Understanding Monetary Policy in our New Age of Digital Money

Click for video on ECB monetary policy…now mostly electronic manipulations by authorities: www.ecb.europa.eu/ecb/educational/movies/mopoinstr/html/index.en.html

The entire model for Central Banking has changed and few understand what has happened in recent years. The old system of paper currencies and metal coins is rapidly being replaced with digital units. Virtual reality is replacing empirical reality and few seem to understand the implications of this change. This video might help you understand what is happening:  http://www.ecb.europa.eu (click on educational, then videos).   Monetary policy is now controlled via digital injections (called liquidity injections). The platform used for most operations and transmissions are webs of high frequency computers…all controlled by just a few centralized policymakers. This operation over in Europe is very similar to the operation of our Federal Reserve here in the United States. It’s suppose to stabilize ‘prices’ in the marketplace but it does just the opposite.

The current digital model is a Top/Down system with a governing council (similar to our FOMC) at the controls. The lead policymaker in Europe is Mario Draghi, President of the ECB.  This policymaker acts and makes his decisions using a ‘group think’ board similar to what Bernanke uses in the U.S.A.  The system seems so logical and modern on the surface but for those of us who understand the history of money…we can discern the fallacies and shell games which are built into this system. The digits, now used for money, are really ‘virtual units’ created from the MIND’s of the key policymakers. The concept of ‘money’ today derives totally from one’s consciousness (a non-material and non-physical source). What happens as these imaginary units enter the marketplace?

These units are distributed via an electronic transmission system at near the speed of light…from computer to computer. The above video tends to lead the viewer into thinking that ‘money units’ are still mostly paper and coins…yet a discerning viewer will see through this shell game. Money units today are IMAGINARY units which display as numbers in our computer screens. Who can discern the difference between ‘virtual reality’ and ‘spacetime reality’? I would suggest that the majority of professionals today can not discern the difference.

The history of money and Capitalism, however, is based on physical units for a medium of exchange and standard of value. The above video does mention gold and the gold standard but it concludes (falsely) that money is merely a tool for ‘price’ and purchase transactions. In reality, money is supposed to be a tool for the ‘valuation’ of an asset or product. When we exchange a good or product (say our personal house) the issue (in our mind) is ‘what is the fair value’ for this good or product. If the money unit is ‘nothing’, ‘imaginary’, and a virtual ‘digit’…how can this unit be viewed as a ‘standard of value’ or a ‘store of value’? Do real Capitalist’s want to ‘store’ an imaginary digit as their ‘value’…especially when this unit is created and manipulated by a policymaker with a HFT computer to influence ‘prices’ in the marketplace (like a Central banker)?

Let’s think about the real role and purpose for money. Our founding Fathers and our Constitution spell out the role for money in Article I, Section 8. Congress is supposed to coin money and regulate the ‘value’ thereof. To regulate ‘value’ our DOLLAR needs some substance to it. Our DOLLAR needs a ‘definition’. What is a ‘name’ like DOLLAR with no ‘definition’? What is a ‘symbol’ and ‘number’ ($1) with no definition? I would suggest that a ‘name’ and a ‘number’ as our money creates a MONETARY dictatorship. Whoever, has the AUTHORITY to create this ‘name’ and ‘number’ becomes the SOURCE of ‘value’.

Today, the SOURCE of ‘value’ is Ben Shalom Bernanke in the United States of America and Mario Draghi in Europe. These two individuals do use their AUTHORITY to ‘create’, ‘manipulate’, ‘influence’, and impose their personal economic agenda on the entire marketplace. They can do this because our ‘money’ today is ‘NOTHING’ (no thing). They can create units from their MIND or CONSCIOUSNESS and click their thinking into action via a HFT computer. Is this Capitalism? Is this Constitutional? Does this create market Confidence? Does this manipulation create stable Prices? I don’t think so…nor do I think that this system will create stability, prosperity, or confidence.

Take the time to watch this video again:  www.bankofengland.co.uk/education/inflation/qe/video.htm. This video demonstrates how digital units (called pounds) are used by the key policymaker in England, Mervyn King, to manipulate and influence ‘prices’ in his marketplace. Is this real Capitalism or is this just monetary dictatorship over the market process? Where does Mervyn ‘get’ these digital units from? Do any of these ‘units’ contain any real ‘value’…which can be stored or saved as ‘surplus productivity’…the real purpose for saving? Do units derived from the MIND or CONSCIOUSNESS of Mervyn (say his recent 75 billion QE program) and entering the market secretly by stealth create CONFIDENCE…once a person understands this manipulation?

Money is supposed to be the ‘lifeblood’ of Capitalism. How can non-material/non-physical ‘money’ serve as the ‘lifeblood’ of a Capitalistic System? Did our American founding Fathers desire a DICTATORSHIP over the market process and the distribution system…as we now experience with DIGITAL money? What happens to this type of ‘money’ if a Bank Holiday is necessary? What happens if the computer system shuts down? What happens if these digital units are given just to the 1% who control all of Wall Street? Is any of this the type of Capitalism which the common man can support?

I think it is time for all the American and European people to WAKE UP and smell the ‘smoke’ and ‘corruption’ now occurring within the ‘halls of politics and economics. Read some history on the role of money in a Capitalistic economic system. Read some history about the power of money to influence leaders in high positions of POWER. Ask yourself if the Fed is really an institution that you want to support. And then question your 2012 presidential candidates on their understanding of what is now happening. Who really understands ‘money’ , our Constitution, and Capitalism? Does Mitt Romney understand money and economics? What about Rick Perry, Newt Gingrich, or Rick Santorum?

Personally, I would suggest that none of the above understands how our non-System works. None even seems to desire to understand. Why is this so? The only person with some common sense on these issues is the Congressman from Texas, Ron Paul. This person, however, is shunned by the establishment media, most Americans, and even those who understand our monetary history. Anyway, now may be a good time to learn why our current SYSTEM is corrupt and collapsing. Check out these website to learn more about these issues:  www.kingworldnews.com, http://thecomingdepression.blogspot.com, www.thecomingdepression.net. Enjoy and keep this website on your favorite list: http://kingdomecon.wordpress.com.

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