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The ‘Nature of Money’ is the ‘Achilles Heel’ of today’s Economists!

May 6, 2012

Today’s Economists seem unable to discern the reality of ‘numbers’, ‘symbols’, and ‘word names’ from material objects!

After listening to economists such as Lawrence Summers, Paul Krugman, Ben Bernanke, Tim Geithner, William Dudley, and Alan Greenspan…I have concluded that these persons lack an understanding of the reality of Dualism. Austrian economists seem to have a much better understanding of the nature of MONEY and the dualistic nature of reality. Let’s start with some basics to understand reality and Dualism:

1. As human beings we experience TWO realms or reality (mind and matter) when we buy, sell, shop, barter, exchange, invest, and value real wealth. Real wealth includes physical items derived from our ‘natural resources’ (oil, gas, iron, coal, wheat, corn, lumber, etc.) and then made into goods and things which we all exchange for money.  Examples of real wealth are items such as these:

 2. The second realm of reality is our inner self or consciousness. We all derive our words, names, symbols, and numbers (math) from this inner realm of reality. Most of us recognize our brain as a physical organ but many seem unaware of their MIND or inner being. To understand Dualism, economics, and money we need to recognize that we all experience TWO realms of reality. The key philosophers who recognized our Dual Nature were Socrates, Plato, Augustine, and Descartes. Economics and money are based on understanding this Dual Nature of Reality. This image reveals that our monetary ‘symbol’ ($) is not a material or physical item but really a derivation from our MIND (inner self):
3.  To understand the NATURE of ‘money’ and also why our current monetary system is illusionary and subject to collapse…we need to understand the Dual ‘nature’ of reality and then differentiate between these TWO realms. Economist’s such as Summers, Greenspan, Krugman, Bernanke, Geithner, and Dudley seem ‘unaware’ that our MONEY UNIT today is derived from ‘mind’…not ‘matter’. What Ben Bernanke is doing today is creating ‘money units’…out of nothing (his mind). Since we now have a digital monetary unit (globally) with units distributed, transferred, and exchanged via high-speed computers, Ben now can just ‘type’ new ‘numbers into the official master computer at the NY Fed and these new ‘numbers’ (derived from his inner thinking) become NEW MONEY.

 In conclusion, today’s economists and central bankers have created a monetary unit that is imaginary and illusionary. Digital units are not representative of real money. Capitalism is based on materialism and on physical money units. Austrian economists seem to understand that ‘money’ must be viewed as some thing with intrinsic ‘value’ (say silver or gold). Keynesian economists, however, have adopted mere mental ‘numbers’ and ‘symbols’ (math) as our money units. To understand the history of money and value, we need to differentiate between ‘mind’ and ‘matter’…the two realms of reality.
It would be beneficial if the above mentioned economists (Bernanke, et al) would go back to the philosophy of our Founding Father of the American ‘dollar’…Thomas Jefferson. Jefferson understood that our ‘dollar’ needed bo be more than a ‘name’ and a ‘number’. He defined our ‘dollar’ as 371.25 grains of pure silver and then helped to start a government mint which then minted coins based on this definition. The Coinage Act of 1792 was the foundation of our American money system and this philosophy was foundational to a sound money policy.
To understand the ‘nature’ of money we need to rethink our history of money. As the current system collapses from unsustainable debt and deficits, first principles become essential for understanding monetary reality. The Achilles Heel of today’s economists and financial pundits is their lack of understanding the philosophy of Dualism. Dualism is what we all use as we buy, sell, value, and exchange financial products in the marketplace. That’s my missive for today!
Definition of Dualism:  Dualism contrasts with monism, which is the theory that there is only one fundamental kind, category of thing or principle; and, rather less commonly, with pluralism, which is the view that there are many kinds or categories. In the philosophy of mind, dualism is the theory that the mental and the physical—or mind and body or mind and brain—are, in some sense, radically different kinds of thing.
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