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July 30, 2018 | Some Terminology for Students of our Digital Markets!

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:


Recently a friend of mine asked me to provide him with some terminology and descriptions for today’s digital markets. His education was from prior years of education (prior to the crisis of 2008). He asked that I update him on terminology and the changes which have evolved mostly since 2008. So here goes:

  1. Money has changed from an outer object from nature (paper, metal coins, silver, gold) to an inner unit of our mind (mere abstract numbers and digits displayed within our computer screen). Think of today’s markets as mostly INNER markets.
  2. Some 95% of all money transactions are now done using digital units (abstract mental numbers). Prior to 2008 this percentage was much lower. Today, credit cards, mobile devices, and personal computers distribute nearly all our money units. Our system is now computer driven but our money is an inner (mental) unit.
  3. Digital money (including crypto currencies) can not be held in one’s hand or exchanged from hand to hand. These currencies are inner and/or metaphysical in nature. This change was subtle but ubiquitous throughout all markets.
  4. The trading system prior to 2008 was the open outcry system where real human beings set our prices for most commodities and assets via direct negotiations. This changed after 2008 to an electronic system where cyber frequencies, algorithms, and high frequency trading set our prices.
  5. Today, we have a global cyber market for trading assets and commodities and all this is done within some 65 electronic exchanges around our planet. Computers trade all stocks, bonds, and derivatives within a virtual trading environment. This virtual environment is an inner environment within the consciousness of each person. Understanding consciousness is now necessary for traders and investors.
  6. Frequencies (derived from our electromagnetic spectrum) distribute and circulate all our money units. This means that circulation is now at near the speed of light. A punch of the computer key executes a trade within milliseconds. Credit is extended within this virtual environment which we witness within our computer screens.
  7. Today, money is created from the mind of bankers. Mining of silver/gold to coin into money (via a mint process) is minimal and few use any historical outer money units for trade and/or exchange. Even paper notes are rapidly being replaced with digital (inner) money units. Think of money as an abstraction or an inner unit of your consciousness. Think of all transactions as occurring within a cashless world of mental abstractions and/or digits.
  8. All valuations today are via digital money units. This makes valuation an inner process of the human mind. Subjective money units denominate a trade but these units are not directly exchanged between the parties. Computers now dominate all trading transactions. Many call this process financialization and/or digitization. All valuation is now inner and subjective.
  9. Since 2008 our central banks have taken control over this financialization of assets and commodities. The operation called QE evolved after the USA adopted this policy of creating money units out-of-nothing in 2008 (the inner thinking of banking administrators). Commercial banks can now also create loans by directly typing abstract numbers into a borrowers account. There is no physical backing or mathematical reserve required for this process. A fractional reserve is required prior to extending some loans.
  10. With central banks in control of all our global markets, all stability and growth is dependent upon select central banks. Central banks like the Federal Reserve, the European Central Bank, the Bank of England, the Bank of Japan, the Peoples Bank of China, the Swiss National Bank, and the Bank for International Settlements control the stability of all our markets (mostly).
  11. The International Monetary Fund, a Washington-based institution, also helps to create global stability with their administrative and lending policies. Basically, we could say that a few elites (operating behind closed doors) control, monitor, manipulate, and create all our markets. Private markets are mostly dependent upon these elites…operating behind closed doors at venues such as New York, London, Tokyo, Frankfurt, Basel, and Beijing.
  12. Some concepts to understand for today’s cyber markets are: digital money, algorithms, artificial intelligence, high frequency trading, speed of light transmission, electronic exchanges, index currencies, relative exchange rates, cyberspace, algorithmic pricing, global interconnectivity, smart phones, apps, electromagnetic spectrum, cable and satellite transmission, the internet, quants, source codes, computer programming, electronic exchanges, subjective valuations, consciousness, mental abstractions, central bankers, quantitative easing, no reserve lending, unpayable debt,  growing deficits, instability, robots, automated production, 3-D printing, mark of the beast emergence, one world government, agenda 2030, political correctness, rigged markets, price suppression, and a host of new computer concepts.

The above should give my readers some idea of the new terminology which has emerged in just the past 15 years. Our system is now centralized and historical money and historical Capitalism is essentially over. We live in a new world of digital communication, digital money, and digital objects. Read my blog for new concepts which emerge daily. Think for yourself to gain wisdom and understanding. Enjoy the process! I am:

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July 30th, 2018

Posted In: Kingdom Economics

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