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The State of Global Capitalism in 2012

August 21, 2012

Wired Markets…Manipulated Prices…Fraudulent Money!

Globalization is no longer a choice; it is a fact of life. It is no longer reserved for giant multinationals. High-speed connectivity and free trade have brought the whole world closer together for businesses large and small. Raw materials can be sourced from the Far East or from Kansas, and a customer support call can be routed to Manila or to Oregon. Startups can now globalize at the speed of the Internet…all in realtime!

Most of our stock, bond, and currency trading is now a Global endeavor. Our high-speed computers can execute trades in the ‘blink’ of an eye (near the speed of light). Most of our markets are now ‘wired’, ‘electronic’, and ‘digital’. All this change appears positive on the surface…and it is positive in many respects. We now can purchase goods and services from many locations on our planet via the internet. Competition is now international allowing us consumers more choices and options. Communication is global and costs are declining every year. Our planet is now ‘wired’ for realtime events of all types.

The ‘digital’ age has arrived and this allows all this change to occur. Each individual can now access practically the same information as our leaders. News events, sports events, finance events, and political events are available for each of us to access and internalize. So what are the major problems or issues with this new change? Let’s review just a couple of issues. The first is our monetary and economic issue and the second is the new need for Global Governance given these new changes.

The major problem today is our Digital Money System. This system creates a ‘virtual’ market for trading and for all ‘pricing’ of products and assets. With the ‘click’ of a mouse button new digital money can be created by our
Central Banks. With the ‘click’ of a mouse button buy/sell transactions can be executed in realtime…and at near the speed of light. Our money has become ‘virtual’ and part of our cyberspace environment. Central Banks and most commercial banks can now create digital money ‘out of thin air’ or ‘out of nothing’. This creates an environment of potential Centralized control of all aspects of our markets and our lives. Is Centralized control compatible with free market Capitalism?

 Central Bankers now have the most CONTROL over our lives as these policymakers create the one item that everyone needs for economic survival…MONEY. The digital age has allowed for this Centralization and our math based system of finance has allowed our high-speed computers to manipulate all the markets and asset prices with ‘numbers’ and electronic ‘digits’. Who ever thought that mathematical Algorithms would evolve into a major system for setting ‘prices’ within our markets? Who ever thought that all our stock exchanges and futures markets would become machine driven markets with algorithms as data evaluators and pricing tools? What a change has occurred in just the past 15 years.

The most significant event which has created all this change in our markets is our ‘fraudulent’ money system. We now have ‘imaginary’ money…also called ‘digital money’…also called ‘fiat money’…also called ‘virtual money’. This type of money has no substance or materiality. Today, some 96% of all money transactions and global trading involves our ‘virtual’ monies (called currencies). All our debts and deficits are now denominated in virtual money units. Most consumers now use digital money units for all their money transactions, IRA accounts, savings accounts, and investment accounts. This new money system is easy and efficient but totally impractical for the longer term. Why?
Immaterial money does not fulfill any of the essential functions of money. Virtual units can not act as a Standard of Value or Store of Value as these units are ‘no thing’ units. Rene Descartes, if alive, would call these units ‘mind stuff”. The only function that these units fulfill is as a medium of exchange and a unit of account. These units are perfect for a computer driven system which uses 1’s and 0’s for calculations. Prices can be determined via these units; however, all prices can also be fraudulently manipulated by our high-speed computers and via our algorithmic trading strategies. Also, when a stock market crash occurs (a virtual financial crash) the entire System crashes into ‘nothingness’. Is this a viable System for our future? 
Check out all the financial manipulations now occurring on this planet. The major Western Central Banks are now using QE (quantitative easing)…a form of official counterfeiting…to manipulate asset prices. Does this represent the Capitalism of our founders? We now have Central Planning (mostly via secret meetings) to cause changes in the psychology of the markets. The Eurozone uses Central Planning. China uses Central Planning. And the United States of America uses Central Planning. How can this type of non-System be viewed as Capitalism? Money is created ‘out of nothing’ and select unelected policymakers manipulate the markets.


We now need to THINK in terms of creating a NEW ECONOMIC SYSTEM for our planet. The current non-System is destined to CRASH in the not too distant future. Virtual money simply can not work as legal tender in the longer term. In fact, virtual money units would not even qualify as ‘legal tender’ today if litigated in a court of law. Virtual money leads to Global Governance by the few elite who desire to RULE this planet. This type of ‘money’ leads to Centralized Control, Manipulated Prices, and Fraudulent Markets. We now need to THINK in terms of a NEW ECONOMIC SYSTEM. One alternative for starters is:

Watch this video for some additional ideas: This video describes the basic SYSTEMS which can be reconstructed to create a NEW WORLD ECONOMIC ORDER given our current ‘information age’. A new system with NO MONEY to manipulate mankind!
2 Comments leave one →
  1. August 22, 2012 10:33 pm

    nice blog… ain this nifty alert and stock mkt. also plays aimp role …keep sharing this..


    • August 23, 2012 1:40 pm

      Thanks for reading my blog. I checked your website and location. You appear to be in India. What a world we live in today. We can instantaneously communicate globally in realtime. Good luck with your investing. The markets could experience major volatility and a downward trend going forward. Watch and adjust.


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