When an ECONOMY SLOWS: Issues That Impact Economic Growth: Part Nine:
Dateline: Del Mar, CA: Monday, July 15, 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 continued our series on: “When an Economy Slows,” FNB examined the extensive, global search for: “Safe Capital Assets.”
In this session, FNB dives deep into expanding corporate debt pools and the new financial hazard that is: BBB and Lower Graded Corporate Debt.
$ 12.5 Trillion to $ 15 TRILLION in Low-Investment Grade Corporate Debt:
Let’s imagine you own and operate a large, multinational corporation that quite literally spits out and prints cash. Let’s further imagine that you have a personal aversion and outright objection to paying ANY NUMBER ABOVE ZERO IN CORPORATE TAXES.
You have several options available to you as you seek for safe capital targets to invest your cash and increase your footprint. You can:
Surrender to the taxing authorities and simply ‘pay your fair share’
Invest in infrastructure and build your cost basis to create depreciation schedules
Purchase other cash-bearing and cash-positive-revenue companies
Pay your employees higher wages
Purchase back your outstanding issued shares
Buy lavish houses and cars for yourself
Or, you can select the option to build a division or establish a wholly-owned subsidiary that lends out your money to those companies that cannot find other sources of funding. You do so with designations that are BBB or LOWER classifications of debt.
The BBB or LOWER classifications of debt provide you some really interesting options:
Higher interest rates and potentially greater yield and ROI
UCC contracts that envelope the borrower’s company, its assets and even its core technology and patents
Conversion to common stock provisions that almost guarantee that you can bankrupt the company
Bankruptcy provisos that allow you, the senior lending group, in the case of default to exercise your UCC option and assume ownership via the defaulted corporate debt
This is a very scary scenario that is being enacted across legions of companies large and small right now. In our next session, FNB addresses the looming corporate debt and ‘worst case scenarios’ that just might be knocking on American enterprises’ front and rear doors.
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 National Bullion
For direct consultation with a gold and silver expert contact FNB: