Consumers Love ‘Imaginary’ Money!

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Bankers love ‘imaginary’ deposits created from a consumers need for a loan! Who else loves ‘imaginary’ money (also called virtual/digital money)?

I was visiting Starbucks this morning and noticed that a young lady in front of me paid for her mocha with her I-phone. I asked her how it works. She said that all she did was download the Starbucks App (with a barcode image) and then ‘fill’ this with imaginary ‘dollar’s’ from her credit/debit card. She then can flash her App barcode over an image receiver and pay for her mocha. What a change from the old days of carrying metal coins and paper bills for purchases of goods/services. Is this a trend that will become ubiquitous in 2013 and beyond? Our new ‘imaginary’ money units allow us to create dollar units (out of nothing) and then distribute these ‘imaginary’ units via the computer to practically anyone. Who wants heavy silver or gold coins for a medium of exchange when ‘imaginary’ units within the computer screen work as legal tender?
I recently purchased a new car and received a full loan from a commercial bank who merely ‘typed’ in the loan amount of $25,000 into my checking account. The $25,000 was created ’out of nothing’ and then became a ‘deposit’ for the bank and a liability for me. I then make my payment to this bank with ‘interest’ and all these events were merely ‘imaginary’ mathematical events which are now legal and proper within our banking establishment. What a great way (for the bank) to receive ‘interest’ (profit) for agreeing to make me a $25,000 loan from the banker’s consciousness (also called imagination). Money today is created ‘out of nothing’ and ‘profits’ can be recorded on the ‘books’ of the bank from these types of transactions. What a change from the old days of having to deposit actual paper notes or metal coins as our money (also called legal tender). Today, our banks can just ‘type’ into the computer imaginary numbers (math) and record these numbers under imaginary headings called ‘assets’ and ‘liabilities’…neat trick, aye?
Ben Bernanke and his FED (also called the System Open Market Account or SOMA) can create $billions and even $trillions of imaginary numbers (called ‘dollars’) by just ‘typing’ into the computer screen these mathematical numbers. The numbers (also called legal tender units) then are recorded under the headings of ‘assets’ and ‘liabilities’ to give the unaware public (including most investors, Congressmen, and financial experts) the impression that these ‘imaginary’ manipulations are sound and logical economic operations. The FED (who is above all accounting rules and laws) then ‘collects’ interest from using these imaginary mathematical numbers to purchase other virtual financial assets from dealer banks (mortgages and securities) as their revenue or profit. The FED then uses these imaginary profits to pay their expenses ($billions) and provide new imaginary units (called ‘dollars’) which exceed their needs to our Treasury checking account ($billions). Billions of imaginary profits ($) are transferred to the Treasury’s virtual checking account (let’s call it Tim Geithner’s account) from these dubious financial operations and manipulations of Ben Bernanke and his FOMC committee. What a neat ‘shell game’ and accounting ‘trickery’ which few understand or recognize! Ben, however, seems to understand this ‘shell game’ and much more!
The numbers below are ($) transfers from the FED’s SOMA account  to the Treasury Account from QE operations initiated by Ben and his FOMC committee! All these ‘imaginary’ dollars seem real to the deluded public!
What appears to be happening is that we all are now ‘living’ within an IMAGINARY World (within our Consciousness) and we are Unaware of the difference between what is real and physical and what is illusion and imaginary. Math and numbers are derived from our ‘inner’ world (consciousness) and we then apply these numbers ($1) to real physical items that we purchase. We seem unaware that all our monetary transactions today are mostly ‘imaginary’ and made up of ‘imaginary’ numbers (which we think of as ‘dollar’s and/or ‘money’). We are all mostly deceived and unaware of this illusion of our MIND. The history of money and finance was based (philosophically) on physical money units (metal, silver, gold, paper, and physical items from nature) for monetary transactions. Today, however, we live within a monetary ‘illusion’ and we all buy into monetary shell games and accounting trickery. Our monetary System is still working to a degree so we do not complain or blow the whistle. What will we do when this ‘imaginary’ illusion’ and ‘delusion’ collapses (as the numbers become totally illogical)? Could this be coming in the near future? Can we continue to expect ‘imaginary’ money units to work forever? Can we continue to purchase real goods (from China) with debt that is created ‘out of nothing’?
Image of our Imaginary World within our Consciousness (do we all live within our Consciousness)!
Who understands that Virtual Money (within our computer screens) are really Imaginary Units (a monetary illusion and/or delusion)?
 Money that is NOT imaginary and which has 5000 years of history are Silver and Gold coins! These units are ‘outside’ our Consciousness and we can hold these items within our hand! Notice the difference!!!
In conclusion, we all appear to ‘live’ within TWO realms of reality (Dualism). Today, our money units are mathematical symbols, numbers, and names (with NO physical substance). Most people seem unable to differentiate between these TWO realms (mind and matter). I notice this when I watch people in the marketplace. I notice this when I talk finance to bankers, investors, traders, and the general public. People seem unable to differentiate between what is ‘imaginary’ and what is ‘not imaginary’. Our entire monetary system is now mostly IMAGINARY and within our MIND’S…yet few can ‘see’  or discern this reality. To the masses on this planet, images in the computer screen (money ‘numbers’ and ‘names’) are real and present as ‘things’ which exist. Everyone observes the images of numbers and names ($1 and dollar) within their computer screens and this seems to deceive most everyone. The money cartel probably notices this fact of human nature and this allows them (the few elite who control the system) to CONTINUE with their SHELL GAMES and accounting trickery!
We all are now victims of these deceivers and shell game manipulators (but unaware…it seems). God help us! Why not think anew in the coming year of 2013? Get yourself educated on the ‘nature’ and ‘history’ of money and those who now control our monetary system. I am:  http://kingdomecon.wordpress.com.

