At the end of World War II, the United States had racked up a staggeringly oppressive debt burden. At the time, policies were implemented in order to propagate financial repression. A moderate inflation rate, minor economic growth and a situation that would induce banks to purchase debt were conditions required to maintain financial repression.
In the current period of financial repression, one more stipulation has been added. This is the ability of banks to hide the value of physical silver in paper instruments. Circulating currency is no longer worth the value of the silver it previously contained. This allows the major banks to hold enormous short positions in silver.
The result of this silver market manipulation is quick profits for the banks. Additionally, this makes it possible for the banks to control and purchase long positions in silver bullion without maintaining any vested commercial interest in the physical metal. The terms “hedging” and “derivatives” are names given to legitimize these suppressive practices.
http://www.silverseek.com/commentary/precious-metals-paper-sellers-conveniently-trapped
