Outer Money vs. Inner Money! The Difference!

The history of money reveals that money is invented by humans to solve a problem of trade. Private property produces production and production produces trade. Exchange (trade) of production produces this inner concept called ‘value’ and then this inner concept of value leads to the invention of ‘money’. Money derives from our ‘inner’ being and then it becomes ‘outer’. Let’s explore this difference further for full understanding.

 

As a human being I live within my consciousness (spirit) and my consciousness (spirit) lives within a body/brain. This reality was developed way back around 420 B.C. with Socrates and developed as a philosophy with Plato and thinkers who followed him. Basically, the view centers on the idea that my ‘mind’ is distinct from my ‘body’. Ideas or forms are living within the human ‘mind’ and these forms then get created into objects or things.

 

Money is an idea or form (of my/your ‘mind’) which we can call an ‘invention’ of the mind after it becomes developed. America started mostly with the people who emigrated from Europe and started a new life and system here in America. The start of America can be considered to be in 1607 and 1620. Jamestown and Plymouth Rock witnessed the beginning of America as we know it. These founders promoted a philosophy which grew into what we today call Capitalism.

 

The core foundation of Capitalism is this ‘thing’ called money. For Americans, money emerged from a legal system called ownership and/or private property. This led to production of goods by private citizens and then to exchange of these goods within a private marketplace. Exchange led to this inner concept called ‘value in exchange’ (value) and then to this ‘outer’ thing called ‘money’. Outer money became our proxy for this inner concept called ‘value in exchange’.

 

Over time private people in our marketplaces chose their proxies for ‘value’. People chose an ‘outer’ money object to serve as their proxy for this ‘inner’ concept called ‘value’. Gradually, private people chose this ‘thing’ called silver (and later gold) as their proxy for ‘value in exchange’. This led to Thomas Jefferson choosing this commodity as our ‘outer’ money item and he then ‘defined’ this ‘outer’ item to give everyone a reference point for ‘valuations’ in the marketplace.

 

In 1792 our first Congress produced the Coinage Act of 1792 and then defined all our chosen currency units (dollar, half-dollar, quarter, dime, nickel, penny). Americans now had ‘outer’ money units which they could use to create ‘prices’ in the marketplace. Prices emerge from private negotiations as they discern the relative ‘values’ of goods being traded. Prices (in dollars) defined specifically in terms of silver created the initial model for all price discoveries within our markets.

 

All this worked well until our politicians corrupted this system by redefining our initial dollar (this ‘inner’ unit) and changing its meaning in terms of silver and later gold. New definitions were created and new price relationships developed within our markets. Then in 1933-34, FDR eliminated the ‘tie’ of our ‘inner’ dollar to gold (the ‘tie’ to silver had previously been changed) and later Nixon eliminated the ‘tie’ to gold for foreigners. All this created new price discovery relationships within all our markets (now global).

 

Today, we have developed a pure ‘inner’ dollar (with no tie to any ‘outer’ money proxy). Some call our current system a fiat money system and some call it a floating currency system. Our dollar is essentially ‘inner’ as it derives from our ‘inner’ being (also called our consciousness). This unit then gets ‘typed’ into the computer screen and gets called our legal tender money. Bankers have taken over control of America’s money system completely and today our Central Bank (called the Fed) thinks up ‘inner’ dollar units (as units of their ‘mind’) to promote a corrupted system of prices within our corrupted and manipulated markets.

 

What we need to comprehend is that we do not have an ‘outer’ money unit today (with a few minor exceptions). Nearly all money transactions are now within cyberspace and the units being circulated within this space are ‘virtual’ units. Virtual units are basically ‘inner’ units with no ‘outer’ existence. Our official authorities are still espousing the view that we have an ‘outer’ money system. But this is inaccurate and false. Our money system is now an ‘inner’ system living within this ‘inner’ realm called cyberspace.

 

Inner means that the units derive from our inner consciousness. Outer means that the units derive from nature (mining minerals from the earth). Silver coins and gold coins and paper notes are examples of ‘outer’ money units. Cyber digits, virtual units, digital numbers are examples of ‘inner’ money units. Most everyone thinks that cyber money units are ‘outer’ as they SEE these units within their computer screen. This, however, is inaccurate and false. Seeing images (text and numbers) within the computer screen is really a process which I would call ‘visualization’ of units.

