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A Review of Today’s Economic Realities!

February 3, 2014

Our economic realities have dramatically changed in the past few years. We now live within a Global Economic System which generates wealth via an interconnected web of computers and speed of light transactions. This new reality (which is mostly within Cyberspace) is often called GLOBALIZATION. The entire profession of economics and finance is so different and unique from historical Capitalism that we need to review all the changes which have recently occurred. Let’s review the various concepts of economics and think about all these new emerging concepts. What do these new concepts mean for todays markets. Here goes!

We no longer have the Capitalism of Adam Smith. Today, our non-system is Centralized under the direction of select elites! We need to wake-up to some new realities going forward!

1. The core concept of Capitalism is the concept of ‘VALUE’. Every item of wealth (within our marketplace) is given a ‘value’ within our minds. But what is ‘value’? Historically, ‘value’ emerged from a barter marketplace as people traded their goods, commodities, and products. Since ‘value’ is subjective and internal (within our consciousness), we needed a proxy to serve as our physical representation of ‘value’. The proxy which emerged in America at our founding was Silver and also Gold. The ‘money’ that emerged from the marketplace (as a substitute for ‘value’) was firstly Silver. Keep in mind that ‘value’ is really a phantom concept (it does not exist). Silver, however, does exist. Think of Silver as the chosen proxy for ‘value’ (which is our phantom concept). Silver, in time, became viewed as containing ‘intrinsic’ value!

2. Another core concept of economics is ‘VALUATION’ of all things (goods and services) which are traded and exchanged. If ‘value’ is within our consciousness and Silver becomes our choice as the proxy, then we next need a ‘currency unit’ so that we can start the process of ‘valuation’ (measuring and/or calculating ‘value’). What emerged from our consciousness in 1785 and after was a ‘name’ and a ‘symbol’. We adopted the ‘name’ (dollar) and then the ‘symbol’ ($1.00) as our internal units and/or our currency. With these concepts (metaphysical in nature) we could start to measure and/or calculate ‘value’ for all exchanges and negotiations in our marketplace. This measurement and/or calculation appear objective to the average person as it was being done with a physical money unit!

3. We next need to focus on the ‘results’ (prices) which emerge in our marketplace. These results can be called ‘PRICES’. Prices derive from our consciousness and become meaningful when we have physical ‘money’ and a physical ‘currency’ unit. Money is our proxy for ‘value’ and a currency is our unit for measuring ‘value’ and deriving ‘prices’ for every item of wealth being exchanged and/or negotiated. If we choose Silver as our money and the name Dollar as our currency unit (and then imprint the word ‘dollar’ on a paper note), we have the ingredients for determining ‘prices’…which appear mostly objective to everyone. Prices should be viewed as a ‘result’ of calculating ‘value’. All this is an internal and subjective process, but it appears objective when we use physical money (say silver) and when our currency unit is defined in terms of the money commodity chosen.

4. We can think of historical Capitalism as a type of religion or belief system. The concepts which we adopt need to be believed (by the majority) so that they can function within our marketplace. Today, however, most of these first principles (beliefs) stated above have been rejected and destroyed. FDR and Nixon played a huge role in this destruction. This means that the original concepts are no longer viable concepts for our markets. These core concepts also are not being taught in our higher institutions of education today. What has emerged (mostly since 1971) as a result of abandoning these core first principles is a Hodge-podge of misleading and mostly meaningless concepts. Let’s think about today’s mostly meaningless concepts! Why is our entire form of Capitalism collapsing today? Why will a new System be needed soon!

TODAY’S Economic Concepts as Compared to the Above (let’s note the differences)!

Today’s non-system is all digital and ‘closed’ to the masses. It’s all within the computer screen and controlled by the elite administrators within our Central Banks!

1. The core concept of Capitalism (as stated above) is ‘value’. Today, this concept is mostly meaningless. What is ‘value’ today? Can anyone define ‘value’ and the concepts which emerge from ‘value’? What is the ‘value’ of a one ounce silver coin today? What is the ‘value’ of your house or car? Does ‘value’ have any objective meaning today? Originally, a one ounce silver coin was officially defined as one dollar ($1.00). The ‘value’ of the silver within the coin could be measured and/or calculated to be $1.00 (due to its definition). Today, however, we have a phantom currency unit (still called a ‘dollar’) which has no external existence within space/time and NO ‘value’. What does the ‘name’ (dollar) mean today? Can anyone actually measure ‘value’ today? Think about this! What is a ‘dollar’ which does not exist within space/time? What is an internal ‘dollar’ which derives solely from one’s consciousness? The QE operation of Bernanke and the Fed is an example of phantom currency creation (merely typing ‘numbers’ into the computer screen).

