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Can our ‘Imaginary’ Money create meaningful Prosperity…going forward?

June 25, 2013

If we trace the history of our dollar from 1792 to 2013, we can discern the ‘imaginary’ nature of today’s monetary unit. Are you aware that the ‘name’ Dollar originally defined a specific weight of silver in 1792? Yes, our Dollar was a real ‘thing’ which was perceived to have intrinsic value and material substance. Our Dollar was viewed as a real ‘store’ of value for one’s savings and future protection of one’s wealth. It was Thomas Jefferson and the Coinage Act of 1792 which created our original Dollar. You can read about this history via a Google search of: The Coinage Act of 1792.

As our history evolved from 1792 to 2013, the ‘name’ Dollar acquired new meanings. The ‘name’ became a specific weight of gold in 1834 (de facto) and this continued until 1973 (with various changes in its definition). President Nixon closed the gold window in 1971 but our Congress continued with the fictional definition of our Dollar until 1973. Then in 1975 our new fiat Dollar (now just a ‘number’ and ‘name’) became a ‘no thing’ unit (nothing) as our Keynesians economic model developed within our centralized banking system. Americans were then allowed to own gold again in 1975 (after being restricted from owning this commodity during the 1934-1974 period). So what emerged after 1973? Why did our President Nixon claim on 8/15/71 that ‘we are all Keynesians now! What did this mean?

The Bretton Woods Agreement (with John Maynard Keynes as chief negotiator/economist) established our Dollar as 1/35 ounce of gold (this was for all foreign holders). After the collapse of this Agreement on August 15, 1971, our Dollar became a ‘no thing’ unit (just a mathematical number or unit). What is a ‘no thing’ unit but a unit of our ‘imagination’! Money became immaterial and intangible after 1975.

President Nixon closed the gold window which resulted in the creation of our ‘index math weighted dollar’ in 1973! What is a math weighted unit in reality? I would suggest that it is ‘imaginary’ (a unit of logic)!

In 1973, our Dollar became merely an ‘imaginary’ number with no tie to physical/material reality. The new floating currency regime emerged and our Dollar became a mathematical abstraction (defined as a weighted average of some six major currencies). This resulted in the Dollar Index and the realization of our Centralized Banking System that they could create new units of currency (without limit). Many call this new mathematical Dollar a fiat legal tender unit. In reality, however, what emerged after 1973 was an ‘imaginary’ unit which was viewed as a real thing (something which existed in space/time). Keynesians and Western science (who espoused a  Monistic view of reality) viewed ‘numbers’ as real things derived from one’s brain/mind. Afterall, are not real things (numbers) objective phenomena? Is this reality, however, or fantasy?

My 5th grade teacher had the same Dualistic view of reality as I. Numbers are units of imagination (tools of logic)! These units can solve problems, but the units do not exist within our space/time universe!

Since I hold a Dualistic view of reality, I would suggest that ‘numbers’ that we derive from my/your MIND are really ‘imaginary’ units. This means that all the global fiat currency units ($1.00, Y1.00, P1.00, etc.) are really ‘imaginary’ units. Personally, I learned this in 5th grade and I continue to hold this view. Numbers do not represent any object within our space/time universe. Numbers are derived…and my derivation comes from my MIND. I would suggest that our Founding Father, Thomas Jefferson, who originally defined our monetary unit as 371.25 grains of silver had this identical view. This is why T.J. wanted the ‘name’ dollar and the $1.00 (symbol/number) to be defined in terms of silver and for a silver coin to represent this ‘name’ that we call Dollar.

A ‘name’, ‘symbol’, or ‘number’, without some definition related to physical/observable reality is merely ‘imaginary’. Also, the American people in the Colonial marketplace viewed a silver coin as representative of a real ‘thing’ which existed in space/time. This made our silver dollar coin meaningful for valuing other items of production (wealth) which emerged from our natural resources. Keep in mind that the purpose of a currency unit (such as our dollar) is to serve as a tool for the valuation of other items of wealth! The subjective concept of ‘value’ is why we have money in circulation. Today, we call this ‘price discovery’!

When the ‘name’ dollar was defined as 371.25 grains of silver, then we had a Dollar with physical substance! Today our Dollar is merely a ‘number’, ‘name’, and ‘symbol’ (imaginary)! Note the difference. 

Keynesian economists, however, continued with the fiction that ‘numbers’ were units of logic and therefore real ‘things’ which exist (objectively). This made our ‘index dollar’ a real  ‘thing’ which existed and which had staying power over time. Those of us who viewed reality differently, however,  (i.e., those of us with a Dualistic philosophy of reality) recognized that mere ‘numbers’ are really units of Consciousness and thus ‘Imaginary’ (no thing units). This makes these units subject to disappearance from reality when a serious deflationary crisis emerges.

