Fed buys bonds = no price discovery on bonds

HFC Algos front run and buy shares = no price discovery on stocks

Private Fed now monitezes over 70% of US debt = basically a default since in buying a US bond, you end up being paid back in monopoly money.

Wonder why the debt ceiling needed to be raised to avoid a debt default? They just needed to borrow more money to pay back what they had already borrowed = Ponzi Scheme.

However, as long as the people at the top don't lose money (they won't since they get fist dibs on the "hot money"), this madness will continue. Expect to lose purchasing power, also expect the economy to get *worse* due to **malinvestment** (no real price discovery to know where the money/investment needs to go).

Basically most of the West are now running a Ponzi Finance - crony capitalism system (command/socialist if you prefer) style of "economy". This is utter BS, we're living under a financial Oligarchy or Plutocracy. In Europe they are now talking about setting up a Pan-EU economic system run from Brussells (don't let a good crisis got to waste.....). Hey in 4-5 years you get to choose between 2 preselected establishment turds who have no power to do anything (even if they wanted to...). Enjoy the shit sandwitch, there's dog poop or cow poop the "choice" is yours!

Findeton, your logic is astounding,

First you argue correctly, that a security that is exchanged for debt money is itself treated as money by the banks, then you say its not debt?

How is a Collaterilzed DEBT olbigation not debt? of for that matter a CDO^2?!

Also have you even read "Modern Money Mechanics" published by the US Fed? I suggest you do.

http://en.wikipedia.org/wiki/Federal_Reserve_Bank_of_Chicago

The films contain some problems, but in a nutshell the money expansion is *far worse* than outlined in the films. The films are worth watching. The is also an updated version of Money Masters, called "The Secret of Oz", in which the producer Bill Still acknowledges and corrects some of the errors made in the first film.

I do get tired of reading, "it does not really work like that" comments.It's supposed to be an introductory movie.

Moreover, in your follow up text you  mention that the bank treats the security you exchanged for the loan also as money! This is the whole way the derivatives bubble was expanded. In other words banks can create far ***more*** money than indicated in the films.

Thus numerous Debt Oligations are fromed into collateralized debt obligations (CDO). You can then further pyramid, ontop of this to make a CDO "Squared". Now the total liabilites in the system are many many times the value of *any underlying asset*....but the biggest joke is that the banks and possibly your pension fund view these pyramid debt bubbles as more "assets"...lol!

A great document to read, which comes from the source is "Modern Money Mechanics"....published by the *Chicago Federal reserve*. Also for a more detailed breakdown of how the banks operate in London/UK go to positivemoney.org.uk

The videos posted are a great introduction to our debt based monetary system.

I kid you not, massive thread closed "pending an investigation from upper management".

http://www.bitcoinblogger.com/2011_04_01_archive.html

Any you thought overclockers were just a bunch of dedicated techies. More like a buch of ***holes.

I think the whole problem of game theory as Psychological Science is now finding is that,

*Man is a rationalizing creature as opposed to a rational creature*

You can read on cognitive dissonance theory here.

http://en.wikipedia.org/wiki/Cognitive_dissonance

If humans were rational why would they smoke? It costs you money, makes you sick, possible makes you pay high health costs, and possibly kills you. What is the game theory explanation of why people smoke? There are other also countless examples such as gambling, where people countinue to play a game where it is mathematically rigged against them, people who continue eating, drinking after warnings from the doctor, people outbidding each other on ebay until they pay more than list...on and on.

A *rationalizing* being would rationalize away smoking.

"I will give up next year."
"My uncle lived until he was 90, and he smoked."
"Meh, the harmful effects are exaggerated."

There are an almost limitless ways in which the human mind rationalizes things, as opposed to being rational about them.

In my case, I would NOT accept the $10 to ensure that you get Zero. Now you may think this as irational? However, you now know something about my character. How will you treat me in a future deal? What if there is a second round? What if there is a another game at some point in time in which I get to choose? If somone offered my a mere $10, I would mentally class them as a "tool", somone not to do business with, and not to be trusted; you could possible cut yourself off from any future profits in our relationship by being a "w*nker. So in the bigger picture there's also an element of the "prisoners dilema" for you. On the other hand, if somone was stupid enopugh to accept $10 while I got $4990, I was class them as a "muppet", likely I would try to encourage them to be more of a muppet to see if I could derive more income from them.

