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Imaginary Money can not work (much longer)! Let’s think!

December 7, 2014

Did you notice that the price of crude oil dropped some 40% to $65.00/barrel? What does this mean? When prices drop this much VALUE is destroyed instantaneously. Value, my friends, is ‘imaginary’! Prices are ‘imaginary’! Our Cyber Dollar is ‘imaginary’! What else happens when prices drop? All the counterparties which supply Bond money to the oil companies, drill companies, and energy supply companies discover that these Bond Values also decline with the drop in crude prices. The values of the stock of these companies (including the big boys like Exon) also drop. What happens to all the cyber dollars in all these transactions? What happens is the these ‘dollar’s’ vanish into money heaven. Where is money heaven? Where does all our ‘imaginary’ money go?

Crude oil (the price) is key to continuing inflation and solvency for our lending institutions. Rising prices allow for more discovery and drilling. A serious drop in prices creates impossible issues for oil related companies and those who lend to these entities. Does this oil drop create a ‘trend reversal’ in our markets???

Money heaven is back inside our inner Consciousness. All our so-called money today consists (mostly) of imaginary cyber units. These cyber units (called dollars) were created from Consciousness and when they disappear they go right back to our collective inner Consciousness. In other words, these units of nothing vanish into ‘thin air’ (disappear). Are you AWARE that our money today is ‘imaginary’ and ‘subjective’? Subjective money distorts all asset values and eventually the markets crash from all this subjectivity…of our traders, lenders, bankers, speculators, and investors. Look at your Smart Phone app from CNN Money or similar and notice that crude oil has crashed from over $100 a few weeks ago to some $65.84 as of today. This (if the price remains at these levels) will cause huge deflationary problems for our global economy.

This chart tells the story of lost ‘value’ (in the trillions). This will serious affect all our markets in time!

Deflation is good for consumers as gas prices and many other items decline. But deflation is very bad for the many Nations (Russia, Saudi Arabia, USA, and China) who depend on higher prices to support the oil/gas infrastructure. Our cyber (imaginary) money creates serious subjectivity within all asset values and this eventually distorts all prices and this will create a TREND REVERSAL in our markets in time. We all live with money from heaven which has ZERO substance and ZERO real sustainability over time. At some point down the road we will experience all this subjectivity (in spades). Markets will crash and values will vanish into ‘thin air’. All this is emerging gradually at the present! Personally, however, I sense that a trend reversal (in sentiment) has started. Momentum will accelerate in time.

Has a ‘trend reversal’ started (given the huge drop in crude oil prices)? Personally, I think so! A trend in motion does continue – until it ends! Is the end of the prior inflationary trend ending (or will the above chart continue up)? Watch the markets on your Smart Phone App!

As consumers we now mostly use imaginary cyber money for most of our purchases and investments. Examples of cyber money transactions are: our ‘credit cards’, our ‘debit cards’, our ‘prepaid cards’, our payment ‘apps’, all our deferred-interest financing (where lenders offer us a zero interest rate for a period and then charge a retroactive high rate if the entire balance is not paid by the deadline) and our checks (with routing numbers/account numbers) printed on the check. Only some 4% of all money transactions are still done with paper notes (called Cash). Today, some 96% of all monetary transactions are done using our cyber currencies (within cyberspace). CYBER money is not physical money. These units derive from banker Consciousness and we need to view these units as ‘metaphysical’ in nature.

Business cycles happen over time as Capitalism produces booms and busts. Sentiment changes near the very bottom and at the very top of a cycle. Are we now entering the very top of our prior bubble cycle?

Capitalism is based upon the concept called VALUE. This concept is doubly subjective today as we now live with cyber money created OUT OF NOTHING. So the concept of ‘value’ is subjective and the cyber money which we use for spending and investing is subjective. Subjective money can not last much longer as all asset values get so distorted that any type of long-term confidence is eroded. Lenders can not rely upon any loan(s) maintaining its viability over time. The bonds and stocks of the oil related companies could soon cause serious issues within our banking institutions. Will our Fed choose to buy all these JUNK assets with new counterfeit cyber dollars (QE)? We will need to wait and watch! Get ready for some shaking in the markets going into 2015. Buy a few silver coins as representations of historical Capitalism! Enjoy! I am:

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