 

I ‘visualize’ units within our cyber banking accounts and then THINK that these units are ‘outer’. This, however, is an ‘illusion’ and a ‘deception’ of our thinking. The cyber units actually do not ‘exist’ within our space/time reality (what we call our universe). Cyberspace is a created space which we humans create by connecting a bunch of computers to a network. This created space (which we call cyberspace) has no physical or material existence. It’s purely an ‘illusion’ to think that this space exists as an ‘outer’ reality.

 

Since most everyone is deceived about the ‘nature’ of cyberspace they are also deceived about the ‘nature’ of the currency units circulating within this ‘inner’ space. I talk to many people who THINK that our virtual currency (also called money) units are real and material. They assume that virtual digits in their various cyber computer accounts will remain where they are indefinitely. Is this reality? I don’t think so. These virtual units of nothing can and will vanish and disappear at some point. When our stock markets crash and correct (seriously) then people will wake-up to this false reality which they are living.

 

Yes, this concept called money should be viewed as mostly ‘inner’ today. Outer money are objects which I can observe outside of my ‘inner’ being (self). I have a storage container full of silver coins. These units (coins) exist. All the virtual units in my Fidelity and Wells Fargo accounts are not real physical ‘outer’ units. These units are virtual/inner/metaphysical. Do you comprehend the difference? Probably not. Few seem to discern reality as we live it. Most everyone prefers ‘illusions’ and ‘deceptions’ and price distortions. Sheeple is what I call the masses when it comes to understanding money! Enjoy this day! I am: https://kingdomecon.wordpress.com.

Examples of ‘outer’ and ‘inner’ money for your consideration:

Image result for america's first silver dollar

America’s first official legal tender derived from the Coinage Act of 1792. Our first mint in Philadelphia minted the above coin as our first ‘outer’ money! Subsidiary money units were our half-dollar, quarter, dime, nickel, and penny. All were ‘outer’ units created by a mint!

Image result for america's first dollar

One of America’s first paper dollars (printed). This unit can also be viewed as an ‘outer’ money unit!

Another paper note dollar created by our treasury (printed). This is another example of an ‘outer’ money unit!

Image result for america's first gold dollar

One of Americas first gold dollars! This would be another example of an ‘outer’ money unit! The unit gets created by an official mint!

Image result for virtual dollar

This is an example of a virtual dollar as it evolves into cyber numbers within our computer! This would be an evolving ‘inner’ dollar!

Image result for america's dollar accounting unit, what is it

To ‘measure’ economic events and transactions our money unit needs to be ‘outer’. Today, our unit is ‘inner’ and very subjective! A subjective inner unit (is merely an accounting unit). It has no role as a store of value, medium of exchange, or standard of value! At some point this unit will vanish and disappear as markets get more distorted, manipulated, and dysfunctional.

Image result for virtual dollar

Another example of an ‘inner’ dollar unit which gets created within cyberspace! The unit has no external existence! It’s derived from our consciousness! Bankers ‘type’ this ‘inner’ unit into cyberspace via a decision. It distorts all prices as it has no scarcity to it. The cyber dollar can be created by merely ‘typing’ units into the computer screen. It should be viewed as Unconstitutional and Illegal!

Image result for virtual dollar

Unlimited units of a cyber dollar get created via banker loans, banker QE policies, banker money shenanigans! Today, it is our private global Central Banks which control and distort our entire system. We do not have any real Capitalism or free markets today!

Related image

Few understand the details about ‘money’. Today, it is seriously confusing as our money (now virtual) gets created behind closed doors of our Central Banks. Inner thoughts produce our ‘numbers’ and the ‘numbers’ get typed into the computer screen as cyber images. Real price discovery is impossible as these ‘inner’ units can not be quantified objectively. Our money/currency system distorts reality, creates conflicts globally, and produces wars, crime, poverty, and all kinds of political corruption at the highest levels. The Comey/Trump soap opera situation is one example. The bubble stock markets are another example. The rising level of unpayable debts is another example. Money rules over our planet and those who control this ‘inner’ money system can rule over everyone. The end result is ‘enslavement’ of average citizens!

