Two years ago, warning of a bubble in gold/silver/PMs was all the rage. Luckily, those days are long gone, allowing one to accumulative hard assets in peace, in a declining paper price environment, without the thundering herd in the rearview mirror. Nowadays, the ever-"vigilant" mainstream media has moved on, and has been so very observent to spot a new bubble in bitcoins [6]. As we always do, we decided to have some fun at the MSM's expense, and tweeted the following earlier today:
USDJPY showing Bitcoin who is boss in category of parabolic moves today
— zerohedge (@zerohedge) April 4, 2013 [7]
It appears the CME heard us, and moments ago proceeded to hike margins [8]across the entire Yen future spectrum by anywhere between 19% and 33%.
[9]
Among the products whose margins just shot up are Yen Futures, the E-Mini and Micro Yen, as well as AJ, BY and CY. And just so it was clear that according to the CME the next bubble forming is in all things Nikkei related, it also hiked by 25% margins in the E-Mini Nikkei 225 Yen Denominated contract, as well as the plain vanilla Nikkei 225 and the N1 futures.
So the CME has now spoken. How long until it is forced to unwind its margin hike after it is made clear to it that in the pursuit of the global 'wealth effect' all is fair and forgiven. Especially, now that it has been made very clear to Japan that after 30 years of deflation, all the country had to do to get "wealthy" was print 15% of its GDP each year in new money...