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September 25, 2017 | Drop the ‘Tie’ to Gold and a Currency is ‘Nothing’!

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:

In 1971, President Nixon closed the gold window and our ‘dollar’ ($1.00) became a ‘nothing’ currency. Let’s think about this concept called ‘nothing’. Any and all currencies are officially adopted (initially) as concepts of the human mind (a mental abstraction/symbol/number). This mental abstraction needs some ‘tie’ to material reality to be a viewed as a legitimate ‘thing’ for trading and exchange. The American dollar had this ‘tie’ to material reality for most of its history. Today, however, this ‘tie’ is missing and this makes our currency a ‘nothing’ unit!

In 1792, the Coinage Act, created the American dollar (this mental abstraction) and it was then ‘tied’ (via a definition) to silver and gold. Later the ‘tie’ was primarily gold (officially)…starting around 1879.  Any currency which has a ‘tie’ to material reality (say silver or gold) and which is convertible into these metals via some official definition, becomes a viable currency for trade and valuation. Today, the ‘tie’ of our dollar ($1.00) to anything ‘material’ has been removed and this makes our dollar a ‘nothing’ currency (merely a mental abstraction/symbol/number). Understanding this situation is paramount and extremely important to comprehend!

It is extremely important to understand that the removal of a currency’s ‘tie’ to material reality (that which President Nixon did in 1971) creates merely a unit of money which is essentially ‘nothing’ (imaginary). The unit is inner and mental (this makes it ‘imaginary’). A ‘nothing’ currency can vanish and disappear in time and it can become useless for monetary transactions (domestic and international). Is our American dollar now at that point in its history? Yes, I think so! We now have an American $1.00 which has no ‘tie’ to material reality and which temporarily lives strictly within our mind (also called our ‘consciousness). This is important to comprehend!

This reality makes our entire financial system a bookkeeping system of mental abstractions/symbols/numbers (nothing more). This type of system may work for a short time period as people view these abstractions as real ‘things’ which exist. In reality, however, these mental abstractions do not technically exist and they can vanish and disappear as the financial system corrects/crashes and deflates. Our Central Banksters have been able to delay this correction of reality for many years (mostly since 2008). The gimmick after Nixon’s closing of the gold window was the Petro-dollar concept. This concept created a ‘mental’ tie of our $1.00 to oil (Petro).

By forcing the international community to accept all pricing of Opec oil in our abstract $1.00, this allowed international trade to continue as if our dollar were ‘tied’ to a material object. Traders viewed our $1.00 as a material ‘thing’ since all oil transactions were ‘tied’ to our dollar. Also, having our dollar as the reserve currency and settlement mechanism for trade balances, allowed trade to continue as if our dollar was ‘tied’ to some ‘thing’. Confidence was maintained by these gimmicks of monetary policy. But what is our situation today?

Today, Opec is starting to accept alternative mental abstractions (currencies) for their oil (the absolute pricing of oil in $$$ has been abandoned). Also, Russia and China are starting to accept trade in Yuan and Rubles for many of their transactions. All this change is revealing our American dollar as suspect and a ‘nothing’ unit. Nothing…means that a currency unit derives (is created) from the human mind with no ‘tie’ (official definition) or convertibility into a material object. And since all currencies today are mere ‘mental abstractions’ (with no ‘tie’ to material reality), it is obvious that a crash/correction/deflation would reveal these realities. The lack of any ‘tie’ creates our ‘nothing’ currencies!

Why do you think that our Central Banks are not allowing any serious corrections to our electronic markets (so far)? Why are they continuing to ‘pump’ up these cyber markets indefinitely (with more ‘nothing’ units of money)? Are they AWARE that all our currency units are ‘nothing’ (mental abstractions/symbols/numbers)? I think so! Our Central Banksters have created temporary confidence within our markets so as to avoid this serious market correction/crash. By ‘pumping’ up all these electronic markets with their trading strategies (mere gimmicks) they have avoided this serious correction/crash (as of today)!

At some point, however, reality will prevail and our electronic/cyber markets (consisting of mere mental abstractions) will correct and crash. When this happens the above realities will become evident to any student of finance. This is when the entire system will become vulnerable to collapse. It’s all coming down the road at some point. Now is the time to get yourself educated on the nature of our money units. In reality, all these money units are ‘NOTHING’ and they live within our MIND (also called our ‘consciousness’). Think for yourself to discover these realities! I am:

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September 25th, 2017

Posted In: Kingdom Economics

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