So in addition to a lot of people not being rational, even a rational person may look at the biggure picture, the game of real life is a lot more complicated than can be encapsulted in a simple "game". The whole problem with game theory and where it falls down, is that simple scenarios are taken as axiomatic, and in Tohmas Aquinas fashion, you can build a massive logical edifice on these so called "axioms"; what in computer science would be called "garbage in garbage out".

I think Greece might be a good place to start bitcoin "for real". There's no way they can pay all the Euro they are being asked. They either have to sell off their whole country back to the EU banks (this is the prefered option of EU which was to centralize/control all of Europe), else they have to default.

If they default, the government will come up with some other *crap* system, based on the the same, but smaller scale scam. Then would be a good idea for people to exchange with each other using bitcoin.

Light, perhaps you'd care to use your brain, and not cherry pick and quote something out of context. Please answer these basic problems with ZG.

Do *you* agree with the *non agression principle*. No one in Libertyville is going to harm a single hair on your back. They only use force in self defence.

You have not explained *how* there is no scacity, you simply postulate "various technologies". Great we can do that too in Libertyville, there is no scacity! In fact *any* belief system can state it, not just the ZG movement. To differentiate itself ZG must explain *how* it will achieve this.

Who gets what, the basic economic problem. Again, more postulates about some undefined "resource allocator". What happens when a resource belonging to Libertyville or any individual is assigned to someone else? If you agree with the *non agression principle* how do you propose to allocate the resouces of millions of people who don't asctibe to the ZG sytem.

Web, I'd ignore Benjamin, he sounds like a troll, albeit with 300 posts.

"This looks like typical Keynesian claptrap and the idea of "money as debt" is fundamentally flawed ..."

This has to be one of the most stupid oxymoronic statemenets if seen in a long time. Keynsian theory is founded on the idea of money as debt!...the exact opposite of what Web is saying.

I was getting a big drop from over 200Mh to less than 100Mh on my "work" PC. In the end I tracked it down to OPera browser. Nice browser but this rig is CPU limited and it was really causing the miner to chugg. I notice both Firefox (not as much as it used to) and opera can run away with the CPU in Windows.

Been using IE9 for a bit now, according to this,

http://www.thefreelibrary.com/IE9+most+power-efficient+browser%3a+Microsoft.-a0252823130
It's the most energy efficient browser. So if you're using mining on your main PC with Windows you may want to try this to see if it helps increase your MH.

Zeitgeist is pure fail.

I watched the whole film. It simply posits, that there will be no scarcity....I mean lol?
It then postulates that some means of resource allocation mechanism will become available, probably based on "computers". Our current best computer systems can't even predict the weather, the markets or any non-linear, chaotic, feedback system well. Somehow the Zeitgeist gods will fix it though...don't hold your breath though since the producers of the film don't seem to have any grasp of computation.

One of the founders states that human societies should be "emergent", and that we live in an imposed system; our current crappy monetary system. However, it then goes on to *impose* it's own **non emergent** solution...Irony much!?

Now think of this...you live in a wonderfull concentric domed city, like in the movie, called domed-ville. We live in a nearby city called Liberty-ville. There's a shared water table between the two cities, with only enough water to feed one city.....

Well the Zeitgeist people have declared an end to scarcity....this is the new resource based economy afterall. Meanwhile their computer has decided that the resources belong to everybody! Trouble is, people in liberty-ville being a little more pragmatic, have an issue with this...oh and they have lots of guns.

@OP you are not thinking about this in the right way.

Just because its called a bit"coin" does mean it's money.

You can't use it to pay taxes.
It is not recognized as a currency by the BIS
Almost nobody accepts it in payment. Try "paying" your accountant or tax adviser in bit"coins".

By the way, I'm also eating some chocolate "money" as I type this.

BTC are simply a virtual good. Like a lot of people you seem terrified of the law and or government...this should tell you something about the system you live in.

