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DUALISM – key to understanding Money/Economics/Banking!

December 26, 2013

Let’s briefly review some ideas of philosophy so that we can better discern what is happening within today’s markets. The starting point for Capitalism is the environment of Barter. From this environment emerges the concept which we call VALUE. From the concept of VALUE emerges the idea of MONEY. When money is invented and agreed upon we desire to increase monetary transactions. From this desire CURRENCIES emerge. So let’s review the key concepts and discuss the philosophy of why DUALISM is so important to understand.

My Brain describes Realm #1 (the physical) whereas my Mind describes Realm #2 (the metaphysical)

When I teach my workshop on money/economics/banking, I start with the philosophy of Dualism. Dualism proposes that we all live within TWO realms of reality. These TWO realms are that which is OUTSIDE our consciousness and that which is INSIDE. Dualism is generally compared to the philosophy of MONISM. Monism proposes that we all live within ONE realm of reality. Most of science, philosophy, and religion in our Western World proposes this concept of MONISM. The vast majority of mankind, however, tend to act and believe differently. Human behavior within economics (globally) reveals that DUALISM is really how we all think and develop our understanding of reality!

Some examples of Dualism within economics/money/banking are the concepts of ‘value’ , ‘prices’, and ‘currency’. Think about your personal home/house. The house (generally) is constructed from lumber, bricks, mortar, wires, drywall, etc. All these physical materials are OUTSIDE my/your consciousness. An additional example could be a silver/minted coin (say the silver eagle). This coin is made of an element that we call silver (Ag). Silver is mined from the earth and then eventually minted into the coin which we witness. But where do the images and symbols ON this coin derive from? Also, where does the ‘value’ of my/your house derive from? Dualism proposes that the idea of ‘value’, ‘prices’, ‘currencies’, ‘images’, ‘symbols’, and ‘words’ derive from our CONSCIOUSNESS!

What DUALISM proposes is that we all LIVE within TWO realms of reality. Realm #1 is that which is OUTSIDE and OBSERVABLE and Realm #2 is that which is INSIDE and metaphysical. The two realms are totally different in substance and character. The ‘words’ that I am presently typing are an example of realm #2. All that derives from my/your consciousness are examples of realm #2. The economic concepts of value, money, currencies, prices are examples of concepts which derive from realm #2. Realm #1 consists of my/your physical house, auto, the stuff which we wear on our body, the stuff within our house and auto, etc. Physical stuff is outside our mind and, therefore, within realm #1 of our reality. That which derives from our MINDS, however, can be viewed as items or units which derive from realm #2.

The most important concept within Capitalism is the concept we call VALUE. Everything that we trade, exchange, and classify as a THING/GOOD can be given a VALUE. But what is VALUE in reality? Value derives from our INNER being and is SUBJECTIVE. Value emerges from Realm #2 (our consciousness). When I barter my eggs for your bread we entertain the concept that we call VALUE. If there is no money/currency within our marketplace, then we must subjectively derive an agreement (if the exchange or trade is to occur). As time progresses we gradually develop select items which have multiple uses from trade to trade. When most traders desire this select item the concept of MONEY emerges. Money then can serve as a PROXY (substitute) for VALUE. Money is objective, Value is subjective!

Money is a physical thing from NATURE. Money has limitations as it is usually scarce and must emerge from hard work and physical effort. Money is also very desirable subjectively (our emotions get attached to this physical item). The purpose of MONEY, however, is to serve as a tool for valuation of new goods coming to the market. If I produce a new widget from our natural resources, then I deserve (generally) some MONEY for this work effort. The MONEY that I receive depends upon how people within the marketplace VALUE my work effort and the GOOD which I have created. So MONEY serves a useful purpose within economics as it provides me with an incentive to work and create new WEALTH for our society.

To increase collective PROSPERITY (wealth), however, we need another item that relates to MONEY but is not money. This item/thing/unit is what we call a CURRENCY unit. Thomas Jefferson and our Congress chose the item called SILVER as our initial MONEY item. This was accomplished in the 1785-1792 time frame. The Coinage Act of 1792 was the legislation which emerged from our Congress. During this same time frame the concept of a CURRENCY unit emerged. For Americans this currency unit was called the DOLLAR. Our initial ‘dollar’ was merely a ‘NAME’ without a body. To give meaning to this NAME, Thomas Jefferson and our Congress agreed to DEFINE the ‘name’ in terms of the MONEY item chosen from the Colonial marketplace. This item was SILVER. But what would be the DEFINITION?

The ‘name’ DOLLAR was selected in 1785 prior to our Constitution and first Congress. Then in 1792 our Congress approved the Coinage Act of 1792 and this Act DEFINED our currency unit (the dollar). The definition chosen by Thomas Jefferson and our Congress was based upon the actual GRAINS of silver which were contained within the Spanish Milled Dollar (Piece of Eight) which our Colonial citizens most desired as MONEY with the marketplace. After an ASSAY of this silver coin, it was discovered that this coin contained precisely 371.25 grains of Ag (silver). This then became the reference point for our new American currency unit called the DOLLAR. So let’s review!

Money emerges within a Barter environment as a physical item from nature. Money represents VALUE (the subjective concept within our MINDS). Money then is a limited/desired/special item which has emotional appeal to the masses of people within a marketplace. Governments and politicians notice this emotional attachment and they desire to CONTROL its issuance and its meaning. Governments then start with some item like silver/gold which has strong emotional appeal to the people in the marketplace and expand its meaning with an official CURRENCY unit. Initially, the currency unit is tied to the MONEY item and also convertible into the MONEY item (to maintain CONFIDENCE).

Later, politicians and banksters notice that the people do not desire real MONEY for their exchanges and trades and accept a representative unit which is called a CURRENCY (say a paper note declared by government as legal tender). This currency unit gradually gets a divorce from the real physical MONEY item and circulates independently as MONEY (on faith). This gradually evolves into a less and less valuable unit as banksters and politicians notice what their subjects will accept (on faith). Today we have an imaginary currency unit (which we still call the DOLLAR) but which is now VIRTUAL and DIGITAL. This virtual/imaginary unit is really totally divorced from real MONEY and is now merely a unit of our CONSCIOUSNESS. What a change has occurred as a result of people’s misplaced ‘confidence’ in their governmental/political leaders. Banksters have taken advantage of this mindset of people (faith in government)!

Dualism is the philosophy which describes all the above situations and experiences. Dualism is foundational to economics/money/banking. To fully understand what is happening today, we need to think in dualistic terms. The realm of science generally desires to avoid and ignore the philosophy of dualism. The recent reduction of matter/energy into a unit called the Higgs Boson is an example of Monism and Scientific thinking. Just because the smallest unit of nature can be given the ‘name’ Higgs Boson, does not mean that this unit is fundamental to all REALITY. I would propose that this unit represents Realm #1 (the material realm) but not Realm #2 (the metaphysical realm of our consciousness)! Give this missive some reflection at your convenience. Dualism is my philosophy! I think it could become yours! I am: https://kingdomecon.wordpress.com

2 Comments leave one →
  1. April 26, 2014 10:55 pm

    The argument for a people-centered economy may be of interest:

    http://www.slideshare.net/JeffMowatt/principles-of-people-centeredeconomics

    Like

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