Fiat! Currency: A Social Contract and an ECONOMIC EXPERIMENT:
Dateline: Del Mar, CA: Tuesday, June 11, 2019
FNB is a precious metals industry leader. Each weekday, we post information and financial facts (and opinions!) that relate directly to the financial markets and also that have direct impact upon the daily lives of investors.
In our last session, FNB examined the long anticipated rise in gold prices that pundits and financial gurus are projecting for 2019 and early 2010.
FNB now makes the case for FIAT! Currency to be suspended, reconsidered and then wholly replaced by a Gold and/or Silver Backed, US Based Cryptocurrency.
FIAT! Currency as a SOCIAL CONTRACT and and Modern Economic Experiment:
FIAT! Currency can best be described as two (2) critical elements: as a social contract and as a modern economic experiment. Let’s dive deep into these two monetary policies that are closely entwined.
Both FIAT! Currencies as social contract and modern economic experiment have proven to be both dangerous and highly inflationary. First, FNB looks at FIAT! Currencies as social contract.
FIAT! Currency as Social Contract:
Fiat! Currency is at its core and root a social contract. Here are some influencing factors that have to be considered:
FIAT! Currency permits governments to live well beyond their means
FIAT! Currency provides a mechanism for politicians to conflate and expand their economies way beyond their current production capabilities
FIAT! Currency in reality is an elaborate and dysfunctional means of creating employment and opportunity where none existed previously
FIAT! Currency upends natural economic systems and theory by introducing irregularities and anomalies into normal economic cycles
FIAT! Currency allows politicians and the political class to artificially release their nations from the direct impact of their poor and oft-times nefarious decisions
FIAT! Currency is the ultimate social tool that governments have leveraged for hundreds of years. Now, FNB discusses the modern version of FIAT! Currency that is quite literally deflating asset values across the globe.
FIAT! Currency as Modern Economic Experiment:
The modern versions of FIAT! Currency has been around for about 100 + years now. A century of unabated currency printing have been devastating upon modern economies. Some examples of the erosion of values that are directly attributable to FIAT! Currency are:
The erosion of the value of the US Dollar
Inflation and the rapid increase of asset values over the last decades
Reduction in purchasing power of the US Dollar
Withering value of cash over the last thirty years
High leverage of paper assets
Explosion of the derivative markets globally
Dependence upon modern governments to move deeper into debt-based vs. cash and intrinsic value based economic models
In our next session, FNB will address and attempt to answer the question: when is there too much FIAT! Currency? And the bigger question: at what number does FIAT! Currency collapse and become wholly and completely unworkable?
FNB strongly urges all savvy and thoughtful investors to ramp up their physical gold coins, bars and bullion holdings. FNB invites all to visit our website:
FNB invites all that live in or near our three physical locations in San Diego, Del Mar and Scottsdale to stop in and visit and meet one-on-one with our Team of precious metals experts.
FNB posits and strongly asserts that capitalism and the capacity to own, manage and profit from the collective of private properties and/or business initiatives is a driving force that America and its leaders simply must protect.
FNB remains diligent and unwavering in the call for common, average American people to seek out the Safe Havens of gold and silver coins, and gold and silver bullion.
FNB, a national precious metals industry leader and reputable gold and silver coin dealer urges investors, bond-holders, speculators and all who manage and/or oversee their family’s financial portfolio begin now migrating larger allocations into the historical safe harbors of: Gold and Silver.
Founder and Owner,
First Nation Bullion
For direct consultation with a gold and silver expert contact FNB: