The American ‘Dollar’ ($1.00) … what is it?
Our economy is based on spending $’s. We save $’s in our various savings and investment accounts. We VALUE all items being exchanged in $’s. We use $’s for our imports. We sell our production via exports in $’s. Oil is a global commodity which is mostly priced in $’s. Our Fed Chairman, Ben Bernanke, creates trillions of currency units (via QE) which we call $’s. We distribute $’a via our electronic computers. Traders, Bankers, Speculators transact (within a global network of currencies) in $’s. Our National Debt is specified in $’s. All our accounting entries are recorded in $’s. As employee’s we get paid in $’s. The Reserve Currency of the World is our $. Isn’t it time that we understand the nature of this unit we call ‘Dollar’?
What is this unit that we call the Dollar? Is it an item that we can hold in our hand? Is it a silver or gold coin? Is it a paper note? Where does one find or locate this unit that we call Dollar? Is this unit within our Space/Time universe? Is it physical? Is it metaphysical? Let’s review the history of this ‘name’ that we have chosen for our American currency unit. Let’s ask a couple of core questions to discern the nature of this unit and the source of this unit.
Who chose the ‘name’ Dollar for our currency unit? If we go back to 1785, our Founding Fathers of money chose this ‘name’ to represent our official American currency unit. This ‘name’ was chosen during the period of our Continental Congress in the year 1785. Thomas Jefferson was the most influential Founding Father on our money formation issues. Prior to 1785 our Nation did not have any official currency unit. Numerous currencies were prevalent within our Colonies with the Spanish Milled Dollar being the most desired coin. There were also many British coins and bills in circulation under the ‘names’ of Pound, Shilling, and Pence. Also, our Colonies had a brief experience with a currency unit called the Continental. So why did our Founding Fathers desire a new currency unit for our Nation?
Our Founding Fathers (mostly Thomas Jefferson and Benjamin Franklin) wanted our new Nation to start fresh with their own currency units. We had won the Revolutionary War with Great Britain and a new start was considered appropriate. After our Constitution was ratified and our first President was in office, our first Congress approved the proposal of Jefferson which established our Dollar as the official currency unit for America. The next decision was to establish a definition for the ‘name’ Dollar. Since the Spanish Milled Dollar was the most desired silver coin within the Colonies, this coin became the reference point for our Dollar.
The Spanish Milled Dollar was assayed and it was discovered that this silver coin contained precisely 371.25 grains of pure silver. This weight (in silver) was then used to define the meaning for our new American Dollar. Congress passed the Coinage Act of 1792 which specified that our Dollar would = 371.25 grains of pure silver (minted into a coin for circulation starting in 1792). The Philadelphia Mint was also created at this time for minting of all our American coins (silver, gold, and copper coins). This logic created what we called the American Dollar. The ‘name’ Dollar now had specific meaning for use as a medium of exchange, standard of value, and store of value…in the marketplace.
After 1792 our Dollar gradually evolved and changed in meaning over the subsequent years. The ‘name’ Dollar was also used when paper bank notes were printed for circulation as currency. Later the silver dollar was officially dropped as our official currency unit and the gold dollar emerged in 1879. Then in 1933-34, Franklin D. Roosevelt and his administration called in the gold dollar (coin and paper certificates) and replaced these currency units with a fiat paper dollar (called the Federal Reserve Note). This fiat paper Dollar became our official legal tender unit after 1934 (with the silver dollar functioning as an official unit until 1968 and the gold dollar functioning as an official unit for foreign holders until 1971). Americans, however, mostly viewed our fiat paper Dollar as official legal tender for all public debts and private payments.
The final change in the meaning of the ‘name’ Dollar occurred after the emergence of the fiat Digital Dollar (mostly after our payments system and banking operations adopted the electronic computer for currency creation and currency distribution). This occurred gradually and subtly from 1998 and after with the transition of banking into all electronic clearance and payments. The computer screen became the replacement for banking Vaults and Paper currencies. Today, if you enter any banking building you will witness mostly computer screens and electronic transactions for almost all money operations. The electronic computer and speed of light transmissions have replaced the older paper transaction mechanisms. Today we live in a new World of on-line payments, electronic credits and debits, digital loans, digital currency creations, and a digital Dollar for practically every monetary transaction.
The ‘name’ Dollar has changed in meaning again now that we live in a Digital World, an Internet Society, and a Global Network of digital currencies for our entire Planet. Every currency on our Planet now has a digital nature (along with a minor nature as a fiat paper currency simultaneously). In the Western World most monetary transactions are now done electronically (via digital currencies). Some 184 currencies on this planet now are exchanged daily via our digital currency markets (most in real-time). This change or evolution in money has gone mostly unnoticed by the public (in their thinking). Most of the public still thinks in terms of Paper currencies…even though paper currencies now represent only some 4% of all monetary transactions.
