Central Banking – A Century of Failure

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Posted by Cynic | Posted in Awake, Bitcoin, Logic, Philosophy, Police State, Politics, Poverty, Solutions to Problems | Posted on 22-12-2013

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The last century has been a complete catastrophe for money/currency. The criminal banksters won in a stealth move on December 23rd, 1913. Since then, they have managed to create more wars and death than at any point in history.

The central banking disease has since spread to almost the entire world. With control of the Iranian central bank now falling into the clutches of the central banksters, it seems only Cuba and North Korea remain, and they don’t need any help in creating misery – they’ve got communism to help them fail there.

But is seems appropriate that after a century of financial terrorism inflicted on the people of the world, that 2013 would be the rise of Bitcoin and crypto currency. Decentralised through a peer-to-peer network, crytpo currencies are faster, easier, and cheaper to use than the worthless digitally controlled fiat printed by the central banksters.

2014 will be an interesting year as crypto currencies consolidate their position as a sane alternative to the destruction wrought by the banks. Major retailers will begin accepting Bitcoins while smaller operations begin accepting Bitcoins and other crypto currencies.

There will be more turmoil as the banksters fight back. They will use the state as their weapon. They will push for regulations and laws. Their arguments boil down to only a few:

  • Terrorism
  • Drugs
  • Child porn
  • Tax evasion
  • Centralisation

They might come up with something else, but it’s unlikely. There is no good reason to not use decentralised crypto currency. Ultimately, it’s about control. And if they lose control of the money supply, they lose their ability to steal from people.

The banksters will use their puppets in government to attempt to create legislation that makes using crypto currency impractical. They will attempt to create new bureaucracies and legal hurdles that make complying with the law either impossible or impractical. They will use the state to attack the people as they always do. They are monopolists. They cannot compete because they have no skill sets that are worth paying for. They require the violence of the state to compel people to their will.

They won’t win. Too many people know what they are – vampires sucking the life blood out of humanity.

We’ve had a century of failure. It’s high time for the demise of the banksters and a century of prosperity. Well, more than just a century of prosperity, I hope. So long as people study what really happened in history, they’ll fight to keep the banksters staked and in their coffins.

Bernankoin – The Coin to Save Our Economy – QUANTITATIVE EASING

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Posted by Cynic | Posted in Bitcoin, Logic, Money | Posted on 19-12-2013

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bernankoinSuch goes the announcement of a new crypto currency on the Bitcoin Talk forums:

https://bitcointalk.org/index.php?topic=375010.0

Surely the Bernankoin will supplant Bitcoin as the dominant crypto currency in the world. After all, it is based on the solid fundamentals of the Federal Reserve Bank and the wise policies of Ben Bernanke.

Which makes Bernankoins very different from other crypto currencies.

For example, instead of “mining” coins, you “print” coins.

1 Bernankoin is a BEK, while the smallest (instead of a satoshi) is called a “keynes” (8 decimal places).

Also, as the printing difficulty factor goes up, more coins are mined due to Quantitative Easing. This innovative reward system for printers eliminates many of the concerns that plague other coins, such as instamining and pre-mining.

Another upshot of the system is that it is much kinder to late-comers. Everyone can print BEK.

Bernankoin first mining

If you love children, want to stop the terrorists, eliminate unemployment, create jobs, save the environment, and salvage the economy, you’d better get to starting to print Bernankoins. You’re either with us, or you’re with the terrorists!

Finally, a crypto currency that can truly save the economy! 😀

If you can read a bit of code, the brilliance behind this coin is readily apparent. Here are a few jewels in the Bernankoin crown:

https://bitbucket.org/pankkake/bernankoin/commits/728057d70ba14562e9c660243b7cd7558d86d295

https://bitbucket.org/pankkake/bernankoin/commits/16a5eba52a54cd82aedde1af2cfab25f6bf455ac

And some commits where you don’t need to look at any code. Graphic changes in this commit:

https://bitbucket.org/pankkake/bernankoin/commits/b983f1eefef8879343ffc474a463fa7dc1bd1ebb

Americans speak American (red is deleted, and green is added):

https://bitbucket.org/pankkake/bernankoin/commits/99f3fa5dddec54ad73c882c2039d089256d34d88

And, the Bernankoin genesis block dedication:

https://bitbucket.org/pankkake/bernankoin/commits/bbe7b0a48c3d863f2f06225f77e912e7077e1e21

Epic stuff.

