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Our Money is ‘decoupling’ from physical reality!

October 16, 2015

We now have stock markets which continue to go up and UP while our physical production (real wealth) is starting to decline. Manufacturing is an example of this reality. Manufacturing in the USA is now declining and this is happening in many other countries. Exports of goods from China would be another example of physical wealth which is declining. Physical wealth is what ‘money’ is supposed to create for our markets…but today, we have cyber ‘money’ which can be manipulated by our Authorities (via their computers) so as the markets go up and UP while goods and manufacturing could decline (as our ‘money’ is not doing its job).

Description Property dualism.jpg

We need to recognize that ‘money’ must be ‘tied’ to some physical ‘thing’! Today’s cyber digits are mental abstractions (not ‘tied’ to anything material)!

So what is economic reality today? Are cyber money units accomplishing their objective (to increase real wealth) or have our cyber units ‘decoupled’ from physical reality? What we need to recognize is that ‘money’ is a TOOL which is supposed to help us increase our physical/material WEALTH so material prosperity can grow for everyone. Think of farming! When we produce crops and increase the number farm animals we increase physical wealth for the markets. When we increase milk, bread, butter, etc. we increase physical wealth for our markets. Money is our ‘tool’ for assisting with these economic operations. How is this accomplished?

Wealth Creation | Lifestyle Money Management

Material wealth is what ‘money’ is supposed to help us produce! Does it? If not, then we have a ‘money’ problem!

Money, when ‘tied’ to material reality (say via a gold or silver standard) becomes a real ‘tool’ for accomplishing this objective (increasing material wealth). As wealth is produced we increase the quantity of sound ‘money’ and then we ‘value’ the wealth being produced. As wealth grows our money grows. This relationship of material production and money (when ‘tied’ to something like silver or gold) gives us a true reading on the wealth being produced and entering our markets. Money increases as Value of production increases. This creates a sound economic measurement of new wealth entering our markets.

Sound ‘measurement’ is one purpose for this ‘tool’ we call MONEY! Do our cyber units actually ‘measure’ anything? I would say, NO!

Today, however, we have imaginary money (cyber digits/bits) which are manipulated by our corrupt banking system simply to give ‘false’ signals that our wealth is increasing. This happens because our MONEY is not fulfilling its role within our economy. Money is merely increased via computer manipulations and QE operations and this gives us ‘false’ readings of what is really happening in our markets. Money wealth can go up and UP (via our stock markets) while our real physical wealth could decline (simultaneously). This reveals that our ‘money’ today is not doing its job! We have ‘false’ signals and imaginary increases in cyber wealth…which may not result in REAL wealth!

Today’s money is not doing its job!

My recent trip to the Traders Expo in Las Vegas revealed that traders could care less about what our cyber money is accomplishing (as far as our real physical wealth). Today, our traders merely trade ‘symbols’ and ‘cyber’ digits within the computer screen and this type of trading may not help with our real economic needs (increasing our real physical wealth). Today, traders trade ‘prices’ as they flow within cyberspace (our computer screens). Concepts are being traded without any real physical ‘thing’ being exchanged. This is a type of ‘imaginary’ trading which produces ‘cyber’ profits for traders, but not necessarily any real goods or physical wealth for the markets.

Today, we trade ‘concepts’ and ‘symbols’ but where is our MATERIAL WEALTH?

Our problem is that our ‘money’ today has NO ‘tie’ to material reality! Think about this. Our ‘money’ is phony and giving false signals to our markets. There is now a ‘decoupling’ of our money from real material production. Read what Bloomberg news reported on Sept. 15:

Tepid economies abroad, elevated inventories in the U.S. and an appreciating dollar signal limited order growth for domestic producers. The strength of manufacturing will depend on whether consumer spending remains resilient and corporate investment can build momentum.

This graph shows that manufacturing is not expanding as it should. Part of our problem is that our ‘money’ has no ‘tie’ to physical reality! Cyber money is our problem!

Global PMI and EXI

This trend is ominous as it shows that our cyber ‘money’ is not doing its job! We need either NEW money (tied to material reality) or NO money! Our situation is ominous!

The profession of economics needs to rethink what is happening within our markets. Why are stock markets going up and UP when production is not following? Why are traders merely trading ‘concepts’ and ‘symbols’ rather then exchanging real ‘things’? My answer: Our ‘money’ is corrupt and worthless! What are the functions of ‘money’ suppose to reveal? The first function is that ‘money needs to be a ‘proxy’ for VALUE. As ‘value’ increases from production of real ‘things’ we then increase the money supply to correspond with ‘value’ increases (of real production). Value and material production are related and ‘money’ is our proxy for VALUE.

Trading ‘concepts’ and ‘symbols’ does not increase our manufacturing wealth!

Today, all is corrupted and our ‘money’ is the problem! Our corrupt officials, however, have forgotten the core ‘first’ principles of economics. We now need to get back to FIRST PRINCIPLES! Why do we have ‘money’? What is its purpose and function? How should sound money be created? What is Constitutional money? Why is our FED a corrupt institution which needs to be abolished? Why are our officials suppressing the historical monies of silver and gold? Our signals are now corrupted and this means that our markets are corrupted. Is it time to get back to FIRST PRINCIPLES? Think on this! Enjoy! I am:

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