Skip to content

Correction – ‘Money’ can NOT be created ‘Out of Nothing’!

January 16, 2014

Real ‘money’ has mass and is composed of matter. The Law of Conservation of Mass (matter) states that mass/matter can not be created or destroyed within our greater physical universe.  This means that real ‘money’ (say gold/silver) can not emerge ‘out of nothing’ (as our ‘dollar’ does). In other words, ‘nothing’ (pure thought) can not produce ‘something’ (a silver/gold coin) rather “Out of nothing comes nothing“. Let’s explore this principle further as it applies to MONEY.

These coins can not appear ‘Out of Nothing’ (mining and a mint are necessary). Bernanke’s QE dollar, however, can! QE $$$ derive from ‘Nothing’ and are ‘Nothing’! What a difference!

Historically, money emerges from a Barter environment. Goods are exchanged between parties (people) and the phantom issue of VALUE emerges. To satisfy human greed (keep in mind that we live under laws of private property), we need some physical item which can satisfy our phantom concept of VALUE in exchange. Eventually, some unique item emerges which traders and the general public desires as a proxy for VALUE. The most acceptable items, as proxies for value, have been the precious metals called Silver and Gold. These items BECAME money as they were viewed (within the marketplace) as most desirable for satisfying our phantom concept which we call VALUE.

As human beings we live within TWO realms of reality (often referred to as Dualism). The material/physical realm is what we observe within nature. The immaterial/metaphysical realm is what we think with (our minds/consciousness). These TWO realms produce what we call Capitalism and our economic models for creating WEALTH and PROSPERITY. Today, we live under an economic model which is called Keynesianism. This model for administering our wealth and prosperity has changed over time into mostly a metaphysical model (today). What do I mean?

Economics and Monetary history assume that we live within TWO realms of reality! Gold/Silver are physical (from nature) and our Dollar/Currency (is derived from consciousness)!

When our then President Nixon closed the gold window on August 15, 1971, he set in motion a divorce between real money and our currency. Prior to 1971, most people and traders viewed MONEY as units of gold. Our CURRENCY (called the dollar) was artificially tied to this physical commodity which we call gold. This made both money and currency acceptable for trading. The mathematical ratio was 35 dollars to 1 ounce of Au. This tie created the psychology that our money/currency was really physical/material and composed of mass/matter. Our math could be viewed as solid (logical) as 1 ounce of Au equal to 35 dollars represented a fixed relationship. After this divorce of our CURRENCY (the dollar) from physical MONEY (gold) we ended up with only a CURRENCY (gold became mass/matter in storage only).

The historic closing of the gold window changed our economic model to mathematical Keynesianism! President Nixon stated that ‘We are all Keynesians Now”! Where has this led? (1971 – 2014)?

Then in 1973, a new model of mathematical index numbers emerged which many called the Floating Currency Regime. This regime consisted of math and metaphysical numbers. What we need to understand is that math and numbers are units of CONSCIOUSNESS (not physical items from nature). We also need to understand that math and numbers are not the same as MASS/MATTER (derived from the Law of mass/matter). Cardinal numbers derive from our Consciousness which is non-physical and/or metaphysical. This means that all CURRENCIES which were (1971 and prior) tied to gold became merely units of CONSCIOUSNESS (after 1973). Another term for our Consciousness is ‘nothing’ (no thing) and/or ‘non-existent’! Note this major CHANGE which occurred in 1973 and after! Think about the details!

Our Dollar is now a Number (called an index currency). Pure math creates the weighted average which we call our index dollar! This emerged after the closing of the Gold Window! All global currencies are now mere Numbers! Numbers derive from our Consciousness (realm #2)!