Peter Schiff on Gold vs. Bitcoins Misses the Point

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Posted by Cynic | Posted in Awake, Logic, Money, Philosophy, Security | Posted on 22-11-2013

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Peter Schiff is absolutely one of the smartest guys out there, and I have a lot of respect for him. However, he’s still missing the point about bitcoins and how they have intrinsic value. But first, here’s his most recent video on the topic:

bitcoinPeter is stuck on how gold has intrinsic value through physical usage where bitcoins have no physical usage and therefore no intrinsic value. He is quite correct if he means that bitcoins have no physical intrinsic value. However, this is not what he means. He means that they have no intrinsic value whatsoever. This is where he misses the point. Read the rest of this entry »

“Legalize Gay Marriage” is the Wrong Question

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Posted by Cynic | Posted in Anarchism / Voluntaryism, Awake, Logic, Philosophy, States | Posted on 06-09-2013

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V is for VoluntaryI often wonder why people ask such idiotic questions or debate such moronic issues, like legalizing gay marriage.

The state has no business telling you who you can love or who you can marry. (Let’s assume consenting adults here and not go off on the retarded statist tangent. That actually needs to be said for some people… sigh…)

I actually had to get PERMISSION from the government of Canada to marry my wife. Similarly, she needed permission as well. Huh? No. Not joking. Really.

Nobody should ever have to ask the state for permission to love anyone.

Nobody should ever have to ask the state for permission to marry someone.

The state should play no part in the equation at all. It’s perverse and sick when it does.

The maximum role that any state should play is to passively accept information from people who do get married. That is, if you want to tell them, then fine. If not, then they have no business in your love life.

To allow the state to participate in basic human emotions is a gross over-step of any imaginable legitimate role. (Not that the state is legitimate, but let’s just pretend for a moment.) Even entering the debate on “gay marriage” is perverse. It lends credibility to the authority of the state to dictate who can love/marry who, which is surrendering fundamental natural rights that are so much a deep part of being human, that it is essentially surrendering your humanity to the state.

Whether or not anyone believes that it is right or wrong is entirely up to them. If you don’t want a gay marriage, hey… don’t have one. But leave other people alone to live their lives as they see fit. And don’t try to use the state to force people to conform to your whims.

Governments have no business meddling in love.

The question people should be asking is “why do we let government meddle in love?”

“Reasonable” is Bad Reasoning

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Posted by Cynic | Posted in Logic | Posted on 15-07-2013

p-and-q-truth-tableI really don’t like the use of “reasonable” in any kind of argument. It’s most common use is to mean “you must change your mind” or “you must compromise”. It does have legitimate uses, but those seem rare.

An example of calling for someone to be “reasonable” is if they are using faulty logic, e.g. red herrings, strawman arguments, refusing to acknowledge basic facts that aren’t in dispute, etc.

Disinfo or Poor Reasoning at Reason.com?

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Posted by Cynic | Posted in Awake, Logic, Police State, Politics, Software | Posted on 22-06-2013

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zxx fontA recent article at Reason.com talks about how a specific font (ZXX) can hide information from the NSA.

http://reason.com/blog/2013/06/21/dont-want-the-nsa-to-read-your-email-use

This is a pretty silly claim.

The first reason is pretty obvious: If it’s in digital text, then since the underlying character values are all the same as normal text and the font is irrelevant, well, the font is then irrelevant.

But for images or printed copies on paper, the only thing needed is for the OCR software to recognize the font and then match the glyphs (characters) to the proper letters, and again the font is irrelevant. Perhaps it might take the NSA a while to clue into it, but they’d eventually “get it”. Given that they store so much data, how long it takes for them is almost irrelevant.

It’s all pretty simple. Which makes me wonder whether the Reason.com article is purposeful disinformation or whether it is simply not well thought out by someone who isn’t very techno-savvy. It’s probably more likely that it’s just not well thought out, but given the simplicity of the issue, that’s somewhat hard to believe, leaving the question of whether it is purposeful disinformation open.

