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Bernanke creates new $$$ ‘symbols’ for Distribution!

December 13, 2012

An additional $45 billion per month of ‘funny money’ from Bernanke and Company. Will this improve growth and prosperity GOING FORWARD?

Few seem to understand what Mr. Bernanke and his FOMC committee are doing to our economy and the world economic system. Today, ‘money’ is a $1.00 (symbol and number) which originates within the Consciousness of Ben Shalom Bernanke (his mind) and then flows to his Committee (the FOMC) for approval and then to the Computer Desk in New York (the trading Desk) for actualization into official legal tender units (digits or numbers in the computer screen). What a change from the old days where new money units were ‘printed’ on paper for distribution. Today, money is ‘created’ Out-of-Nothing (consciousness) and then funneled into the markets via the computer (at near the speed of light). Virtual reality and Cyber-space have replaced the ‘minting’ (of coins) and ‘paper’ (notes) which made-up our money supply prior to the computer age. Today, we have Smart-phone Apps which act like a debit card for the purchase of goods and services within our Western World. Money has become non-material and mostly invisible…but it still is working to a degree. But is this Capitalism? Are mental ‘symbols’ and ‘numbers’ really going to work for our future? Who understands what is now happening? My label for Bernanke’s behavior is: official counterfeiting of our monetary unit!

 
There are many financial pundits which will interpret this new creation of ‘funny money’ by Bernanke and Company as a harbinger of future INFLATION. But will this happen as a result of these QE operations of Bernanke? Personally, I don’t think so! The key to understanding this phenomena has to do with WHO gets these new ‘funny money’ units in their Computer Screen. What Bernanke and the Desk are doing is mostly purchasing government assets (now virtual assets) with these new $ (symbols). The $ (symbols) increase the checking account of the Fed (the SOMA) and then are transferred to select Dealer Banks for new government assets (assets which are now virtualized). The Dealer banks now have new $ (symbols) for their use. The new $ (symbols) mostly get held as ‘excess reserves’ and/or they get spent for new government assets issued by our Treasury via auction. This entire process is now virtual, within cyberspace, and within the computer screen. Do any of these new QE $ (symbols) get transferred to you and I for our spending? Maybe, indirectly, some of these $ (symbols) emerge as checks to Social Security recipients and to those on entitlements (like all the food stamp debit cards now in circulation). But, will all these new $ (symbols) create a huge increase in ‘prices’ within the marketplace? I don’t think so!
 

 
What appears to be happening in the marketplace is a slow down in the VELOCITY of money. This happens when the Commercial Banks refuse to lend all their ‘excess reserves’ to borrowers. Basically, the ‘leverage’ within our overall economy is insufficient to cause the ‘hyper-inflation’ that so many (financial pundits) are predicting. Bernanke’s QE operations are increasing the money flows in the overall economy to an extend, but these new creations are not currently causing any significant inflation in overall prices (prices of all goods and services within the economy).  Bernanke’s QE operations do cause price ‘distortions’, however, and these ‘distortions’ can manifest as price ‘increases’ within select items (say oil, gas, silver, gold, wheat, corn, auto’s, etc.). The ‘overall’ basket of goods and services, however, is still mostly not inflating from his operations. Ben seems to be aware of this phenomena and this is why he and some of his Committee members continue these operations. But will Ben’s ‘funny money’ operations create growth and new prosperity for consumers? I don’t think so!
 

 
What Ben and his like-minded Boyz are doing is merely delaying the Day of Reckoning. When this Day finally arrives (and it’s not that far into our future) the problem will be impossible to solve. The Greatest Crisis in the World’s Financial History will be upon us. Ben seems unaware of the trend which he is encouraging. Rather than dealing with our structural financial problems now (as is generally the best process), Ben (now mostly our Dictator of Funny Money) is pursuing a course where we all ‘go over’ the CLIFF. The ‘cliff’ is right ahead of us and most seem unaware of the coming FALL. Why do so many of our elected representatives seem totally unaware of what Ben and his Committee are doing? Could it be that they are unwilling to accept the consequences for all their prior financial behavior? Take a look at this website for current approximations of our financial situation:  www.usdebtclock.org. Take the time to analyze these fluctuating ‘numbers’ and the trends that are emerging!
 

