Why must our ‘monetary system’ eventually COLLAPSE?
Today, there are hundreds of pundits which are warning of a financial holocaust or similar. Why? Let’s explore the core issues. I just witnessed a commercial on Fox News from Lear Capital (a major promoter and vendor of silver/gold) which is now publishing the views of John Rubino and Chris Martenson. Their views are typical of many who have followed our financial markets since 2008. Basically, they predict a coming collapse for our major electronic markets as a result of Central Bank manipulations and the nature of our fiat dollar (and other issues). What are these issues?
First of all, we need to recognize the history of our monetary system (including our monetary unit…the dollar). America started its economic system back in 1792 with a ‘dollar’ that was defined in terms of silver and gold. Basically, the dollar was defined as 371.25 grains of silver or 24.75 grains of gold. Coins were then minted with the ‘name’ dollar engraved and the bearer of the coin could be assured that each coin represented the ‘definition’ which our Congress had adopted. America had money units backed by silver and/or gold and paper notes which were issued later also could be exchanged for the ‘definition’ which Congress had adopted.
The big changes to this origin of our economic/monetary system happened after the Great Depression in 1929. The election of Franklin Roosevelt in 1933 resulted in a NEW American ‘dollar’ which was divorced from any ‘definition’ related to gold. Basically, FDR removed gold from the American marketplace and promoted the fiat paper ‘dollar’ for Americans. The gold ‘definition’, however, was retained (although changed) for international trade. This new ‘definition’ of 13.71 grains was a devaluation yet the concept of a ‘dollar’ which had some relation to physical reality continued. FDR also outlawed the ownership of gold for American citizens.
Then in 1971, President Nixon (our leader at that time), removed any ‘definition’ for our dollar…totally. Richard M. Nixon ‘closed the gold window’ for all foreign holders (including all international banks) and this created a ‘floating’ symbol dollar ($$$$$$$$$$$$$$$$$) with no tie to anything physical. To cover up the ‘nakedness’ of this decision, Nixon asked his Secretary of State, Mr. Henry Kissinger, to negotiate a direct tie to OPEC oil (requiring that all oil be ‘priced’ exclusively in dollars). This secret agreement between Saudi Arabia and the United States provided the illusion that our ‘dollar’ had some tie to a physical reality (a commodity). The result of this agreement was called the Petro Dollar decision.
Americans and the World, however, viewed our ‘dollar’ as mostly a physical ‘thing’ as the dollar symbol ($$$$$$$$$$$$$$$$) had some ‘tie’ to oil and it also was the primary Reserve Currency for international trade. This reality, along with the fact that America was the primary Super Power on our planet allowed our ‘symbol dollar’ ($$$$$$$$$$$$$$$$) to work in the marketplace. Symbols ($1.00 and multiples thereof) were viewed as physical units (things) and this allowed everyone to accept this unit for trade and for a reserve currency. Then what happened in the early 1980’s and 1990’s?
What happened is that our Central Bank (the ‘independent’ Federal Reserve) which had total control over the nature of our ‘dollar’ (and the creation of this unit) chose to create the ‘digital’ dollar (a computer digit/unit which emerges from the thought processes of our banksters). This symbol ‘digit dollar’ ($$$$$$$$$$$$$$$$) emerged from the ‘consciousness’ of our commercial and central banksters (mostly via the extension of lending decisions to their clients) and then this symbol unit ($$$$$$$$$$$$$$$) was typed into a computer screen…so as to represent our legal tender and our monetary unit. What did this create for our marketplace of today?
Computers, electronic circulation of money, the creation of the internet, and the creation of monetary ‘digits’ (mere bits/bytes of human information) resulted in a NEW monetary unit for Americans and the World. Basically, our legal tender unit (viewed previously as a ‘thing’) gradually changed from a physical unit (in the minds of the public and the marketplace) to a METAPHYSICAL unit (a mere ‘symbol’ derived from the human Mind). Mere monetary ‘symbols’ ($$$$$$$$$$$$$$$$$) became the units (digits) for buying, selling, investing, lending, and for settling transactions of international trade. Today, the entire World is using mere ‘symbols’ (units of the Mind, $$$$$) for their ‘valuations’ of products and services.
Look all around you (right now) and discern that our money is now a ‘metaphysical’ unit derived from the human Mind. The unit can not be discovered, found, or located within our entire material Universe (space/time). Symbols ($$$$$$$$$$$$$$$$$$$) emerge from the human Mind and they can not be possessed as units (a ‘thing’) for exchange between counterparties (as the prior coin units and the paper units of old). Today, I witness a ‘metaphysical’ monetary system…which mostly originates with our Central Banksters. QE stimulus and other lending actions reveal that all our monetary units now emerge from the ‘mental/conscious’ decisions of select administrators (mostly operating behind the closed doors of our bankster institutions).
