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April 24, 2017 | Central Banks Have Given Us ‘Virtual/Imaginary’ Money! Let’s Think!

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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Traders and Investors seem unable to discern that our ‘money’ units are now ‘virtual/imaginary’ units of nothing. Created from ‘nothing’!

Today, our traders and investors buy/sell and trade all kinds of financial assets (now primarily within cyberspace) without realizing that all these monetary transactions are imaginary (virtual) transactions. Deception runs so deep in our global markets now that our money units are mere bits and bytes (digits) within our computer screens. Let’s review the history of how this has all emerged in  the past 15 – 20 years.

We now live in an interconnected world of high-speed computers which transfers data and information at near the speed of light (from sender to receiver, from trader to counter-trader) instantaneously. This information, including our currency digits (now mere abstract numbers in the computer screen), derive from the bits and bytes which start the data flow. What are bits and bytes (in reality)? These units of consciousness start the data flow process for all our transactions. The digital age has emerged for our entire planet and few seem aware of what all this means!

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Physical money units are being replaced with mere abstract numbers within our computer screens (cyberspace)!

The one’s and zero’s within a ‘bit’ and ‘byte’ get transformed into numbers, text, images, and words as information is processed within our computer machines. The processing starts with the signal (a frequency wave or photon pulse) which is part of our electromagnetic spectrum. These immaterial waves of motion along with the action of light (photons) sends information from sender to receiver (from me to you).
Fiber Optic Cables are the primary ‘carriers’ of these frequencies of information. Our entire planet is now wired with fiber optic cables which provide the infrastructure for all the networking and transfer of information between sender(s) and receiver(s). Think of Facebook and similar social media sites as the model for all this change. All of this information processing is now done within a ‘virtual’ environment which we can call ‘cyberspace’ or ‘virtual reality’!
Most all money transactions are now accomplished within this Netherworld called ‘cyberspace’! What is ‘cyberspace’? I call it my ‘extended consciousness’!
Pulses of light (photons) act as a mechanism for transferring the bits and bytes (from sender to receiver) within a wired network and/or a wireless network. Since light travels at a speed of 186,000 m/p/s in a vacuum, information and data can now be transferred from computer to computer at ‘near’ the speed of light. For example:  I can now send a text, video, photo, or voice message from my computer to yours (say in China) in less than 1/8 of a second.
This is equivalent to sending a message in real-time (I call this ‘now time’). What a world we now live in. Communication and networking (financial, social, military, and political) is mostly ‘free’ for everyone with a computer or a similar device to use for the medium. All this happens within this Netherworld called Cyberspace! Information has created a global society where all 7+ billion people can participate. We now have some 5 billion smart phones in operation daily (globally). I just purchased a ‘virtual/imaginary’ stock with my Fidelity App via my smart phone. Is this real or fantasy land?
Think of our electromagnetic spectrum as the medium which sends our ‘money units’ from sender to receiver/ trader to counter party trader)!
This new world of communication has created a new financial and currency market (with some 5 billion daily transactions just within our currency markets) and this has also changed the way markets work and how markets function. Practically all ‘open outcry’ historical trading systems for determining ‘prices’ have now been replaced with ‘electronic’ markets. Electronic markets and our money units (mere abstractions and symbols) have now replaced ‘paper’ and ‘metal’ markets (our money units of the past).
Money is no longer ‘printed’ or ‘minted’ (except for a small niche market within each country). The vast majority of monetary transactions (some 90+%) are now electronic transactions within this virtual environment of the computer screen. Keep in mind that credit card transactions are part of this electronic financial system. This environment has evolved from the bits and bytes (units of information) which get transferred from computer to computer. Algorithms now determine most of our ‘prices’ and these coded mathematical software formula can manipulate/elevate/suppress any of our stock/commodity/derivative PRICES instantaneously…via our HFT (high frequency trading strategies).
Our world is now global and totally interconnected via electronic machines (all operating within this Netherworld called ‘cyberspace’)!
