Dateline: Del Mar, CA: Friday, March 29, 2019
FNB believes there are multiple, deeply-interconnected and equally-balanced reasons why Central Banks globally are aggressively and openly purchasing and then hoarding + stockpiling seeming mountains of gold and silver bullion.
Obviously, central bankers see red-flags in both national and global economies either forming up, or appearing on their financial radar screens. These red flags cannot be ignored.
Remember and Keep in Mind: “The central bankers and the institutions they oversee have but one mandate: Protect the Institution’s Assets and Deep Reserves.”
It’s equally obvious that key markers and key global events influence central bankers’ decision making processes. In this session, FNB addresses: The Recent Appearance of Open Competition for Reserve Currency Status.
Nation vs.Nation RE: Open Competition for Reserve Currency Status:
“Open competition for Reserve Currency Status.”
That’s a mouthful and the truths that are packed inside of this tiny statement of truths demands our attention. So, let’s unpack what is happening globally at the highest of levels with Finance Ministers and Cabinet Level Discussions on: “How do we grab a piece of this reserve currency pie.”
A Bit of History Helps:
Let’s just think through a bit of most recent history, as in within the span of the last 100 years or so:
1913: As in December 23, 1913: The US Congress enacted and then President Woodrow Wilson signed into Law: “The Federal Reserve Act”
This act for all intent and purposes gave the Federal Reserve, a private and privately held corporation oversight duties and the right to print and manage the entirety of the United States of America’s currency issuances
Fast Forward to Post WW II: some 30 years later, the US assumes the role of complete and utter superpower status globally
1950’s: cars, airplanes, trains, shipping and global commerce begin to move at rates of speed and rates of reach and rates of frequency unheard of before that time
1950’s to 2018: the world’s economy sprints forward at leaps and bounds never thought of or imagined. And every, single particle of growth is based on easy and quick access to petroleum reserves and petroleum based products
Countries and nations thrive: nations that once lived in squalor and utter barbaric conditions all at once boomed. Other nations, known as ‘developed’ thirsted for and demanded higher and larger and quicker amounts of and access to the heretofore lesser nations’ natural resources
From the 1950’s to 2018 One Nation’s Currency Provided the Means and Ease of Fluidity and Fiscal Capacity to Insure Safety and Ease of Access to Goods and Services and Full and Reliable Payment. That Nation is the United States of America and that Reserve Currency is: The US Dollar
Later half of 2018 and moving into First Quarter 2019: for the first time in history, other nation-states challenged and began competing for “Reserve Currency Status” with their national currency
The Monopoly Has Been Broken:
In the latter portions of 2018, competing nations began using their own national currencies to pay for their own purchases of oil and petroleum products.
Since mid-2018 countries like: Russia, China, North Korea, Iran, Venezuela, Syria and other middle-eastern nations and even some of the member states of the European Union began dumping their dependence on the US Dollar to satisfy their transactional events. And shifted to buying, selling and closing exchange rates out via their own national currencies.
This shift, this sea change, this complete abandonment and even the thumbing of the nose at the US Dollar has large and consequential implications.
Think for a moment about:
Countries now paying for goods and services outside of the US Dollar as Reserve Currency
Countries rerouting payments through their own versions of Central Banks, SWIFT Accounts, Settlement Banks and other types of financial instruments that have no mooring, let alone any relationship nor dependence upon the US Dollar as Reserve Currency
Nation States declaring their currency as ‘on par’ with the strength and veracity and completion power and confidence of the US Dollar
Nation States establishing their currency as an open and reliable alternative to the US Dollar that other nations can select and then use and in so doing, push the US Dollar into a non-essential status
Nation States: relegating the US Dollar to insignificant status and seeking in fact to usurp its position of preeminence for global transactions
The US Dollar and the US government being relegated to a ‘Second or Third Class’ Status when nations consider how to satisfy global payment requirements
Make no mistake: there is an open, and outright financial conflict being waged right now in boardrooms and on trading platforms to find ways to squeeze the US Dollar out of its renowned position of fiscal preeminence and to replace this with other competitors’ currencies.
Where this lands in the next 5 to 10 years is anybody’s guess. But one thing is certain, the US Dollar now has open competition for its reserve currency status.
Next time, FNB addresses how this open competition for reserve currency status causes ripples in the markets. And how this open competition causes instability across multiple trade channels. Trade channels that once operated with fixed and closed certainties.
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: