QE to Infinity and Negative Interest Rates: Part One:
QE to INFINITY and Negative Interest Rates: Part One:
Gold: $ 1340.60 Silver: $ 14.94 Platinum: $ 798.00 Palladium: $ 1467.00
Dateline: Monday, June 17, 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 consequences of a national economy starting to lean into decline. FNB now opens up the discussion of plunging rates of return and the looming prospect of negative interest rates.
The Next LAUNCH of QUANTITATIVE EASING and the Prospect of Negative Interest Rates:
FNB sees the current economic system of the United States to be unsustainable. Short and long-term, the policy of continuing to print money and devalue the ‘reserve notes’ that the Federal Reserve pushes into markets seems to be endless.
The premise that a national economy can be managed and sustained by perpetual debt seems absurd. The Federal Reserve continues to make statements that soon, their intent is to once again pump NEW CASH into the system.
Prop Up Assets and Continue to Prop Up Under-Water Balance Sheets:
The Federal Reserve continues to prop up assets and to prop up under water balance sheets. The Federal Reserve accomplishes these seemingly improbable feats through the practice of: “Quantitative Easing.”
Quantitative Easing is a concerted, concentrated period of time when the Federal Reserve pumps massive amounts of NEW CASH into its member banks.
Imagine you take an aquarium in your house. Imagine that you have been on vacation for over a month. When you return your tank has seen the waterline go from almost full to nearly empty.
Your fish are dead and dying from lack of nutrition and oxygen and their own waste. You begin pumping water into the tank. You carry the tank to a safe place and pump water at an endless rate into the tank. Thinking that in doing so you will be both cleaning the tank and refreshing the water supply.
Instead what you do is flood the tank, drown the remaining live fish and overwhelm the ecosystem. The net result is that your tank when you are done is empty of any live animals and needs to be completely reset.
QE is much like this to our national economy. Pumping tons of NEW CASH into a system that is needing a reset only causes more problems.
FNB next time addresses ‘negative interest rates’ and how these are being implemented into the US financial system.
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:
www.firstnationalbullion.com
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.
Jon Cavuoto,
Founder and Owner,
First Nation Bullion
For direct consultation with a gold and silver expert contact FNB:
inquiry@fnbcoin.com
1-800-745-7979