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QE Money ($$$) – Where does ‘Ben’ obtain (get) these From???

April 7, 2013

Where does Ben Bernanke get all his QE ($$$) from…that he uses (used) for his loan facilities and asset purchases since 2008?  Ben and Company (our Fed) has created and/or purchased/lent some $18 – 20 trillion of $$$ since the Financial Crisis of 2008. According to Bloomberg News, Ben and Company created loan facilities and similar to the tune of some $16 trillion after the 2008 Crash. Ben and Company created three new legal entities called Maiden Lane I, II, and III (to purchase mostly real estate assets). Ben and Company also increased the Fed’s Balance Sheet, the System Open Market Account (SOMA) by some $2.2 trillion. This account is continuing to grow (currently) by some $85 billion per month. Let’s think about the question: WHERE DOES ‘BEN’ GET ALL THESE $$$ FROM? What is the SOURCE of his ‘money factory’? Does he call up the Bureau of Engraving and Printing (14th St. SW, Washington D.C., 202-874-2330) and then talk to the Director, Larry R. Felix? Does Mr. Felix supply him with his QE ($$$)? Where do QE ($$$) derive from? Let’s explore!

The mystery of Ben’s ‘money factory’ is very interesting and revealing once you understand the concepts of money and the evolution of our ‘dollar’. Our $ originated mostly with the thinking and philosophy of our Founding Father, Thomas Jefferson. T.J. wanted Americans to have their own currency as the prior British monetary regime (with their pence, shillings, and pounds) had been defeated during our Revolutionary War from 1776 to 1783. So in 1785 the concept of a basic monetary unit called the ‘dollar’ emerged from our Continental Congress. Later this concept and name was codified in the legislation called the Coinage Act of 1792. This Act led to the creation of our Philadelphia Mint and new minted coins (mostly of silver but also gold). This created what we think of as our ‘dollar’… a silver coin (containing some 371.25 grains of pure Ag). Mentally, we had a ‘name’ for our currency unit (called ‘dollar’). We also could hold this silver $ in our HAND (it was not a virtual unit as today).

Personally, I am old enough to remember the one ounce silver Eagle and its use as a currency unit during my youth. I did use this coin for purchases of goods and services during my early days in Minnesota (1950 into the 1960’s). Today, this coin is mostly a collector’s item and/or a ‘store of value’ for many who have lost confidence in our current corrupt banking regime. So let’s get back to the question at hand:  Where Does Ben Bernanke Get his Dollars ($$$) From Today? Does he call up the Philadelphia Mint for silver coins? NO!  Does he call up the BEP and request that paper notes be ‘printed’? NO! Does he exchange some Gold which he has stored in the lower level of the New York Federal Reserve Bank for $?  NO! Where does he obtain his $$$? Is there some SOURCE within our Space/Time Universe which supplies Ben with his $$$?

What we need to understand is that Ben (today) does not NEED to ‘get’ or ‘obtain’ $$$ from anybody! Ben can now just CREATE $$$ from his MIND. How is this possible? First of all, we need to recognize that $$$ today are NOTHING and NO WHERE (within our Space/Time Universe)! $$$ are now mere SYMBOLS, NUMBERS, and a NAME ($) (1.00) (dollar) which DERIVE from the MIND of BEN BERNANKE (our FED CHAIRMAN). This same process is manifested within many other Commercial Banks which lend $ to the public). Our monetary System today is a ‘fractional reserve system’…most correctly viewed IMO as a ‘fictional reserve system’. $$$ can be created by Ben and System Banks…Out of Nothing (one’s MIND). Often called…Out of Thin Air…by Patriot’s like Ron Paul!

Some call our $$$ a ‘mental abstraction’. Ben, given today’s $$$, can THINK up numbers in his ‘head’ (QE $$$) and then choose to actualize his mindset by sending a DIRECTIVE to his associate at the NEW YORK FEDERAL RESERVE BANK, 33 Liberty Street, N.Y. His associate, Mr. William C. Dudley, CEO of the N.Y. Fed and Permanent member of the powerful committee called the FOMC (Federal Open Market Committee) also acts as Ultra-Manager of the Computer Trading Desk which has access to the Fed’s SOMA banking ACCOUNT. Bill can actualize $$$ into this ACCOUNT merely by a click his computer mouse and/or by pressing select computer keys. This process actualizes new $$$ into the SOMA account (now a virtual account within the computer screen) and then actualizes new ‘excess reserves’ $$$ into the ACCOUNTS  (all virtual accounts) which the FED has with its DEALER BANKS.