A $500 per ozt Silver Example

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Posted by Cynic | Posted in Awake, Logic | Posted on 02-06-2013

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Dr. Jeff has an interesting question in a recent article:

http://www.silver-coin-investor.com/Silver-Short-Squeeze-Scenario-420.html

When the negligible value of paper currency eventually becomes apparent, what does it matter if silver is $500 per ounce in a world where a loaf of bread costs $100?

Well, it does matter. If you buy silver now before that happens. Here’s why…

Suppose you go out today and buy a $5 Canadian Maple Leave 1 ozt silver coin. That will cost you around $27 (CAD) or so right now. Where I live, the price of a loaf of bread is about $5 (AUD), and generally ranges from about $3 to $7. Forgetting the couple pennies difference in exchange rates, today 1 ozt of silver buys about 5 loaves of bread. This perfectly matches Dr. Jeff’s example above with $500 per ozt silver and $100 per loaf of bread.

And therein lies the answer. By buying silver (or gold) now, you preserve your purchasing power. Today you can buy 5 loaves of bread with 1 ozt, and when the SHTF, your 1 ozt still buys you 5 loaves of bread. Had you kept your $27, it would instead buy you about 1/4 of a loaf of bread.

What would you rather have? 5 loaves of bread or a few slices of bread? I’d rather have a few loaves. But that’s just me. 😉

Dr. Jeff goes on to talk a bit on the topic, but doesn’t hit that point, or if he does, it’s implicit for those that understand wealth preservation, and not at all obvious for anyone that doesn’t. He gets close to the issue here:

Furthermore, an ounce of silver will very likely buy you more food in times of financial trouble than you will then be able to purchase with its current equivalent dollar amount.

Cheers,

Ryan

 

Christianity and Anarchism/Voluntaryism

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Posted by Cynic | Posted in Anarchism / Voluntaryism, Awake, Logic, Philosophy, Politics, Religion | Posted on 31-05-2013

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For quite a while I’ve been mulling over how Christianity is anarchistic, and even necessarily so. Then I came across this:

http://anarchast.com/front/2013/5/2/anarchast-ep72-with-paul-rosenberg-christians-are-anarchists.html

When you think about it, it makes sense. Christianity doesn’t force anyone to be a Christian. The entire point is to freely choose. Freewill is paramount. This is pretty much what you get with voluntaryism – choice.

Obama vs. Reagan

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Posted by Cynic | Posted in Awake, Logic, Philosophy, Police State, Politics, Solutions to Problems | Posted on 08-05-2013

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Barack Obama:

Unfortunately, you’ve grown up hearing voices that incessantly warn of government as nothing more than some separate, sinister entity that’s at the root of all our problems.

Ronald Reagan:

In this present crisis, government is not the solution to our problem; government is the problem.

Ahem…

Nuff said?

Bitcoin Hit Piece After Bitcoin Hit Piece

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Posted by Cynic | Posted in Banking, Logic, Money, Philosophy, Politics | Posted on 07-04-2013

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Mainstream news is reporting hit piece after hit piece on BITCOIN. It’s a non-stop parade of pundits all coming out to scream the horrors of bitcoin and how it is nothing but a bubble.

But remember, these are the same kinds of pundits that rallied around the dot-com bubble singing its praises, and the same pundits that failed to see the subprime mortgage housing bubble until it was too late. Their credibility is lacking, to put it politely. Just to illustrate the degree of ignorance, allow me to indulge in a few laughs…

Here’s an article from The Telegraph

http://www.telegraph.co.uk/finance/personalfinance/comment/9975539/Bitcoin-is-clearly-a-bubble.html

‘Bitcoin is clearly a bubble’
Many people in the developed economies yearn for a financial system that does not have the option to rob them.

By Andrew Oxlade

9:06PM BST 05 Apr 2013

That is why gold has been so much in demand during the financial crisis – and popular with shrewd sceptics in the years before.

The clarion call of those “gold bugs”, shrill in normal times, sounds more reasonable in the “new normal” – the age of unrestrained money printing and financial repression (using monetary policy to shift the wealth of citizens to government).

This explains why Bitcoin – a global “cyber currency” – has exploded in popularity. The temptations of this phenomenon are easy to grasp: we crave an opportunity to hold wealth in a currency that cannot be devalued by printing more of it.

