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January 24, 2017 | Keynesian ‘Blindness’ Everywhere!

Donald B. Swenson: Born January 24, 1943, Roseau, Minnesota. Graduated H.S. 1961, Moorhead High, Minnesota. Graduated College 1968, Moorhead State University, Minnesota. Designated member of Appraisal Institute (MAI), 1974. Employed with Western Life Insurance Company, 1968 – 71; Iowa Securities Company, 1971 – 73; American Appraisal Company, 1974 – 81. Part-time teacher/valuation consultant/bartender, 1979 – 2008 (taught workshops at Waukesha County Technical Institute, Wi. and Madison Area Technical College, Wi.). Retired 2008 (part time teacher/blogger), AZ. Self educated economist/philosopher/theologian:

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Our Keynesian economists, media pundits, and the many commentators can not discern that our ‘money’ (the dollar) is now a UNIT of consciousness (also called a ‘mental abstraction’). This ‘blindness’ to reality is obvious to those of us who have studied the HISTORY of our monetary system and especially our ‘dollar’. The book by Judy Shelton, called “Money Meltdown” reveals this history and exposes our current ‘dollar’ as NAKED. A naked dollar eventually ‘disappears’ back to its origin (the human consciousness). Let’s think on this issue for this missive!

Back in 1785 the founding fathers of our American ‘dollar’, mostly Thomas Jefferson, recognized that a ‘naked’ dollar (a mere ‘name’) could not serve as a viable medium of exchange or a standard of value. The dollar ‘name’ (this unit of currency) needed to be ‘attached’ and then ‘defined’ in terms of some object (thing) which exists in space/time. A mere ‘name’, ‘number’ and ‘symbol’ ($1.00) by itself is not a viable currency unit for exchange within a marketplace. The Coinage Act of 1792, passed by Congress in April, concluded that our American dollar need some ‘clothes’.

Think of the silliness of our current Keynesian thinkers (now ubiquitous within our Central Banking systems and our global cyber/electronic markets). Back in 1971 (prior to Nixon’s closing of the gold window) our ‘dollar’ was attached (fixed) in terms of this THING called gold ($1.00 = 13.71 grains of Au). This fix allowed our ‘dollar’ to have meaning, stability, and perceived ‘value’ for international trade. Market ‘prices’ were mostly stable over time as a result of this fix. Investors and traders could think of all currency units (fixed to the dollar) as equivalent to units of gold. The logic was universal for all markets (our money had ‘clothes’)!

The American ‘dollar’ (prior to August 15, 1971) was a unit of consciousness which simultaneously was ‘attached’ to something real/material/physical. A foreign counterparty (like France, Britain, Germany) could actually ‘exchange’ their excess ‘dollars’ (held within their reserve account) for gold held at the U.S. Treasury (if they wished). Think on this for a minute! The American ‘dollar’ was perceived to be AS GOOD AS GOLD (perception is reality). This ‘attachment’ (fix) allowed traders/bankers/investors to think of our ‘dollar’ as having meaningful ‘value’ (13.71 grains of gold was the definition). What has occurred since 1971 -73?

With the closing of the gold window on August 15, 1971, this ‘attachment’ of our currency unit (this unit of consciousness or mental abstraction) was removed from physical reality (gold) and it became a mere ‘unit’ of nothing (an internal unit of consciousness or a mental abstraction within our mind). Can you discern this event and its implications? Can you discern that we now live with a currency unit which is ‘attached’ to NOTHING (no thing within our material universe). It is an ‘illusion’ of our mind and totally ‘subjective’. Can you discern this reality (obvious to me). We now live with a figment of our ‘imagination’ for our monetary unit. The unit ($1.00) is nothing and this makes it worthless and meaningless for international exchange (long-term)! Think on this!!!

Thomas Jefferson would roll over in his grave if he were alive today. So would Alexander Hamilton and Benjamin Franklin. Jefferson might ask this question to our elite Keynesian economists today: What is a unit of consciousness or a mental abstraction ($1.00) and how can this unit ($1.00) serve as a viable medium of exchange for international trade? How can a mere ‘name’, ‘number’, and ‘symbol’ ($1.00 and multiples thereof) serve as a viable long-term medium for exchange for real GOODS (for International Trade and Commerce)? Think of the absurdity of this situation! Are our Keynesian economists, media pundits, and podcast commentators insane or merely deluded? If not them, then am I the one who is deluded/insane?

In astronomy the issue is what is out there in space. Look up at the sky today and notice the Sun as an object in space. This object could be given various ‘names’. We could call this object Sol, Helios, or Sun. Any ‘name’ could be chosen. But would it make any sense to assume that these ‘names’ could be ‘unattached’ from the object (thing) and still traded as real objects (intellectually)? What meaning would a mere ‘name’ of this object be if we assumed that the ‘name’ was unattached to the THING (object)? The word Sol, Sun, Helios are ‘names’ which are ‘attached’ to this thing in the sky (just like the ‘name’ Dollar was originally ‘attached’ to this thing called Gold or Silver).

The word Sun has meaning as a ‘name’ because it is ‘attached’ to a physical object in space/time. Without this ‘attachment’ the word is mostly meaningless. What is a ‘name’ with no astronomical object to identify it? Thomas Jefferson recognized this same thinking when he ‘attached’ our original ‘name’ Dollar to 371.25 grains of silver (Ag). Without this ‘attachment’ (fix or definition) the unit would remain a mere MENTAL ABSTRACTION or a unit of consciousness (a nothing concept). Think about the absurdity of our Keynesian thinkers who can not discern this difference. To my way of thinking, this is INSANITY and pure DECEPTION! Or am I insane and deluded? Which is it?

Wake-up to the history of our American dollar folks and think about what we now live with. Read the book by Judy Shelton called “Money Meltdown”. She is absolutely correct IMO that we need a ‘fix’ of our dollar to some THING (like gold). A money meltdown is coming and this means that everyone needs to PREPARE for this eventual EVENT. A ‘dollar’ without some psychological ‘attachment to material reality is an ILLUSION and a gross DECEPTION (in my mind) which can not stand as a viable trading unit much longer. History reveals this reality and history will repeat IMO. Wake-up now! I am:

Some additional images for your consideration:

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Keynesian economics is mostly NONSENSE!

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The Keynesian mindset of Krugman (emerged from JMK)!

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I tend to agree with John on the above philosophy (assuming this is what he said/meant)!

Related image

Yes, a dentist understands the concept of ‘fixing’ silver/gold to one’s tooth!

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Debunking Keynesian math in one graph!

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The range of viewpoints within economics is huge. For example: What is this concept called ‘value’ within economics? How did it arise and flourish? Is it an illusion of the mind or is it a real tangible thing (which exists)? Ask yourself: WHAT IS VALUE???

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January 24th, 2017

Posted In: Kingdom Economics

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