Practically all of our Stock Exchanges, Futures and Options Markets, Currency Markets, Bond and Mortgage Markets are now Digital Markets (virtual items within the computer screen). The electronic computer now is ubiquitous globally. The completion of the Submarine Underwater Fiber Optic Cable System has created a Global Internet Society and a Global Interconnected Monetary System for our entire Planet. We now need to THINK differently if we desire to understand this new global market for finance, currencies, and virtual exchanges of monetary instruments. We now have a speed of light transmission network for all 200+ countries on this Planet. We live in a WIRED WORLD of real-time Digital Information!
So let’s conclude with the Question of the Day! What is our American Dollar ($1.00) Today? Who creates this unit? Why does the ‘name’ Dollar have a new meaning given all these changes? First of all, we need to think differently today. We need to recognize that ‘names’, ‘numbers’, and ‘symbols’ represent our monetary and accounting system today. Practically all financial accounting is now mostly a MATH and ALGORITHMIC process. Financial records are now recorded within the computer screen with ‘numbers’ (derived from bits and bytes transmitted by speed of light computers). Photon frequencies (transmitted via fiber optic cables and the electromagnetic spectrum) create images within the computer screen that ‘represent’ our money. Today, we do NOT have physical coins or paper notes as our money (with minor exceptions).
Today, our money units (like our digital dollar) are CREATED via the electronic computer. Digits are keyed (punched) into the computer screen to ‘represent’ our money (dollars, euros, yen, pounds, etc.). Key policymakers (like our Fed Chairman…Ben Bernanke…CREATE digital dollars via a stroke of the computer key). Commercial bankers do likewise as they CREATE credits for lending to the public and private sector. These digital units are CREATED mostly by a decision of a key policymaker. And these digits (as our money units) are CREATED from the Consciousness or Mind of these key policymakers. The best example for understanding this process is to focus on the QE (quantitative easing) policies of Ben Shalom Bernanke these past few years (since 2007). How does Ben CREATE these digital Dollars which everyone calls QE1, QE2, QE3, and QE infinity? Ben has CREATED (from mostly his consciousness) some 16-20 trillion of digital dollar units since the financial crash of 2008.
Where did Ben obtain all these digital $? What happens today is that Ben can arbitrarily CREATE $’s by thinking up ‘numbers’ in his Head (also called his mind or consciousness). The Congressman from Texas, Ron Paul, calls Ben’s CREATIONS…money created ‘out of THIN AIR’. I, and many others, call Ben’s money CREATIONS…money created ex nihilo! Ben has created a Bernanke put called QE (which allows him to counterfeit our digital dollar via his own authority and in amounts that he thinks are appropriate). Where did he obtain this Authority? Did our Congress give him this Authority? Did our Congress (responsible under our Constitution for all money matters) create new legislation which allows Ben this right to ‘counterfeit’ our Dollar via his QE programs? Who gives Ben and his FOMC (Federal Open Market Committee) the Authority to ‘counterfeit’ (via the trillions) our American Dollar?
It appears that Ben and his FOMC members have assumed this Authority under what we call the Federal Reserve Act of 1913. This corrupt Act (passed some 100 years ago) is allowing him to CREATE trillions of $ (now mere digits in the computer screen). Ben has become our Monetary Dictator since the crash of 2008 and he now CREATES via the digital computer (digits… which he calls Dollars). He then uses the electronic computer to distribute these digits to his Dealer friends (Banks, etc.) for some of their ASSETS. Currently Ben is creating some $85 billion/month of QE digits. So what does this mean?
This means that Ben and his FOMC friends (only some 12 voting individuals…who mostly vote for Ben’s ideas) can create trillions of these digits (called Dollars) for manipulation of the financial markets. Ben can manipulate interest rates, prices levels, asset values, and economic activity (all via his own MIND or CONSCIOUSNESS). Ben, essentially, is the FED as he has promulgated and implemented all these QE programs (and lending facilities) that have kept the markets and the TBTF entities functioning (alive) since 2008. All this has happened as a result of what we call the FEDERAL RESERVE ACT of 1913 which appears to give this policymaker all this AUTHORITY. Do Americans understand any of this?
It appears that there are only a FEW patriots who really understand the corruption of our Fed and its Administrators. To understand what has happened to our Dollar and our monetary system we need to understand the operations of this entity that we call the Fed (and the Act which appears to give this entity all their Authority). I will conclude with a few websites and videos for those who might desire more information on all these issues. To summarize, our Dollar today is a ‘no thing’ unit (nothing). Our Dollar is created ex nihilo...out of nothing! We no longer have a physical unit as our Dollar! Our Fed Chairman and select policymakers within our Commercial Banks can now create ‘imaginary’ money from their THINKING. What a scam, sham, and deception…upon the uninformed American public. Now is the time to get yourself educated on all these issues so you can develop your own philosophy on these matters. I am: http://kingdomecon.wordpress.com.