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Where does ‘Money’ come from? Let’s think!

December 30, 2014

Are you aware that our Central Bank (called The Fed) has NO money? This building (housing policymakers) in Washington D.C. is totally empty of any legal tender money/currency. Yes, specific individuals within this building do have some paper currency units and possibly coins in their personal possession. But the institution which we call The Fed (in D.C.) has NO money or currency stored within the walls of this huge concrete structure. So where does our American money (called the ‘dollar’) come from? This is the 64,000 $ question! Today, we hear many pundits state that our Fed creates money ‘out of thin air’. So what does this mean? How can policymakers create money ‘out of thin air’? Can real physical WEALTH emerge from ‘thin air’? Let’s think further! Let’s define what we mean by ‘out of thin air’!

Our current Fed Chairwoman is Janet Louise Yellen. Policies now derive from her consciousness! Mere ‘words’ from Janet create positive/negative emotions within our trading markets! Watch what happens when Janet speaks the word ‘patient’ again!

The Fed building has NO money/currency/reserves within its huge concrete walls! Why the police/guard? Does anyone know what happened to America’s gold? I am confused on this issue!

The concept of ‘thin air’ means that policymakers create our money/currency (called ‘dollar’) from their thinking mind. The human MIND is the originator of the word ‘money’, the ‘name’ dollar, and the ‘symbol’ $. Human beings (today) create money, currencies, and symbols (including the words/names which we use for legal tender) from their inner CONSCIOUSNESS. We could also say that the word ‘money’ derives from Janet Yellen’s inner consciousness (today) and then is actualized via a policy operation from her committee (the FOMC). Janet is our Fed Chairwoman and like Ben Bernanke (prior to her) has the Authority to ‘think up money numbers’ and then have these numbers ‘actualized’ (made legal tender) via the Fed’s official computer desk. So how does this work in realtime?

The Fed’s computer desk resides at 33 Liberty Street, N.Y. (ninth floor)! The Authority over the Fed’s computer desk and its cyber account (called the SOMA) is Mr. William Dudley! Does anyone know what Dudley’s traders are trading within this secret room within the New York Federal Reserve?

What happens (today) is that Janet can initiate a memorandum with written instructions to the computer desk manager (in New York) to increase the Fed’s System Open Market Account (called the SOMA) by a given money number (say $85 billion dollars). The Desk Manager then can ‘type’ and/or ‘speak’ this NUMBER into the cyberspace computer account (called the SOMA) and wau la ‘money/currency/dollars/legal tender’ emerges (is actualized) as digits within this cyber computer account. We can call this money a ‘out of thin air’ creation! We could also call this a process of creating money from ‘consciousness’. Janet can initiate this operation and so can lenders (bankers) who are part of this entity called The Federal Reserve Banking System.

This image is mostly correct! So far our banks have not confiscated our houses in mass!

Today, bankers do not NEED deposits from savers to create money (also called ‘credit’). In reality, deposits emerge magically ‘out of thin air’. If I apply for a LOAN (say for my business) and my banker approves this loan (say $1 million dollars) then a commercial banker can also create this money ‘out of thin air’ (his/her consciousness). The deposits of the banker institution do not decrease as a result of this loan. What happens is that the banker merely ‘types’ and/or ‘speaks’ this $1 million into a cyberspace computer account (with my account #). The transaction is then viewed within the banks accounting books as an ‘asset’ and a ‘liability’ (from the bankers point of view). The asset is the Business Loan (to me) and the liability is the $$$ (created ‘out of thin air’). Wau la, new deposits (money/currency) emerges ‘out of thin air’ into the bankers institution! Do you get the picture?

Today, Federal Reserve Banks can make loans with zero reserves! This is truly creating money ‘out of thin air’!

So where does money/currency COME FROM today? Today, our cyber money (really imaginary digits or 1’s and o’s) emerge magically from ‘nothing’ and circulate as ‘units of nothing’ (pixels of light photons). Our ‘money’ derives from NOTHING (consciousness/mind) and circulates as NOTHING (cyber numbers within cyberspace). These cyber numbers circulate from computer screen to computer screen and from bank to bank…now mostly a cyberspace computer operation. Visualize our entire global marketplace as millions of computers which store our cyber money and circulate these pulses of light (photons) from sender to recipient. Money emerges ‘out of nothing’ and then circulates as units of ‘nothing’. Is this today’s reality? I think so!

Today, some 96 to 97% of our money transactions are within Cyberspace using cyber currencies! Money emerges from ‘nothing’ and circulates as units of ‘nothing’! One’s and Zero’s are really the same as ‘nothing’!

Yes, all our National Debt $$$ are now in cyberspace. All our stock symbols are now virtual and in cyberspace. All our bond instruments are now virtual and within cyberspace. All our mortgages are virtual instruments and within cyberspace. All derivatives (CDS, etc.) are virtual instruments and within cyberspace. Trading (stocks, bonds, futures) is now a cyber operation. Taxes and retirement accounts are now within cyberspace. Consumer debt is within cyberspace. Actually, our entire financial system is now mostly a CASHLESS operation and within cyberspace. Our Central Banks control this cyberspace system via their administrative policies, thinking, manipulations, and magical money creation policies. What a change from the old days of physical money and currencies! Is this a sound and principled system?

Today’s National Debt exceeds $18 trillion and its all stored within Cyberspace! Where is Cyberspace? This could be another discussion! Could all our debt be cancelled and deleted? Yes, but China may not like this decision!

Today only a small percentage of financial transactions are done using paper and coin money. The % is from 3 – 10% depending upon which Nation one is writing about. In the Western financial world only some 3-4% of monetary transactions are still accomplished via paper. Sweden is mostly cashless and operating within cyberspace. So is most of Europe, the USA, Africa, Latin America, Asia, etc. Our world has mostly transitioned from physical money/currency to cyber money/currency. This is the new world of 2014-15. Where does this lead going forward? Think! How about more CENTRALIZATION! How about more manipulation! Central Banks are now the initiators/rulers/controllers over our entire global system…which many still falsely call Capitalism. This is the New World of 2014-15. Enjoy the new hierarchy and the transfer of POWER to these Central Institutions! I am: https://kingdomecon.wordpress.com.

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