Ariel
@Prolotario1
Watch The Silver Market: The Monetary Reform (You Are The Liquidity Banks Need)
You All Have To Understand Where We Are Right Now
The recent enforcement of Basel III’s Net Stable Funding Ratio rules has slammed the door on the old fractional reserve games that bullion banks played for years with precious metals like silver and gold. These institutions once treated massive paper contracts futures, unallocated positions as if they were backed by endless physical supply, leveraging ratios as high as 32:1 without holding the actual bars.
Now, with the NSFR in full effect as of early February 2026, any unallocated gold or silver exposure demands 85% stable funding in high-quality Tier 1 capital or cold cash equivalents. This turns short positions from profitable arbitrage into a balance-sheet nightmare, forcing banks to either cover their shorts aggressively or face catastrophic capital drains they simply cannot afford.
The speaker highlights COMEX data showing over 2 billion ounces in paper silver claims against just 64 million in registered physical inventory, creating an unsustainable mismatch. This regulatory shift effectively ends the era of algorithmic price suppression through spoofing and n***d shorts, paving the way for true physical price discovery.
Your Role In This Is More Important Than You Think
Banks now confront a b****l set of options, each more damaging than the last in this new regime. They could attempt to buy back their enormous short positions, which would ignite a ferocious short squeeze as available physical metal vanishes from the market. Converting paper claims to allocated, vaulted holdings requires sourcing physical silver at scale, but global annual mine production hovers around 850 million ounces nowhere near enough to cover the trillions in equivalent value tied up in open interest.
Raising fresh equity to meet the funding requirements looks impossible, as shareholders refuse dilution for positions already underwater. The result is a forced reconciliation between paper promises and vault reality, with Eastern entities like China and Russia having quietly accumulated vast physical stockpiles over the past six years while Western banks bled reserves.
Industrial demand from solar, EVs, 5G infrastructure, and defense sectors continues exploding, making physical silver increasingly indispensable regardless of price. This convergence of regulatory pressure, geopolitical hoarding, and real-world consumption spells the d***h of the old suppression model.
Why Banks Are Facing A Very Long Fall
The historical precedents underscore how these moments of reckoning reshape entire monetary systems without mercy. In 1933, Executive Order 6102 confiscated private gold holdings at $20.67 per ounce before the U.S. government revalued it to $35, masking a stealth default through revaluation. The 1971 Nixon shock closed the gold window after foreign demands exposed the over-issuance of dollars against dwindling reserves, ending Bretton Woods convertibility outright.
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Today’s NSFR acts as a modern equivalent, with regulators no longer protecting the shorts as they did during past spikes like the Hunt brothers’ corner in 1980 or the 2011 run to $49. Central banks appear to have shifted allegiance toward physical-backed realities, especially as BRICS nations position commodities as the new collateral foundation.
The petrodollar’s erosion accelerates when physical metals dictate trade settlement terms over fiat paper. Western suppression kept prices artificially low for decades, allowing Eastern powers to buy cheap and build strategic reserves. This axis flip leaves traditional banking vulnerable to a systemic force majeure event.
Read Full Article:
https://www.patreon.com/posts/watch-silver-you-150382121
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