Preps and Solutions
(Sponsored Ads)
Block Cubed - Cryptocurrency and Blockchain News
  • “This News Is Massive” Unikoin Gold (UKG) CEO Responds To Supreme Court Ruling That Legalizes Sports Betting
  • Blockchain Smart Contracts
  • Understanding the Difference Between Proof of Work vs. Proof of Stake
  • Silver
    Strategic Relocation
    Recently Posted Articles and Videos
    Ready Nutrition - Homesteading and Preparedness
    Ready Gardens - A Ready Nutrition Company
    The Daily Sheeple
    The Prepper Website
    SGT Report
    The Daily Coin
    top Prepper Web Sites
    Featured Destinations
    The Liberty Mill
    Web Destinations

    Clarocet for Kids

    Bob Chapman: China to Default on Gold/Silver COMEX Positions

    Mac Slavo
    September 10th, 2009
    Comments (2)
    Read by 287 people

    International Forecaster Bob Chapman discusses the Chinese derivative time bomb set to explode very soon. Upon detonation it may result in a complete collapse of the COMEX gold, silver and commodities markets and pretty much a total SHTF scenario. Excerpts from Mr. Chapman’s article are below, but to get a complete understanding, it is recommend that readers follow this link for a complete overview of Floating Derivatives In Uncertain Waters Increases Risk of Drowning :

    Now, suddenly, we hear that China is considering walking away from responsibility on certain OTC derivative contracts held by foreign banks as counterparties, which contracts cover various commodities, in the event that those contracts result in losses to their sovereign wealth funds.  You may recall from prior discussions in the IF that these unlisted OTC derivative contracts include massive short positions in both gold and silver, but especially in silver, and are used to back the listed COMEX short positions of the large commercials in both gold and silver.  In other words, the CFTC is allowing COMEX commercials to justify their ludicrously concentrated short positions in both gold and silver by backing those positions with contracts about which the CFTC has no direct knowledge, over which they have no regulatory authority thanks to the Commodity Futures Modernization Act, and which the CFTC knows are backed by foreign governments outside the jurisdiction of the US who can renege on those contracts with impunity!!!  How’s that for reckless regulation of commodities by the CFTC?!  And now everyone’s worst fears are about to be realized as China announces its intention to renege!!!


    These two developments, namely the Chinese government’s promotion of gold and silver to its public as an investment, along with its intention to renege on its OTC derivative contracts covering certain commodities, are obviously interrelated.  If you are going to ask your public to invest in gold and silver in a massive way in order to save both your and their bacon, while at the same time diversifying a goodly portion of your trillions worth of dollar-denominated paper assets into physical gold and silver, you might expect that this would put massive upward pressure on gold and silver prices.  But if you also had massive holdings of short positions in OTC derivative contracts covering both gold and silver, would you not be shooting yourself in the foot?!!!  So now we can understand why the Chinese have decided to renege.  Otherwise, they are caught in a trap! 

    The Chinese may very well renege on their positions as this WSJ’s Chinese Defaults Worry Foreign Banks points out. But, Bob Chapman does suggest, in the article referenced above, that there is hope for the COMEX:

    If the very angry, and very duped, Chinese renege, the entire COMEX is going down, big-time baby!!!  The whole system is about to blow if the Chinese renege on these contracts!!!  We wonder what the Chinese want in return for not reneging!  Whatever it is, we can guarantee you that the US government is not going to like it very much.

    The only hope is that the China gets something in return for NOT defaulting on their obligations. It is an interesting question – what will the Chinese be given in return for not defaulting?

    Perhaps they get Taiwan?

    Or, perhaps another scenrio: An orchestrated manipulation of the US Dollar in the upward direction? This may be beneficial to the Chinese as they would be able to close out most of their gold/silver positions, while also acquiring more gold once the price reaches a reasonably lower level. This may be a crazy idea, but it may, in part, satisfy the Chinese. Perhaps the US Dollar isn’t dead — yet.

    Ideas here are welcome. Other than my suggesting above I’m drawing a blank this early in the morning.

    Read Bob Chapman’s Full Article Here…

    Click here to subscribe: Join over one million monthly readers and receive breaking news, strategies, ideas and commentary.
    The Most Trusted Tactical Gas Mask In The World
    Please Spread The Word And Share This Post

    Author: Mac Slavo
    Views: Read by 287 people
    Date: September 10th, 2009

    Copyright Information: Copyright SHTFplan and Mac Slavo. This content may be freely reproduced in full or in part in digital form with full attribution to the author and a link to Please contact us for permission to reproduce this content in other media formats.


    Vote: Click here to vote for SHTF Plan as a Top Prepper Web Site
    1. Perhaps this may have something to do with it:

      “Just when you think American finance can’t possibly get any more bizarre… Our government is now proposing to finance large-scale Chinese government purchases of U.S. real estate. No, I’m not making it up.”

      So, no, maybe not Taiwan — but how about California.

      Welcome to Chinamerica.

    2. Here’s a little more on that and commercial real estate in general:


    Web Design and Content Copyright 2007 - 2015 SHTF Plan - When It Hits The Fan, Don't Say We Didn't Warn You - All Rights Reserved

    Our Supercharged Intel Xeon E5-2620 v4 Octo-Core Dual Servers are Powered By Liquid Web

    Dedicated IP Address:

    The content on this site is provided as general information only. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of sponsors or firms affiliated with the author(s). The author may or may not have a financial interest in any company or advertiser referenced. Any action taken as a result of information, analysis, or advertisement on this site is ultimately the responsibility of the reader.

    SHTFplan is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to