 
What most investors seem totally unaware of as of now are the changes which have occurred since the closing of the gold window in 1971. Our country started out with physical money (coins and paper notes) in 1792. Money was physical, material, and outside one’s mind. These units were also mostly collateralized via a foundation of silver and gold (the money was defined). All this ended on August 15, 1971, with the decision by our then President Nixon (and his advisors) to ‘close’ the international Gold Window (eliminating the option of exchanging paper notes for gold). This decision created the ‘index dollar’ in 1973 and the ‘floating’ exchange regime internationally. This led gradually to the virtualization of money in the 1980’s and the expansion of this virtualization in the 1990’s and today. Today, we have mostly a ‘virtual’ dollar and a ‘virtual’ currency exchange system globally. Globalization has led to this new age of virtual money, high-speed computer trading, and ‘funny money’ operations by our Central Banks (mostly called QE or Quantitative Easing).
 

We how have a Global Inter-connected Marketplace which has mostly virtualized all the prior paper assets (government bonds, consumer mortgages, personal checks, paper future contracts, and paper derivatives, etc.). All is becoming a system of ‘virtual’ trading and ‘virtual’ money distribution and exchange. HFT (high frequency trading) now makes up some 70% of all the trading volume. Our Stock and Bond markets are now mostly virtualized. Consumer banking accounts are now mostly virtualized. Trading, investing, saving, and currency exchanges are now done within a VIRTUAL environment (the computer screen). This missive of mine is virtual and written within the computer screen. My IRA and Savings Accounts are now virtual accounts. My Social Security check now arrives automatically from the U.S. Treasury’s computer in Washington D.C. to my Bank Account (in Arizona) as a virtual $ amount (symbol and numbers). What has happened to historical Capitalism and historical money? Who is AWARE that our money is now derived from CONSCIOUSNESS (mostly the MIND’s of Central Bankers). FUNNY MONEY is now our REALITY! Now may be a good time to buy some real physical GOLD and SILVER to bring some ‘fear’ into these bankers consciousness!
 

 Money creation from Consciousness (think and grow rich if you are favored) 
Bernanke (appointed but not elected by the American people)!
 
Final Questions to think about:  Why do we need MONEY going forward…IF we can create it OUT OF NOTHING (as $$$$$$$$)? Does ‘imaginary’ money really solve the goals and purposes for MONEY (under Capitalism)? What are the purposes of MONEY within a Capitalistic World? Who gets favored given our current Casino type system? Will our American economy grow and prosper with ‘imaginary’ money (symbols mostly created by ONE PERSON via a SECRET non-transparent process)? Why should mostly ONE person (unelected Ben Bernanke) have this degree of financial POWER over the American and the Global Marketplace? Who are these Central Bankers and why are they now the most POWERFUL and CONTROLLING group of bureaucrats on this PLANET? They regularly meet (according to a recent article in the WSJ) in private at the Bank for International Settlements (BIS) in Basel, Switzerland. Dining and drinking while they determine their next global (non-transparent) moves for the markets. Think about this non-System which many still call Capitalism. Do we have real Capitalism today??? Where is this leading??? Could the ‘Mark of the Beast’ be emerging???
 

 Place where the Powerful Central Bankers of this Planet meet to plan their next moves!

 First meeting of Central Bankers at Basel in 1930 (not much has changed into 2012)
 

 When ‘push comes to shove’ with our Debt problems, will the Dollar continue as the World’s Reserve Currency?

 
 A web of Commerical Banks now Rules (under the Direction of Central Banks who Control Policy)!
 New Alternatives are now needed:  I am, https://kingdomecon.wordpress.com.
 
 
 
 
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