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I just finished reading an article my a well-known economist/pundit who
is advising that our Fed just create QE digits and pay-off the debt of Puerto Rico. Her logic is that a Central Bank can just create these ‘digits’ without any real consequence (inflation or a need to pay back the ‘digits’). She uses the logic that QE has been used to buy past toxic assets in the $trillions so why not use QE to buy-up the Puerto Rico Debt of some $75 billion. Is this wise policy? Do these pundits comprehend this concept called WEALTH?
This article is an edited ([ ]) and revised (…) version of the original written by Don Swenson to ensure a faster & easier read. It may be re-posted as long as it includes a hyperlink back to this revised version to avoid copyright infringement.
I also witness numerous pundits and many media personnel advising that a Universal Basic Income be established for everyone. This mindset of a Universal pay-check for everyone derives from the idea that our Central Banks and their commercial bank proxies can just create all this digital money (out-of-nothing – indefinitely) so why not provide digital wealth for everyone. Robots can create our goods (mostly) and digital money can now be given out to everyone for their claim on our production (now growing and ubiquitous according to our media).
All this thinking derives from our educational system (mostly Keynesian economics) which has instructed students and the public on the idea that money (now digital currencies) is real WEALTH. But is this mindset valid for those of us who teach historical Capitalism and for those of us who understand that computer ‘digits’ (called money by the many) are really nothing and nowhere (they are mere units of our imagination/consciousness circulating within cyberspace). Digits are not a substance which derive from our land or our natural resources. Were you aware of this?
Historically, all WEALTH was viewed as real physical products and goods derived from our natural resources and our land. Lumber is real wealth. Concrete for building is real wealth. Oil for transportation is real wealth. And all farm products used for food items are real wealth. Real wealth consists of material goods…not mere computer digits typed into a computer account which operates within cyberspace. If ‘digits’ in cyberspace are real WEALTH, then why not give these ‘digits’ to everyone in an unlimited amount. Why stop with Puerto Rico debt or a Universal Basic Income?
Give everyone $1 million, then $2 million, then $1 billion, and finally $1 trillion. Why not just give out all these computer ‘digits’ (which we now create out-of-nothing and use as our official money/legal tender) and allow all this WEALTH (in digits) to flow to everyone (all 7.5 billion people on this planet). If ‘digits’ in the computer screen are WEALTH, then we should provide this wealth to the masses for their consumption and utilization. Why not? Think about what our media/pundits/educators are now proposing for the planet! Absurdity is now at a level beyond comprehension!
Pundits are advising to pay-off Puerto Rican debt with ‘digits’ (created out-of-nothing), create a Universal Basic Income for everyone via more QE digits, and essentially flood the planet with computer digits (so everyone is wealthy and prosperous mentally). Is this economics or is this mere fantasy and corruption at the highest level? For those of us who understand historical economics, we would view all this ‘digital’ wealth (being proposed) as mere Quantitative Fantasy and Numerical Gimmickry. Think about what our esteemed thinkers and economists are now proposing as public policy!
Keynesian economics has given everyone the perception that money ($$$$$$) is WEALTH. Digits are WEALTH. Numbers (1,2,3, 99999999999) in cyberspace (called our legal tender) is WEALTH. Is this mindset realistic or is this pure deception and fantasy? What is REAL wealth needs to be understood. REAL wealth consists of material/physical products derived from the land (and our natural resources). Land is wealth. Oil is wealth. Wheat is wealth. Cattle are wealth. Eggs are wealth. Milk is wealth. Basically, food/clothing/shelter/transportation and such are REAL wealth.
We need to WAKE-UP to reality, folks. What is being proposed today by our experts, media, pundits, and Keynesian economists is PURE fantasy/deception. None of this will work longer term. Creating ‘digits’ in the computer screen and circulating all these imaginary digits from computer account to computer account may allow temporary spending, but it will not create a prosperous economy for our planet.
THINK! What are computer digits (in reality)? Can you eat these digits? Can you wear these digits? I don’t think so! Our entire economy is now so corrupted that people have no idea what is reality and what is fantasy.
DIGITAL MONEY can not solve our economic problems going forward. We need to rethink the current quantitative models of economics and recognize that numbers and symbols ($$$$$$$) can not produce a growing economy for the planet.
Economics is based upon ‘natural resources’ and continuing production of real material goods. These ideas of our media to give ‘digits’ to everyone to solve economic problems is fantasy and deception. Start thinking for yourself on all finance/economic issues.
P.S. What happened over in Venezuela with their electronic/digital Stock Market? This digital market reached a lofty number of 558,000 + (in digital Bolivars). Last week this market crashed and it went to less than 1% of the above number? Why? The digital Bolivars disappeared and vanished from all the prior computer screens as this market realized the phoniness of all these computer digits. The general Venezuelan economy was collapsing yet the deceived elites running the Caracas General Stock Market pumped up this digital market to absurd levels (all imaginary numbers with no real economic meaning). Why this deception about what is REAL WEALTH?
This is what happens with a ‘digital’ economy where the production of REAL wealth has crashed and collapsed. I can not ‘eat’ or ‘wear’ these digits within the computer screen. In fact these ‘digits’ don’t even exist (physically).
Silver and gold are a much better alternative than all these ‘digits’ as these metals can ‘at least’ be used as products for transportation, medicine, and communication. Why invest in ‘digits’ when you can purchase something REAL (with substance). Is it time to buy some silver coins/bars and gold coins/bars? I think so! It might WAKE-UP all these pundits and media to REALITY! Think for yourself. I am.
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I think inflation would go super hyper. A standard wage or ” unlimited ” digits would slacken people’s work ethics substantially.