Today, we have a Central Banker and many commercial Bankers (members of our Fed) who can/do CREATE currencies ‘Out of Nothing’! The reason for this change is that GOLD has become divorced from our currency system (nationally and globally). Our, so-called, Dollar is now merely a ‘mental abstraction’ or a unit of ‘consciousness’. Another name for this is NOTHING! This ‘mental abstraction’ has no LOCATION within our physical universe of matter/energy. This means that our dollar (currency) today emerges from NO WHERE and is LOCATED solely within one’s inner realm of reality called our MIND. Look all around you (right now). Where is this ‘mental abstraction’ called the Dollar? Can you LOCATE this unit within space/time?  I can’t!

Take the time to look at your COMPUTER screen (right now). What digits and images do you SEE? Are any of these digits and images physical (composed of matter/energy/mass)? All these digits derive from people’s consciousness and we call these digits and images INFORMATION.  Information comes from our metaphysical REALM of reality (one’s MIND). Gold and Silver come from our physical REALM of reality (NATURE). Gold and Silver can be CALLED real MONEY. That which emerges from the MIND of Ben Bernanke and all our commercial Banksters should be called phantom money or ‘phantom units of nothing’! These units are meaningless for preserving the model called Capitalism. These units also can not WORK as a proxy for the phantom concept which we call VALUE. So what does this all mean?

All the computer digits derive from bits/bytes (information). Pulses of photons (light) create the image! These digits rest within Cyberspace and we call them Virtual units. Our dollar is now merely a digit within Cyberspace (a virtual unit)!

What all this means is that we now live within a system of MINDS where matter/mass/energy have been transcended. We now live within our INNER world of metaphysical consciousness. This realm is much different from what many think of as the MATERIAL realm of matter/mass. This realm also transcends the logic of 2 + 2 = 4. Banksters can now create new units (numbers) from their thinking and create a ‘wealth effect’ which essentially makes 2 + 2 = 5 (or 3 + 3 = 7.5 and 4 + 4 = 10). An example would be ‘value’ appreciation or inflation. My house is made of matter/mass and is limited (as a physical object) to the math of 2 + 2 = 4. But banksters can create New Math (new numbers) so that the VALUE of my house can increase (decrease) while I sleep/dream. New numbers emerge from ‘nothing’ (their inner consciousness) and deceive the many who think that 2 + 2 = 4 (always). Imaginary ‘wealth’ emerges which has no matter/mass behind it! Is this a PHANTOM or what?

Our Central Bank has no Gold/Silver (physical money) yet Ben and Company can create imaginary $$$ (from their thinking) which then get ‘typed’ into the computer screen and called ‘dollars’! Is this Constitutional? Are ‘virtual’ units real? Would Ponzi scheme be a better word? Give this some thought! 

Today, computers execute algorithms which then determine PRICES of our goods. These PRICES are ‘manipulated’ via math and algorithmic logic (deceiving the many who think that 2 + 2 = 4…an absolute). Price changes today are not real or meaningful as the numbers are NOT tied to physical reality (matter/mass). Look at your on-line computer investment accounts (right now) for evidence. Notice the volatility and electronic changes (of prices) within milliseconds! MANIPULATION  is a reality today as the human MIND can now create unique relationships between our imaginary numbers (which we call our currencies) and the prices within the marketplace! These imaginary numbers can then create NEW MATH which deceives the logic of the old math. Numbers are no longer absolutes and relationships between numbers can be massaged and manipulated to distort PRICES in real-time (daily and continuously)! Is this Capitalism or What?

Algorithms represent programs within our computers which then influence Price Discovery in the marketplace! Algorithms are not human beings! Algorithms are software programs for a computer!

Yes, real MONEY (silver/gold) can not be created ‘Out of Nothing’ as I and others have implied in the past. The word, ‘money’, derives from a Barter environment and has ALWAYS been physical and part of NATURE. Today’s markets are mostly METAPHYSICAL and INNER. What a difference! Do you notice this difference as you trade, buy, sell, and speculate? Click your mouse (right now) and buy/sell in milliseconds…then notice what happens to your choices! Is this Capitalism or Ponzi imagination (trading phantom digits and images)? Enjoy and keep thinking about the principles of “Nothing comes from nothing” and “Something comes from something”! I am:

No comments yet

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: