Hmm.. it would currently be in JPM's interest to see gold rise, as this would reflect inflationary pressures, not deflation.
If I were a Hedgie, I would be shorting gold in order to put upward pressure on the USD, which would pressure the US equity indices, which would make it more difficult for JPM to get out of their CDS "short" positions (long the economy and markets).
If a Hedgie really wants to put the screws to JPM, they need to create a deflationary panic. And that's going to push the Fed to act sooner than later, IMO.
Hawk |
