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Review: Central Banks do NOT ‘print’ money!

January 30, 2015

Financial pundits have a difficult time changing their words when actual events change. I have noticed this for the past five years as my favorite gold commentators (Faber, Roberts, Rickards, von Greyerz, etc.) continue their use of the words “printing money”…when the correct word should be ‘digitizing’. The mantra that Central Banks ‘print’ money should now be dropped (since this word is not relevant for today’s cyber currencies). What Central Banks do (as well as commercial banks) is ‘digitize’ their computer accounts…thus creating new cyber units in their accounts. There is NO ‘printing’ taking place today…yet I listen to educated pundits who continue with this false mantra daily. Isn’t now a good time to change this mantra? Listen to these videos for convincing evidence:

1. (Bernanke’s testimony)

2. (we are not ‘printing’ money)

3.  (the idea that we are ‘printing’ is false)

4. (this video provides evidence that legal tender money is ‘digitized’ and not ‘printed’)

Digitizing is how our money is created today (listen to above videos)! Cyber money units emerge from digitizing legal tender numbers so that they appear within our computer screen. Only some 4% of all units in circulation today are printed paper notes (96% are digitized units within cyberspace)!

We have entered a new world of digital currencies and digital trading markets. These legal tender units are ‘digitized’ by typing numbers into the bank’s computer screen. Once the bank’s account is increased with new ‘digitized’ numbers the bank can use these new units to ‘purchase’ ASSETS. This is what Draghi is now doing at the European Central Bank. He artificially increases his Central Bank’s digital account by (say) 60 billion euros (numbers) monthly and he then uses these new units to purchase ASSETS. I call this operation official counterfeiting, but a Central Banker avoids this word and merely says he (she) is purchasing new assets with newly created funds. Anyway, clarity of thinking should lead our pundits to use correct language when talking about our money. Enjoy! I am:

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