BofA may now be short 800 million oz of physical silver without a chance of ever being able to pay that silver back, except at much higher prices. If true, every dollar higher in the price of silver translates into an $800 million open (unrealized) loss. Every $10 move equates to an $8 billion loss. A hundred dollar move higher from here equates to an $80 billion loss.
When price inflation occurs, it can be a very challenging time for everyone.
In that type of environment, prices of goods and services often go up faster than wages, and the public and policymakers wish to constrain them. Historically, when price inflation becomes rampant, policymakers tend to put in place price and wage controls to try to tame inflation, but those don’t have a good track record of working out well.