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Using correct ‘words’ is important when speaking about ‘money’!

July 7, 2014

I am shocked when I listen to many of our financial pundits and economists on many internet podcasts, videos, and on TV interviews today. The vast majority of so-called experts on our economy and our markets seem incapable of understanding and discerning what is now happening within our national and global markets. One person who grasps the details on the issue of currency creation is my lady friend Ellen Hodgson Brown, attorney/author/financial expert from California. I read her articles on a regular basis as she understands how our ‘money’ (now a cyber-currency) is created and how prices are determined within today’s electronic markets. She (as I) do not use the ‘words’ PRINTING MONEY when we talk about our Fed or the greater global banking system. Ellen has discerned the difference between ‘printing’ money and creating ‘electronic’ digits via the computer. Congratulations, Ellen!

This image reveals the nature of today’s currencies (mere symbols and numbers derived from a computer keyboard)! We call today’s currencies the cyber-dollar, cyber-pound, cyber-yen, cyber peso, etc.! So called ‘money’ is created by merely punching computer keys!

Today, I read a blog by a noted economist in the Hard Money crowd (well-known to most everyone) who continues with his view that our Fed and our banking system is PRINTING too much money. This expert (similar to many on King World News, CNBC, Casey Research, Fox Business, Bloomberg, 321gold, etc.) continues with the ‘mantra’ that our Fed is PRINTING money and this is distorting our markets and leading to more inflation, etc. One would think that after many years of electronic creations of our currency (called ‘money’) these talking experts would discern that the PRINTING of our currency is now merely 4% of the overall total of currencies in circulation (in our Western markets)…and that our so-called ‘money’ is now nearly 100% cyber-units (digits) within the computer screen.

This image reveals the ‘printing’ of currencies. These paper notes now represent only about 4% of all monetary transactions! There is a huge difference between a paper dollar and a cyber-dollar!

When these experts continue with this mantra that our Fed is PRINTING ‘money’ they are misleading the public and themselves. Evidently, these mature and experienced experts just can not change their speech to reflect current reality. It shocks me to listen to these well-known experts day-in and day-out using inaccurate language when they communicate with the public and other knowledgable experts about our markets. I doubt that any of these experts actually use PRINTED FEDERAL RESERVE NOTES (paper) when they do their own personal banking/investing/trading. Yet they assume that our Fed and those who administer our banking transactions are still PRINTING paper notes for their transactions (at least they convey this impression with the words proceeding from their mouths). Why does this continue year after year?

This image reveals a legal tender paper note. How many use this type of note when investing/lending/trading/speculating within today’s computer driven markets? I don’t even use this note at MacDonald’s or Starbucks today! I now use my cyber-dollar CREDIT CARD!

A couple of other financial experts who discern today’s reality and who use correct ‘words’ when talking about our markets and The Fed are:  Bix Weir, http://www.roadtoroota.com; Chris Powell, http://www.gata.org; and our prior Fed Chairman, Ben Shalom Bernanke. I suspect that Janet Yellen also would use the correct ‘words’ when talking about how her Fed creates QE and how our Banking system creates our loans, etc., via our electronic cyber-dollar. I could name a host of additional mature experts who have not converted to using correct ‘words’ when communicating financial events and trends…but this would not be nice for this missive. I will let the reader of this blog discover for themselves which experts discern reality correctly and which do not! When you listen to an expert over the internet, via a video or audio podcast, or via the TV think about the WORDS being enunciated by each expert. Do they use ‘words’ which accurately reflect today’s reality or not? If not, why? Enjoy! I am:  https://kingdomecon.wordpress.com

4 Comments leave one →
  1. Cully permalink
    July 9, 2014 1:59 pm

    Printing is just a word used anonymously with the creation of money, whatever it’s form. There has never been a time, since the invention of banks, that all of the money available in an economy was actually paper currency. This isn’t a concept made new with the advent of computers.

    Also, conceptually, the economy would be exactly the same if all available money was printed as paper currency. Instead of bits in a computer, it would be paper (bits) in a vault (computer). So, imagining all available money to be in paper form doesn’t really inhibit you from understanding how the economy works. The only thing you misunderstand is the practical management of money, but that’s more a logistical issue than an issue of economic theory.

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    • Cully permalink
      July 9, 2014 2:00 pm

      Sorry, meant “synonymously” not “anonymously”. Auto-correct 🙂

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      • July 9, 2014 5:02 pm

        Cully: We need to differentiate between the ‘word’ MONEY and the ‘word’ CURRENCY. Historically, the word ‘money’ has emerged from a barter marketplace and has been a ‘thing’ from nature (sea shells, cowry shells, units of grain, tally sticks, silver coins, etc.). The printed paper that we call a Federal Reserve Note is really not ‘money’. It is a currency unit. Currency units derive initially from a definition which is related to the ‘thing’ chosen as ‘money’ (say silver). Our monetary system is really a ‘word game’ and the words are important to understand. D

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    • July 9, 2014 3:28 pm

      Cully: Read my current missive for additional understanding of the difference between ‘paper’ and ‘digits’. D

      Philosophy 101: ‘Words’ and ‘Names’ are not THINGS!
      JULY 9, 2014
      http://KINGDOMECON.WORDPRESS.COM

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