Anonymity is the only way the individual can opt-out of that unfixable (evil) symbioses that is going to torch the earth after 2016.

I want to also remind that anonymity doesn't eliminate social networking. Let's differentiate between anonymity and reputation as they aren't mutually exclusive.

I am still stunned that the Metcalfe model so accurately corresponds to the actual market cap over 4 years and over 1,000,000% growth in market cap.  The plot confirms for me that the value of bitcoin comes from the network of people who use it.  If we keep finding new ways to use bitcoin, the rest will take care of itself.  

You are a lunatic. You lack the ability to construct apposite analogies. You are the fanatic Hiterlite determined to purge society of all dissent. You are the criminal that delights in the destruction of men of genius. Just like Goebbels, you cannot stand men that actually possess genius. Thus, the hatred of the lowest common denominator is turned upon all those who create and make this world a better place.

A man who is, in large part, responsible for the modern world and its convenience was purged by the hyena-like mob that is comprised of bigoted lunatics such as yourself.

Thanks to you, America is no different from Nazi Germany insofar as treatment of dissidents is concerned. And unlike Nazi Germany or Stalinist Russia, we don't even need a secret police since "men" such as yourself remain at the ready to tear down dissidents.

I don't care about this issue one way or the other. Since I don't believe in mass democracy, I don't even vote. Since I don't believe a secular state can even issue marriage licenses, I don't care about the person or persons eligible for the same.

However, I would never hound anyone on either side of the debate.

Why? Because I am a civilized man who believes that men cannot be punished for their deeply cherished opinions even if they militate against the prevailing structure of taboos.

You, sir, are a savage who is opposed to the Reformation, Renaissance and the Enlightenment. You are no different than a sadistic Church official delighting in the discovery and destruction of heretics.

I rarely comment on short term price movements, which I think is your primary if not exclusive interest.  I am not consistently wrong on that when I do.  If I were, I would long since have learned to autofade.  

You will rarely if ever find my comments useful.  I am much concerned with encouraging weak hands.  You don't need or want that.  You are almost certainly better off putting me on ignore.

The world economy is going down the drain due to the enormous debt build up. In order to prevent total chaos when the castle starts breaking apart governments will want to confiscate as much wealth as possible. They won't go down without a fight so to say. And their best fighting power is taxation of different sort. How far they go is the question. I don't think they would go to the obscene levels Anonymint speaks of (70%+ taxation) but who knows.

Can we just blame the Gov and talk about basic libertarian solutions?

Yet real world debts are paid off every day, and even loans that go into default must somehow be satisfied. Therefore, there must be an average loan repayment time, like I said in the first place. Sure, all it takes is one outstanding loan and mean repayment time becomes indefinite, but that's not the same as infinite. And a mean is just one type of average statistic.

..snip..

But, in regards to macro change, you do nothing. Absolutely nothing.

In totality you have a small negative affect on the causes you say are so important to you.

No - they are on a path to reclaim some of the revenue (that has been stolen from the citizens of various nation states) from the thieves who have grabbed it in the first place.
...
The only solution I see is for the priviledged class to pay their dues in the countries where they have extracted a surplus value.

This is well known already.   But there's nothing parastic or deceptive about this.  Its required for liquidity.  

Finance Part I: Understanding the Parasite

Modern finance leads inevitably to decimation of the middle class and eventual systemic collapse. Understanding how and why is critical to securing a future in a dangerous era. This post is the first in a four part series designed to open your eyes and show you the dark machinery behind the glossy curtain of propaganda. Let’s take a moment to look past the lies. You may not like what you find.  


To understand finance we must first understand the process of money creation. Economic textbooks cover this topic in great depth. They spoon-feed inquiring minds false conceptions of money multipliers and reserve requirements. This "official" version of money creation is clean, comforting, and concise. It is also  grossly and provably false.

Banks create money by making loans, but this process is not in any way constrained by reserves, deposits or a money multiplier. Banks do not need deposits to make loans. The idea that banks somehow lend out grandma’s savings is propaganda. Instead banks simply create money via accounting wizardry. When a bank approves a loan they simultaneously create a deposit in the borrower’s bank account and voilà new money is created. Banks do not function by lending out deposits. Instead the act of lending creates more deposits. This is the reverse of the sequence taught in almost all economic textbooks.  Banks create deposits at will.

Economic texts often state that banks are constrained by reserve requirements. This is another lie. There does exist a number called reserve requirements. However, if a bank needs more reserves these reserves are simply supplied to meet this demand. Depending on the country this is done either directly by the central bank or via interbank lending at interest rates that are suppressed by the central bank. The theory of the money multiplier is false. In reality there is a reserve multiplier. Central bank reserves are increased by a percentage of the amount money banks choose to create.