Comments

Stone-Eater Friedli Added Jun 13, 2017 - 5:04pm
Donald
 
Very good one indeed.
 
Most everyone thinks that cyber money units are ‘outer’ as they SEE these units within their computer screen.
 
But I think that's quite wrong. What you can't hold in your hand MUST be outer and not inner ;-)
 
Otherwise good explanations They explain your reasoning on other articles which were pretty hard to grasp (for me at least)..
Donald Swenson Added Jun 13, 2017 - 8:50pm
SEF: Can you define and/or describe 'cyberspace' to me? Our virtual money units live within 'cyberspace'. Please define and or describe. D
John G Added Jun 14, 2017 - 3:23am
Five articles peddling the same nonsense now.
You're running around calling everyone stupid when it is you that just cannot get his head around the concept of money.
You're as thick as Romey and as willfully ignorant as Corey.
Money comes from credit/debt.
Stone-Eater Friedli Added Jun 14, 2017 - 8:28am
Donald
 
Cyberspace is temporary existence. As long as there's power, there's cyberspace. As life itself. As long as there's power (food and drink), humans exist. Also temporary. ALL is temporary, inner AND outer.
Dino Manalis Added Jun 14, 2017 - 9:19am
Money has to have value, otherwise, it becomes worthless!
Donald Swenson Added Jun 14, 2017 - 9:44pm
SEF: Cyberspace is a created 'space' after we connect a bunch of computers. It does not 'exist' in reality. Our money now lives in this created 'space'. We call it 'virtual'. Virtual means that it is part of my consciousness, my inner self. Cyber money does not 'exist' and John G. is deceived with his perceptions IMO. 
 
John G. does not look within himself for understanding. But he sure has aggressive 'opinions'!!! D
John G Added Jun 15, 2017 - 2:15am
Minalis. Money has to have value, otherwise, it becomes worthless!
Money has no intrinsic value. You're just wrong.
John G Added Jun 15, 2017 - 2:18am
Swenson, I'm trying to give you some facts about the system. These are not matters of opinion but the realities of the monetary system that you don't/can't/won't understand.
You are just plain wrong about how it works and that is why you refuse to engage in the balance sheet analysis. It proves you wrong.
Utpal Patel Added Jun 15, 2017 - 6:52am
“The core foundation of Capitalism is this ‘thing’ called money.” 
 
That’s not true.  If money didn’t exist we could still have capitalism. Assume you make shoes and need eggs.  You can either trade your shoes for money or eggs.  In capitalism you get to decide how many eggs or how much money you’re willing to accept for your shoes. 
George N Romey Added Jun 15, 2017 - 10:26am
Increasingly money is longer something tangible (like a dollar bill) along with tied to something of perceived value (gold, silver).  With QE the Fed simply hit a couple of keystrokes and presto there was the money in the big bank's account for their worthless MBS.  In other words, something for nothing.
John G Added Jun 15, 2017 - 2:51pm
Paper notes, coins, whatever only represent an underlying virtual credit. And they are issued by the government to banks and remain part of the banks] reserve balance until customers withdraw them in lieu of bank credit balances.
The nature of money hasn't changed at all. Only the media.
And Patel, capitalism has nought to do with barter. Capitalism necessarily involves the accumulation of financial assets.
Donald Swenson Added Jun 15, 2017 - 4:20pm
Patel: You are correct. Barter occurred prior to inventing money. Money was invented within a barter marketplace to solve the issue of 'value'. Value in exchange is what occurs in a barter marketplace and then someone 'invents' money to solve this issue (called the double coincidence of wants). D
Donald Swenson Added Jun 15, 2017 - 4:22pm
John G. refuses to start his argument from the beginning. Money, John, was 'invented'. It does not exist within our space/time universe as some object or thing. Why was it 'invented'? D
Patrick Writes Added Jun 15, 2017 - 9:15pm
It's easier to think of our current system as a central bank deciding to increase the amount of available money at the retail banks so prints millions of new dollars. (And technically speaking, if printing / coining money is needed, the central bank tells the U.S. Treasury to print / coin X amount of dollars and they do it.)
 
