Maybe one big pissed off Panda that uses a new weapon. The BOND BOMB first strike. The annihilation of Japan without firing a shot. Just dump the the Japanese Bonds that the Chinese hold in reserves and watch the ultimate financial explosion. Chinese selling will trigger massive global bond selling. Japans long awaited desire to destroy the price of the Yen will come finally. This is going to get very interesting for Japan unless they quickly tuck tail and RUN! Which btw I predict they will. Once you have it explained to you in the most sobering of terms that you are committing Hari Kari with a Banzai charge into an enemy that will easily destroy you then you surrender and you do it quite quickly. The Chinese are not making a hollow threat. They hate the Japanese and will destroy them in a heartbeat if the Japanese don't blink. ZH gave this nice summary .... "Ironically, this terminal bond war escalation would also mean that Japan's last ditch alternative is to threaten the US with dumping America's bonds in turn if the US i) does not step up on behalf of Japan and ii) if Japan is forced to promptly convert debt from one denomination into another. The fallout effect would be most dramatic.
It is unclear if China will proceed with this "scorched bond" step: should this happen there is likely no turning back as it would force a market test of the entire developed world. And as our readers know all too well, the entire developed world is insolvent, and the only reason why it has perpetuated the illustion that all is well, is because being a closed system, nobody has the incentive to defect. Until now that is, when suddenly over a piece of rock in the East China Sea, China may find itself pulling the pin on the global debt grenade."
There........you have it......not a shot fired...and the world is destroyed.....literally overnite. What a fragile world we have. China is threatening and has fired the warning shot. If you believe this cannot happen, then by all means don't ever own precious metals.
We need a pullback for all of the investors that need to buy PM equities to get into the trade at a good price. In fact, technically we are getting fairly overbot on the daily and a pullback would be very healthy. Just don't count on it. I've talked about this move and the possible ways they can keep you out. One way is to provide NO meaningful pullbacks until their next trap door that drops it so fast it FREEZES you...and that could be a long way up before it comes. gl