- the source for market opinions


July 9, 2018 | Valuation, Monetization, Financialization, Dollarization: This Can Be ‘Eliminated’!

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:

Trade and economics began due to this concept called ‘value’ or ‘valuation’. Money emerged from this core concept. As a profession we have created a system where ‘valuation’ creates our prices. Today, we have a ‘valueless’ money which merely gets used to monetize an asset or some activity. Real measurement of ‘value’ has been abandoned. Some call our current system ‘financialization’ of assets. Others call this ‘dollarization’ and/or ‘digitization’. Let’s think about what all this means going forward.


Since we now have an international trade system where goods are traded from country to country (in real-time), do we still need this concept called ‘money’ and this concept called ‘valuation’ to serve as tools for production, distribution, and consumption of our wealth? Economics started out as a system of production, manufacturing, distribution, and consumption. Adam Smith economics consists of trading goods as wealth. Services and activities (like sports, education, and politics) were not viewed as products of real wealth. These were social relationships which developed as real wealth multiplied.


Today, we have an abundance of goods wealth (food, clothing, shelter, transportation, and health care products) for everyone. Yet, as a society, we continue to value/monetize/dollarize services and activities. Activities allow for additional consumption of all this abundance which we produce, however, activities are not real wealth. For example, we monetize the activities of sports talent in the billions/trillions. A basketball player can earn $154 million for merely bouncing a ball and performing skills around a basketball hoop. This same valuation is done for all types of sports talent and non-productive activities where no end product emerges.


The abundance of goods wealth (now produced mostly via robots) has allowed us, as a society, to value/monetize/dollarize all these services and activities where no product is produced. Professional sports is an obvious example. Economics started out as the production of goods (food, clothing, shelter, transportation) and this was labeled real wealth. The goal of economics was to increase this physical wealth and grow the economy. Money was merely a ‘tool’ for helping us accomplish our goal. All has changed since our founding in 1776.


Today, we could eliminate the valuation/monetization/dollarization of all goods, services, and activities and then develop a system where robots, computers, and artificial intelligence could multiply our supply of goods wealth so that everyone could enjoy a high standard of living. We could eliminate prices, valuations, monetizations, financializations, and dollarizations. We could decentralize all production so that everyone participated in the system. Distribution would be via drones, robots, and self-driving vehicles (gradually) as less physical labor is needed.


Money was a ‘tool’ which we invented for purposes of increasing real wealth for the people. We created this concept called ‘value’ and we then ‘valued’ all production to allow for the exchange and distribution of this production. As production increased we added ‘services’ and then ‘activities’ to this valuation model. Today, we value goods, services, and activities. All this ‘valuation’ could be eliminated over a short period of time as production is now being accomplished with robots, computerization, and artificial intelligence (mostly).


We could eliminate all ‘money’ from this planet. Money, today, is merely a subjective digit of our consciousness. It does not technically ‘exist’. What is a ‘dollar’? It is a mere ‘name’ and a ‘number’ within our computer screen. It is non-physical and inner. Why do we need a subjective/inner/metaphysical unit of nothing (derived from consciousness) to grow our real wealth? We don’t. We could eliminate all money from this planet. It’s unnecessary going forward! Think about this!


Money is a corrupt enterprise which is now used to control and corrupt the moral thinking of billions on this planet. We pay billions to politicians who then swindle each other for there personal gain and power positions. Look at our world system today. What is happening in Venezuela with their political/economic system? In Zimbabwe, Sudan, and Mali? What is happening in Iran? What is happening in Argentina, Brazil, Mexico, Turkey, Syria, Afghanistan, Libya, Yemen, Pakistan, etc.? Money leads to corruption and immorality (mostly). Why perpetuate this system of corruption?


Look at all the Western nations which have centralized their money creation processes via their Central Banks? What has happened? Central Planning has developed. A mere handful of unelected bureaucrats administer our economic system via financialization of assets and activities (mostly done behind closed doors). All financial assets are now mostly derivatives (where the underlying ‘value’ is another meaningless financial asset). We have a system of valuation, monetization, financialization, and dollarization. None of this is necessary for the production of real wealth.


The system has evolved into an inner and subjective system. It serves a deceasing body of producers who feed on all their crony connections with the administrators of this financialization system. The rich get richer and the overall system reduces entrepreneurs to mere servants of the rich. Today, some 5% of the rich control some 75% of the world’s wealth. Is this progress? I would suggest that we need to rethink our model for economics. We could eliminate money and decentralize the production system.


Politicians and rulers could step down from their God Playing activities and become normal servants for the system. Economics needs to change from a math model of financialization to a goods model of material wealth. Food, clothing, shelter, transportation, and health care products could be viewed as wealth. Playing basketball, football, tennis, soccer, etc. would be viewed as a talent where no money is needed. Politicians and rhetorical expositors who produce nothing do not need their activities monetized.


Let’s eliminate money from this planet as it is no longer needed. Let’s put people first and let’s self-govern so that everyone can participate in the system. One planet under our Creator would be my model. Money and corruption would be eliminated so that real liberty and happiness could emerge. Decentralization of all markets could be accomplished. Sharing of natural resources would be encouraged. Give this model some reflection. It’s the model of Kingdom Economics! I am:


STAY INFORMED! Receive our Weekly Recap of thought provoking articles, podcasts, and radio delivered to your inbox for FREE! Sign up here for the Weekly Recap.

July 9th, 2018

Posted In: Kingdom Economics

Post a Comment:

Your email address will not be published.

All Comments are moderated before appearing on the site


This site uses Akismet to reduce spam. Learn how your comment data is processed.