There's a bit more to it, buying and selling U.S. treasury bonds but oversimplifying it, the central bank prints the money and loans it retail banks. Thus, it increases the money supply. 
 
I still don't see the problem with storing this data on computers. The 'outer' money you refer to is simply cash or physical money. 
 
If it helps, one of the reasons for the existence of the Fed is to stop banks from falling over when there is a panic. They seemed to have partly failed in this duty during the Great Depression. 
 
And one of the lessons from the Great Depression is, allegedly, it was due to a liquidity crisis. So this time, QE was meant to prevent a liquidity crisis (people hoarding money under their mattress instead of putting it in the bank where the the bank can lend it back out to others). 
 
What it boils down to is, banks are quasi-government entities now. The central bank is linked to Uncle Sam. And he is trying to smooth out extreme points in time to prevent booms and crashes that can squash the little guy. 
Donald Swenson Added Jun 15, 2017 - 9:48pm
What it boils down to is, banks are quasi-government entities now. The central bank is linked to Uncle Sam. And he is trying to smooth out extreme points in time to prevent booms and crashes that can squash the little guy
 
Patrick: The Fed no longer 'prints' our currency as they can create unlimited digital units. Look at their balance sheet which is now 4.5 trillion. Digital units are virtual units. Virtual units are units of consciousness. Only 4% of our cash is 'printed' by the BEP (bureau of engraving and printing). 96% of money transactions are now digital/virtual and live within cyberspace.
 
Your understanding of virtual money is what you are missing in your thinking, Patrick. Virtual money is what we use with our credit cards, smart phones, bank lending, and all the QE operations. Trillions of virtual units get created and destroyed daily. We need to stop this idea that our FED 'prints' money or currency. This is now outdated thinking. The BEP prints this 4% which we call 'paper' money (cash).
 
Also, our Fed is a 'private' legal system created by Congress but still operating as a 'private' independent institution. There are NO appropriations of $$$ for this institution from our Congress. They create their $$$ out of thin air (nothing/consciousness). Are you aware of this? D
John G Added Jun 16, 2017 - 1:14am
Writes. It's easier to think of our current system as a central bank deciding to increase the amount of available money at the retail banks so prints millions of new dollars.
It might be easier but it's just plain wrong.
John G Added Jun 16, 2017 - 1:16am
Swenson John G. refuses to start his argument from the beginning.
Swenson just ignores empirical data that doesn't conform to his tales.
Money arose from credit. There never was a barter economy.
 
Donald Swenson Added Jun 16, 2017 - 1:41pm
John, my wife and I use barter whenever we have our garage sale. We accept this concept called barter. 
 
In my home town of Roseau, Minnesota, we used barter between farm families.
 
Credit did not emerge in my village until the first bank was built (created). D
Donald Swenson Added Jun 16, 2017 - 1:45pm
Banking created this concept we call credit. Banking emerged AFTER markets. Barter was used by the Native Americans, farmers, settlers prior to any bank credit. D
Stone-Eater Friedli Added Jun 16, 2017 - 5:43pm
...and we should get back to it. Real values meet real values. Time that the bubble bursts for good.
 
