The Chinese government has told Chinese companies they do not have to honor derivatives and commodity futures contracts made with Western financial institutions.
http://www.reuters.com/article/rbssBanks/idUSSP47327420090831
BEIJING — A report that Chinese state-owned companies will be allowed to walk away from loss-making commodity derivative trades provoked anger and dismay among investment bankers on Monday as they feared it may set a damaging precedent.
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JP Morgan has huge derivative shorts in the silver market. Chinese warnings they won’t pay off any losses is causing them to cover their short positions.
My bet is $30/oz silver by Christmas.
Silver just blew through $17 like it wasn’t there. It seems to be “melting up” with no end in sight.. If the shorts start to panic and cover, all hell is going to break loose!