Will the US ultimately feel compelled to defend some of the gold and silver shorts, both in terms of bullion and derivatives, held by its Wall Street Banks? You could allow for the possibility, if you will, that there is a corresponding web of derivatives that has a links, and a possible chokehold, on a few key European institutions, particularly in England and Germany, involving counterparty derivatives and CDS, and collateral damage to professional and political careers. Ugly stuff, rather messy really. But there are historic precedents.
How Asian Buyers Are Maneuvering the Metals Shorts
There should be no confusion that this involves not only a few large Wall Street players, but also elements, past and present, in the US Treasury and the Federal Reserve. It makes the unfolding insider trading scandal look like a neighborhood numbers racket.
Therefore we should not discount the possibility that if a default should occur there will be an emotional and political reaction put forward as a means of deflecting the disclosure of the true nature of the financial corruption.
It would be most interesting and possibly entertaining to see if Ron Paul's congressional committee could be able to mount an effective investigation into the matter, or if events will take place to pre-empt and redirect such an inquiry to manage the potential collateral damage to careers and possibly governments, both at home and abroad.
It's never really the act itself, often minor infractions undertaken for practical purposes or what could be rationalized as such by some. Rather it is always the corruption of the policy actions to personal gain, and the subsequent cover-up, that tends to gather substance over time into a first class scandal, acts of felony and high crimes, and all the revelations that follow.
“Oh what a tangled web we weave, When first we practice to deceive." Sir Walter Scott
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