Dateline: Del Mar, CA: Monday, March 18, 2019
Banking is built on trust. What are some factors that cause confidence in the banking system in general and the underlying monetary systems in particular.
Trust: An Exhaustible and Extinguishable Commodity:
Virtually, every, single transaction that takes place in an economy, whether at a micro-meaning: person-to-person level; or, macro-meaning: global trading partner to global trading partner level includes deep understandings and intense levels of built in, long-established, verifiable: “Trust.”
Trust is an exhaustible and extinguishable commodity. Trust is a ‘thing’. Trust is both a noun and a verb.
Trust as a noun means that this lubricant exists and greases the skids of all economic machinery. Trust as a noun means that there is a necessity that drives all economic activities. Trust is that hidden and invisible ingredient that permits economies to thrive.
Trust as a verb means that people and institutions and governments can with assurance declare that such and such a transaction will take place because the kinetic and positive energy of ‘trust’ ensures that the transactions and the economic activity will in-fact be completed.
Trust is hidden. Trust is invisible. Trust is a commodity. Trust is a noun. Trust is a verb. Trust is also very fragile.
What happens when an economy can no longer look to transactions, interchanges, transfers of currency, purchasing power of the currency, exchanges, purchases, sales, barters, payments, debits, credits Et Al with zero degree of certainty?
What happens when men and women that operate businesses, or institutions that manage large swaths of capital resources, or companies that produce goods and services have zero, and I mean no confidence that correct and timely payment will arrive or be sent? Payments and credits, credits and debit that completely satisfy the transactional requirements that their family or businesses simply must have to survive?
What are the impacts and effects–lasting and permanent of an economy that loses and forever extinguishes its belief that the underlying money supply suits ad fits and meets the demands of the culture?
Furthermore, what does a nation look like, not to mention, how can a nation survive if the underlying currency and monetary system becomes suspect at best. And in fact, tainted and jilted at worst. What happens when a monetary system jilts and jolts the very people it is supposed to provide service for?
The answers are many. But the focal point is that monetary system that loses and/or intentionally crushes the confidence of its patron-base and citizen-base simply stops being utilized.
Next time, FNB addresses how this erosion of confidence of the monetary system generally occurs through a slow creep. A slow creep that begins in one sector of the economy and then hops and jumps and leapfrogs into other sectors as well.
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.
Founder and Owner,
First National Bullion,