Wake Up: Investors, Money is Imaginary!
Economics involves production and material wealth…not units of ‘imaginary’ money! MONEY was meant to be a ‘tool’ for VALUATION of our material ‘wealth’!
Who understands the nature of today’s money units? Are you AWARE that ‘money’ units are now NOTHING (mere imaginary numbers)? Are you AWARE that Central Bankers are now creating ‘money’ units OUT OF NOTHING…their ‘consciousness‘? Ron Paul calls this creating ‘money’ out of thin air! Look all around you and see if you can discover or find our current ‘dollar’? Where is our DOLLAR and what is our DOLLAR today? Few seem to understand that ‘money’ today is IMAGINARY (within our MINDS)! Santa Claus is ‘imaginary’! The Easter Bunny is ‘imaginary’. The tooth fairy is ‘imaginary’. Images within my/your MIND are ‘imaginary’. Why can’t intelligent investors recognize that our ‘money’ units are now ‘IMAGINARY’ (mere mathematical numbers)? Prices (now mathematical numbers) are also ’imaginary’! Values (now derived internally via mathematical units) are ‘imaginary’! Politicians and bankers also seem totally lost when it comes to understanding our ‘money’ units today. Reality is always NOW! LOOK and THINK and OBSERVE right NOW. Can you locate or find the money unit that we call DOLLAR? If you can, send me an email at: firstname.lastname@example.org. I am unable to locate this unit within spacetime!
Historically, MONEY has been a ‘tool’ for the VALUATION of items which we exchange. Think of a BARTER environment! What do we DO when we exchange a product for another product? We encounter a concept called VALUE! If I must give my product to you (say my watch), what do I want from you as an item of exchange? I will likely desire something that has equivalent VALUE. If you are a baker and create BREAD, then I may want bread in exchange for my watch. This transaction represents the basics of economics under Capitalism. We trade items of production for items of production. To facilitate this exchange we INVENT ‘money’. Money is merely a concept of our MINDS initially. We then choose some item from nature (our spacetime universe) to facilitate this trade of VALUE. What emerges in time is an item called MONEY (a proxy for value).
What is the opposite of ‘imaginary’ numbers? Could I suggest a metal coin called SILVER? Could I suggest a metal coin called GOLD? These items EXIST within spacetime (our Universe) and also are natural resources. These items are NOT ‘imaginary’! Silver is mined from our earth and coins are produced from this metal. The same goes for Gold. People in the world’s markets chose these items (and many similar items from nature) to serve as a TOOL for ‘valuation’. These items were defined in units of weight (grains) and then given a NAME (such as Shekel or Dollar). People in the marketplace could then COUNT and VALUE other items via these items of VALUE.
Imaginary NUMBERS which we derive from our MIND do not qualify as items of VALUE. Numbers work as units for ‘counting’ and also units for ‘pricing’ products (goods) BUT they still are ‘imaginary’ and ‘subjective’. Today, all our VIRTUAL numbers (images within our computer screen) appear as real material items BUT they are NOT. What we have today for ‘money’ are IMAGINARY units of the MIND (our consciousness). Think about the following images which show ‘numbers’ and ‘math’. Should ‘imaginary’ numbers serve as MONEY? What happens when we use ‘imaginary’ items from our CONSCIOUSNESS as our money?
What happens is that we end up with ‘numbers’ and more ‘numbers’ and more ‘imaginary’ units of NOTHING! Numbers are great for counting and calculations BUT they are still units of CONSCIOUSNESS (creations out of THIN AIR). Today, we have intelligent professional bankers, investment counselors, financial experts, commodity brokers, international speculators, and accounting professionals who have adopted ‘imaginary’ units of CONSCIOUSNESS as their MONEY. Keynesian economists have adopted mere units of CONSCIOUSNESS (names and numbers) as our money and our store of ‘value’ (see my prior missive for details). This is totally unsound and anathema if we want sound economic growth, wealth creation, and a functioning monetary system. First of all, the goal of economics is WEALTH creation. Wealth consists of all the ‘material’ products and goods which we produce from the land. Under Capitalism, MONEY serves as the key TOOL for valuation and for incentives to create NEW WEALTH. What does history teach us about MONEY under our prior system of Capitalism?
Money is merely a TOOL (invented but important) for valuation of goods produced and then as a TOOL for the exchange (of value) of all the items which we produce? Money serves three functions: 1. standard of value 2. medium of exchange and 3. store of value. The core concept of Capitalism is the concept we call VALUE (value in exchange, value in use, and potential value in the ground). The functions of MONEY can not work with today’s IMAGINARY numbers and ‘imaginary’ currency names! The name DOLLAR is ‘nothing’ and ‘no where’ within spacetime UNLESS this ‘name’ describes some THING that is physical, material, and real (outside one’s MIND). If we desire to continue a system of Capitalism history shows clearly that we MUST have some THING (outside our MIND) as our MONEY. Silver and Gold qualify as physical, material, things. If we DEFINE the ‘name’ DOLLAR in terms of some THING ($1.00 = 371.25 grains of silver), then we have a unit of money that has historical relevance (under Capitalism). Our monetary system started with a ‘dollar’ that was defined and then convertible into the defined item. This gave our money units substance and stability (as a pricing unit) over time.
Notice that MONEY needs to HOLD its VALUE over time! Why would any lender want to loan to a borrower IF the ‘money’ unit had NO lasting VALUE? This would be senseless and meaningless. Today, we have merely ‘imaginary’ numbers as our units of currency and we measure ‘value’ (a subjective concept) with these ‘imaginary’ units of NOTHINGNESS. Capitalism can NOT work given this type of operation. Math and numbers along with mere ‘names’ for our currency units (dollar, pound, euro, yuan, real, krona, peso, etc.) are mostly MEANINGLESS as units for VALUATION. Prices can NOT be stabilized with mere subjective units of consciousness as our MONEY units. Investors can not STORE value given mere imaginary units of consciousness as our MONEY. A debt system based on credit over time can NOT work given money units with no durability or substance. In summary, CAPITALISM is over and done given our current non-monetary, non-system, non-value money (called Keynesian Economics). THINK about what we are NOW DOING and perpetuating as a Financial System for our World! THE SYSTEM is a fantasy (similar to believing in Santa Claus or the Tooth Fairy).
Todays money (created from consciousness) and then made ‘virtual’!
We are living in a unique, deceptive, and illusionary world. Our MONEY is now a ‘fantasy’. Our non-System (mis-labeled as Capitalism) is a gambling ‘Casino’. Our investments and savings are ‘imaginary’ units of Consciousness. Our monetary distribution system is now Virtual. Our Central Bank administrators are now mere ‘counterfeitors’ and ‘price’ manipulators. Our politicians are mostly corrupt and unaware of reality. And the vast majority of the general public have no interest in understanding our problems or the financial issues underlying their future. Where is all this virtual environment leading?
WE all will change when and only when the problems create an environment where SURVIVAL is at stake! Human nature is interesting and revealing. The wise will learn and change their behavior (prior to a crisis) but the vast majority of people seem to desire ‘fantasy’ over ‘reality’…at least as long as it lasts! That is my missive for today! Enjoy! http://kingdomecon.wordpress.com.
Don Swenson - Kingdom Economics posted Tuesday, December 4th, 2012.