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First Choice: Do Central Banks Cause Financial Tremors and Bubbles?

Gold: $ 1302.80 Silver $ 15.64 Palladium $ 1337.0

Dateline Del Mar, CA:  Monday, January 28, 2019

FNB continues to examine the role that central banks and their monopolistic monetary policies have on economies and the governments that depend upon them.

FNB today asks the question: “Do central banks’ very actions and existence create,foster and then expand financial tremors and bubbles?”

Central banks operate by some core principles and monetary directives that quite often result in financial upheavals. Consider the following:

  • Inflationary Build Up: through and because of the rapid expansion of the money supply (QE or “Quantitative Easing”). Central banks inflate currencies. Central banks force liquidities and velocities at which economies boom by infusing large portions of new capital
  • Inflationary Boom: central banks’ decisions to inflate the money supply causes prices for goods and services and commodities to rise. Central banks work to monitor and limit these inflationary spikes. But, there seems little doubt that the very insertion of larger and larger quantities of new money circulated into an economy results in rising price schedules
  • Disinflation and Downturns: just as predictive as prices rising following a monetary insertion, so too careful observers note that the economic outcome eventually tilts and shifts to a descent in economic activity. There are many ways this is seen, noticed and experienced. In some cases, the deflation turns into a recessionary period. In the worst moments and outcomes: a full on economic depression is triggered
  • Interest rate fluctuations: central banks seemingly look into economic crystal balls and do their best to read the tea leaves and adjust how economies function throughout this cycle via the tweaking (either up or down) of prevailing, interest rates

The cycle of growth and retrenchment lays at the central banks’ doorsteps. For it is their monetary policies and the fact that they, and they alone possess the power to print cash out of thin air that causes these periods of economic advancements, declines and the awful prospect of: financial panic.

FNB believes the role of central banks going forward should be to create environments and financial conditions that foster prosperity across larger and larger swaths of the economic spectrum.

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.

Jon Cavuoto,

Founder and Owner,

First Nation Bullion

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