...and I will sit in my remote African place and won't even notice it ;-)
John G Added Jun 16, 2017 - 5:53pm
That barter exists and that you 'accept' it as a concept is irrelevant. Money did NOT arise from barter and there has never been a barter economy.
Money arose from credit systems developed thousands of years ago in the middle east.
Donald Swenson Added Jun 16, 2017 - 6:06pm
SEF: I agree. The current virtual money system is immoral. Barter is a value for value negotiation . D
Donald Swenson Added Jun 16, 2017 - 6:08pm
Credit, John, is a metaphysical concept. Wheat, cows, goats, beaver skins, came before this concept called credit. D
John G Added Jun 16, 2017 - 7:38pm
Just repeating nonsense doesn't make it true. It just means that you are being willfully ignorant and stubborn.
Donald Swenson Added Jun 16, 2017 - 7:54pm
John: Thanks for your great advise and understanding. Must I now 'bow' to your image? D
John G Added Jun 16, 2017 - 7:59pm
If you're not interested in logic and empirical evidence there's little hope that you will understand. It's religion for you, not science or verifiable history.
Donald Swenson Added Jun 16, 2017 - 8:31pm
Yes, John. What is your definition of 'empirical' evidence? D
John G Added Jun 16, 2017 - 10:09pm
Actual events and evidence based history. Some of the oldest human records in existence describe complex credit systems i.e. state money.
I've given you a link to David Graeber's excellent work but you ignored it.
Donald Swenson Added Jun 16, 2017 - 10:53pm
My experience with barter fits your definition. So barter is real to me. I barter some of my personal property every few months. Many in my venue barter. Why? D
John G Added Jun 16, 2017 - 11:02pm
Oh good god. It's utterly pointless trying to get through to you.
Donald Swenson Added Jun 16, 2017 - 11:41pm
And vice versa. D
John G Added Jun 17, 2017 - 12:47am
I understand what you are saying. What you are saying is wrong. And you just keep going around in circles because you're too intellectually lazy and/or limited to understand and explore.
 
Ian Thorpe Added Jun 17, 2017 - 12:08pm
It's true that value only exists in the minds of those involved in a trade, as is wonderfully illustrated in this video clip ...
Haggling
Donald Swenson Added Jun 17, 2017 - 3:40pm
Ian: The starting point for any discussion on money is this 'inner' concept called 'value' (in exchange). The whole purpose for a money item (which we invent) is to calculate/measure/derive VALUE. John G. is so dogmatic in his perspective that he is unable to comprehend the starting point for money. His 'credit' mantra comes much later in the evolution of money. We start with production of goods, then exchange, then negotiation of the relative 'values' (in exchange). Money gets 'invented' after we discover that the 'double coincidence of wants' produces conflicts over this inner concept called 'value'. Do you grasp this logic, Ian? D
Ian Thorpe Added Jun 17, 2017 - 4:56pm
I get the logic. But let's simplify because it seems to be beyond some commenters.
As human communities become more sophisticated people may decide the exchange rate is six chickens to the goat. Then the value notion comes in, if I have a spare goat do I think six chickens is adequate compensation for parting with it? Then we have to consider the interest rates they earn, are six eggs a day worth less or more than daily milk and yogurt. The value we place on them is a matter or personal preference
Later people discover it's a bit inconvenient to keep your chickens and goats with you all the time, so they decide to use nuts, sheeps' stomachs full of salt, cowrie shells, that shiny yellow stuff that sometimes runs out of stones when they've been near a fire. And eventually coin, bronze, silver, gold. And if we decide to agree that a loaf of bread is worth a penny everybody knows where they stand. We're still a long way from usury but it's coming along. But the question is, "Does Watwit the Cordwainer (or more likely Goodwife. Watwit) gather seeds, grind them into flour and bake bread for the family, or are they willing to hand over a bronze penny from their hard - earned for a loaf, i.e. what is it worth to them. Am I placing greater value on my goat than the market will bear. Do I lower my price or hold out hoping demand for goats improves. Value (inner money) is that slippery thing that exists somewhere between how much we want a thing and how much we can afford / are prepared to pay.
Money is the lubricant that keeps the machine running freely, value depends on our needs and desires and what we are willing to pay to get them.
It's best to ignore John, most people do, I sometimes give him a poke to see how mad I can get him. I know shouldn't because its a moral equivalent of medieval bear baiting but ... well you know how it is sometimes :-)
John G Added Jun 17, 2017 - 5:29pm
Just repeating the same mantra won't make a falsehood true. Money did not come from barter. It is not nor never has been a commodity.
Donald Swenson Added Jun 17, 2017 - 6:01pm
Thanks, Ian, for a great overview. I couldn't say it better. My friend, John G., has an 'internal' tape which goes off automatically as I mention his 'name'. Is he an 'arch-angel' of some sort? D
Ian Thorpe Added Jun 18, 2017 - 11:01am
Donald, to take it a stage further, say somebody pays $50 million for a Van Goch, Monet or Picasso (which would be relatively cheap by current standards,) what makes a piece of canvas covered in paint by those artists worth so much and a picture of equal size and quality using similar materials worth only £200.
I'm not talking about the work of some amateurish dauber, but a skilled, talented yet so far undiscovered artist. It is how much some billionaire values the social kudos they will gain from owning a work by a revered artist vs the decorative appeal of the unknown artists work; inner value.