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avatarDon Swenson - Kingdom Economics posted Wednesday, December 26th, 2012.

6 Comments for “Consumers Love ‘Imaginary’ Money!”

  1. Kingdom Economics will continue to keep you informed on issues of money, philosophy, history, economics, and new alternatives for a better future.

  2. Thanks. My passion is economic philosophy. Socrates, Plato, and Descartes are some of my favorites. Money starts out as an ‘idea’ of the mind. Plato and Descartes would agree.

  3. I’m currently reading Rothbard’s “The Mystery of Banking’ I have purchased several other of his works. Von Mises is right on but not easy to read as his native tongue is not English. Rothbard was a pupil who has written and researched very extensively the limits of Keynesian theory.
    The above article is correct. Money created out of thin air exists on paper but the wealth the money would represent in a real money economy does not exist. It is real to the imagination only. The life of any fool is reconciled if only he finds and re-establishes himself to the limits of reality.
    Milton Friedman wrote in ‘Money Mischief’ that fiat currency creates a kind of ‘cookie jar’ for politicians from which they simply have not the discipline to ignore. It is as easy as conning friends who will someday need their vote to pass a spending bill that is ‘good for the people’.
    Passing out cookies for constituents is also a really fun way to win re-election. Seems now all these cookies are finally making us sick.But the habit has stuck with our cookie loving politicians and they rationalize now to make us feel better on a diet of these cookies; just until we can find something more substantial to eat. But we can no longer afford to eat out of this cookie jar.

    No nation survived, that tried to cure its economic ills by creating more, and more, and just a little bit nore, fiat money. The point of return is as vague as the time to quit smoking, drinking, or shooting smack. The real and very serious problem with eating fiat cookies is the fact we are gobbling them at the fastest rate in the history of the world. And toward this end, no matter how you skew the picture, the purchasing power of our currency will continue to sink. gFurthermore, government will not offer comensurate cost reductions. The foundations of the working class shall be undermined to a crippling degree.Politicians will have to see middle class economic disease before they make any real attempt to go to therapy. By then the tragic news stories will abound. Citizens will hide their guns and accumulate ammo more than ever. With any luck there will be revolution. More likely we’ll see Marshal Law and a forfeited culture. It’s still a good idea to keep armed. “Trust No One” could be your advice and new motto.

  4. If the Feds can just create money at will, why do I still have to fill out a Form 1040 each April 15 and pay my hard-earned money in taxes? Can’t they just print that, too?

    • Good point. Why should you or I pay taxes when our FED can create money units by mere typing in numbers into the computer. I don’t think we should allow money creation ‘out of nothing’ unless we also eliminate taxes for the working public. Your point is well taken.

  5. David Reischer
    avatar

    Nice read. Not enough philosophy taught to the masses. To much indoctrination. People need to read some Descartes, Hume, Kant, Nietzche and of course Bernays and Freud.

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