So what does limit money creation by the banking system? Primarily the banks themselves do. Individual banks have to find someone to lend to who is capable of paying them back or at least someone who has valuable assets they can seize if the loan is not paid.

The Banking Tragedy of the Commons

Modern banks are not limited by reserves. Instead, they decide how much to lend based on the profitable lending opportunities available to them. As banks have no real restraint on the printing of new money, they are prone to print excessively. Left to their own devices banks will steal too much in a banking tragedy of the commons. Banks function by harvesting the wealth and productivity of society. The wealth of individual families is the main course. Banks looking to maximize profits risk creating too much new money. This can trigger a cycle of hyperinflation where the increased supply of dollars drops the values of the currency to such an extent that people spend them as quickly as possible. This supply-velocity feedback cycle left unchecked severely undermines the value of fiat currency. The logical conclusion of such excess is abandonment of the fiat currency for an alternative like gold or perhaps someday cryptocurrency. Hyperinflation is thus banking Armageddon. It represents the destruction of their food supply and must be avoided at all cost. Banks rely on a central bank to prevent this outcome.

If a bank ever finds it needs more reserves it simply gets them from another bank. This rate of interbank lending is set by the central bank. In the US this is interbank rate is called the federal funds rate. The FED sets a target for this rate and creates or destroys money via open market operations to make sure the actual interbank rate is what they want.  It is the spread between the interbank rate and the rate a bank can loan money for that limits lending. Central banks thus raise and lower the interbank rate to maximize bank profits. If banks start to siphon too much wealth from society inflation rises. The central bank will then raise the cost of reserves to slow the rate of over-harvesting.

The newly created money travels through the system helping the early acquirers first. The purchasing power of money falls in response to an increase in the quantity of money. In the real world a hypothetical increases in the money supply by 100% does not as neoclassical economics assumes simply lead to an equal across-the-board increase of 100% in prices. The banks do not descend overnight and double everyone’s cash balance.


This results in redistribution from the late receivers to the early receivers of the new money. This occurs both during the inflation process as new money finishes working its way through the system and leads to permanent shifts in income and wealth that continue even after the money has reached a new equilibrium. The simplest example of this is fixed income groups who receive no new money in this process.

Finance Part I: Understanding the Parasite
Finance Part II: The Parasitic Cycle
Finance Part III: Divide, Conquer, Enslave
Finance Part IV: The Rise of Cryptocurrency (Coming Soon)

References:
McLeay M, Radia A, Thomas R. Money creation in the modern economy. Bank of England Monetary Analysis Directorate Quarterly Bulletin 2014 Q1
http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/2014/qb14q1prereleasemoneycreation.pdf
Rothbard MN. The Foundations of Modern Austrian Economics, Edwin Dolan, ed. (Kansas City: Sheed Andrews and McMeel, 1976), pp. 160-184
http://mises.org/rothbard/money.pdf

The study of money, above all other fields in economics, is one in which complexity is used to disguise truth or to evade truth, not reveal it. The process by which banks create money is so simple the mind is repelled.

The banks create new money to be spent on specific goods and services. The demand for these goods rises, raising these specific prices. Gradually, the new money ripples through the economy, raising demand and prices as it goes. Income and wealth are redistributed to those who receive the new money early in the process, at the expense of those who receive the new money late in the day and those on fixed incomes who receive no new money at all.

"But...but...but i changed my writing style...
i even went to the trouble of creating a fake
history... how did they figure out its me??? waaaaaah"

Please show your calculations for a different amount of time, then.

yet Anonymint makes it sound as if the debt is akin to an expensive water leak in Fukushima Daiichi, and so requires constant work to maintain: "a heavy burden on society to maintain the status quo". But that's simply not the case. However, instead of developing a super-secret non-evolving proof-of-work crypto-coin for the elites, why not filter some of that water?

a) Your link does not show you debating definitions of debt.
b) I wasn't even in that part of the conversation, so don't make shit up.
c) Your bluff has been called. Either refute what I said by typing new words here, not link-farming, or lose gracefully for once.

I haven't heard about the Dark Englightment. Where I can read more info about it?

What I like about the Dark Enlightenment (which I had actually never heard of prior to a month ago) is that it has given me a ton of outside the box thinking to look through. Each of those little dots on the map above is a blog of some sort. I am sure some of it will be garbage but there will also be gems. I have started with the political philosophy of Menicus Moldbug since he is described as the founder of the neoreactionaries (the purple section of the map). His Gentle Introduction to Unqualified Reservations is essentially a detailed walk-through of Complaint the Third: Democracy is a failure. It's a very long but fascinating read.