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The Evolution of Money from a THING (e.g. silver) to a UNIT of ‘Consciousness’ (No THING)

March 24, 2012

New Money units now emerge from select Banking Authorities (human minds)…potentially leading to an Economic Dictatorship down the road!

The issue of what is ‘money’ is very important and few seem to understand what is happening today. Let’s review a few concepts to clear up the issue of ‘what is money today’. Historically, money emerged (as an idea) from the thinking of people in the marketplace. Money does not physically exist as a natural item in our material universe…rather, money is ‘invented’ by people to serve as a ‘tool’ for valuation (of goods and services). Our Constitution reveals that ‘money’ is supposed to be some THING (say gold or silver) which is used as a MEASURE of Value and a unit of Account. The key to understanding today’s ‘money’ is to assume a total collapse of our current monetary system (let’s say tomorrow). What emerges from this hypothetical collapse?

What emerges is a resort to barter and similar types of behavior when official ‘digital’ money units are not available. In the event of a bank holiday and a shut down of all the key central computers at the major banks and/or a  global stock market crash, there emerges a complete lack of money units for financial transactions, buying, selling, lending, and exchanging. This has happened many times on a small-scale when a gas station computer fails or when a bank computer fails to function for a given time period. The customers are left with no capability to obtain their ‘money units’ for transactions. This type of situation could happen on a major scale given the nature of our current ‘digital’ monetary economy. Digital money is different from our historical ‘money’ which was a THING (like silver coins or paper notes) which we possessed. Today, our ‘money units’ are mostly No Things (or nothing)!

Are you aware that some 96% of financial transactions are now done via the computer (especially in the Western World)? Take a peak at this website to observe our ‘money units’ on your screen: www.usdebtclock.org. Notice that our ‘money units’ are now digitized and displayed as mere ‘numbers’ or images. All these ‘numbers’ represent financial obligations yet these ‘numbers’ are mere imaginary units in cyberspace. Nobody has physical access to these ‘numbers’ in any traditional sense. These ‘numbers’ merely exist as images on our computer screens.  But where did these ‘numbers’ originate from? Who is the SOURCE of the creation of these ‘numbers’?

Let’s first define what we mean by CyberSpace:  Cyberspace describes the flow of digital data through the network of interconnected computers: it is at once not “real”, since one could not spatially locate it as a tangible object. Secondly, cyberspace is the site of computer-mediated communication (CMC), in which online relationships and alternative forms of online identity were enacted, raising important questions about the social psychology of internet use, the relationship between “online” and “offline” forms of life and interaction, and the relationship between the “real” and the virtual. You can Google this definition for more explanation.

Basically, cyberspace is a word which describes the words and images which we type or create with our computers and then send to others who have a computer. We might call cyberspace an ‘extension’ of our human mind. Our MIND is non-physical and Cyberspace is non-physical. If we turn off the power to our computer, we lose connection with the words, numbers, and images on our screen. Likewise, if we lose our consciousness, we lose our ability to communicate to one another. In todays monetary world we now transact financial exchanges mostly in cyberspace. Our ‘money units’ are now mostly (96%) imaginary units within our computer screens.

HFT computers and regular computers including many mobile devices now compose our monetary SYSTEM. The entire planet is now mostly ‘wired’ via a web of invisible electronic networks. A ‘flash crash’ can happen in milliseconds today. The entire stock market is now digitized and all our ‘legal tender’ money units are now mostly ‘numbers’ in cyberspace. What does this MEAN? Who is responsible for creating all these ‘money units’…now digits in our computer screens? Why is this type of monetary system subject to corruption and centralization? Why might this lead eventually to a One World Central Bank and a single digital monetary system (as is now being planned for 2015 in Europe)?

Are you aware that one key Central Banker was responsible for ‘creating’ (via the computer) some $16 trillion of new ‘money units’ in the last few years. How did this official policymaker accomplish this mathematical result? Did he ‘print’ up trillions of paper notes and drop these units from his helicopter? Did our Bureau of Engraving and Printing create new paper notes in this amount (what many experts call ‘printing’ new money)? What did Ben Shalom Bernanke do that resulted in some $16 trillion of new ‘money units’ (called dollars) mystically emerging into our global economy? Let’s review the ‘operational process’ now being used by our Central Bank and most Central Banks on this planet when it comes to new money creation!

The official entity that is responsible for our money creation or our monetary policy is called the Federal Open Market Committee. This committee of 12 policymakers (currently 10 serving) are officially responsible for our money creation policies. In practice, however, there are really TWO policymakers with ‘operational knowledge’  who basically CONTROL the money creation process…with their positions of Authority and inside knowledge. Who are these two individuals today? I would suggest that the TWO most powerful individuals on this planet when it comes to ‘money creation’ (new dollar flows into the marketplace) are Bill (William) C. Dudley, President of the New York Federal Reserve Bank, and Ben Shalom Bernanke, Chairman of the Federal Reserve Board. See this website for more details on these TWO individuals: www.federalreserve.gov/monetarypolicy/default.htm.

These TWO individuals operate independently from any transparent oversight of any of our elected officials. Nobody in our Congress or our President views what these two policymakers think and do in realtime. Ben and Bill can decide (mentally) to create a new QE program (money creation via digitization) tomorrow and then get sufficient votes via the FOMC to implement this idea. These two individuals are mostly responsible for ‘counterfeiting’ (I am using this word to mean creating new units without a simultaneous increase in real wealth or value) our money units (called dollars) and increasing or decreasing the ‘number’ of units within the overall monetary SYSTEM. Does this sound like wise and sound monetary policy for the longer term? Does manipulating money flows (now digits in our computer network) by mostly these TWO individuals sound like Constitutional behavior based on our Constitution? Keep in mind that we now create ‘trillions’ of money units…out of nothing!

What has emerged in recent years (as all financial transactions have been digitized) is a web of computer networks with key Central Bankers in control of the System. Bill Dudley is mostly unknown to most Americans, yet he has probably more influence over monetary issues than any person on this planet (when it comes to dollar policy). Bill received his current position in 2009 when Tim Geithner (who was previously President of the NY Fed) was promoted to our Treasury Secretary. Bill’s resume reads like a typical banker/economist who was promoted to his position because of his prior background at Goldman Sachs and JP Morgan Chase. See this writeup after Bill received his new position: http://thedailybell.com/2208/William-C-Dudley.html

In conclusion, money is the lifeblood of Capitalism and historically our ‘money units’ have always been some THING from nature (silver, gold, paper notes, etc.). Today, we have basically key Central Bankers and Finance Ministers creating (really counterfeiting) money units…out of their CONSCIOUSNESS (their thinking). Is this Capitalism? Is this sound money? Is this Constitutional? Does this type of money unit represent a ‘measure’ for value? Is this leading to growth and prosperity? I think we need to get educated on what is happening within the ‘shadow’ governmental halls of corruption. It is not a ‘pretty picture’. That’s my missive for today: https://kingdomecon.wordpress.com.

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