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Seven (7) Economic Concepts to Internalize!

July 29, 2013

Our markets have changed dramatically these past few years. We now need to internalize some key concepts that are relevant for today’s markets. These concepts will help us to understand the core realities of economics and money as we experience these realities daily. Those who understand these concepts should have a distinct psychological advantage during the coming economic collapse period. Internalize these concepts now to achieve this distinct advantage. Let’s describe these important concepts of money, economics, and finance:

Concepts derive from our Consciousness and they Change over Successive Moments of Now! The below concepts are most relevant for understanding today’s markets!

1. The NOW:  The most important concept to internalize is the concept of NOW. All of our life experiences are lived in the NOW moment. There is no Yesterday (past) or Tomorrow (future) which we physically experience. We live our lives continually in the present moment or the NOW. There appears to be NO Escape from the NOW moment (when it comes to our moment by moment experiences). I awake in a Now moment. I experience all my daily duties (activities) in the Now moment. I end the day in the Now. And I sleep (and dream) in the Now moment. My life and yours (I summit) is lived as ‘successive moments of now’. A past memory is always derived in the Now moment. All future visualizations and expectations are derived in the Now moment. The NOW moment is the most important concept of reality…since this concept expresses how we live our lives (assuming that one is Conscious and Aware). Reality can be described as ‘successive moments of now’…within a reality called Consciousness! The Now is a near Absolute for living and experiencing life!

2. TIME:  There is no such ‘thing’ as time within our outer (material) world. Time is merely an imaginary concept of our mind which we use to create order and discipline for our lives. Time (the concept) was probably invented in historical Egypt (some 4500 years prior to Now) to create order for those in the farming community. The consistent and regular periods which we call the Day, Month, Year were derived from watching our Earth spin on its axis and revolve around our Sun. Seasons also revealed change as our Planet revolved around our Sun. All this motion eventually became documented under the concept that we call TIME. We now realize that our Sun and its solar system also revolves around our Galaxy (the Milky Way). So Motion of bodies in space are used to create what we call ‘time’, Time, however, is not part of Motion. Time is a metaphysical concept of our Mind. Time does NOT exist as an outer ‘thing’ or ‘object’.

Within economics we have adopted the concept called the ‘time value of money’. This concept discounts all future expectations (say cash flows) to the Present. We call this the Present Value of future cash flows (or the discounted value of future projections). This Keynesian concept is no longer a meaningful or valid concept IMO. In reality, we do not know anything about the Future (especially in today’s subjective/emotional world). This means that decision-making about the Future is really a NOW projection. And since reality changes continually each moment of Now, all these Future projections are mostly meaningless and pure distortions of reality. We should eliminate this concept (called the ‘time value of money’) from economics and finance as it serves NO useful function. Economic reality is a function of decisions within the Now Moment (always). There is NO ‘yesterday’ and/or ‘tomorrow’ (life is lived in the NOW).

3. REAL-TIME:   The concept of real-time emerged with the invention of our high-speed computers and instant messaging or communication. The world-wide web and our Global Internet has created this new concept that we call Real-Time. Today, we can send messages to all parts of our Planet in fractions of a second. I can call or send an email to friends in China/Europe/Africa, etc. in fractions of a second. I can now contact anyone on our Planet via the Internet and/or a mobile smart phone. The concept of real-time is similar to Now Time. We can invest our digital money units in real-time. We can purchase products from all parts of our Global Village in real-time. We can send signals to our global earth satellites for GPS locations in real-time. Our speed of light communications have created this new concept called Real-Time. We now need to think in terms of real-time and/or the Now Moment for all our decision-making and policy actions. Real-time is a concept for Now and for Successive Moments of Now!

4. VIRTUAL: This concept describes our money units today. We now live within a Digital monetary regime. Our money is derived from Consciousness and then it is Digitized within the Computer Screen. This means that all our digital money units are part of VIRTUAL Reality (an extension of the human mind). For the first time in recorded history our money has become Virtual/Digital/Imaginary. Those who have used the currency unit called Bitcoin understand that this currency is a Virtual currency. We now need to recognize that all our fiat global currencies have evolved into Virtual currencies. Our ‘dollar’ is now a Virtual currency. This unit is created by our Banking community (select administrators) and Virtualized within the Computer Screen. All our Debt is now a Virtual accounting reality. Social Security payments are nearly 100% virtual and circulated via direct digital distribution (computer to computer). The Computer Screen is now our access point for our money, our accounting books, our investments, our savings, and all our local, state, and national debt. We now need to understand this concept called Virtual Reality! Virtual Reality is not the same as Material/physical/observational Reality!

