When an Economy Slows: Issues That Impact Economic Growth: Part Ten:
When an ECONOMY SLOWS: Issues That Impact Economic Growth: Part Ten:
Gold: $ 1404.20 Silver: $ 15.64 Platinum: $ 845.00 Palladium: $ 1524.00
Dateline: Del Mar, CA: Tuesday, July 16, 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 dove deep into expanding corporate debt pools and the new financial hazard that is: BBB and Lower Graded Corporate Debt.
In this session, FNB addresses what happens when the economic bubble–both at the federal and corporate levels: bursts.
Estimated $ 200 + TRILLION in CORPORATE DEBT Instruments:
There is a growing and mounting economic fear that is creeping and then leaping into virtually every advanced ‘first world’ economy. That creeping and then leaping fear is: exponential expansion of debt.
Over the past few decades, companies have chosen to pile on loads and loads of both secured and unsecured debts. These notes, bonds, CLO’s (Collateralized Debt Obligations), credit lines, floating interest bond funds, treasuries, promissory notes, convertible bonds, revenue based and/or income determined and interest bearing notes and bonds, debentures, fracturalized debt instruments, derivatives: all of them.
Whatever you might wish to call or label them, these all have one thing in common: these, every single class and category of them are all debt-based obligations. All of them, every single one of them bears a calculation of interest rate that causes the level of obligation to swell and balloon.
Not one of these instruments add value to the debtor. All of these classes of borrowing add value to the debt-holders.
The sere mountain of corporate indebtedness, not even taking into consideration the levels of expanded national indebtedness that also has a ‘day of reckoning’, has to be dealt with. How in the world is this going to resolve itself?
Are companies just going to default and allow their companies and assets to return to the debt holder? Are companies just going to fold and give away their valuations, valuations that have been long fought for and hard-earned to the banks and lenders?
American companies in particular are seeing corporate debt levels raise to the unheard of plateaus of $ 12 to $ 15 TRILLION in amassed and ever-expanding interest bearing debts. What company can sustain such downward pressure?
This is a very scary scenario that is being enacted across legions of companies large and small right now.
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 National Bullion
For direct consultation with a gold and silver expert contact FNB:
inquiry@fnbcoin.com
1-800-745-7979