Looks like JPM has its hands full today on the temporary short squeeze on the PMs.It’s a trade off to a month ago when gold rallied almost $100 and silver $3. Magically oil is dropping even though world demand keeps rising ( now at 91 barrels/day vs. 81 million a few years ago) even though events in the ME do not look good as the US fleets are mostly at home being refitted or readied for something.

Ahhh, all the talk about QE3 sounds like a bunch of bookies taking bets. Remember all that gold we talked about a few days ago…5000 tons since Feb. sold from allocated accounts and somewhere between 20 and 40,000 tons in total over the last few years. Can ‘they’ do it one more time or until the election.

Bond contagion looks ever more serious today with the 10 yr. rate slipping below 1.5%..as Jim Willie’s ‘black hole’ in Treasuries looms on the horizon…as more and more bonds are sold for investing into the ‘safe haven’ of the US bond…as they rally to 0% and global systemic failure. Fear not, global derivatives are only $1.4 Quadrillion, 20 times the global economy. US Gov. and non Gov. debt is up $40 trillion in 13 years. Gee, JPM only holds $70 trillion derivatives…as Jamie confronts a committee inJune to ensure that all is under control whilst being ? under water in gold shorts.

So if gold went down $100 last month on EU easing, what lies ahead? Can you imagine the war chest being built today for the next take down…as the takedowns become ever more blatant and desperate. I see Bloomberg put out a nice piece today blasting gold.

Interference in all markets will only increase as the US elections loom. Can they hold it all together until then?

Should be an interesting month in the PMs...again. Place your bets folks.