5. CONSCIOUSNESS:  Now that our currency units are virtual, we need to understand a new concept called ‘Consciousness’. Today, our currency unit (the dollar) is a metaphysical unit (also called a mental abstraction). This means that today’s digital dollar derives from Consciousness (the human Mind). Bankers who make a loan can create this loan via their Consciousness and their Computer Screen. What we call ‘money’ is really a unit of the Mind which gets digitized into the computer screen as numbers. Imaginary numbers get displayed within the computer screen as an asset (loan) and also a liability (digital dollars). All this is a process of the Banker’s Consciousness. As a borrower, I can access these loan proceeds once the digital account is set up within the computer screen. Another example of Consciousness at work is what we call QE or quantitative easing. Today, our Central Bank (mostly Ben Bernanke as of today) thinks up QE quantities (such as the current $85 billion/month) and then digitizes this quantity within his (the Fed’s) computer screen. Currency units (now digital dollars) emerge from the MIND of Bernanke via his QE operation.

6. IMAGINARY:  That which emerges from our Mind can be called ‘imaginary’ unless the ‘name’ or ‘word’ denotes something material or physical (say a metal coin or a paper note). For example: what is ‘value’ as an economic concept? Is my derivation of the ‘value’ of my/your house derived from my/your Mind? If so, then ‘value’ is an example of an ‘imaginary’ concept (as it does not denote a physical object outside one’s Mind). Even if I denominate my/your property’s value in terms of digital dollars, the monetary result is ‘imaginary’. This ‘value’ can increase (in dollar terms) if other interested buyers bid up the dollar result. The ‘value’ can decrease (in dollar terms) if buyers refuse to bid for a higher dollar number. This concept that we call ‘value’ is an example of an ‘imaginary’ concept with NO physical referent. Today, all asset and collateral ‘values’ are subjective, artificial, and imaginary. Few seem to understand this fact of economic reality. Value is a concept of our Consciousness which is subjective/emotional/imaginary!

7. DEBT:  The concept of ‘debt’ is one of the most relevant concepts within today’s global economy. Our Keynesian economic model has been built upon ‘debt’ and more ‘debt’. The entire concept of ‘debt’ started mostly in 1913 with the invention of the Federal Reserve Banking System. Our Fed created the concept of Government Debt as this financial institution requires that our Treasury exchange their Bills, Bonds, and Notes (Debt) for the Fed’s imaginary currency units (called the Federal Reserve Note…now a Digital unit). This process of exchange produced what we now call Government Debt. As of today, our Government has some $17 trillion of Debt (denominated in dollars and/or Federal Reserve Notes). This Debt is now denominated in Digital Dollars and resides within the Computer Screen of our Treasury.

All this Debt could be labeled as Imaginary Debt since digits within the computer screen are IMAGINARY units. Today, the entire Global Nation State System is wallowing in Digital Debt within various Computer Screens (some 200+ countries). None of this Debt can be fully repaid. At some point all this Government Debt must be restructured and liquidated via defaults and bankruptcies. The current situation in the State of Michigan (Detroit) is an example of Debt which can not be repaid! In addition to all the Government Debt that is unpayable, we have Local, State, and Private Debt (which is also mostly unpayable). Once our economy turns South (downward) all this Debt will become exposed as imaginary and unpayable. This is the final result of an Economic Model called Keynesianism. DEBT is a psychological concept of our Consciousness which eventually will need to vanish as people become AWARE of its nature and destiny.

The above 7 concepts are concepts which everyone needs to internalize now. These concepts describe today’s reality quite succinctly. Review these concepts and think about their relevance for today’s markets. All of these concepts seem to describe what is happening in today’s economic World. Enjoy! I am:

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