John G.
Seeing as you don't understand money and value I'll give you 5 oxen, twenty geese and fifty bags of salt for your house.
Donald Swenson Added Jun 18, 2017 - 3:34pm
Back in the days if the tulip economy in the Netherlands, one viceroy
Donald Swenson Added Jun 18, 2017 - 3:37pm
Tulip could be bartered for 5 acres of land and two oxen. This is documented history.
 
John. G, however, can not comprehend this barter transaction or why value is an inner concept. D
Donald Swenson Added Jun 18, 2017 - 3:39pm
Ian has his understanding on sound principles imo. D
Ian Thorpe Added Jun 18, 2017 - 4:45pm
Donald, yes the tulip bubble was the first market bubble, at its height some landowners, its reported, traded their entire estates for a single tulip bulb, knowing that their investment would double in value within days. Then there was the South Sea Bubble when fortunes were made trading options in bird dung futures. And there has been a regular supply of bubbles ever since, right up to the dotcom bubble, the property bubble  and the latest stock market bubble. They must all burst eventually, usually because somebody buys on credit, fails to sell on at at profit, and defaults on their obligation, thus causing confidence in the market to collapse. Economies run on confidence (inner value) rather than credit.
There's some really interesting stuff in economic history.
Donald Swenson Added Jun 18, 2017 - 5:12pm
Yes, Ian, the key word is 'confidence'. Our current bubbles will burst when market confidence collapses. My sense is that could be later 2017. What is your perception? D
George N Romey Added Jun 18, 2017 - 5:55pm
Donald the bursting will come but our financial leaders have created a skill unimagined of how to keep the smoke and mirror economy going.  Look for the Fed to begin to lower interest rates and start QE again.  However, at some points as in 2008 the weight of all the crap breaks through.  No one knows what will precipitate it and the magnitude of the disaster, particularly as there are so many unknowns about the derivatives market.  Derivatives are the insurance that everyone is counting on but like 2008 that market might quickly fold (absent another wonderful government bailout).  By many measurers the next fail will be very, very bad-worse than 1929-1932. 
Ian Thorpe Added Jun 20, 2017 - 10:48am
Donald, I'm surprised the central banks have managed to keep kicking the can down the road this far. But it has only been achieved by inflating more bubbles, i.e. jacking up asset values to cover the frenetic bond selling to cover each month's deficit.
Some bond yields are getting crazy however, which is probably an omen. I think the next trick will be Negative Interest Rates, i.e. where we have to pay banks for holding our money. The thinking behind such proposals is that by imposing a financial penalty on hoarding cash, the effect would be to kick start a consumer led boom.
A more likely result would be that people would find another way to trade. Bags of salt, cowrie shells, silver, gold?
John G Added Jun 22, 2017 - 2:45am
Absurd idiots.
Donald Swenson Added Jun 22, 2017 - 3:35pm
Ian and George: (I'll pass on John): The bubbles are created via our Central banks and their trading operations. Algorithms and HFT is used to pump up the bubbles and continue this pumping. My sense (it has been 97 months since the last correction) is that our banksters will continue with these gimmicks as long as possible. Trader confidence will eventually bring this house of cards down. Flash crashes will happen to many of our index stock markets (now all electronic). The other issue is that our financial system is now totally illegal as the virtual currencies being used for QE and lending are technically not approved 'legal tender'. Virtual money is 'make believe' money which is totally inner (it lives within cyberspace...our extended consciousness). This is not approved 'legal tender' and the entire financial system should now be declared ILLEGAL and fraudulent. What do you guys think re: the END game? D

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