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The Global Monetary System ‘operates’ on Deception! I will Explain!

May 12, 2013

Deception rules, NOT conspiracies as many suggest..when it comes to monetary matters. In fact, most of our World System (religion, economics, science, philosophy) operates via ‘deception’ (to some degree). The wise need to recognize this and seek clarity over deception. Few, however, seem to seek wisdom and clarity. For purposes of this missive, let’s focus on the deceptions within economics and money. After teaching and preaching on these issues for some 40+ years, I have discovered that I had to ‘overcome’ many deceptions prior to developing clarity in my teaching. So let’s focus on some obvious deceptions that most (many) hold within their consciousness on economic/monetary issues.

What is ‘money’? This was one of my first concepts (which I confronted) that was shrouded in deceptive jargon. I would talk to a Keynesian economist and he/she would assert that fiat paper (such as the Federal Reserve Note) is money because it works in the marketplace. I would talk to a gold bug economist and he/she would assert that ‘gold’ (say a one ounce coin composed of .999 fine gold) was money because of its unique qualities and history. I would talk to a historian about money and he/she would assert that anything could be money…as history shows that beads, cowrie shells, nails, iron, copper, lead, silver, gold, paper, digits, etc… all have been used as money for various periods of time.

Today, money has evolved into digits within the computer screen. Paper notes and metal coins are rapidly being replaced with bits and bytes (information flows) which we all follow on our TV and Computer screens. Numbers, names, and symbols have become our units of currency for this planet. These units are now created ‘out of nothing’…the consciousness of our Banksters. Banksters create our money units from their ‘mind’ and then input (via the computer keyboard) numbers that represent our currency units (dollars, pounds, yen, euros, krona, etc.).

Yet the vast majority of financial pundits and also most economists continue to deceive the public and the unknowing about their false (deceptive) concepts of ‘money’. Few seem to understand what is happening in our financial world. After teaching workshops on money, I have discovered that many don’t understand the concept of ‘money’ even after a thorough explanation and demonstrated examples from history. The wise, however, pick up on the imaginary nature of money quickly. So what is ‘money’ in reality?

Money is an ‘idea’! Money starts out as an ‘idea’ of one’s mind. The ‘name’ money then becomes some item from nature (such as cowrie shells, beads, copper, silver, gold, paper, digits, etc.) which people in the marketplace accept as a ‘unit’ of VALUE (for exchanges of goods and services). Money starts out as a ‘no thing’ (a unit of the mind) and then an item such as a cowrie shell is proposed as a unit of ‘value’ and a proxy which becomes ‘money’. If people in the marketplace have ‘faith’ and ‘confidence’ in the item proposed, then this item becomes (takes on the qualities of) what we name with the word…’money’.

Money units today are mostly imaginary units (digits within our computer screens). Few seem to grasp this evolutionary history of money. Talk to Ben Bernanke about ‘money’ and he will propose the following: “The U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost.Ben understands that ‘money’ is now a digit in the computer screen. Ben also understands that HE creates these digits via a directive to his computer desk manager at the New York Federal Reserve Bank. We call Ben’s money creation process…QE…(the short name for quantitative easing). Ron Paul refers to Ben’s operations as ‘money out of thin air’! I refer to Ben’s operations as ‘official counterfeiting’! You pick your choice of words to describe what is happening!

What is ‘value’? The concept of ‘value’ is one of the most misunderstood concepts within economics. Keynesian economists will assert that ‘value’ is objective (a number which objectively specifies a specific ‘value’). Many Keynesian will assert that ‘value’ can be ‘measured’ with a degree of certainty. Austrian economists, however, will assert that ‘value’ is subjective (a product of human thinking). If ‘value’ is subjective, than it is ‘inside’ one’s mind. Many gold bugs, which I have talked with, claim that ‘value’ is intrinsic within a gold coin. In other words, ‘value’ is objective and ‘outside’ one’s mind.

