There are trillions of dollars of gold and silver that people have purchased on paper...which they believe is physically held in vaults for them. If the owners of the gold and silver demand delivery of their physical gold and silver, they will quickly learn that it's not there.
Will Obama's Treasury Secretary Timmy Geithner allow his "too big to fail" banker buddies at JP Morgan to go belly up in the event that this “buy silver” campaign succeeds? Right now, the US Treasury and JP Morgan interests’ are intertwined. The US Treasury needs banks like JP Morgan to play its shell game with the trillions of new Treasury issuances every year. JP Morgan gladly plays along and in return the whole banking system is backed by the full faith and credit of the Treasury.
Timmy Geithner isn’t a big a fan of precious metals because when silver and gold make huge dollar denominated gains, it’s seen as dollar weakness across the globe. That makes his job more difficult.
JP Morgan's profit taking manipulation of silver to the short side puts them in Timmy’s good graces. If necessary, Barach and Timmy would reward them with another bailout or change the rules to benefit their bankster buddies and screw investors. There are countless devious ways that the Federal Government could step in and cushion the blow for JP Morgan.
Even if Mr. Keiser’s movement doesn’t bankrupt JP Morgan, it will bring many of the problems inherent to our financial system screaming into the light.