2. Today, we have NO physical ‘money’. Silver and gold are available for purchase within our markets, but all our official ‘money’ is now metaphysical CURRENCY. And what is our currency unit today? Our currency (also called legal tender) is really an internal unit of consciousness (a symbol, number, and name within our MIND). There is no external currency unit which has any real meaning. The paper notes which we use (now only some 4% of all currencies in circulation) have been mostly replaced with digital currencies (now some 96% of all financial transactions). Think of your own credit/debit cards. How do we create purchases today? Most of us ‘swipe’ our credit card in a card reader and electronic signals are sent via speed of light frequencies to the sellers digital account (another account located in the computer ‘cloud’). There is no physical exchange of ‘value’ and no physical exchange of currency today. What does this mean going forward?

3. What this means is that Central Authorities will most likely create a GLOBAL central bank to administer an International Financial Regime using ONE digital currency for the planet. Some think that this is emerging as I write. I would agree. Our world has become a digital marketplace with virtual currencies emerging rapidly throughout the planet. A virtual currency is one where the creation of the unit is ‘typed’ into the computer screen and then distributed by select Central Authorities. Bernanke and Company set this trend in motion with all the QE operations from 2008 to 2014. Fractional Reserve Banking perpetuates this use of ‘typed’ in numbers (digits) as our default currency and legal tender. Most loans today do not even require a ‘reserve’ of deposits prior to making the loan. Currency from CONSCIOUSNESS and recorded as an ASSET and then a LIABILITY is all that is necessary. All this is now WITHIN the computer screen!

4. What we need to recognize is that all our “money” today (really units of nothing) is mostly IMAGINARY. It’s all within our CONSCIOUSNESS (also called our MIND). Look all around you right now! Where is the currency unit called ‘dollar’ today? It’s either in one’s MIND and/or one’s extended Mind (the computer screen). This development had emerged in just the last 15 years as digitization and computerization has taken over our financial marketplace. We now live with mobile devices and plastic credit cards which operate via the invisible electro-magnetic spectrum. We create and distribute these ‘imaginary’ units as we buy/sell and negotiate financial transactions. Who uses silver and gold coins today? Personally, I know of none. Our historical money (silver/gold) has vanished into storage facilities all around our planet. We can store phantom ‘value’ via these coins, but we no longer use them to ‘value’ or ‘price’ goods and services!

5. Trading the stock markets and the futures markets has also become an exercise in IMAGINATION and subjectivity. I now click my computer mouse to purchase a virtual computer stock. I click my computer mouse to trade futures on the Globex Electronic Platform or a similar computer platform. Most of this trading is now done via ‘algorithms’ and pre-programmed trading strategies. Those trading in the silver/gold markets are mostly trading digital gold (phantom contracts which many call ‘paper’ gold). Actual settlement is not done via the physical metals but merely via our digital currencies (with no delivery or exchange of physical required). What a unique and emotional market we live with today! Practically, all our Exchanges are now electronic. The historical ‘open outcry’ system (where real people were in the pits) has been exchanged for computers, servers, and high-speed optic fibers. Speed of light transactions are now done with no human person involved in the transactions. Is any of this Capitalism? Not in my mind!

The entire global marketplace is now mostly a marketplace of SUBJECTIVITY and EMOTION. All our historical MONEY has evolved into IMAGINARY digital currencies (ones and zeros distributed as bits and bytes) within our COMPUTER screens. We no longer have a viable concept of VALUE so that PRICES can be objectified. Both ‘value’ and ‘prices’ are now units of CONSCIOUSNESS (no thing units within our METAPHYSICAL mind). Can this type of NON-SYSTEM provide us wealth, prosperity, growth, and employment going forward? Not in my mind! Anyone, with a sense of integrity would expose this non-system as a fraud and Ponzi operation. The only real beneficiaries are those in CONTROL of the non-system (the Central Elite Authorities). Think about this description which I am presenting! Does any of it appear REAL and PRESENT? Isn’t it time to think about a NEW SYSTEM for our planet? Have a good day and give this missive some reflection! I am: https://kingdomecon.wordpress.com/

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