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April 7, 2018 | Trade War Coming: The Problem Is?

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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A global trade war can not be stopped given the nature of our global financial system. We now live with currencies which have no anchor to physical reality. Our ‘dollar’ is merely a ‘number’, ‘name’, and ‘symbol’. This unit is not defined and/or anchored to any material item of production. This is a serious situation as it allows our banks to create these digital currencies from their thinking.

 

Think about what Mario Draghi and Mr. Kuroda are doing with their digital currencies. Mario creates billions to distort prices within his markets. Mr. Kuroda creates trillions to distort his markets. China is doing similar and it all started with the USA and their QE stimulations after 2008. This game of price distortion is now global and this is the real issue with trade. Global Trade can not function with fairness given the ‘nature’ of our corrupted currency system.

 

What is ‘value’ in exchange when currencies have no ‘tie’ to material production? How can we ‘value’ international trade (goods) when the currencies being traded are mere ‘numbers’ and ‘symbols’ derived from our inner self? Bankers have created this corrupted marketplace of currencies and without addressing the issues of ‘value’ and ‘price distortions’ trade can not be fair. Our system is corrupted beyond repair IMO. Think about what has occurred since the closing of the gold window in 1971.

 

When Nixon closed the gold window, our dollar became a mere ‘number’ and ‘symbol’. It became (psychologically) a nothing unit. This created huge price distortions everywhere. As long as prices continue to go UP and UP most pundits ignore the distortions. But when prices start to gyrate and head mostly down, then the marketplace notices the value destruction. We are now at that point in our history. Values are distorted beyond repair.

 

When our money units become mere digits in the computer screen (and not tied to material reality) prices get distorted and values become subjective and meaningless. The purpose of a currency is to represent ‘value’. Today, we have meaningless exchanges as our currencies are mere digits in the computer screen (located in this space called cyberspace). Cyberspace is what I use to circulate these photon images (called digital currencies).

 

Trade can not be stabilized given the nature of today’s corrupted currency system. We now need a RESET of the system. A RESET must happen later in 2018 or 2019 as price distortions will magnify as our digital markets head SOUTH. The start is now. The end is assured. The problem is our digital currencies. The core concept is this economic concept called ‘value’. Values are now distorted and corrupted. Think for yourself on these issues.

 

The prior policies of Bernanke, Draghi, Carney, Kuroda, and the country of China are at the core of our problems. We now need a RESET of the entire global system. But this is unlikely to happen until the distortions grow more dire. I suspect that this will happen in 2018 and after. Trade wars are assured given the nature of our corrupted currencies. Price distortions will grow and magnify. Think for yourself. I am: https://kingdomecon.wordpress.com.

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April 7th, 2018

Posted In: Kingdom Economics

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