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Cybernomics – our New Global Economic System!

August 28, 2014

Jamie Dimon, Chairman of J.P. Morgan, says his bank is spending $250 million annually (including 1000 employees) to create cyber security for his banking firm. This was reported in the WSJ today. All our banks are now operating within cyberspace and practically all our currencies are now cyber currencies (pixels within our computer screens). We live in a new world of cybernomics. Who is aware of these changes in our economic system? Our ‘dollar’ is now a cyber currency and most currencies traded in realtime daily are now cyber currencies. Take a look at our digital electronic Stock Markets for evidence. We no longer operate under traditional Capitalism where our money was a physical item (a paper note or a metal coin) which we could hold in our hand. So what is a cyber currency? Let’s explore!

Some 96% of currency transactions are now within Cyberspace. Cybernomics is our New Global Economic System. Who is Aware?

A cyber currency is created by our Federal Reserve banking system via our electronic computer technology. Today, our Fed does not need to ‘print’ paper notes for our currency but it now merely ‘types’ into cyberspace digital numbers which then become our legal tender currency. Once these digital numbers enter the cyber account within the Fed’s computer (called the System Open Market Account), this creates new legal tender dollars for the Fed to use for their Asset Purchases. Our commercial banks do similar when they ‘type’ a new loan into their cyber account via our ‘fractional reserve’ banking methodology. New loans are now mostly created (many without any reserve requirement) and digital numbers get inputed into the computer screen representing both an Asset and a Liability (bookkeeping wise). We can call this ‘money from heaven’ (as these new digital numbers) have no physical location within our material universe. Who is aware of what is now happening within our banking establishment? Who understands the nature of ‘cyberspace’?

Let’s briefly define ‘cyberspace’ so we can discern the nature of this imaginary space which we all now use for our spending, purchasing, investing, and borrowing.

Cyberspace:  A metaphor for describing the non-physical terrain created by computer systems. Online systems, for example, create a cyberspace within which people can communicate with one another (via e-mail), do research, trade currencies, shop, borrow, invest, or simply window shop. Like physical space, cyberspace contains objects (files, mail messages, graphics, etc.) and different modes of transportation and delivery. Unlike real space, though, exploring cyberspace does not require any physical movement other than pressing keys on a keyboard or moving a mouse.

Reread the above definition again to discern the ‘nature’ of this new non-physical (metaphysical) space which has become ubiquitous globally. This space is created by our computers and our digital information which enters our computers. We ‘type’ this information into our computer screen and it emerges as a display (set of images/text) which we can assume is real and physical. But is this metaphysical space ‘real’ (material/physical/out there). Historically, we have used the word ‘real’ as a word to denote that which ‘exists’ within our Material Universe (that which we observe when we walk outside within Nature). Trees are real. Houses are real. Cars are real, etc. But what are these displays that we observe within our computer screens?

Cyberspace derives from our ‘consciousness’ and enters the computer screen as digital units of information. These units are not Wealth and not Material! Think!

If you look at your computer screen (right now) you will observe the text which I am writing. Where does this digital text derive from? Does it not derive from my ‘consciousness’? Am I not now ‘thinking’ up these words which I am ‘typing’ into cyberspace? This same process is what our Fed now does when select administrators create our legal tender cyber currency (called our dollar). Our Fed (via their computer at the New York Federal Reserve building) ‘types’ into this System Computer digital numbers to increase their own cyber account (called the SOMA). Once new digital numbers (representing our cyber dollars) are inputed into their cyber account, they have magical ‘money’ for their Asset purchases and/or to manipulate the greater financial markets. What a magical operation which has emerged since our markets became electronic and computer driven. Do you discern how our so-called ‘money’ is now created/destroyed? Is this a long-term viable system?

Today, our Fed sits around a table and votes for QE and Computer manipulations to effect their economic policies. All these operations (computer driven) are subjective and examples of why we no longer have Capitalism in America. Cybernomics is what we live with today!

Today, we no longer live under traditional Capitalism (where our money could be held in your hand) but we live in a New World of Cybernomics. Our so-called ‘money’ is created as a digital unit which gets displayed within our computer screens as pixels of light (derived from pulses of light transmitted via speed of light fiber optic transmission cables). All this has happened in just the past 15 or so years and the entire planet has now been covered with underwater/underground fiber optic transmission lines (which send signals from computer to computer at near the speed of light). Why is cyber security the Big Issue within all our banking establishments today? Why is Jamie Dimon spending some $250 million annually merely to fight cyber invaders (malware, etc.) who desire to invade his computer systems? Can this type of monetary system (cybernomics) work for economics globally? Can it work for our longer-term National interests? Why? Why not?

The reason, I maintain, that this cyber currency system can not work is because it is totally SUBJECTIVE at the core. The cyber units which are created by our banking entities are ‘subjective’ units of nothing…created from nothing. The real purpose of any money system is to reflect a ‘value’ for ‘value’ transaction within the greater marketplace. All money is (at the core) a proxy/substitute for the concept which we call VALUE in exchange. What is the ‘present value’ of a future stream of digital units created ‘out of nothing’? Does ‘nothing’ represent ‘something’? Isn’t money (under Capitalism) suppose to represent some THING (unit of wealth) created for our physical markets? Think about today’s units which we call ‘money’. What are they? Where are they? What are units within Cyberspace (in reality)? Can we call these units forms of physical WEALTH?

The above image is an example of ‘material’ wealth. Food is the foundation of what economics is all about. Digital numbers in our computer screens can not be consumed for sustenance! We need to recognize that Cybernomics is not the same as historical Capitalism!

What we need to understand is that Wealth is the primary Goal of Economics. The purpose of Economics is to create new growing Wealth for a society (today our entire planet). Wealth is not these digital cyber units within our computer screens (our IRA’s, Mutual Funds, Savings Accounts, 401K accounts, etc.). Wealth includes farm products, manufactured products, houses, cars, physical buildings, airplanes, machinery, apparel, health products, and other material items. Wealth includes all the ‘stuff’ in your house, garage, storage shed, and that which we see outside our consciousness. Wealth derives from our Natural Resources (not from typing digital numbers into computer screens at the Fed and all the other Central Banks on this planet). Think about the PURPOSE of economics!

Central Bankers create subjective digital numbers and call these numbers Legal Tender! This is not Capitalism. This should be called CyberNomics or DigiNomics! What do you think?

In closing, we need to recognize that today’s global Cybernomic economy is a failed economy. Our stock markets go up, up, up (via all the digital electronic manipulations) but our real physical wealth, our infrastructure, our global material markets, our International poverty levels, are declining (relatively). Money from heaven (via typing digital numbers into computer screens) is not a viable long-term economic system for this planet. Cyber currencies are totally SUBJECTIVE and without any measuring ability (over longer time periods). Today, our deficits are decreasing (relative to a prior period) yet our overall DEBT and sustainability is getting much more dire. What goes up, up, up today are manipulated stock/bond markets and not any real observable WEALTH. It’s time to wake-up and smell the oder. Think anew! I am: https://kingdomecon.wordpress.com

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