This is taken from the Toulouse Lautrec Table at The Metropole Cafe. I won't give URL as you need a subscription to access - However the last 3 paras that I copied are interesting.

"In my opinion the COMEX will default along with the ETF's and the greatest short squeeze in history will lead to the greatest financial bubble of all time. What better way to gain and consolidate power than to "tank" the entire system (including paper Gold) while owning a majority stake in the sector that will attract all "scared" money from the four corners of the Earth? All of the past "broken paper promises" will accrue to real money taking physical metal to prices far out of reach of the public's hands. Of course you must own a controlling stake in the production of these Golden eggs as this will be the greatest transfer of wealth in history. Of all equity sectors, the juniors offer by far the most leverage of any. They sit atop rocket fuel waiting for a spark.

Whether or not I am correct about the "how and why" and who will benefit, the upcoming short squeeze will occur. The dot-com bubble will look like a foo foo portioned appetizer compared to what's coming. The math of how much tonnage is sold short vs. actual metal and the amount of mining shares sold short (naked or otherwise) virtually guarantees this. The amount of paper promises, money supply, derivatives, debt, etc. outstanding is a time bomb waiting to go off and chase investors towards real money. The upcoming short squeeze is all about the math, this "theory" of mine may or may not play out but the "who, what and why" will not matter. The only thing that will matter is whether or not you are "long" the greatest short squeeze in history. As I said before, someone or something is short the miners and NO ONE could be that stupid! I don't think "they" are. I believe that "in the know" money got long last year and getting longer as we speak. At some point in the near future CNBC will start parading guests who are bullish on metals and miners because "in the know" money is long and ready to soak up public and institutional capital.. Gotta get institutional and retail money in to give a push and then "blow off" these new longs.

I think "they" are dumb like foxes and created a long position and possibly a majority position from the ashes of last year. Whoever the shorts turn out to be, they can always declare bankrupty or claim Ponzi. It doesn't matter because they will either buy or die! Regards, Bill H. "