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One’s ‘Worldview’ Influences Policymakers!

October 3, 2012

Our View of the concept called ‘Money’ is Determined Primarily by our View of Reality (our Worldview)!   Why?

My ‘worldview’ (a form of Dualism) reveals to me that ‘money’ is a human invention…and is not an objective item within nature which physically exists. I see ‘money’ as a concept of my Mind (a subjective idea) which then becomes a Word (to communicate) and then becomes (denotes) some item from nature to facilitate trade (example:  oil, silver, copper, gold, whiskey, etc.). I do not view ‘money’ as an objective item within nature (that is naturally money for everyone) and which we automatically choose for trading and exchange. In other words, ‘money’ originates within one’s Mind (consciousness) and then evolves into an item which becomes a ‘standard of value’ (within a marketplace) and then eventually ‘money’ becomes a tool for the valuation of goods/services.

 
 

History shows that many items from nature have been chosen by people to serve as a ‘money’ tool. The Native American Indians seemed to like wampum (a unique colored bead derived from clam shells) as their money item. This item apparently was chosen because of the Worldview and psychology of these people. When our American ancestors first settled in Tennessee (around 1785), during the Western expansion of America, deerskins where psychologically popular (as a ‘standard of value’) and soon became a form of ‘money’ for exchange in the marketplace within Tennessee, Kentucky, and Mississippi.

Other items that were often chosen as a ‘standard of value’ for exchange transactions were tobacco, cotton, rice, and sugar. Even home-made whiskey served as a ‘standard of value’ (money) for many colonial transactions. What this demonstrates is that ‘money’ evolves into a ‘standard of value’ within various locations (cultures and nations) and it then evolves further and becomes accepted psychologically by people within a given marketplace. Money initially derives from our Mind’s (consciousness) and then becomes a ‘tool’ for settling financial transactions between counter-parties. Basically, anything (notice the word ‘thing’) can become ‘money’ within a society and serve as a ‘standard of value’. The marketplace initially determines what becomes ‘money’.

 
 Never, within all of recorded history, however has a ‘non-thing’ become ‘money’ (until recently). Today, we use merely mental ‘symbols’, ‘numbers’, and ‘names’ as our units of money (for our accounting and pricing decisions). Who, however, understands the nature of our ‘money’ units today? Those who adopt a Worldview of materialism, probably view our ‘money’ units differently from me. I witness most Americans and most Economists as having adopted a Worldview of materialism as their core psychological view of reality. This Worldview ascribes (or labels) ‘symbols’, ‘numbers’, and ‘names’ as a type of ‘thing’ which exists. Most materialists would view (for example) our ‘dollar’ as a thing which exists. The symbol and number ($1.00) is also viewed as existing. But is our ‘dollar’ a thing which exists in spacetime…or is our ‘dollar’ merely a ‘mental abstraction’ (imaginary number)?

To understand the real ‘nature’ of our ‘dollar’ we need to think about how our historical ‘dollar’ was derived and established. After our Revolutionary War with Britain and after our Constitution was signed and accepted, there were two key Founders who established our money unit called the ‘dollar’. The primary philosopher and Founding Father of our ‘dollar’ was Thomas Jefferson. The secondary Founder and philosopher was Alexander Hamilton. These two individuals were primarily responsible for establishing our money units as our Nation started. How did our money units evolve?

These two policymakers convinced our first Congress that the name ‘dollar’ should be our currency unit and our basic measure of ‘value’. To establish this unit (initially just a ‘name’ from the mind of T.J. and A.H.) as our basic monetary unit, the question emerged as to WHAT our ‘dollar’ (a mere ‘name’) should DENOTE? How should the name ‘dollar’ be DEFINED…so that some meaning would emerge from the definition? Thomas Jefferson understood that our Colonial people generally viewed (psychologically) SILVER as the most desired item from nature for market value exchanges. He observed human behavior within the Colonial Marketplace and noticed that the Spanish Silver Dollar (also called the Piece of Eight) was especially popular (psychologically) with the people.

 
 

He then requested that this silver coin be assayed to determine how much pure silver it contained. After an assay, the result emerged. This coin contained precisely 371.25 grains of silver. What our Colonial people were accepting as their ‘standard of value’ for measuring other goods and services was this coin containing 371.25 grains of silver. He also noticed that ‘prices’ had been evolving within the marketplace based on the use of this coin (and similar coins). Prices (in dollar units) evolved from coin transactions within the marketplace. So what did these observations imply to Jefferson, Hamilton, and others? 

The implication was that money units needed to be viewed (psychologically) as a thing which could measure value in the marketplace. The name ‘dollar’ was chosen from the Minds of Thomas Jefferson and Alexander Hamilton as our basic psychological concept or money unit after these observations. This ‘name’ was then DEFINED precisely in terms of a MATERIAL/physical item from nature (silver) to give this ‘name’ meaning. Once the ‘name’ (dollar) was DEFINED precisely, it became a ‘standard of value’ and a ‘tool’ for measuring the ‘value’ of all other goods and services within the Colonial Marketplace. Notice the Dualism within the Worldview of Thomas Jefferson and Alexander Hamilton. The idea or concept of  money emerged from the MIND’S of these individuals and then this mental idea (our dollar) evolved into a unit of currency (money) and a MEASURE of VALUE…after being precisely DEFINED (in terms of the metal called ‘silver’).