Bitcoin, alas, is not that. More Bitcoins can be created by those who have a powerful enough computer, although there is apparently a ceiling on the total currency.

People are ignoring the warnings, with the price charging higher. It is clearly a bubble – a tempting vessel for money, arriving during the perfect storm of currency debasement and the seizure of savings in a eurozone state – Cyprus.

As in every bubble before – from the South Sea Company bubble of 1711 to the dotcom boom and bust at the end of the millennium – investors eagerly part with their money on the conviction that prices will rise and they’ll step off at the right time. But no one knows whether today is the day investors wake up to their error.

The wise money will steer well clear.

In the highlighted portion, the author demonstrates utter ignorance about bitcoin. No, there is not an “apparent ceiling”. There is a hard ceiling limit of 21 million bitcoins that can possibly be created for the rest of eternity.

In talking about “those who have a powerful enough computer,” he again illustrates utter ignorance about bitcoin and further ignorance about technology in general. The predicted end of bitcoin mining (digitally “printing” or creating bitcoins) will end around 2140. Now, it is possible that quantum computing or some other as of yet uninvented form of computing could shorten that significantly. However, it doesn’t really matter as the difficulty factor in mining bitcoins increases as more are created, and it doesn’t particularly matter whether you are dead for 10 years or 100 years when the last bitcoin is mined. You’ll probably still be dead.

When the author says, ” The wise money will steer well clear,” I really have to wonder, if he’s that ignorant, would the best bet be to do the exact opposite of what he’s advocating?

But he’s far from the most ignorant or the most hostile out there. There is a great abundance of nay-sayers. Every day there is a new hit piece, so why not just pick another one at random to have a little fun with?

Venture Beat came out with a pack of lies. Oops? Did I say lies? I meant… No. I meant lies.

http://venturebeat.com/2013/04/05/coinbase-phishing-bitcoin/

Coinbase phishing attacks are the 3rd Bitcoin security problem this week

Sorry, but the security issue has nothing to do with bitcoin.

There have been Paypal phishing attacks pretty much non-stop since Paypal began. How would this be for a headline?

Paypal phishing attacks are the 300 millionth US dollar security problem this week

Perhaps just a tad insane? The recent security issues surrounding bitcoin are not bitcoin related issues. But, what they do illustrate is that bitcoins are VALUABLE and that people will go to great lengths to steal bitcoins. If bitcoins had no value, would people try to steal them? Hardly. These kinds of dishonest hit pieces insult one’s intelligence, as the authors must really believe that you are either incredibly stupid (if you’re in IT or a geek) or incredibly ignorant (we are all ignorant of many things) to believe such blatant lies.

One of the dominant themes in bitcoin hit pieces is that bitcoin can be used for “illegal activity”. Here’s a CNBC hit piece as an illustration:

http://www.cnbc.com/id/100618934

Bitcoin Great for Narco-Dollar Traffickers: Pro

Published: Friday, 5 Apr 2013 | 7:58 AM ET
By: Matt Clinch

Digital currency bitcoin has seen a spike in interest coinciding with a huge rally, but it has divided opinion greatly with analysts differing on whether it’s an advancement in the monetary system or just a large Ponzi scheme that should be avoided.

Davide Serra, founder and CEO of Algebris Investments, is firmly in the latter group, likening the recent surge in bitcoins to tulip mania in the 17th century, when the market for plant bulbs reached extraordinarily high levels in the Netherlands before suddenly collapsing.

If you’re a narco-dollar trafficker you’re going to love it, because basically it’s a way to smuggle money through,” Serra told CNBC Friday.

Bitcoin is a virtual currency allowing users to exchange online credits for goods and services. While there is no central bank that issues them, bitcoins can be created online by using a computer to complete difficult tasks, a process known as mining.

“Someone who tries to buy it comes on TV, pushes the story and hopefully tomorrow you can sell it for a higher price. That’s not a currency—that’s a ponzi scheme,” Serra said.

According to Serra, the system relies on selling bitcoins at a later date to “a greater fool.”

No central bank, no pension fund, no institutional investor will ever put a dollar into this thing,” he said.

The hit piece continues, but of course it comes out swinging with the “bubble” angle, then goes on to slander it by associating it with narcotics.

