Chinese short PAPER silver makes a great deal of sense.

1. They have essentially said in the past that they would not honour US derivatives if the US did not honour its foreign debt...both will eventually default!

2. By keeping prices low, the Chinese can continue to go LONG physical gold and silver, and SHORT the paper. They now accumulate more physical for the same money, and in the end game, default on the paper positions.

3. Clarifies why JPM does not appear to be afraid of the huge short position, because it is backed up by the Chinese!...

...but...they should re-think that; because, if/when the Chinese decide to default, then JPM could be on the hook for the short contracts.

4. Explains the rumours that JPM has been able to offload some of its silver short position. If the position was backed by Chinese physical, other banks might not hesitate to take on these large short positions...JPM likes this because the default is getting very near and now the paper default risk is spread/offloaded to more banks.

Getting Soooo Interesting/Exciting!

lotus petals,

gildage