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April 4, 2018 | Do You Want to get Educated on Money? Read!

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.

I was shocked when I went to my Wells Fargo bank today to exchange a check for paper notes (cash). I asked the lady at the counter if she knew what digital money was. She said: Is it like Bitcoin? I said, Yes! I then asked her the question: what is a ‘digital’ dollar? She responded, I don’t really know. I then asked her to LOOK at her computer screen (directly in front of her) and my computer account…’which was also in front of her nose’. I said, the account you are ‘looking at’ (within your computer screen) consists of ‘digital’ money and lives within cyberspace. Were you aware of this?

 

She said, yes, the computer accounts are now digital. I just had not been confronted with these types of questions from any other customer. I then said, we are now using digital money for most transactions on this planet (some 95% of all transactions are now digital). Computer money is now ubiquitous. Your computer (the information) operates within cyberspace and stores all these digital units which we call money. Were you aware of this? She said, I didn’t think of this but this would be correct. What a shock this is that so few understand money and/or what they do with money. Why is this ignorance ubiquitous? I witness this everywhere.

 

Today, at the clubhouse, I asked an investor and prior money broker (he invests in covered calls daily) if he knew what a ‘digital $’ was. Again, I got the response that he did not know what a ‘digital’ dollar was. Isn’t this shocking? People, including, investors and most financial pundits (who invest daily) do not KNOW what is money or what a ‘digital’ $ is. When I asked if our money today lives in cyberspace, I get a blank stare and no response. Cyberspace: what is that? I have also asked many times about the nature of this coin called Bitcoin. What is this unit which many call an alternative money? Where is it? What is it?

 

Few can answer the question immediately and I often get a stare into the sky with no real understanding. When I ask if the coin exists, they mostly say Yes. I then ask them if they can access a Bitcoin so I can see it? Again, most think this is possible even though they have none to exchange with me at the moment. Many witness the image in their computer screen and think that this image is real. The ignorance of people on the issues of money is astonishing. People (including educated businessmen) seem to lack a clear comprehension on issues of money. Why is this so?

 

My personal sense is that the issues of money and its nature are not discussed within our halls of education. Businessmen and most educated people have not learned much about money, its prior history, or its nature and evolution. I was aware of this but not aware of the total ignorance of educated people everywhere on these issues. My friends at the clubhouse are educated/retired people and yet FEW seem to understand anything about today’s monetary system. Many do not even comprehend that money is an ‘invented’ idea. What a shock all this is! Most people have no understanding about issues of money, its nature, or its role within our economy.

 

My bank administrators at Wells Fargo and Chase do not know much about what they are doing daily (so it seems). These administrators exchange cash for checks, checks for deposit, paper notes for deposit, and yet have NO idea that the accounts which store this so-called money are digital accounts. Ask a friend if they can define this unit called the ‘digital $’? Ask if they can define this space called ‘cyberspace’. Ask if the stock markets consist of digital money displayed on a screen. Ask if they understand the nature of ‘algorithms’ or algorithmic trading? You may be surprised at the responses.

 

My friends at the auto repair building (Firestone) seem more aware of what money is than the educated elites at my clubhouse. This is shocking information and reveals that our education system is seriously lacking in their education of students and the public. People do not understand much about money, finance, investing, Central banking, our national debt, money creation by banks, trading within cyberspace, digital money, cashless society, etc., etc. A friend of mine said that ‘only’ deposits can be lent out by banks. Is this our situation today? Must a bank have people’s ‘deposits’ prior to making a loan?

 

The ignorance today is ubiquitous and it reveals, to me, that people have not been educated on issues of money and its history. Educated people can not define what a ‘digital $’ is. Educated people can not define what a Bitcoin is. Educated people can not discern that our Central banks trade our markets. Few understand that we now live with digital stock exchanges and/or electronic transmission of digits (as our money). Educated people (many) view a Bitcoin as similar to a gold coin. Both are commodities which exist and can be exchanged (is often the response I get). What a SHAME this situation is upon our education system.

 

One of the most important issues of life (money) is not understood and not internalized. Go to your own bank and ask the clerk if he/she knows what a ‘digital $’ is? Ask them if they can define what ‘money’ is? What cyberspace is? What Bitcoin is? How money is created and distributed? What our Central Bank is called? You may be surprised at their response. How can we make progress with this massive ignorance on issues of money? Our many pundits who assume that they understand money need to help with this education. Get this missive out to many. Think for yourself on this! Enjoy! I am: https://kingdomecon.wordpress.com.

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April 4th, 2018

Posted In: Kingdom Economics

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