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America’s THREE ‘dollars’: Gold $, Petro $, Cyber $!

October 10, 2014

Let’s review some recent history so we can discern where we are today economically! America started in 1789 with a Constitution which emerged from our prior thirteen States. During the time period from 1789 to 1792-93, our Congress (with the help of Alexander Hamilton and Thomas Jefferson) initiated the concept of an American Dollar for our new Nation. The ‘name’, Dollar, was chosen around 1785 as our official currency unit by our than Continental Congress. Basically, our thirteen States did not desire to continue the British currency units (called the Pence, Shilling, and the Pound). America wanted their own official currency unit and Jefferson was mostly responsible for choosing the ‘name’ Dollar for our Nation. But what is a ‘name’ without some tie to physical reality (a definition)?

A ‘name’ like the word, Dollar, has no real meaning or existence in and by itself.  A ‘name’ is merely a Metaphysical unit of one’s Consciousness. We call ‘names’ imaginary until the ‘name’ is attached to some physical object or thing. It’s much like the pseudonym chosen by Ben Shalom Bernanke during the 2008 financial crisis. Ben chose a ‘name’ (Edward Quince) to hide his real identity in select emails. This ‘name’ did not exist except in the MIND of Ben. We can call this ‘name’ a Metaphysical creation ‘out of nothing’. Thomas Jefferson was well aware of what was happening during this time period (1789 – 1793). Jefferson was our First Secretary of State and he and Hamilton, our First Secretary of Treasury, established our American Dollar and its existence. The decision was made to define our American Dollar as 371.25 grains of silver and/or 24.75 grains of gold.

One of the first American Dollars (minted at the Philadelphia Mint)! The ‘name’ Dollar denoted a real ‘thing’!

As time continued, our American Dollar became mostly viewed as a GOLD dollar. The mindset of the marketplace was that our Dollar needed to be backed and convertible (at bearers discretion) into GOLD. This concept of backing our Dollar with some physical item was viewed as necessary to prevent official counterfeiting of our currency by unscrupulous bankers and also to provide confidence that private consumers could store their value over time in some ‘thing’ which had substance and meaning. When our Dollar is backed by gold (and convertible) then holders of the paper units (used for marketplace valuations) had confidence in the unit. Without backing or convertibility, most foreign trade could not happen as foreigners would reject a currency which could be created ‘out of nothing’ (mere paper creations and/or text within a set of books).

Money was invented to serve as a Standard of Value and a Store of Value! Today this purpose is ignored by our monetary authorities! International trade is getting more difficult as a result of these missing factors!

Our GOLD dollar continued until 1934 when FDR decided to store all our gold within Fort Knox and merely issue paper notes as our currency. Many viewed this as the beginning of the end of a convertible currency unit. Americans, however, did not sense any real problem as the paper currency note mostly held its value from year to year (given that we had some 740 million ounces of gold stored at Fort Knox backing our dollar by 1944). The big change occurred in 1971. This was the year when our President Nixon became aware that our gold (in Fort Knox) was diminishing rapidly. The 740 million ounces accumulated and stored in Fort Knox had declined to some 272 million ounces. This was shocking to Nixon and he decided that he MUST close our gold window (to foreigners) to prevent a complete elimination of all our gold at Fort Knox.

The closing of the Gold Window occurred on August 15, 1971. After this historic event (called the Nixon Shock), American politicians decided that they needed some gimmick that would give our new dollar (now unbacked and based on nothing of value) some credibility. Henry Kissinger solved our problem by negotiating a new deal with the biggest producer of OIL. This new deal with Saudi Arabia created a situation where our Dollar would be the ONLY pricing unit for Saudi OIL. The new OPEC oil cartel would now force all foreigners (desiring OPEC oil) to convert their National currencies into American fiat dollars prior to purchasing OIL. What emerged in 1973 and after was the American PETRO dollar. To buy OIL (from OPEC) one must have American Dollars!

Nixon closed the GOLD window and this eliminated the Gold $ (for foreigners). Kissinger negotiated the Petro $ to replace our Gold $ for international trade of oil. The scheme worked and allowed America to Borrow and Spend with no real immediate consequences! 