What we need to understand today is the ‘virtual/imaginary’ nature of our monetary transactions. Since ‘money’ is now created ‘out of nothing’ (mostly the consciousness of Central Bankers) and then converted to bits and bytes (digits) as mere numbers ‘typed’ into a computer screen/account, this new reality needs to be recognized by all traders, investors, lenders, and the public at large as ubiquitous. We now have all our ‘debt’ and ‘unfunded’ obligations living within the computer screen (this means that all these abstractions are now located within ‘cyberspace’).
This change means that ‘virtual’ reality has become the philosophical structure for all financial transactions (past, present, and future) within our accounting records. Material reality (paper), the structure of historical monetary transactions (notes, checks, coins, certificates), have been replaced with ‘virtual/imaginary’ units that emerge from the consciousness of policymakers within the banking establishment. Cashless transactions are now replacing physical/material transactions. Our ‘money’ units are mere internal units of ‘nothing’ operating within an environment of ‘nothing’ (cyberspace)!
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An example of ‘virtual/imaginary’ money is the above image! One’s and zero’s create our ‘money units’ today within this virtual environment called ‘cyberspace’! Cyberspace can be viewed as a ‘artificial space’ derived from our metaphysical consciousness!
Where is all this leading going forward? Can a ‘virtual/imaginary’ monetary system work for our global society? It is working as I write this missive but can it work longer term? Can a decentralized network of computers where each trader, lender, and retail investor trades currencies, stocks, bonds, derivatives, futures, options, etc. via their personal computer (mostly privately) and via algorithms create any type of stable market environment?
I would suggest, NO! The reason is that all our markets are now manipulated via a CENTRALIZED group of manipulators (called our Central Banks). These Central Banks now have hundreds of day traders who continually use unlimited ‘money units’ (now mere bits/digits derived from select Central Administrators) to pump up and manipulate all our cyber markets for their selfish desires. Think of all the QE (quantitative easing) operations as the best example of creating these ‘money units’ for their own accounts to further manipulate all our markets!
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New York City was purchased from our Native Indians with physical Wampum (colored beads)! We now live within our consciousness for financial transactions/trading/investing/saving and for all our global banking manipulations!
Money units can also be created in unlimited amounts via select ‘loan’ operations by all our interconnected global banks. Loan operations do not need any prior deposits (from the public) to make these huge lending operations. Today, we create these ‘money units’ OUT OF NOTHING and from ‘nothing’ (the mind of a banker). Think of the past decisions of this banker called Ben Bernanke. Think of this banker called Mark Carney. Think of this banker called Mario Draghi.
Any Central Banker can now create ‘money units’ via their consciousness as our ‘money units’ are now units of nothing (mere ‘virtual/imaginary’ numbers) living within this Netherworld called ‘cyberspace’. Is this fantasy land 101 or what? Our manipulated electronic/cyber markets (stock indexes and such) can now be pumped up indefinitely if these ‘central’ (behind closed doors) manipulators desire this result. Our DOW index, for example, has continued upward with no real ‘correction’ for over 96 months (8 years). Is this normal and sustainable (forever)? I don’t think so! At some point all this fantasy land trading must reverse and correct BIG TIME!
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Imaginary/virtual credits (called money) means that we live within our inner consciousness for all our fantasy money transaction activity! Our money is now living within ‘cyberspace’ (a created space derived from our consciousness)! Who is aware of today’s marketplace? Few to none!
What is the purpose of money in this new global casino environment (of our ‘imagination’)?  Can real material wealth be ‘valued’ or ‘priced’ within this type of manipulated market environment forever (now on a global scale)? Can traders continue to be ‘deceived’ as to the ‘nature’ of cyberspace and our ‘virtual/imaginary’ money? Can Central Bankers (with their ‘behind closed door’ trading machines) continue to fool and deceive investors/traders/decision makers forever?
I don’t think so! At some point (probably rather SOON) we could witness this huge ‘CORRECTION’ which has eluded us! The real business cycle will reveal itself, at some point, as more traders and decision makers wake-up to all this fantasy land manipulation. What is happening at the present moment is unsustainable and our political leaders will eventually also wake-up to REALITY! Think for yourself! The tools of the internet gives us all opportunities to inform ourselves on all these issues! Enjoy! I am:

Does this lady have ANY clue as to what moves our cyber markets today? What do you think? Is she deceived or is she AWARE of our situation?

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April 24th, 2017

Posted In: Kingdom Economics

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