA entertains all the flim flam of the Bankster and Brokesters. Since Banksters and Brokesters own Washington there is little hope of any change.
This is, in the final analysis, more evidence that the Euro in whatever form it ends up, two or one, will take ascendancy over the dollar, certainly if these proposal become solid action.
The new currency arrangements will not be made by Washington but rather by Euroland and the BRICS.
Physical gold will be emancipated from fraudulent no gold paper casino.
EU Weighs Curbs on Banks’ Use of Client Assets as Collateral
By Jim Brunsden - May 24, 2013 10:29 AM ET
Banks and brokers face a clampdown on using assets they hold for clients as collateral for their own trades as part of European Union moves to bolster market stability and rein in shadow banking.
The European Commission is weighing whether firms should have to obtain formal consent from their clients before being allowed to reuse assets to back other trades, according to a document obtained by Bloomberg News. The consent would be enshrined in a “contractual agreement” between the parties.
The handing over of collateral is an integral part of repurchase agreements, or repos — one of the activities under review by global regulators as part of their efforts to regulate shadow banking. The reuse of clients’ assets poses a potential threat to financial stability should one of a chain of firms that handled the securities go bankrupt, according to the document prepared by commission officials and dated May 15. Uncertainty about who holds an asset can fuel panic in times of market stress, according to the paper.
“Complex” chains of collateral can make it difficult for investors to “identify who owns what, where risk is concentrated and who is exposed to whom,” according to the document. “This has consequences for transparency and financial stability.”
Under the plans being weighed by the commission, banks and brokers holding securities for clients wouldn’t be allowed to reuse the assets for trading on their own account — speculation on the markets aimed solely at boosting their own revenues, according to the document.