http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/7/11_Andrew_Maguire.html
It should be clear to everyone that we are on the brink of SOMETHING...we are just not sure how BIG it will be. Andrew seems to think that the new Pan Asian Exchange will destroy the silver market riggers because they won't be able to supply even the smallest amount of physical silver to satisfy potential delivery requirements.
I agree with Andrew on this point. They don't have it and they can't find it because it doesn't exist. But we need to take this discussion to another level and that level has to do with a very simple question...
WHAT HAPPENS NEXT?
The single most important issue here is not the supply of physical silver or the amount of paper silver leverage but the faith and belief in un-backed fiat money. This "virtual money" that is hoarded worldwide in the paper and electronic form is 100% unsustainable if gold and silver are allowed to trade "freely". Unfortunately, when Andrew talks about TRUE price discovery in the silver market it is assumed that these "silver exchanges" are still operating and have not self-imploded. All these exchanges are, supposedly, the ultimate backstop for the trades and once the first silver short defaults it is the exchange that must make good on the transaction. Why else do you think all these exchanges have gone public in the past few years? THE LIABILITY IS MASSIVE!
This is an excerpt from the Friday Road Trip on 6/3/2011...
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