This ‘China walking away from derivatives’ issue is cooking in the background – some analysts think that at least one major US financial entity is on the brink of bankruptcy as a result (perhaps Wells, BofA, JPMorgan?)
China’s threat spurred Obama to play tit-for-tat – you’re going to walk away from derivatives, we’re going to accuse you of dumping tires on the market – China responded by going after US chicken imports – trade wars like this are one of the exacerbating factors of the Great Depression – economies were already in the tank and then trade wars took them down another significant notch
Some analysts think the derivatives that China is threatening to walk away from are the backing for the major (manipulative) short positions in COMEX gold and silver – lose these backing derivatives and the gold and silver markets could explode to where they should be (gold would be at $2600/oz just to match the inflation calculated by the govt’s own CPI calculator (not to mention REAL inflation) – the fact that it is NOT at that price indicates how badly its price has been suppressed)
FYI partypup – Jim’s newsletter is most likely copyrighted – providing copies to people may have legal repercussions and, if nothing else, isn’t fair to Jim – if the Piggs are interested in financial information let them subscribe themselves – Jim publishes snippets of his newsletter at www. 321gold.com for anyone interested