If you held a World of Warcraft character that "appreciated" from $200 to $600 dollar, would you have to declare this? Don't tell me its "illegal" to sell your Warcraft account....it IS however against Blizzards "Terms of Service". Other online games *allow* trading of virtual goods. People in EVE online sell Pilot Extension licenses all the time, and this is endorsed by the Company (CCP). The value of Pilot Extension License changes all the time....you DONT have to declare a "capital gain" in your pretend on-line spaceship to the government.

Bartering is not illegal (yet....lol), you can therefore swap your virtual good "bitcoin", for a real good or another virtual good.....no USD necessary. The only problem is when you decide to "Cash Out"...by doing this you are basically showing that you don't really view BTC as a currency (why the hell would you sell it if you thought it was a useful store of value and appreciating).

If you do cash out into Federal Reserve notes, you've now entered the Feds juristiction, you probably DO need to pay capital gain.

By using bitcoin it helps you see the inherent corruption in the USD system. Everytime a  USD moves, the Feds take a cut of it, in effect they are extracting the value and essence of your life and work. If bitcoin takes off, why would you want to use the crappy Federal Reserve USD system which is designed to steal your wealth and transfer it to the elites.

An interesting point in history, according to Benjamin Franklin, the main reason the British went to war with the States was over the fact that the States was issuing its own currency, thereby cutting London "out of the action" as it were. No British pounds used, no Loans in British pounds, people trading in third party currency...how the hell were the British Elite parasites gonna get their "cut" of the Americas wealth? The sad fact now though is that  under the Federal Reserve, the American elites are just running the same system to transfer wealth from ordinary Americans to themselves.

The main way banks make money is not via "fees", it's through their *monopoly on the creation of money*. When you sign a loan, they create the money from nothing, and then *charge you interest on it*.

One of the reasons the British were hopping mad at their American colonies was that the colonies started to use their own currency. This meant no need for loans (in British pounds), hence no interest! Moreover, no transaction fees either...not using British Banks or pounds as an intermediary for exchange of goods.

Bitcoin is therefore like sunlight to money sucking vampire banks...it sidesteps them and their whole model completely. If bitcoin takes off, I predict governments (read banks) are gonna start pulling all sort of BS out of their **sses to regulate the hell out of it.

Reub,

I'm with Moab on this. From my recollection of economcs, the term that people should be using is a *Fiduciary* issue currency. This is a currency that is not backed by any commodity, but is also not necessarily by government decree or fiat.

Moreover, bear this in mind, most government "fiat" currencies are "legal for all debts both public and private". Can you pay your taxes with bitcoin?

Although you could argue that bitcoin is a de-facto currency, you could just as easily describe bitcoin as a "digital good". I could barter my not-valid for tax, not backed by anything digital "good" for another digitial good, service or real world good.

You may also want to look into the BIS (bank of international Settlements). They decide if a currency is "recognised" by the various central banks for trading around the world. Banks are unlikely to accepted it since it is an anethema to them; banks make their money by having the *monopoly on the creation of currency and the interest derived thereof*.

I'm nore sure if you are aware but the nascent stages of bitcoin came out of the anarchist community, here is the original article by Wei Dai.

http://weidai.com/bmoney.txt

Also the author of bitcoin in his paper who acknowledges Wei Dai,

http://www.bitcoin.org/sites/default/files/bitcoin.pdf

posits one of the uses of bitcoin is to *avoid going through a financial institutions*.

In other words bitcoin is *political*. In a sense bitcoin is the "garlic" to the blood sucking vampire banks/big government. As a lawyer though I expect that financially (at least in dollars:P) it would be best for you to side with the banks to see how you can either tax or regulate away innovations such as bitcoin.

Despite being bitcoin being international, the banks exert significant influence on governments world wide though their existing debt based ponzi currency which they loan to governments, and harvest the interest back via tax. Being able to *avoid* the banks currency, and governments unfair taxes by using a third party currency will not be exactly popular with the ruling olligarchies. Note people are not doing anything *illegal* ....YET. By using bitcoin they are simply voting with their feet for a better system.

