Over night we got news from Zimbabwe (aka Japan) that more serious money printing is underway. It makes one wonder if a crack-up boom collapse of the Yen is now in the works. In that scenario, the preferred trade will not be U.S. Treasuries and JGBs. The huge Japanese pension fund and world’s No. 1 patsy GPIF dropped its allocation in JGB from 53% to 35%, putting this difference into domestic and global equities. That just turns Auntie Yui’s funds over to parasite guildsites.

But for here and now, the drop in the yen is associated with a “strong dollar” and is used to short even more precious metals. I can only imagine how enormous this peak paper-worshiper short position is right now. Just needs a match.

Thursday’s trashing action shows that no one is blinking in the long (China proxy?) camp or the Slinger naked paper short camp. In fact, the longs seem to be daring the Slingers (another patsy?) to bring it on. So far this decline has all the hallmarks of shorts driving price lower, not longs liquidating.

The increase in silver open interest was especially pronounced Thursday going to 180,995, up 4,551 contracts. Gold increased by 1,374 contracts. No backing down in Shanghai either as 13.81 tonnes were delivered in Friday’s session.

I don’t think the theory about December silver and China proxies is incorrect at all. There is every other indication that China is on a strategic prepping binge with various commodities and precious metals on sale.

The huge Red Kite long position in copper on the LME may very well be a proxy for the Chinese [see "Are Chinese on a Prepping Binge Using Proxies?"]. There is little physical copper left in warehouses to boot.

This is an economic actor or merchant, not a speculator, so the Hunt Brothers comparison is very misleading.  Do not expect western financial media to report this. There are lines of oil tankers headed for China. China is inking development deals with Russia right and left, a huge high speed rail project and solar, which uses silver.

And there is little silver in inventory in China itself. Also keep in mind that China’s mines only have gold reserves left of four to five years, so this fire sale is the time to strike.

There are only 66.7 million silver ounces reported by the banks to be in their “registered” Crimex vault account (registered = available to be delivered). At current PoS, that’s a mere $1 billion transaction to just clean it out. There are only 27.68 tonnes of registered gold at the Crimex, so another billion would take that out as well.

That is a very small Sun Tzu “Art of War” check to write out to embarrass and disrupt the corrupted western financial market, land a blow in Cold War 2.0 and take a trove of cheap strategic silver at the same time. And add copper to the equation, then make the 10,000 tonne gold reserve announcement before the Swiss Referendum and the manipulators and paper financial markets have a serious problem.