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Psychological Money has Arrived on Planet Earth!

September 17, 2012

Today’s monetary system is ‘psychological’ and ‘virtual’. What a change from past history! What does this mean going forward?

Few people who I visit with seem to understand our monetary system or what is happening with our money today. When I discuss the actions of Ben Bernanke and the other Central Bankers with educated professionals, they all seem to respond with the comment:  I don’t understand any of this. Why is this happening? Educated professionals mostly still think that our money is backed by gold or at least solid material production (wealth). Few seem to realize that all the economic principles of the past are now changing at ‘warp’ speed. Let’s talk about our new money operations and the psychological foundation that has emerged!

Currently we have some 7 billion people on this planet that we call Earth. The purpose or objective of economics is to feed, cloth, shelter, transport, and maintain the health and prosperity of these 7 plus billion. All this is done by developing our natural resources, creating new material products, and expanding the economic pie for these people. Our goal is to improve the general welfare of everyone over time. One ‘tool’ that we use to increase our economic pie is MONEY. Capitalism and money have been the best alternatives for increasing the pie and growing our prosperity. Our global society is now much more prosperous than at any prior time in our history.

The ‘tool’ we call MONEY has worked unbelievably as a concept for accomplishing this prior growth and prosperity. But what is now happening is a global slowdown in our economic growth and also a situation where our accounting books are becoming impossible to balance. Basically, the mathematical logic that has allowed us to expand our economy and grow exponentially is now at a crossroads…and the ‘tool’ of money has changed and become mostly destructive for future growth and prosperity. What has happened?

The most significant change that has occurred in the past 40 plus years is the ‘nature’ of our money units. For all of recorded history (some 6000 years), money has been a material item or thing. Money starts out as a concept of the mind, then a word from our mind, and finally a material item or thing is chosen to serve as a ‘standard’ of value. Money emerges as a thing from nature that is perceived as having ‘value’ (in itself and for trading purposes). Some examples of prior items or things from nature that human beings have chosen for money include:  wheat, corn, oats, cotton, tobacco, wampum, sugar, beaver skins, deer skins, copper coins, silver coins, gold coins, and fiat paper notes. Notice that all these items from nature are MATERIAL items.

This concept of ‘material’ money continued throughout our American history from our founding in 1776 up until the closing of the gold window in 1971. Our Revolutionary War was mostly fought over money issues, price issues, and tax issues. The British desired our silver and gold and disliked all our paper certificates and notes. The demand for material (mostly commodity) money was what the British desired. Anyway, as time continued our founding  Fathers of money (Hamilton and Jefferson mostly) devised our money units as paper notes (backed by silver or gold) and then as coins minted from copper, silver, and gold. This became American money units (as outlined in our Constitution) and continued until the decisive and shocking decision of 1971.

The closing of the gold window on August 15, 1971, led to our current psychological money units that Ben Bernanke and others now ‘create’ out of nothing (their consciousness). With no backing for the money numbers that our Central Bank creates (including all the commercial banks), what emerged from this ‘closing’ was our math based monetary system.  What is math and numbers with NO backing to material reality (say silver or gold)? What emerged in 1973 and after was a math (numbers) based monetary system which was mostly psychological (1973-1998) and then became highly psychological (1998 to 2012) with the advent of digitization (our computer technology).

All our monetary operations are now mostly ‘mathematical’ logic, ‘cardinal numbers’, and psychological ‘names’ for our currencies. What we trade and exchange today are psychological numbers (philosophically we can call these Platonic ‘forms’) within an environment that we call VIRTUAL reality (the computer screen). Some 96% of all money transactions are now ‘virtual’ and within the computer screen. Credit cards are a type of  psychological money. Car loans are booked and recorded after psychological money is created. This also goes for home loans, commercial loans, and all the investment proxies that we use today. Money is now mostly NUMBERS, NAMES, and SYMBOLS within the computer screen…distributed electronically…at near the speed of light.

Psychological money and virtual reality allows trading and money exchanges to occur at the speed of light on a global basis. Economics and money has become global and trading and exchange is now done planet-wide. Central Bankers have now become the most important, powerful, and media savvy manipulators (of money) within the economic profession. Psychological money units (the dollar, euro, yen, pound, yuan, etc.) are created and distributed electronically to all parts of our planet (in realtime). Our currency markets are now 24/7 operations. What a change has occurred in just a few short years. We now have global electronic markets mostly in realtime!

What are the dangers associated with psychological money and globalization of finance and economics? The most significant danger for consumers and Americans…who desire personal freedom and autonomy…is the CENTRALIZATION of money creation, the select distribution of money to elite entities, and the economic favoritism which results from a Centralized and politicized system of money manipulation.
We can witness this with all the QE polices in recent years. We now have mostly ONE individual, within a Centralized Banking System, that creates our money units OUT OF NOTHING (his consciousness) and then distributes these money units to select elite entities (special money dealers, select commercial banks, and governmental entities which promote mostly socialized principles). Our Free Market Decentralized Economic System is disappearing rapidly!
 Conclusion:  Capitalism, free markets, material money, objective valuation of assets and collateral, have vanished from America and the Global Economy as a RESULT of our psychological/virtual MONEY! We now live in a Global Economic System which is administered by a Centralized Banking Cartel. Just a few elite administrators now determine our future. Psychological money can lead to mental enslavement and a form of economic MIND CONTROL (as money is the lifeblood of our survival as a species). A few elite bankers and their surrogates can determine who gets what and when!  Is this what Americans desire going forward?

We now need to become AWARE of what has happened to our money and we also need to become AWARE of the ‘nature’ of our money. PSYCHOLOGICAL money has no VALUE, is administered subjectively, creates financial bubbles and crashes, creates unsustainable DEBT and Deficits, and puts the average voting American at the MERCY of Centralized Unelected Elite Money Manipulators. Is this leading to a better world for our planet and our people?
Who understands what is now happening with our economy, money, and our non-System…still called Capitalism? Will the election of 2012 lead to meaningful change and progress? Personally, I have serious DOUBTS! Now is the TIME to get informed and then do your OWN thinking on these issues! Enjoy! I am:
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