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Gold and Silver will always have ‘Value in Use’ !

October 8, 2012

Our ‘dollar’, however,  is psychological and may lose ALL its ‘value’ in the near future!

To understand our monetary system today we need to differentiate between ‘value in use’ and ‘psychological value’ (which is ephemeral and fleeting). Gold is a physical commodity which is mined from our earth and then converted to various uses. This means that gold will always have some ‘value in use’ (irrespective of its use as ‘money’). Our ‘dollar’, however, is a unit of consciousness and therefore it obtains its creditability and value from our emotions…and our confidence in the administrators of this unit as our ‘money’ (all this is ‘psychological’ in nature). To understand ‘money’ we need to recognize this important difference. We also need to recognize that ALL world currencies today are subjective units of consciousness (prior to being created as paper notes or digital units within the computer screen).

Our Global Economic System has quickly become a Virtual Machine where trading, investing, saving, and buy/sell transactions are done via a network of wired computers. The computerization of money and trade has made it possible for us to shop globally for many of our needs and wants. Globalization has arrived to our planet and this makes trade and the distribution of trade merely a decision within realtime. With the ‘click’ of a computer mouse we can execute our trades, select our goods and services, and pay all our bills. All this has arrived in just the past 15 years and mostly in the last 10 years. We have entered a new paradyme within economics and finance that is unique to all monetary history. This new situation will likely change our world in significant ways!

 
 The significant reality which has emerged as a result of all this new technology and its nature…is that we now live within TWO realms of reality. These TWO realms need to be understood and also need to be  differentiated (philosophically). The physical realm is where we meet all the material items like gold, silver, oil, food items, clothing items, shelter items, and transportation items. The second realm is our psychological realm where we meet non-physical concepts like our global currencies, our emotions, our fear and greed, our confidence level, and all our worldview beliefs and concepts. The second realm is the realm of our Consciousness or Mind. Most people within our marketplace (traders, investors, speculators, bankers, economists, and financial pundits) seem mostly Unaware of this second realm. Why this disconnect and why is this lack of awareness important?

This disconnect seems to have emerged subtly and deceptively mostly since the closing of the ‘gold window’ in 1971. Gradually and relentlessly, policymakers and political leaders have installed new technologies (hardware and software) which has created this TWO realm reality…within economics and finance. Our ‘money’ has become psychological in recent years (merely mathematical numbers within the computer screen) and all our historical ‘money’ items (copper, silver, gold, paper, etc.) have been replaced with ‘virtual’ (imaginary) concepts (which are psychological in their nature). Our currency (the dollar) has become a ‘virtual’ unit which is now created by fiat within our Central Banking System. Policymakers can now create these ‘virtual’ currencies simply by ‘typing’ numbers into a computer screen. These new ‘numbers’ become Legal Tender and our Official money. Numbers, Names, and Symbols (psychological units in their nature) have replaced all our historical money units (copper, silver, gold, and paper). Philosophically, this is Dualism…and reality is ‘dual’ (mind over matter)!

 
 The vast majority of Americans and most Global Citizens seem totally UNAWARE of this subtle change and its implications going forward. This evolutionary change in our money units has created our current Subjective (volatile) marketplace which we now witness nationally and globally. We now live within a Wired Marketplace where decisions are made with the ‘click’ of a computer mouse. Decisions can be made 24/7 in realtime for the most part. We can now invest 24/7 in realtime. We can now purchase goods and products 24/7 in realtime. We can do our banking and financial transactions 24/7 and in realtime. With the ‘click’ of a computer mouse all these events can be executed (at near the speed of light). Are all these changes good, bad, or neutral…going forward?

Most market participants seem to view this new high-speed alternative in a positive manner.  The new Social Networks (Facebook, Yahoo, Google, etc.) have grown exponentially and this reality has allowed people to connect with other people globally and in realtime. Our world today seems much smaller and more inter-connected as a result of these new transitions. I can now connect with people from all parts of our planet in realtime. I can communicate nationally and globally instantaneously. But…are there also some negatives connected with all these changes? Let’s identify a few potential negatives that could create dis-function within this new Wired Marketplace going forward.

Let’s focus on what could go wrong with our ‘virtual’ monetary system within the immediate future. Prior to the installation of ‘virtual’ money the emotional and psychological realm of reality was subdued and invisible for the most part. Today, however, this psychological realm is out-front and evident to all astute students of finance and economics. The problem with subjective/emotional money units are many, however. We now experience  excessive volatility within the markets, subjective pricing of all assets, subjective valuations, short-term investing and speculation (to minimize risk), and a host of risk aversion concepts to ameliorate potential risk and loss (derivatives). All these new concepts (CDS derivatives, et al) create more potential for chaos and collapse when the markets turn negative. All the $trillions within the derivative world are subject to collapse if the markets turn negative (some calculate this number as in the quadrillions).

The other major issue with today’s global markets, money transactions, and subjective policymakers are the Centralization which has occurred and which is growing as events turn more negative. Centralization is anathema to ‘free market decision-making’. Our history, under Capitalism, has been for decentralized decision-making (also called free markets and decentralized prices) with the market participants acting as agents for setting prices, values, and trends. This situation has been totally changed with the advent of Centralization. We now have a few select elite policymakers controlling and manipulating the markets for their goals and agenda. This is not real Capitalism and this non-System will gradually distort all the global markets and also the price structure within the markets. This leads to subjectivism, volatility, and mal-investment (a fatal flaw of Centralization and/or the elite Control of the markets).

So, in conclusion, I would suggest that our current Wired Markets may not work efficiently for much longer. The only political alternative that might work for a temporary period would be a ONE WORLD MONETARY SYSTEM with the elite in CONTROL…and with the elite Banksters monitoring the markets in realtime. This seems to be the trend now in motion. This Worldview is most likely going to be implemented and tried in the not too distant future. This Worldview, however, will lead to a form of Slavery for the masses and for all those with little influence and input. The elite Banksters and the elite Politicians will Control and Monitor the System to achieve their view of reality. Is this our FUTURE going forward?

Personally, I would not be interested in this type of Worldview or Global System. To change this coming event, however, will require a NEW mindset for all those who want personal freedoms and a decentralized approach to economics. We will need new leaders with a different VISION and a different Global Agenda. Kingdom Economics is based on a decentralized approach to economics and growth. The ‘individual’ would come first and reality would be focused on the NOW. Power would be decentralized and economic growth would flow from the people and their decisions. Now is the time to get yourself educated on all these philosophical issues. My suggestion is to get informed and become aware of what is now happening within the monetary and economic world…and then contribute your ideas to the many. Enjoy! I AM:   https://kingdomecon.wordpress.com.

P.S.   May 4- 5, 2013 (Saturday/Sunday), is a date to record and remember. The first Kingdom Economics Education Forum will be scheduled at the Ritz Carlton Hotel, Dove Mountain, Marana, AZ. 85658. Website:  www.ritzcarlton.com/DoveMountain.

 
 

Come and discuss our economic, philosophical, and monetary situation. Contact Kingdom Economics by sending an email to:  donaldswenson@me.com. Deadline:  February 24, 2013 (to register). Cost (of hotel facilities) will be covered by voluntary donations at the event. Registration is free (pay your own costs of transportation and hotel room). Purpose of Forum and Discussion is educational and to promote awareness of our global monetary/economic problems going forward! Abraham Lincoln said: education is the most important area for anyone to be engaged with. James Garfield said: neither freedom nor justice can be maintained without education.

 
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