Howestreet.com - the source for market opinions

ALWAYS CONSULT YOUR INVESTMENT PROFESSIONAL BEFORE MAKING ANY INVESTMENT DECISION

March 8, 2019 | Digital Money: Divorced from Material/Physical/Tangible Reality

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 modern money theory

Economics is all about production of material wealth from the land and the consumption of products which derive from the land. The purpose of money is to represent that which is produced and consumed plus to measure its value to determine growth and change. But what happens today is not valid when these issues are considered. Some call today’s economics MMT.

 

Digital money consists of the following:

  1. I swipe my credit card and digits are transferred from my digital account to another digital account. It’s all done via electro-magnetic frequencies.
  2. I insert my chip card and more digits get transferred from one account to another.
  3. A banker makes a loan to me and my digital account increases as the banker inserts digits in his computer to validate the transaction.
  4. Bankers create billions of digital units (called dollars, yen, pounds, etc.) by merely inserting numbers in a loan account. Deposits are no longer required to create these new loan accounts. It’s all done electronically/digitally.
  5. Our Central Banks create digital loans/reserves (called QE) by merely typing new numbers into an account (their own and then that of a Primary Dealer).
  6. Consumers use smart phones to buy and sell products/services and this involves digital money units. Our financial world has gone digital.
  7. Some 95% of all money transactions are now digital and these digits serve as our money/currency for most financial transactions. The trend is now global.
  8. International trade is now mostly a digital operation as countries import and export their products and exchange digital money units. Prices/values are all digital expressions within our computer screens.
  9. Commodities like silver and gold can be traded digitally on our electronic futures markets with no actual exchange of anything tangible/physical. Mere imaginary digital trades create our spot prices for silver and gold and almost all other commodities. The Comex, Globex, Nymex are examples of electronic exchanges which allow digital contracts to be purchased and traded usually without any physical metal being exchanged. See the following website for details.

https://www.orobel.biz/information/news/what-is-nymex-comex-and-globex

 

What we have today within economics is a digital world of money which creates prices which are divorced from tangible/physical/material reality. Prices no longer represent the item (its historical value) underlying the price. Prices are mere mental abstractions which satisfy the mind of the creator but which may not reflect economic reality (any historical perception of value). I see this clearly in our silver/gold markets.

 

This situation can also be seen clearly over in Venezuela. This market is now in a serious economic depression even as their digital indexes reflect a growing result for investors. The Caracas General index reveals growth for select investors even as millions of consumers within the marketplace starve from a lack of necessary survival products. This corruption goes unnoticed by media, investors, and political pundits.

 

What we need to  understand is that digital money is not real wealth. Digital money is virtual wealth which satisfies the mind (the inner person’s metaphysical self) but does not reflect real economic growth for the people within an economy. Investors can accumulate these digits within their computer accounts even as the people starve for lack of survival needs. Is this valid economic theory? Some call this MMT or Modern Money Theory)

 

Our markets are now totally corrupted as people trade mental abstractions as a form of wealth ($$$$$$$) without a corresponding tie of these units to material/tangible/physical production. All this corruption will eventually surface as a collapse of our economy in time. It is happening over in Venezuela as I write. It will happen globally in time. Our markets are not reflective of real economic production or real wealth creation.

 

Statistics, numbers, measurements of growth and wealth are mostly meaningless today. Our bankers run the markets with digital loans, QE, and magical interest rates which can not serve the real producing markets fairly. The rich can accumulate excessive digits for their accounts but the real wealth is not distributed fairly or equitably among the masses. I see this clearly over in Venezuela, Cuba, Libya, Syria, Yemen, and Afghanistan.

 

A person like Alexandria Ocasio-Cortez (AOC) wants to tax the rich to solve this problem. I understand her frustration with our corrupt economic system. Socialism is emerging as I write. Many can discern that our current system is dysfunctional. Mr. Trump says America will never be a Socialist country. HIs assurance is hollow IMO. America is already a Socialist country (magna cum laud).

 

Look at this website for evidence:  http://www.usdebtclock.org. Look at your smart phone for an understanding of digital/virtual/cyber reality. All this leads to the Mark of the Beast and the end of money for this planet. May the day come soon. Think for yourself to discern these obvious realities. Watch what happens over in Venezuela for a model of what will happen everywhere in time.

 

I am: https://kingdomecon.wordpress.com.

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

March 8th, 2019

Posted In: Kingdom Economics

Post a Comment:

Your email address will not be published. Required fields are marked *

All Comments are moderated before appearing on the site

*
*

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