The funny thing is, haven’t the fiat currencies been used for a lot longer for drugs? Where was the hit piece on “Canada dollar gaining popularity with drug traffickers” or other similarly insane article title? Bitcoin is a medium of exchange and is hardly responsible for whether people want to buy or sell drugs.

Now for his comment on central banks, pension funds and institutional investors… I happen to know of at least 1 deal that is being put together with exactly those people in mind, and that what the author has stated is simply false, if not a flat out lie. (While I would love to comment on the deal, it is confidential. I simply happen to know enough about it.)

About the “Bubble”

Countless articles call bitcoin a bubble, but I have yet to see anyone address the underlying assumptions that would justify that claim. Perhaps if the standards that have been applied to other markets applied to bitcoin, then certainly there would be a common foundation for those claims to rest on. But those standards do not exist the same for bitcoin.

Bitcoin is a free market currency, and there is nothing like it in the world. Well, there are some other crypto-currencies, but other than those, none.

Not even gold & silver are comparable anymore. JP Morgan has paper silver short positions that dwarf the amount of available physical silver. No, silver and gold are already highly manipulated outside of actual gold and silver through paper shorts. Can this happen to bitcoin? Yes. Will it? The jury is out on that one. The market is only going up, so short positions simply don’t make sense right now. The market needs to level off with less upward volatility for shorting to become possible. There are some exchanges that make it possible, though we are nowhere near seeing that quite yet.

Some other markets, have caps on how much a stock can go up or down. That doesn’t exist for bitcoin as we’ve seen.

Bitcoin is also new to the market and there is a very limited supply of them available. What we are seeing is the initial valuation of the bitcoin after a couple years of testing the waters.

There is a great deal of investment in bitcoin from a lot of people. While mtGox is the largest exchange, the currency itself is decentralized, is not subject to regulation, cannot be regulated, and has no single point of failure like centrally controlled currencies do, i.e. the central banks that can tank currencies through printing money, e.g. Zimbabwe, the United States of America (the Federal Reserve). With the freedom that comes with bitcoin, and the massive investments from so many people world wide, and a lack of any single point of failure, it is hard to imagine a downside to bitcoin. Ooops. Nope. Not if you’re part of the establishment and are threatened by bitcoin, then bitcoin itself is a downside.

The Establishment’s View

That bitcoin threatens the established powers in banking, finance, and government has not been entirely lost by all the establishment pundits. Some are very aware.

http://www.bloomberg.com/news/2013-04-05/bitcoin-really-is-an-existential-threat-to-the-modern-liberal-state.html

Bitcoin Really Is an Existential Threat to the Modern Liberal State

…Nonetheless, Bitcoin raises some interesting questions. One is whether it might undermine the modern state — which, for many of its libertarian-anarchist advocates, is the whole idea…

From the horses mouth, to your screen. The pundit there still doesn’t quite understand that tax is theft though…

Taxation: How do governments collect taxes on transactions in Bitcoin? The answer is they don’t, and they can’t. Crypto-currency’s strong protections on anonymity make it impossible for any state to know who is buying what, who is paying whom, who earns what, and who has what in savings. That poses a direct challenge to the power of states to levy taxes.

The problem is that Bitcoin makes tax evasion easier. States could enforce reporting of Bitcoin income for individuals and businesses, as they try to do for cash, which is also hard to track. But encryption and the peer-to-peer network structure make Bitcoin even harder to follow than physical cash, and digital cash is much better than the physical kind for storage and transactions, so the scale of the challenge could end up being much bigger.

Few articles even bother to put any thought into bitcoin, so I must hand it to Mr. Soltas, as he has apparently taken the time and effort to actually understand what bitcoin is and what it can do for us. Even if he’s on the wrong side of the fence about tax there. 🙂

He ends his article with a wonderful taste of what could be:

In the next chapter of the history of currency, money might very well turn on its creator, and roll back government.

There are a few other well thought out articles and reporting on bitcoin in the MSM, but most of them miss the point about freedom. Instead, they try to slur freedom with accusations of “tax evasion” (i.e. refusing to allow yourself to be financially raped by the local criminal organization that many people call “government”) or “illegal activities” or “drugs”.

The hit pieces will continue. There is a lot at stake here. The most important of which is freedom.

Cheers,

Ryan