In the actual course of history, this "Silver Thursday," which completely destroyed the Hunt brothers' silver empire, should have occurred two years later in 1980.
After all, they were far too greedy, attempting to continuously amass and seize global silver resources to earn terrifying profits of hundreds or even thousands of times their initial investment.
This is the true face of capitalists. Even the government of the United States, a capitalist country, cannot tolerate the market being inflated and monopolized by them in this way.
so……
In order to maintain the stability of global silver prices, the US government will inevitably restrict silver bullish positions within the bounds of regulations.
Then some people might ask, "Surely all of the Hunt brothers' long silver accounts were operated within the rules!"
What else can the US government do about them?
Simple!
The solution is to create another rule.
Long positions are not allowed to be increased; they can only be closed. Even more fatal is the requirement to increase margin by 100% for futures. This will undoubtedly force countless investors who have already gone all in on silver futures to immediately add margin. If the margin is insufficient, they will be forced to close their positions. With so many positions being closed, the scarcity of silver artificially created by the Hunt brothers in the market will be immediately broken, and the previously continuously rising price will plummet.
Once the price of silver futures starts to plummet, it will be like an avalanche, unstoppable by anyone.
The panic triggered by falling prices will further accelerate this effect.
This should have been the end of the Hunt brothers' greed two years later.
However, because of the flapping of Lin Huowang's wings, this reborn butterfly brought in an equally massive $2.5 billion from the East, the scale and leverage of this gamble were magnified several times, and the market frenzy reached its peak ahead of schedule.
And even more so because of New Bikini, the "whistleblower" from Hong Kong Island, this fatal whistleblower case that crossed the Pacific Ocean, filled with resentment and jealousy...
Unsurprisingly, the iron fist of the US regulatory agencies came crashing down without any hesitation, two years ahead of schedule!
...
New York.
Headquarters of the U.S. Commodity Futures Trading Commission (CFTC).
A secret emergency hearing has just ended.
Niu Bijian sat smugly on the cold bench in the corridor outside the meeting room, clutching his empty briefcase tightly in his hand.
He knew his report had been successful.
The "evidence" he submitted—detailed reports on how the Hunt brothers and those mysterious Eastern accounts hoarded and speculated on the global silver supply—played a decisive role in the recent hearing.
He was inwardly laughing with immense pleasure:
"Kobayashi Tenno...you arrogant and conceited fool..."
Do you think this world is really a game that operates according to predetermined rules?
"Do you think the US government will sit idly by and watch you and those two lunatics, the Hunt brothers, join forces to hijack the silver and financial markets of the US and even the world?"
"This time... you're dead."
...
Although Newt G. was not qualified to attend the hearing, he did not feel slighted at all.
After all, this is the United States, the most powerful country in the world.
The evidence he submitted was enough to completely discredit Kobayashi Tenno and the Hunt brothers.
Now……
He was simply waiting for a predetermined outcome.
The meeting room door opened.
CFTC Chairman Johnson walked out with a grim face.
He turned to look at Newt Bikin, the "whistleblower from Hong Kong," his expression quite complex, but ultimately nodded very amicably and thanked him.
"Sir Newbrick, the Committee thanks you for the crucial information. In order to maintain the stability and fairness of the U.S. financial markets, we... have made a decision."
Newbie immediately stood up excitedly, then very gentlemanly smoothed out the wrinkles in his suit and said humbly:
“Mr. Chairman, I was just doing what an honest businessman should do.”
But deep down, he was frantically anticipating shouting:
"Hurry! Let's get started! Use the power of the rules to completely wipe out Kobayashi Tenno's insane profits from the Silver Bulls!"
Johnson ignored him and instead gave orders to his assistant behind him.
"Immediately notify COMEX (New York Mercantile Exchange) and CBOT (Chicago Board of Trade)!"
"Activate the 'Special Emergency Regulations'!"
"Silver Rule 7! Effective immediately!"
"From this moment forward, all silver futures contracts are only permitted to be liquidated; the opening of any new long positions is strictly prohibited!"
"Furthermore, notify all liquidation members!"
"The initial margin for all silver contracts will be increased by 100%!!"
...
Chicago Board of Trade (CBOT), trading floor.
"boom--!!!"
When the words "Silver Rule 7" and "Margin Hike 100%" appear simultaneously in red on the exchange's big screen.
After three seconds of deathly silence, the entire trading hall erupted in chaos!
"What?!!"
"My God! They changed the rules!!"
"Selling is allowed! Buying is prohibited?!"
"The margin requirement has doubled?! They're insane! They've gone mad!!"
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