So what is ‘value’ in reality? Since I have been practicing valuation professionally for some 45 years, I will assert that ‘value’ is a concept of one’s subjective mindset. Take the ‘value’ of one’s house. Is ‘value’ inherent within the bricks and mortar? Is there one objective ‘value’ for my/your house (a certain number in dollars)? I don’t think so! History reveals that ‘value’ is a function of money units and bidding. An auction of a house reveals that people bid from zero to infinity on items that are presumed ‘valuable’. What is the ‘value’ of America’s Presidential White House? You pick a number. A class of pickers (experts or laymen) will create a ‘value’ from zero to infinity. This demonstrates that ‘value’ is subjective and ‘within’ one’s metaphysical consciousness (mind)!

What is a ‘thing’? In philosophy we use the word ‘thing’ to refer to an item, substance, or particle that ‘exists’. Our planet is a ‘thing’. A tree is a ‘thing’. A one ounce silver coin is a ‘thing’. A fiat paper note is a ‘thing’. But is our current ‘dollar’ a ‘thing’? Does our current currency unit (the dollar) ‘exist’ in spacetime? Does Ben Bernanke create ‘things’ when he creates his QE via the computer screen? Many would assume and assert that our ‘dollar’ is a ‘thing’ (which exists). Is this reality or illusion? What do you think?

I will assert that our current symbolic dollar ($1.00) is ‘no thing’.  I will assert that the ‘name’ dollar is also not a ‘thing’. Finally, I will assert that the ‘number’ which follows the symbol $ (1.00) is not a ‘thing’. In other words, symbols, names, and numbers are NOT ‘things’. These units of our consciousness are ‘no things’. Why? Because our ‘consciousness’ is a ‘no thing’ concept. When I create numbers from my ‘consciousness’ (also called my ‘mind’) I am deriving these numbers from my ‘no thing’ consciousness. In other words, ‘names’, ‘numbers’, and ‘symbols’ are MENTAL abstractions which are then used as a system for mathematical LOGIC. Math and numbers are ‘inside’ our consciousness, therefore…’no things’ (nothing).

This means that we create our money today from NOTHING (no thing). Ron Paul calls this money creation ‘out of thin air’. I would call this money creation…ex nihilo (out of nothing). This makes our money units today ‘imaginary’. Who understands? If our money units are ‘no thing’ units and imaginary can they create an objective measurement of ‘value’? I would suggest that they can’t. This means that Capitalism is over and done…since Capitalism is based upon an objective concept of ‘value’. The foundation of Capitalism is some item from nature which we pick as ‘money’ and this item from nature needs to measure ‘value’. The purpose of ‘money’ is to measure, calculate, and/or derive objective ‘values’ for goods and services. If this can not be done, then Capitalism is over. Think about this! Money must be some ‘thing’ which can measure ‘value’!

History demonstrates that the only real item which most people perceive as having intrinsic value is GOLD (and silver to some similar degree). This is why GOLD has been the foundation of all historical money units (for some 5000 years) and also the FOUNDATION of our Capitalistic monetary system. Today, we have ‘no thing’ (imaginary units) as our money. Capitalism can not survive given this type of MONEY. WE have two choices going forward: NEW MONEY or NONE! Think about it! We either go back to GOLD coins as backing for paper/digital units (convertibility), or we must create a new model of economics which eliminates MONEY from our System? Today, we live in an ‘illusionary’ world of symbols, numbers, and names for our currency units. These units will disappear and vanish once we experience a real ‘value’ destruction…and it’s coming fast!

We witnessed some of this ‘value’ destruction after 2008 in the real estate sector. Homes declined some 30-50% in many areas of the Nation. This demonstrates that ‘value’ is subjective and can disappear during a monetary deflation and collapse. Ben Bernanke understands this and this may be why he wants to reflate our asset values via his imaginary QE operations. This leaves us with two choices going forward: NEW MONEY or NONE! Which do you desire? What do you want? After the coming deflationary collapse (which has already started), each of us must DECIDE! Can Ben’s QE gimmicks prevent this coming collapse of VALUES? I don’t think so! Think this through and then choose one of the options! Enjoy! I am:

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