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November 27, 2019 | Understanding ‘Nature’ of Three Types of ‘Dollar’s’!

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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The word ‘dollar’ does not have a single definition. The word has been defined differently since its inception after 1792. The original dollar was ‘defined’ as 371.25 grains of pure silver. Since this original definition the dollar has changed and today we live with a dollar which has NO definition (it’s virtual). Let’s review the three different types of dollars which are still in circulation globally for understanding! Enjoy!

1. The silver dollar.
2. The paper dollar.
3. The virtual dollar.

I currently have all three of the above dollars in my portfolio of savings and investments. My silver dollar is in my wallet as a store of value. I do not use it for any daily transactions as the silver is worth more than the face amount on the coin.

2019 American Silver Eagle 1oz image 0

The paper dollar is a Federal Reserve Note which I do use on occasion to buy breakfast or lunch. But I do not save this dollar and my use of it is less than 5% of all my financial transactions in dollars. During my youth, this paper dollar was used extensively as a virtual dollar was not available to me.

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The virtual dollar is what I use for nearly 95% of my financial transactions today. This dollar does not exist as a material item but it appears in my computer accounts as a virtual number (which I can visualize). Virtual dollars accumulate in my savings account, my checking account, and my investment account. This virtual dollar lives within cyberspace (a space which technically does not exist).

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Cyberspace is a space which emerges with the connection of computers into a network. Computerization of our financial system has created this virtual/cyber dollar. It has no substance or matter to it. It is non-physical and/or metaphysical. I call it ‘virtual’ as the dollar lives within my ‘extended’ consciousness (cyberspace). I can not access this dollar as it lives in this imaginary space created by computer software.

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It is important to understand the ‘nature’ of today’s three dollars. The silver dollar and the paper dollar are physical and exist as material objects. The virtual dollar is non-physical and does not exist within our material world but it does ‘appear’ within a computer screen financial account (as a number). I see this ‘number’ in my account even though it technically does not exist. Most people view this virtual dollar as a ‘real’ thing but this is not accurate.

Image result for cyberspace, the space within a computer screen

A virtual dollar is really an ‘illusion’ within our consciousness. It works for monetary transactions as long as those in control of our cyberspace computers do not ‘delete’ the dollar. Our banks now control all my dollars within their computer systems. An agent of a bank can ‘delete’ my dollars and/or add to my dollars with the punch of a computer key. This puts a bank agent in control over my money (dollars) and it does create a form of enslavement to a banking institution. Essentially, I am not in control of my money (dollars) as I do not control their computer systems.

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The danger of virtual dollars is that these units ($1,$2,$3 etc.) can be ‘deleted’ with the punch of a computer key. The units can also be multiplied with the punch of a computer key. Since a virtual dollar is ‘imaginary’ (within my mind) it is not a ‘thing’ which I can exchange (hand to hand). It is merely an ‘abstraction’ within my consciousness. Today’s money is mostly a ‘mental abstraction’.

Image result for the dollar is now an abstraction within my consciousness

Virtual money could totally vanish and disappear if a bank shuts down their computer system. The dollars are stored in cyberspace (an imaginary cloud) which works as long as the power to a computer system is on. The failure of a power system removes all my dollars from being available for monetary transactions. Also, with the ‘delete’ key as an option for agents of a banking system, my accounts could go to ZERO if this is desired by the agent. Virtual money can be ‘deleted’ without my knowledge or awareness!

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Essentially, virtual dollars make me a victim of the banking system which operates my virtual accounts (all within the computer storage system of the banking institution). I have no real control over my savings, checking, or my investments. All these dollars could be removed from my accounts and this leaves me with a barter mentality.

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Prior to the virtual dollar, I could store my silver dollar and my paper dollar in a vault of my choosing. This option gave me control over my money. I could access my money freely and without any agency arrangement with a bank. I felt like I was in control of my dollar(s) and my wealth. All this has changed with the advent of the ‘virtual’ dollar.

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Take the time to think about these THREE different types of dollar’s. The silver dollar, the paper dollar, and the virtual dollar. They are all different and each has advantages and disadvantages. It might be wise to understand this missive as the trend is to remove the silver dollar and the paper dollar from circulation (down the road). A cashless world is emerging and this world will be VIRTUAL!

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Have a great Thanksgiving and give this missive some reflection over the Holiday! Your personal survival could be at steak. I am: https://kingdomecon.wordpress.com.

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November 27th, 2019

Posted In: Kingdom Economics

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