Deflation destroys ‘values’ and this means ‘prices’ also disappear with a prolonged value destruction (bankruptcies, liquidations, and digital contractions). Today, our entire Globe is operating with these ‘numbers’ as our currency units and we are now witnessing the nature of these units (digits within our computer screen). What are these units? Why can these units disappear during a serious deflation of values?

Can anyone hold a digit within their hand? We now experience a digital monetary system which we witness as an ‘image’ within the computer screen. Is this unit a viable unit for valuation of other assets (long-term)? I don’t think so! Today, most ‘values’ are distorted and subjective (due to Central Bank manipulations of our digital currency units).

I would suggest that we need to rethink the philosophy of Monism and Keynesianism (which espouses that numbers are real things/objective phenomena). We need to go back to our 5th grade thinking where our teachers taught us that ‘numbers’ are imaginary units derived from our mental thinking. If we think in these 5th grade terms, I think many of us will realize that our current digital currency units (created from the Mind’s of our Central Bankers…out of thin air) are really ‘no thing’ (nothing) units.

These units will totally disappear into ‘money heaven’ when a serious deflation in values occurs. We could now be reaching this point in our Keynesian Monetary History. Our money units are really an ‘illusion’ within our collective Consciousness. The entire Debt based Keynesian Model is mostly a mathematical ‘illusion’ and it will go down in history as a huge deception within our MINDS. That is my personal premise!

Today’s digital dollar emerges as an ‘image’ after it is created via the computer. Photon pulses of light which, travel at near the speed of light, create our digital dollar image. We now live within a Global Computerized Interconnected Financial System where digits represent our currency units (dollar, euro, pound, yen, etc.).

Bits and bytes emerge from our computers from the 1’s and 0’s and create the ‘images’ within our computer screen! Money is now an ‘imaginary’ digit (and image) created from the Consciousness of Bankers and distributed via our high-speed computers! Take a look at your computer screen now for evidence!

If my premise is correct, and my 5th grade teacher was correct, then we could be witnessing a complete disappearance of our ‘imaginary’ money units down our Deflationary Road (in the near future). Keynesians, like Ben Bernanke, may perceive this reality (subjectively) as he and his followers attempt to prevent any serious Deflation from occurring via their QE and similar policies. Deflation is anathema for Keynesians and their mathematical (fictional) model. The entire House of Debt (imaginary numbers recorded within a virtual accounting book) could come crashing down and settle within our collective metaphysical consciousness in the near future.

Why? Because it’s all ‘imaginary’! Much like Santa Claus and the Tooth Fairy, Keynesian math is nothing but ‘images’ within our MINDS and the computer screen. At some point this fantasy will be exposed for what it is! That is my conviction and contention. Prepare yourself for a complete collapse of our Global monetary non-system at some point down the road! It’s mostly built on sinking sand and imaginary images within our computer screen (an extension of our minds). Watch the imaginary numbers that display on your TV or Computer Screen as your watch the CNBC and WALL STREET ticker tape!

Money disappears during a serious deflationary collapse in values. Value and Prices are much like ‘beauty’…the eye of the beholder determines its meaning! Have you noticed how the ‘value’ of your real estate disappeared (2008-12)? When ‘values’ increase we call this the ‘wealth effect’…and when ‘values’ decrease we call this ‘destruction of wealth’. Deflation could be on our horizon going forward!

The recent ‘price’ plunge in gold and silver is an example of how ‘value’ disappears during a digital price contraction! The same weight of gold can decline from $1900/ounce to $1200/ounce in a matter of months! Where did the $700/ounce go? How about ‘money heaven’! This is ‘value’ destruction!

Today, we call all these imaginary images part of Virtual Reality. The images are stored in what we call Cyberspace. What is Virtual Reality and Cyberspace but an extension of our metaphysical minds. At some point, I am convinced that more students who return to their 5th grade thinking will discover this reality. Numbers are imaginary units and disappear with a serious VALUE DESTRUCTION or Deflation.

Money is a tool that serves to ‘value’ other items of production. But what is ‘value’? My Dualistic thinking says that ‘value’ is imaginary, psychological, subjective, and within our metaphysical minds. Value does not exist within our space/time universe nor is ‘value’ inherent in any object or good. Prices, today, act as our proxy for Value. Take the time to evaluate the philosophy above. Think like a 5th grader and discern these meanings! Enjoy! I am:

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