2007 Symbolism - Part Four: Money

Posted on December 9, 2007
Filed Under Awareness, Fake Culture, Symbolism, Society |

Economics is one of my least favourite subjects; I really do find it extremely dull. Yet it is a part of the changing world we are in, and should be included in this Symbolism series. I have spent some time weeding out the bits of information from this year that are ‘highlights’ so to speak, each of which give a good overview of where we are heading.

Housing Crash

Although it was obvious to a few long ago, the housing bubble finally burst this year. It all started with the sub-prime mortgage issues in the US. Countrywide, the largest mortgage lender in the US effectively needed Federal bail out.

The same problem hit the UK when Northern Rock faced financial crisis. The situation got so bad that the Bank of England had to act as lender of last resort for all bank accounts held at Northern Rock. This was an assurance to the public that if Northern Rock went under – the Bank of England would cover whatever money people held in that bank.

The current housing crisis in the US is now said to be the worst since The Great Depression.

Housing Predictor

Fall of the US Dollar

As the dollar continues to fall in value, countries all over the world are pulling out of using the dollar as a reserve currency:

“We will favor stronger currencies over weaker ones, and will readjust accordingly,” Cheng Siwei, vice chairman of China’s National People’s Congress, told a conference in Beijing. The dollar is “losing its status as the world currency,” Xu Jian, a central bank vice director, said at the same meeting.

Bloomberg

And for the first time in 30 years the Canadian Dollar is valued at more than the US Dollar.

Amero

The Amero is the proposed currency for the North American Union. By many accounts the Amero could very well replace the US Dollar within the next few years.

“Injecting” money into the economy

The world markets have seen a massive decline this year, and there have been a lot of attempts to keep the markets artificially afloat by pumping unprecedented amounts of cash into the economy. In August the Central Banks of Europe and Japan added $300 billion into the economy. There have been a whole load of other such ‘injections’ but the figures are pretty difficult to locate. I would be interested if anyone had further information to share on this!

The Federal Reserve between the start of January 2007 and today’s date 9 December 2007, have added a total of $2420 billion (!!) into the market. These are phenomenal sums, a lot higher than previously; in 2006 added $1989 billion, whilst 2002 “just” $1044 billion. So the trend has clearly got worse. Figures calculated from here.

Where does all this extra money come from? Well the banks simple ‘create’ the money – then surround that fact in mystical economic mythos. That is the nature of a fiat currency.

Many central banks are “banks” in the sense that they hold assets (foreign exchange, gold, and other financial assets) and liabilities. A central bank’s primary liabilities are the currency outstanding, and these liabilities are backed by the assets the bank owns. Unusually, however, central banks in jurisdictions with fiat currencies may “create” new money to back its own liabilities, to theoretically unlimited amounts.

Central Banks - Wikipedia

This whole issue had a lot of people asking that very question, and a lot of vague answers have been given. After all why would anyone want to pay back a loan plus interest on ‘money’ that has been pulled out of thin air?

Bank Runs

The psychological differences between US citizens and UK citizens showed a stark contrast in September; when during the Northern Rock crisis, the UK experienced its first Bank Run in 140 years, as people scrambled to withdraw their money from the failing bank.

Gold and Silver

Gold is at the highest value in nearly 30 years. Gold recently sneaked over $800 per ounce. Back in 2000 gold was at just $250; keep in mind the decreasing value of the dollar, and it really does highlight the growing gap.

Silver is also at a nearly 30 year high, recently hitting around the $15 per ounce, whilst being worth around $5 back in 2000.

Oil

The price of oil had shown slow increases for years. Within the last few months it shot up to over $100 a barrel, and is now hovering around the $88 mark.

The Price of consumption keeps increasing. How long before we feel the impact of this in the cost of living?

Issues in France

The French President feels that the answer to the growing economic crises is for everyone to work longer. Simple meme creation.

“President Nicolas Sarkozy is trying to revamp France’s 35-hour working week without picking a fight with trade unions by making it easier and more attractive for employees to work longer.

Introduced in 1998 when the opposition Socialists were in power, the 35-hour work week has been blamed by the ruling centre-right UMP and business for inflation, competitiveness problems, sluggish growth, and a host of other ills.”

Issues in UK

The price of houses has nearly exceeded the average person’s means. 10 years ago a house could be brought for £32,000. Today the same house costs £120,000. That’s a four fold increase. Meanwhile the majority of people are earning the same now as 10 years ago.

UK Housing Bubble

Symbolism

Money and trade has existed for thousands of years, and will continue to exist all the while humanity lives on. Economics, like civilisations has risen and fallen in an ever ongoing cycle. Money is a means of valuation between people, whilst economics is a means of power and control for the state.

Symbolically then money is often seen as the lifeblood of our daily existence; it allows us to get by and carve a life out for ourselves. Economics on the other hand is the lifeblood of industry, commerce and governments. The two are on the surface seemingly the same thing, but underneath they are markedly different.

As the lifeblood of the economy grows thin due to destabilisation in the markets – the lifeblood of money and its inherent value is being pulled away from the reach of the average person. We see this as an increase in cost of life’s necessities; fuel, food, water, shelter.

In order to survive the economy has to centralise and consolidate its power further and further. Symbolically it is often viewed as one of the aspects of The Beast. Centralisation created the Euro, and soon the Amero.

The value of individual trade however can remain a simple means of barter between two people. Would you accept payment in the form of gold or silver? I certainly would, because those metals have a value which is independent of economics. It is only in relatively recent times that the various institutions have performed a slight-of-hand and de-linked the supposed value of money from the gold standard.

Gold, which has so many symbolical meanings, has less and less value to the modern person – who instead values in higher regard a piece of state-sponsored paper, or digital numbers on a computer screen.

In this way we have fallen under the spell of ‘The Beast’, and given up our individual power and will, and placed it into its own hands.

Understanding that “barter” and “legal tender” are two different concepts, the Liberty Dollar was founded in the US, an alternative currency, with gold and silver backing – which could be used for barter. The Liberty Dollar existed for just over nine years, and was cited as being legally sound by US officials on numerous occasions.

Despite being a totally legal currency, on 1 November 2007, the FBI raided the Liberty Dollar headquarters, and seized all assets, included the gold and silver upon which the Liberty Dollar was backed.

The economic “Beast” is once again struggling, as it did in the approach to The Great Depression – and only gained power once again during and after World War 2. As the illusion of the economy begins to fly apart people are seeing through the veil and trying to retain whatever they can; we will no doubt see many more bank-runs.

What we are witnessing is the formation of a conflict between the two symbolical aspects of valuation; money and economics. One a manifestation of the people, the other a manifestation of the powers of control.

Comments

2 Responses to “2007 Symbolism - Part Four: Money”

Ron on March 6th, 2008 10:57 am

When do you think the Feds will implement the Amero currency?
Do you think the Amero will be just as worthless as the current dollar? Do you think things will be far worse if they do bring in the Amero?

What things can we expect to see (economy, society, housing, food, energy, foreign relations ect..) when they do bring in the Amero?

If I were you I would start buying gold and silver coins which I am.
Because those coins will be worth more than the dollar and the Amero.
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Marcus on March 8th, 2008 9:21 am

I wouldn’t like to say what will happen with the Amero. I suspect it will eventually become a reality - but as to when…well anything is possible.

Gold and silver coins are most certainly worthwhile. I notice that silver is now over £10 an ounce! Gold is also a tax free purchase in many countries, which makes it a tempting prospect.
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