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February 23, 2017 | Imaginary $$$ Can ‘Elevate’ Markets (Indefinitely)?

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: http://kingdomecon.wordpress.com.

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In theory, our money units today can increase our index markets (essentially) forever! Think about our situation today. ‘Numbers’ are our money today and ‘numbers’ are units of our imagination (pure mental abstractions derived from our inner being). This means that (in theory) banks and our monetary administrators (our central banks) can elevate (increase) these ‘numbers’ (digits in the computer screen) indefinitely (essentially forever). Have you noticed how our DOW Index reaches new highs continually? It is now at 20,832 (a 1% increase in 5 days). At this pace we could witness a DOW of 57,000 within one year!

Have you noticed how nearly ALL the global index markets continue to get elevated irrespective of economic growth. Real economic production used to be the measure of prosperity. Today, it is elevated (increasing) digits within our computer screens. I read in the Financial Times today that HSBC bankers are noticing the slow down in growth within many Asian and European markets. But this slowdown does not mean (necessarily) that the DOW, DAX, CAC, FTSE, NIKKEI, or SHANGHAI  indices will decline in conjunction with the slowdown in real economic production. These index exchanges (now all electronic and living within cyberspace) could ignore any economic slowdown and continue to elevate indefinitely. What a change from yesteryear!

What we need to recognize is that our monetary system today is IMAGINARY (inner). It’s all in our ‘heads’ (also called our imagination). None of the digits (called money) today live within observable space/time (like silver/gold coins). These cyber units all live within ‘cyberspace’ (also called our extended consciousness). This means that all our imaginary markets (now living within our collective consciousness) could INCREASE (essentially) forever! Think about this. We live with IMAGINARY money, imaginary investing, imaginary savings, imaginary trading, and banks which can increase these imaginary units indefinitely (essentially forever)…via loans and QE.

The ONLY check on our imaginary markets and positive media psychology (which helps to push these markets to new records) is a CHANGE in real trader sentiment (our inner imagination). If the general public were to turn negative (mentally) and sense that all this psychological hype (within our markets) was mostly meaningless, then the money game would change immediately. Traders would sell short, borrowers would default, corporations would liquidate inventories, consumers would riot, and government politicians would publicize this change in sentiment via the media outlets. Blaming the ‘other’ would start everywhere!

How far will our Keynesian monetary authorities (globally) PUSH these markets to continuing these new imaginary records? I think they will PUSH until a majority of traders/investors reject the markets as being meaningless. At some point production will decline for months and then a trend will develop wherein our Keynesian manipulators will find it difficult to reverse market sentiment (the short selling). But as of today, imaginary money and imaginary investing works for our imaginary markets. Imagination desires mostly a positive (high) continually. Who wants a crash which can not be reversed by our authorities? Keep the heroin flowing for now!

What we need to recognize is that the Keynesian economic model (which started after the last GREAT depression…in 1934) is a ONE-WAY STREET. This model requires ‘values’ to increase continually (essentially forever). Underlying this concept called ‘value’ is this concept called ‘debt’. Debt demands increasing ‘values’ (so the debt can be serviced). This trend of increasing ‘values’ (which started in 1934-44) has now been up and away for over 70 years. Who wants this trend in motion to END? I would suggest few! This means that our Keynesian monetary authorities will continue this upward PUSH indefinitely! The break is a change in majority sentiment! It’s not here YET!

Like the ‘tulip bubble’ of old, this current Bubble will continue until it ENDS. Our imaginary money (now digits within the computer screen) can continue this upward PUSH for the time being. Until the majority of traders/investors wake-up to the chicanery/distortions/corruption (being perpetrated upon them) the system will continue ‘as is’. It’s human nature not to change until the current trend is OVER! Keynesian economics MUST continue until it ENDS. DEBT can not be repaid so VALUES must continue UPWARD (essentially forever). It’s all an ‘imaginary’ NUMBERS game! Enjoy the ‘trip’! I am: https://kingdomecon.wordpress.com.

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Who is aware that our MONEY is now ‘imaginary’ (all within our consciousness)???

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February 23rd, 2017

Posted In: Kingdom Economics

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