Is this a viable system for International Trade and Commerce going forward? I would suggest NO. The primary reason is that this type of non-system is totally SUBJECTIVE and mental. Central banksters and commercial banksters can artificially increase/decrease/rig and manipulate the entire cyber system for THEIR personal purposes and goals. The well-being of the common consumer/public is secondary and this means that the public is a victim and a slave to these administrators…who mostly operate BEHIND CLOSED DOORS. Who is aware of what happens behind closed doors of our various international banking institutions? Who can discover what they are doing and desiring for the marketplace? Think…NOONE!
What I witness today is a Command Monetary System (we could call this command system by the ‘name’…Communism) which is totally controlled, rigged, and administered by select banksters who do not reveal their motives or their actions (in real-time). Central Banksters now RULE over planet Earth and all the seven (7) billion citizens. Is this a workable system for our future…and where does it LEAD? Subjective money (mere symbols $$$$$$$$$$$$$$$$$) can not work as a proxy for VALUE and TRADE. And today we have SUBJECTIVE cyber money (and a global network of ‘symbols’). Mere symbols ($$$$$$$$$$$$$$$$$$) derived from the human Mind act as our proxy for VALUE.
At some point, these monetary symbols ($$$$$$$$$$$$$$$$$$) will lead to monetary distortions, misallocations of value, mal-investments, and a loss in confidence within the greater marketplace. This is happening NOW to a degree. The trend is towards a GREATER COLLAPSE down the road (only God knows the exact date and time). But Rubino and Martenson and similar pundits have it right. Our markets are set up for a crash/collapse and this will happen when the ‘confidence’ game played by our Central Banksters is discovered more fully. Today, ‘deceptions’ and psychological gimmicks are delaying this CRASH/COLLAPSE. QE is one of these ‘deceptions’ which has worked to some degree!
To put a ‘face’ on this situation you need to think of select international banksters who can work ‘behind closed doors’ to continue this PONZI casino game. I now know many of these banksters by name and location. The first name that comes to my mind immediately is that of our prior Central Banker called Ben Shalom Bernanke. Then there was Mervyn King of the Bank of England who followed the lead of Bernanke with ‘digit creations’ from his Mind. Today, the names include Mario Draghi of the Eurozone, Janet Yellen of the United States, Mark Carney of the Bank of England, Haruhiko Kuroda of the Bank of Japan, Stefan Ingves of the Riksbank in Sweden, and Zhou Xiaochuan of the Peoples Bank of China. There are many others who will go ‘unnamed’ for now!
Yes, folks, our SYSTEM is totally rigged and manipulated today and FEW seem to comprehend this reality. I just returned from a Traders Conference in Las Vegas (11/16-18) and witnessed countless zombie investors who had NO clue as to what is happening in our markets. I talked to some of the most intelligent pundits at this event and discovered that none realizes that our Central Bankers control this system and manipulate our real-time markets. These pundits covered all the new technologies now being used by traders to survive in these confusing markets. Algorithmic trading, automated trading, robotic trading, options, futures, derivatives, etc. are becoming the standard for our electronic marketplace.
To conclude, we now live with a ‘metaphysical’ monetary system which only a FEW comprehend. I have been writing about these events for some 9 years and I still am waiting for some awareness within the silver/gold community. This entire industry is now rigged and manipulated (price-wise) and yet only a FEW comprehend this daily rigging activity. Few comprehend the nature of our electronic markets. Few comprehend the nature of our cyber money units. Few comprehend the nature of cyberspace. Few comprehend the nature of ‘symbol’ currency units ($$$$$$$$$$$$$$$$$). Why this ignorance of reality? My sense is that most do not DESIRE to comprehend or understand. Human nature says “don’t think until the crash actually occurs”. This is my view of our situation!
It’s time to wake-up folks. This situation of deception and illusion must eventually come to a climax (end). When will this happen (only God knows)? Awareness, however, is growing and I do sense that a few now are becoming AWARE and CONSCIOUS of the illusions and deceptions everywhere! Our Central Banksters will be discovered as the culprits eventually! We now live with phony money, phony investments, and phony debt (that can never be repaid). Awareness must grow before a CRASH occurs. Prepare if you sense the above factors. The wise are those who THINK independently of the crowd! Enjoy this missive! I am: https://kingdomecon.wordpress.com.
Some additional images to consider (click on the image if you desire more information):