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Digital Currencies within a ‘Closed’ Financial System!

March 5, 2014

What we need to recognize today is the ‘nature’ of our financial system and why a ‘digital’ (computer based) system is all about centralized manipulation of our ‘prices’ (especially of key commodities). There is a huge difference between a metal coin system from which we started in 1792 to our digital currency system of today. There is also a huge difference between a paper note system and our digitized computer system of today. The HUGE difference is the ‘nature’ of the system. Coins and Paper are units which are OUTSIDE my/your Consciousness. We can observe a coin and a paper note and also HOLD these units in our HAND. I would call this an OPEN financial system in that the coin and the paper note is ‘outside’ of my/your MIND. This, however, is not the situation with DIGITAL currencies. Today, some 96% of all financial transactions (in our Western World) utilize ‘digital’ units for their financial decisions! Why has this led to a CLOSED financial system and ubiquitous manipulation of prices?

Computer Digits (now our currency) enters a Closed System (the computer screen) via typing! Who has the Authority to create our Currency merely by typing numbers into the computer? Why does this lead to Manipulation of prices, interest rates, and values?

Since most financial transactions today are digitized (computer based) transactions. This means that DIGITS are the units we use for buying, selling, lending, investing, and speculating. What are DIGITS (within our computer screens)? Are they similar to coins and paper notes? Personally, I don’t think so! Digits are VIRTUAL units within CYBERSPACE. If you look at your Smart Phone or Laptop (right now) you should notice that you are currently reading ‘digits’ or ‘words’ on your computer screen. How should we view these ‘digits’ and ‘words’ when we think of our CURRENCIES? Are these ‘digits’ in the same realm of reality as historical COINS and PAPER NOTES? I would suggest, NO! Digits are within a CLOSED system which we call CYBERSPACE. Who has the authority to increase our currency ‘digits’ within this CLOSED space? Why does this centralization of financial transactions lead to market manipulation?

Who understands the ‘nature’ of Cyberspace? Why is it much different from Observed Space (that which is ‘outside’ our Consciousness)? Why is our financial system now mostly within Cyberspace? Why is this a CLOSED system for all market participants (except the Central Authorities)?

Can you or I spontaneously increase our own ‘digital’ accounts at our commercial bank (say our checking or savings accounts)? Can you or I create QE dollars (like our Fed does) to increase our personal financial accounts? I don’t think so! The only authorities today who can increase their computer/digitized financial accounts by a decision are our Central Banks and select Commercial Banks who are members of our CLOSED financial System. A Central Bank, like our Fed, can ‘type’ into their computer financial account new DIGITS (call these digits…dollars, euros, yen, etc.) and then manipulate other financial assets with these newly created digital units. Can you discern the CLOSED nature of this financial system today? Digits are circulated from computer screen to computer screen as new digits enter this CLOSED financial system!

This is an example of a closed financial system. Who can enter the computer screen (physically) for their ‘money’? Why does this type of financial system lead to manipulation of prices, etc.?

What our new closed system allows today is for Central Authorities (via their policy decisions) to MANIPULATE digits (interest rates and prices) via select TRADING strategies. Have you noticed how the ‘prices’ of silver and gold have been manipulated these past few years? How many additional goods and products (say energy and farm products) are also manipulated by select Central Authorities? Are you aware that our own Fed has a large trading room at the New York Federal Reserve Bank, 33 Liberty Street, which consists of some 50-60 traders? This trading room is supposedly on the 9th floor of the NY Fed and it is mostly unnoticed by our traders in our global marketplace. What is the function and purpose of this large trading room? What is being traded and what prices are being manipulated by select trading strategies? Why would this type of trading room be needed to manage the System Open Market Account (called the SOMA)? The SOMA could be sustained (or managed) with only one computer (not a whole trading room of computers)! So what are all the additional traders trading? Where do their trading ‘digits’ (called dollars) derive from?

A partial view of the Trading Room (9th floor) at the New York Fed, 33 Liberty Street, New York. What is their mission and why the lack of any transparency? 

The entire operation at our New York Fed seems mysterious and suspiciously un-American. Why can not any major media outlet expose this trading room operation and those doing the manipulations? Check out and see if you can find any details about this trading room operation. Check out the chief authority who sets policy for this trading room. His name is William C Dudley, CEO and also the Vice Chairman of our Federal Open Market Committee (the committee that makes all our QE and monetary policy). What policies and trading strategies is he implementing on the 9th floor of this building and what prices and digits are being manipulated (when, where, how, what, and why)? While checking out the trading room at the New York Fed you might also check out the trading rooms which are operating on behalf of the BIS (Bank for International Settlements).

Who is William C Dudley? What is his Authority? Notice the trading room he oversees? What are all these traders doing and what are they trading? What is their mission and goal? What strategies are being used to affect (influence) market prices and values?

It appears from my personal research that the BIS ( also has TWO trading rooms within their control. Two (interlinked) trading rooms located in Basel, Switzerland and another in Hong Kong. What are these secret trading facilities doing and trading? According to their website they have a Markets Committee (formerly the Committee on Gold and Foreign Exchange). Some 21 Central Bankers meet regularly to exchange views on market issues and other developments (beyond gold and foreign exchange). Our New York Fed (represented by William C Dudley) is one of the participants on the Committee. William C Dudley is also the Chair for the Global Financial System Committee (a committee which monitors the broad issues relating to financial markets and systems). Who knows anything about this key financial policymaker who administers much of our American financial policy and also much of our Global financial policies? Do any of our elected representatives know about his doings and policies? If not, Why?

Does anyone understand what this unelected authority does and why? He has the powerful position of Vice Chairman of the FOMC. He is also active with the Bank for International Settlements (BIS). Whose policies and trading strategies is he implementing? Does anyone really know?

Shouldn’t our representatives within our Congress and the White House have some input into all these key financial manipulations which are now ubiquitous within our CLOSED computerized/digitized financial system? Why can a few select trading rooms operate without any TRANSPARENCY and then MANIPULATE (via the computer) select PRICES in our now Global Marketplace (independently from the electoral process)? Does any of this make any sense (assuming the general philosophy of Capitalism as our principal guide)? Why should just a select group of interconnected authorities have all this POWER over our marketplace? What is their goal and objective? Does anyone understand the emerging POWER now developing within the BIS (the Central Bank for some 60 global Central Banks)? What is their mission and goal for our planet? Why no transparency?

Some 60 Central Banks are part of the BIS. What is their mission and why the lack of transparency? Is our planet now controlled and administered by some 60 Central Bankers (operating within a CLOSED financial computerized system)? Why trading rooms in Basel and Hong Kong? What do they trade and why? From what sources do they obtain their funds for trading and for their manipulations?

Do we currently have Capitalism today (as our philosophical system)? I think that we need to gain some understanding about who is controlling our Globalized Financial System (now computerized/digitized and CLOSED to the general market participants). Give this missive some deep thought at your leisure! Have a good DAY! I am:

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