This negotiation with Saudi Arabia and the OPEC Cartel allowed America to continue its spend and borrow scheme and it forced most foreigners to own Dollars (within their Reserves) so that they could purchase OIL. What a great scheme for maintaining confidence in our Dollar and our spend and borrow mentality. During this time period America gradually borrowed much more than it normally should because most global Nations were forced into this PETRO dollar regime to survive. America, however, could borrow and spend with no worry about pay back. This new scheme has continued until today with a few new twists. Today, many foreign countries are becoming AWARE that America has created a totally UNFAIR monetary scheme for themselves and left foreigners with a subservient role on the global stage. Many now want to change this advantage and force America to live within its own MEANS.

American debt could grow exponentially as long as America could borrow and spend (with no immediate consequences)!

The new scheme which is now emerging is a recognition that the PETRO $ is outmoded and unworkable going forward. Saudi Arabia wants to sell its oil in alternative currencies (not exclusively in dollars). Russia wants to sell and buy energy in their ruble and this trend is now expanding to China, Brazil, India, Iran, and other foreign Nations. Other Nations are recognizing that America has a huge advantage when they can borrow and spend with no immediate trade consequences. America’s trade deficit has been negative continually since this PETRO $ was arranged. America’s National Debt has also grown exponentially as a result of its advantages from having the Reserve Currency status for the World. Borrow and spend has been the American mentality since the end of WW II.

Russia and China now want to trade bi-laterally using their own currencies and products! They desire not to use the American Petro $ going forward!

Today, our Central Banks (due to recent computer technology) have created a new dollar which is ‘imaginary’. This new dollar is called the CYBER $. Today, our Central Bank, called the Federal Reserve Bank of the United States, and its proxies who use the Fractional Reserve credit system, can create unlimited dollars ‘OUT OF NOTHING’. Since our CYBER dollar is ‘typed’ into cyberspace, there is no substance or value to this imaginary unit. You may have heard of the concept called QE…a euphemism for official counterfeiting of our dollar. QE was promoted by our recent Fed Chairman, Ben Bernanke. Many call this operation ‘printing’ of new money’. In reality, however, QE is really the creation of CYBER money via the keys of a computer. Numbers are typed into a cyberspace financial account and these units are called ‘dollars’. In reality, this is official counterfeiting but our elite administrators at the Fed created the word ‘quantitative easing’ or QE to represent this operation.

The CYBER $ has replaced the paper $, the gold $, and the petro $. We now live with imaginary money! Cyber money has no physical substance! Cyber money can not be held in one’s hand! Cyber money is located in cyberspace! Cyber money is created from the consciousness of Central Bankers!

In summary, we can say that America has experienced THREE dollars (with different meanings) since its founding. The first can be called the GOLD $. The second can be called the PETRO $. And the third can be called the CYBER $. All global currencies are now becoming cyber currencies. Mobile devices (using cyberspace) are now replacing gold, paper notes, and paper checking accounts. A Cashless society has arrived and many countries now demand that consumers and investors use their CYBER currency in lieu of paper or metals. Imaginary money has arrived and this places our Central Banks as the ‘rulers’ over all economies on our planet. Central planning has replaced market pricing and private negotiation. Capitalism as we knew it historically has vanished from our marketplace (Nationally and Internationally). We live in a new World…within CYBERSPACE! Who understands? Not many!

A New World Order called Global Governance is now emerging rapidly! Capitalism is essentially over!

The above is a brief overview for you to digest. Now is the time to get yourself educated on our monetary history and our new world of imaginary currencies. What is cyberspace? How do Central Bankers create our cyber money? What is QE? Why are many Central Bankers resorting to official counterfeiting of their currency? What happened to physical money? Why is silver and gold no longer circulating within our global markets as money? What is our Internet? Why is all trade now a Global enterprise? What is Globalization? What is the New World Order? Why are computer machines controlling and governing our monetary transactions? What is High Frequency Trading? What is Electronic Trading? All these questions and more need to be understood and internalized. Start getting yourself educated by reading and listening to many viewpoints. Enjoy! I am:

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