Are you aware that the valuation profession is based on a myth?The myth (illusion) revolves around the core concept of valuation (value). Just what is 'value' and why should the understanding of this concept be re-evaluated?Historically, the concept of value has been defined (generally) as: In philosophy, value is a property of objects, including physical objects as well as abstract objects (e.g. actions), representing their degree of importance. This philosophical definition implies that 'value' is either embedded in objects (things) or assigned to abstract objects (say monetary symbols like our dollar).

The deception surrounding the concept of 'value' evolved from our experiences with barter transactions (the basis of our market economy). Back when exchanges were made between people within a barter economy (and even today) the issue that developed was this question: what are the relative exchange values between the things (usually goods) being exchanged? Each person was faced with the concept of 'value' and the concept of 'exchange for value'. The philosophers who observed people within the marketplace and their exchanges, noticed that 'value' was derived and negotiated by the persons making a exchange transaction. And since 'value' was the key concept of each exchange, is this concept representative of some thing (object) which exists in space and time (our physical universe) or not? What the philosophers concluded is that 'value' is an objective reality and that this thing (value) could be quantified via some standard (measuring mechanism).

This philosophical conclusion created the profession of economics and eventually the profession of valuation (appraisal organizations). In time, people chose various standards of value (beads, deerskins, silver, gold, numbers on paper, etc.) as a standard for valuation and then people quantified exchanges of things (goods) with this standard. This behavior of people led philosophers to the conclusion that 'value' existed in these objects (things) which people had chosen as their standard.

And gradually, Capitalism and money evolved from this behavior in the marketplace. As the sophistication of exchanges evolved, numbers and names (one dollar) were assigned and units of the standard were devised to further the process of valuation between counterparties in the exchange. Money had now evolved and specific names and numbers could be assigned to units of the standard. For example: our dollar emerged from a decision of our Congress around 1785 and then the name 'dollar' was given a definition ($1 = 371.25 grains of silver). This enhanced sophistication of math (specific numbers) helped in the valuation of exchanges (transactions) between people.

But what did the philosophers miss in their observations and conclusions when observing the exchange process between people (counterparties)? What they missed is the reality of dualism which people practice in the marketplace. Dualism is the form of reality practiced by people when they make their exchanges and negotiate their financial transactions in the marketplace. People use their MIND (consciousness) to discern a 'value' for the thing or abstraction (say a derivative) that is being exchanged. This process should be viewed as subjective and personal as each counterparty thinks uniquely about the concept of 'value'. Each person (counterparty) uses their consciousness (mind) to DERIVE a 'value'. There is, however, no objective thing (value) that is being exchanged in this transaction. Rather, their is a subjective meeting of the MINDS (consciousness) which is agreed upon. In other words the 'value' which is DERIVED comes from each person' s subjective consciousness (Mind).

Furthermore, the concept of 'value' derived from each person's mind does not exist in space and time...but is imaginary and subjective.What has the appraisal profession and the educational institutions created with their education for valuation practitioners? The teaching for practitioners by the elite educational institutions has focused on the idea that 'value' is some THING which exists in space and time and which, therefore, can be measured, found, estimated, or assigned. The implication of this teaching has deceived the practitioner and the public into believing that 'value' exists in space and time and that it can be discovered objectively by observing and recording the numbers derived from actual transactions.

reality, however, in the marketplace is quite different. In reality, 'value' is not a THING and 'value' does not exist as an object. What then is VALUE?My experience has been that 'value' should be viewed as a notion of one's mind (consciousness) which does not exist and which is subjective and unique to each person doing their derivations. Being subjective and unique to each person means that 'value' can not be objectified or universalized as being outside of one's personal mind (consciousness).

not discover 'value' within space and time. One can not measure 'value within space and time. And one can not assign or estimate a specific (objective) 'value' for any thing (whether abstract or real). All is subjective since people are subjective. Value is invisible and not part of our physical universe (out there to find). To understand the concept of 'value' one needs to look inside oneself and discover their consciousness (their mind or inner being).

With this preamble on the concept of 'value' what does this imply for our economy? Can the fraud discovered with Goldman Sachs and the mortgage industry be assigned to specific people making these transactions? I would suggest that this fraud and deception has more to do with the deceptive concept of 'value' than with specific individuals or institutions. It is the false and deceptive concept of 'value' which is misleading many and creating the distortions and deceptions within our economy. Are you aware that our monetary unit called the dollar ($1.00) is also a unit of consciousness (no thing)?

Are you aware that all our money today is derived from the consciousness of our central bankers (key policymakers and administrators)? Are you aware that our monetary unit ($1.00) has no definition and refers to nothing (no object in space and time)? How can our economy function in the longer term with a subjective monetary unit and a subjective concept of value? What we need today is a full discussion on these issues and some transparency on what is happening within our financial institutions (for example our Federal Reserve System).