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October 9, 2017 | Why 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: http://kingdomecon.wordpress.com.

Image result for value is now subjective, gold has been eliminated

The game of money starts with another game called ‘Valuation’. Valuation of goods is what eventually resulted in this concept called ‘Money’. The game of ‘valuation’ starts within a barter marketplace where people exchange goods for goods. The problem encountered in a barter marketplace is this concept called ‘value’. What is the ‘value’ of my good so I can exchange this good for yours. What is the ‘value’ of your good is the secondary question.

Valuation of a good (say a loaf of bread) is subjective as people negotiate for another good(s). To make this exchange of ‘value’ more mathematical and logical we invented ‘money’ as this substitute (proxy) for ‘value’. Money allows people to exchange good for good and avoid any subjectivity in the game of ‘valuation’. Money and a currency provides us with the tools to complete a valuation result. An objective ‘number’ can be derived which we call the ‘price’.

Historically, it was important for any money item chosen to also be viewed as having intrinsic ‘value’ (like say, silver or gold). This meant that when I exchanged by good (say the loaf of bread) for your good (say a dozen eggs), the exchange would be viewed as ‘value’ for ‘value’. With money having intrinsic ‘value’ and the currency (dollar) attached to the money being a ‘number’ ($1), we could assume that the transaction was a ‘value’ for ‘value’ transaction. The value result was objectified with math/numbers!

Today, our exchange of ‘value’ for ‘value’ in the marketplace is rather different. I now exchange an imaginary symbol/number ($1) which has no attachment to a prior money item (like silver or gold) for whatever I desire. The idea of ‘value’ for ‘value’ is now a mere subjective transaction of symbols/numbers (attached to nothing). Why is this so? We need to recognize that all currencies today are mere symbols/numbers (also called mental abstractions). This developed (mostly) after the closing of the gold window in 1971-73.

Mental abstractions ($1 or $1 million or $1 trillion) are mere imaginary numbers derived from a banksters inner consciousness (his/her ‘mind’) to represent ‘value’. The numbers are now called legal tender (even though there is no ‘attachment’ of the number to a good/commodity/thing). This allows us to ‘value’ a good (say a loaf of bread, a car, a house, etc.) with mere imaginary numbers which a bankster creates out-of-nothing (his/her ‘mind’). The numbers (called our currency) have NO attachment to any ‘thing’ of historical ‘value’ (silver and gold providing this attachment up until (mostly) 1971-73.

Today, we have a game of ‘valuation’ of our goods (also services and activities) with mere imaginary numbers (disconnected from any real ‘thing’ of historical ‘value’). This allows our Central Banksters to create these ‘numbers’ into infinity (if they choose) to further distort all historical ‘prices’ within our marketplace. Our currencies today (called money) by the public, are really units of our imagination and/or our consciousness. This means that ‘valuation’ today is totally subjective and inner (mental). This concept is important to understand! All valuation is now subjective and this leads to value distortions everywhere!

The concept of ‘money’ has changed (mostly since the closing of the gold window in 1971-73) from a physical ‘thing’ from nature (say silver or gold) to a non-thing (a mere symbol/number) typed into the computer screen. When I negotiate ‘value’ transactions today, I merely apply my subjective view of ‘value’ to the good, service, activity and assume that the mathematical result represents a real objective ‘value’ transaction. There is no objective ‘thing’, however, underlying the symbols/numbers which are used as our currency/money. Valuation is merely a result of mental abstractions!

All this allows our monetary authorities to distort, manipulate, and create prices which have no real relation to supply/demand in the marketplace. When our money is a mere symbol/number (and this symbol/number is imaginary…a product of my/your mind) then it is possible to pump up our imaginary symbol markets into unrealistic mathematical results. For example, the Caracas General Index Stock Market (over in Venezuela) has increased over 4,000% in the past year due to this pumping up of this market via trading gimmicks. This is what happens in today’s electronic/cyber index markets!

As I look at my CNBC app, however, (as of 10/09/2017) it appears that this market (called the Caracas General) just crashed some 99% today. I can not verify this apparent crash (at this moment) as the news is not current on my computer as I write this missive. If it did crash by 99%, this means that all these imaginary numbers (called Bolivar’s or money) have vanished and disappeared back into the consciousness of these investors/traders (their mind). The stocks ‘value’ has disappeared and vanished.

This is what happens to our ‘value’ in all these markets today as a result of the fake money/currencies which we use for ‘valuation’.  We need to recognize that the game of money started (historically) to solve this subjective concept which we call ‘value’. Valuation is what finance/economics is all about. Initially, we invented money which was a ‘thing’ which was viewed as having intrinsic ‘value’ (say silver or gold). Today, we use a currency (called money) which is a mere symbol/number.

This symbol/number ($1.00) is a mental abstraction within our mind (consciousness) and it has no intrinsic value or thingness. This means that all our ‘valuations’ today are subjective and when a market crashes the symbols/numbers (representing our money) disappear and vanish (back into our consciousness/mind). All our index markets are now markets which create subjective ‘valuations’ which can eventually go to zero (nothing). All this is because our currency (say the dollar/euro/pound, etc.) has NO attachment to a ‘thing’ of historical ‘value’.

The Caracas General (over in Venezuela) has been pumped up to unrealistic levels this past year. So if it just crashed this is understandable. If it did not crash today, then it is likely to crash soon. The entire edifice of finance today is subjective/artificial/imaginary and inner. Valuations can not be maintained as objective when we use mere symbols/numbers as our currency (also called our money). It’s mathematically impossible! Think on this as all markets will eventually crash. Enjoy! I am: https://kingdomecon.wordpress.com.

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October 9th, 2017

Posted In: Kingdom Economics

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