Maybe after you graduate you can help stop this by drafting laws to make up new crimes; if you represent the "right" interests this could be very profitable. Since you are in the US, I'd not be suprised to see the "Patriot Act" expanded to brand more harmless people as "terrorists".

In a nutshell, bitcoin is not a "toy", some people see it as a *political tool* to reduce the power of overbearing, bloated central governments and the associated banking olligopolies.

Negative comments, or comments not in line with the editorial "slant" of the paper are more often than not deleted.

Try posting anything critical of global warming on the Guardian UK ---deleted
Post something critical of the central banking system on Telegraph UK ---delted

The comments are pointless they are there to create a false concensus and to trick people into the idea that they have some sort of  "say" in the matter.

Don't worry so much about the legality; if you've not noticed already, you're living under a coporatocracy/financial dictatorship in the USA. Pretty much anything is made illegal or needs to be icenced by the government before you can engage in it.

The government then sells these licences to the corporations who themeselves rig the game through lobbying and writing the legislation.

More and more people are being branded "terrorists" - like the guy of the liberty dollar. He was engaged in non-crime and not harming anyone, all parties willingly used the currency and knew they were not Federal Reserve notes. The Feds can find a jury that will send a kitten to the electric chair - a terrorists kitten at that.

When the time comes, the Feds will find any pretext they like in order to shut down bitcoin. Used by Al-CIA-Duh, money laundering, drug money, terrorists, whatever. At this point the West is morally bankrupt and soon to be financially bankrupt too.

What happens when the crack down on it will be interesting, I predict it will morph over to other jurisdictions, afterall it's a very useful piece of software, even if you just use to manage a baby sitting network!

Thanks for posting Vlad.

Absolutely laughable article from a so called "Professor of Economics" - Barry Eichengreen.

He obviously does not know the first thing about bitcoin, or more likely shilling for his paymasters - read big government/banks.

His little plug at the end for the "Fed" was risible, as if our current central banking model must be taken as axiomatic. I despair sometimes at the people in academia; I think the posters on this board have either a higher IQ than him or at least more integrity.

Gen you say you don't offer refunds on partially completed orders Can I amend an order then? So if I put buy 100BCT for 100GBP at 1GBP per BCT, get it half filled, then price moves to say 2GBP per BCT - there is no way that the order is going to be filled.

Are you seriously saying that people will lose 50% of their money, if the order is not filled and the price moves away from the order?

In Windows 7 performance settings is it better to optimize for background or foreground, is the GPU affected by this setting?

I think you are missing the point. Things have value because humans perceive them to have value.

The so called "real" money at your bank are also just ones and zeros on a computer. HOwever, it's much worse than bitcoin. The only way new USD or Sterling can by created is for the Government or individuals to borrow their own currency into existence from international banks.

Thus the private banking cartel is able to create money from nothing and profit from the interest thereof. Indeed the whole income tax system it can be agued is a necessary evil to fund the government bond market. This is where *your* (and your children's) future income and wealth are pledged as collateral for government loans.

In our system money IS debt, and the only way to pay off the debt is to issue more money which means even more debt. This is why in the UK despite having grown our GDP by 400% since 1980 we are being asked to work *even longer* before we retire. This is because any increase in GDP is met by a concomitant increase in debt. If you think this is insane...it's because it is.

Bitcoin is not just some scam to make money, it is also an attempt to take away the power of corrupt central banks and governments. Bitcoins are debt free money that *the banks can't control*...think of it as daylight spilling onto the vampire squid of banking.

check out money as debt on youtube for an interesting look at fractional reserve banking.

Thanks,

Yes the switches  were a typo, was tired this morning.

I got the rpc response, so bitcoin is running in server mode, I set the switch in the .conf file.
In the conf file I set the port to 8332. I assume the port you set for the Diablo command line is for the bitpool? In this case it's 8334 for bitcoinpool.com.

The error message below I assume is then for the *remote* bitcoin server in the pool? I can't think what else I'm doing wrong

Error: Can't connect to Bitcoin: Bitcoin disconnected during response

Getting 80K plus hashes now, assuming I get it to work.