Our ‘fractional reserve rules’ then ALLOW these Dealer Banks to further actualize additional $$$ for additional new purchases and/or loans (multiple trillions of $$$ are possible) via the ‘money multiplier’ rules which the Federal Reserve controls and monitors. Excess Reserves can result in NEW loans to the public and/or be used for immediate investment in government securities or similar virtual assets. Personally, I call these money operations ‘fictional reserve’ multiplications as many loans can be actualized with NO real reserve requirement (nothing or zero). What a great operation we have in the United States of America today. Essentially, $$$ are created from the THINKING process (internal to mostly select elite policymakers) and then ACTUALIZED as virtual ‘DIGITS’ within the computer screens of our complex NETWORK of electronic machines.

Let’s briefly summarize how Ben and the Federal Reserve Banking System operates in today’s Casino Economy:

1. Ben can now create QE ($$$) from his THINKING MIND (also called his Consciousness). $$$ have evolved from a real ‘thing’ when our Country started (a silver coin) to merely symbols, numbers, and currency names today. These $, 1.00, dollars are ‘creatures’ of one’s MIND (not the Brain). Ben and his FOMC Committee, which operates mostly in ‘secret’ for its real-time decisions, just THINKS up numbers (mental abstractions which the media and public call QE) and then actualizes this THINKING via a Trading Desk and Computer process at the New York Federal Reserve Bank. What a ‘shell game’ this represents!

2. The Fed and its secret operations still view these $$$ as legal tender dollars (even though these $$$ are fictions of the Mind) and do not EXIST within our Space/Time Universe. Personally, I call these $$$…’money from Heaven’! You can verify this ‘fiction’ by attempting to FIND one of Ben’s $$$ yourself. Can you FIND a ‘no thing’ unit that has NO location within Space/Time? I can’t! Can you FIND any $ symbol, number, or name within your own physical location (right now)? I can’t!

3.  What has emerged since our Founding Dollar (a silver coin) via the philosophy and thinking of mostly Thomas Jefferson is a ‘fictional’ $ which is impossible to locate and/or identify within our Space/Time Universe. We now have many new Copycat policymaker’s at various Central Banks on this planet who desire to follow the lead of Ben Bernanke, our Fed Chairman, into the new realm of MetaPhysics (the consciousness) to actualize new currencies for the marketplace. We have H. Kuroda of Japan creating ‘Y’ out of his thinking Mind. We have M. King or England creating ‘P’ our of his thinking Mind. We have M. Draghi of the Eurozone creating ‘E’ out of his thinking Mind. This process and monetary operation is most likely to continue with a number of new policymakers who now desire to Copy this mindset which Ben Bernanke of the U.S.A originated (China, Russia, Brazil, Australia, Sweden, Kenya, Iran, etc., etc.).

In conclusion, where is all this ‘money from HEAVEN’ leading the world? If you understand all of the above, I think you will discern that this is NOT leading to real growth and prosperity for this planet. Creating ‘money’ from the internal MINDSET of select elite policymakers and then actualizing these units via the Electronic Computer is not a SOUND economic process. This type of operation leads to monetary distortions that then lead to a huge LOSS of CONFIDENCE in the entire financial SYSTEM. Since our financial SYSTEM is now a global (inter-connected) SYSTEM this means an eventual loss of confidence from all market participants. We could witness the beginning of a major stock market CRASH and/or COLLAPSE sometime in 2013. As traders, investors, lenders, and the public become AWARE of our ‘fictional’ monetary non-system, the scramble for something tangible and real is likely to emerge.

Historical money under Capitalism has been SILVER and GOLD (coins, bars, and similar). Any investor in their ‘right’ Mind will likely scramble for this Historical money as the current non-system begins its descent into oblivion. Alternatives, like Bitcoin (a computer screen currency) may attract others. Real tangible ‘things’ that exist within Space/Time may also be acquired as additional ‘stores of value’. Keep in mind that all currencies (money) are merely proxies for VALUE. Value is a subjective concept of one’s Mind so each person needs to decide what will work during the COMING monetary tribulation. Items that can be exchanged in your local area may be useful.

As long as we have paper notes as ‘legal tender’ , these physical items may also be useful. Eventually, however, all paper legal tender items may be declared ‘illegal’ tender by the Governmental Authorities. We could be heading for the new WORLDWIDE digital currency for the entire planet (with a new name and a new administrating Authority). Watch the elite Authorities that ‘run’ the System as they are likely to create the new alternatives. Watch to see if these Authorities desire to CONTROL your options going forward. Bankers and Politicians now ‘run’ the planet! Enjoy and keep alert! I am:  https://kingdomecon.wordpress.com.

P.S. For a little humor that provides insight into the mindset of Americans watch this:

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