This history and Worldview of our money unit (the dollar) remained basically consistent (with some minor variations) from our founding until the complete divorce of our dollar from a material thing (gold) in 1971. Basically, from the passage of the Coinage Act of 1792 (by our Congress) until the closing of the gold window on August 15, 1971 (by our then President Nixon)…our money unit (the dollar) was DEFINED…and DENOTED some material item from nature. The original definition of our ‘dollar’ was 371.25 grains of silver (1792) and this gradually changed over the years and ended up as 13.71 grains of gold (1971).

 
 The philosophy of Dualism was evident as we review our history of American money. The idea or concept of money originated within the MIND’S of T.J. and A.H. and then the ‘name’ dollar was chosen (merely a mental symbol initially) which then was ‘defined’ precisely in terms of a material item (silver was chosen). This logic and math then led to our ‘dollar’ becoming a ‘standard of value’ for the measurement (of the value) of other goods and services…which our economy produced and exchanged in the greater marketplace and globally. Money was viewed as physical, real, objective, and meaningful for short and long-term investment decisions. This American money system created relatively stable prices and also served as a long-term ‘store of value’ for the people and for commercial transactions.

The core FUNCTIONS of a money unit were viable in that our unit could be viewed (psychologically) as a ‘standard’, a ‘store’, and a ‘medium’. After the closing of the gold window in 1971, what emerged thereafter (1973) was a ‘floating’ mental symbol system. All currency units (globally) which had been psychologically tied to our ‘dollar’ (which was defined in terms of gold) changed dramatically. Currencies (dollar, pound, yen, ruble, etc.) became paper notes initially…created arbitrarily by the commercial banks…and then our money unit evolved into today’s digital (imaginary/virtual) currencies. All this change emerged AFTER the closing of the ‘gold window’ by Richard Milhous Nixon in 1971. Notice the change which has occurred in the ‘nature’ of our money units since 1971! We started with material/physical money units (coins and paper notes) and we now have ‘virtual’ money units (created by fiat ‘out of nothing’).

So today, we no longer have MATERIAL money units (psychologically based on silver or gold). Today we have a NON-MATERIAL (mental) money units based on NOTHING (mere imagination). What happens today is that our ‘dollar’ is CREATED mostly by BERNANKE and COMPANY via QE operations and by select commercial banks (also ‘out of nothing’ via a math based formula). Essentially, our ‘dollar’ today is a ‘mental abstraction’…also called a ‘unit of consciousness’. Dollars are now ‘virtual’ units within our computer screens that Bernanke and Company CREATE ‘out of nothing’. Where does Ben and Company obtain their ‘money units’ today? From what source did Ben derive his $trillions of units for the QE1, QE2, and QE3 operations?

The key word to think about today is CONSCIOUSNESS. Money is ‘created’ (psychologically) within the mind of key policymakers (say Bernanke, Draghi, King, etc.) and then ‘typed’ into a high-speed COMPUTER as numbers (called dollars, euros, pounds, etc.). By ‘typing’ in numbers into a COMPUTER at the New York Federal Reserve Bank, Bernanke and Company can INCREASE their System Open Market Account (SOMA) artificially…and then call these new number creations official LEGAL TENDER (dollars). This appears (to me) to be ‘official counterfeiting’. Notice that our ‘dollar’ today is mostly NON-MATERIAL (a unit of Ben Bernanke’s consciousness).

 
 Does this process, psychology, worldview, operation…sound American or Constitutional to you? It sure doesn’t sound or appear logical or Constitutional to me! This entire operation seems fantastical and deceptively imaginary to me (given my Worldview and Philosophy).  How can money units created ‘out of thin air’ be viewed as official legal tender, a standard of value, a store of value, and a viable tool for determining stable prices within our now global marketplace. How is this possible? We now use high-speed computers to distribute all these digital money units…near the speed of light from party to counter-party. Have you noticed the extreme volatility and subjectivity which now affects all our markets?

Our entire monetary SYSTEM has become mostly imaginary and subjective (psychologically). This non-System which evolved from the closing of the gold window in 1971 is now mostly psychological…and with NO material foundation. Can it work much longer? I don’t think so! Psychological money (now globally) may appear logical to some with a Materialistic Worldview, but to me it appears mostly a FANTASY…with an IMAGINARY foundation built upon nothing but numbers, names, and mental symbols. Notice all the ‘index’ concepts and ‘indicies’ which make-up our investment options today. This non-System is likely to implode in the not too distant future. Get ready for some real volatility and subjectivity going forward in 2013. Enjoy! I AM:   https://kingdomecon.wordpress.com.

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