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181  Economy / Economics / Re: Economic Totalitarianism on: August 08, 2015, 07:00:40 PM
@OROBTC - I have been thinking about your question, and concluded that an
uncertainty principle operates here. If I tell you anything useful, you
will be unable to use it. I know that is not much use ;-)
Welcome to the Minor uncertainty principle.

I can draw your attention to some things that are already known.

Plato - "When the tyrant has disposed of foreign enemies by conquest or
treaty and there is nothing to fear from them, then he is always stirring
up some war or other, in order that the people may require a leader."

A tyrant is an absolute ruler unrestrained by law or constitution,
or one who has usurped legitimate sovereignty ... usurper of sovereign
power who makes his subjects the victims of his passions and unjust
desires, which he substitutes for laws.

Some argue that a gold standard reduces the desire for war, suggesting
that modern wars create so much debt that war and gold money are
incompatible. Clearly any Tyrant or MIC would wish to maintain an
ongoing series of emergencies in order to maximise their grip on power
and continue the flow of wealth under their control.

"War is a Racket" - Smedley D. Butler.

War - of whatever type - replaces laws with debt, pretty much by
definition. What happens next depends on where the economy is on the
Laffer curve. War, and its debt may cause an increase in economic activity.
It will also result in an increase in taxation. The government, whether
authoritarian or not, then faces hard choices if the economy begins to
contract: it may be unable to attract funding; the flow of material to the
conflict (or MIC pockets) may cease; promises made and social contracts
may be broken if funds are unavailable.

If no-one protests the war, acceptance of the immediate and deferred
cost is implied, even though the cost may fall on those least able
to bear it. The Tyrant has an incentive to demonise the needy and
exalt the warrior when spending money the government does not have,
because in that way loyalty can be rewarded and power exercised.

If no external enemy can be found, a state of economic totalitarianism
then exists, with war declared on the taxpayer and on the weakest, and
bringing the seizure of goods and of wealth on mere suspicion. This
comes about because of the predatory nature of an irreplaceable
authoritarian regime. A good test for the condition of any government
therefore is the replacement rate in elections, free or otherwise.

Accompanying this, gold goes into hiding, or is used for international
trade, to pay mercenaries, or to pay tribute. The currency is debased to
pay the interest on debt, and perhaps the MIC. Economic activity
contracts while inflation soars. Eventually, all faith in the currency
collapses, and with it the government's credit and credibility.

Thse things take years to decades to complete.
182  Economy / Economics / Re: Economic Totalitarianism on: August 02, 2015, 08:01:44 PM
@TPTBNW "Your thoughts are based in fantasy" yet you reference a "MadMax"
future and then accuse me of fantasy? Riiggggghhtt

"I beseech you from the bowels of Christ, think it possible you are mistaken" - Cromwell

Before I back further into reality, here is a sequel to "your" future:

When your local militia finds out you have neither credit, gold or crypto,
an auction of your possessions is arranged. Your Army Council arranges loans
to favoured officers and thus the bids on your possessions.
You now have credit, less the cost of your "donation", and few possessions.
You also have the disadavntage that the Council knows the extent of
your credit, and of your possessions. Your donations will be adjusted in light
of this knowledge.
You can, of course, opt out of the "protection" and "community care" provided
by that community, and trust to the kindness of strangers. Your choice.

All I'm doing here is pointing out how the "money system" works. This
is no different from "insurance" or "retirement" - pay me today and get
a burger on Tuesday scam. I did not put too much flesh on the bones hence
it seems contrived, and will give a couple of examples from history for

DVD : "IP Man - Disc 1"
This story is from China, just before and immediately following the
Japanese occupation. Note the lending into the local economy that
begins the story, and the later interplay of interest groups under occupation,
then compare there with your story so far.
BTW, this is a good martial arts film.

Book : "Marco Polo - From Venice to Xanadu"
This story contrasts Venice and its metallic currencies against the paper
based empire of China under the Mongols. Note how the control of paper
based credit issuance is used to dominate and supplant an existing economic
system. While politics and ecomomics are not the main topic of the book,
it answers many questions around how one culture can dominate another.
It may also contain the first reference to a Central Banker - he seems
quite a nasty character. It may also provide the first historical example
of the weaponisation of a currency.

By these examples I suggest that Totalitarian States and Central Banking
overreach are features of the endgame in the lifecycle of Nation States.
Others have taken a somewhat different position - for example:
"But the welfare statists were quick to recognize that if they wished to
retain political power, the amount of taxation had to be limited and they
had to resort to programs of massive deficit spending, i.e., they had to
borrow money, by issuing government bonds, to finance welfare expenditures
on a large scale." - Greenspan.

On a related matter, I would draw your attention to something disclosed
by Yanis Varoufakis - that the EuroFinMin group was not interested in
discussing workable solutions for the Greek economy. On that note I will
leave you to ponder - Why? And Ask:

At what points do these attempts to "retain political power" segue into
oppression or occupation? Are Bernanke's "tanks in the street" the same
threats the Eurozone made to Greece?

Despite our differences, TPTBNW, I'd agree you are on the right track.
Alternatives to a government mandated monopoly on credit issuance must be
found together with an end to the overt manipulation of markets.
(See my first post in 2013) I'd suggest that the real problem is one of getting
peope weaned off the credit they think of as money.
183  Economy / Economics / Re: Economic Totalitarianism on: July 29, 2015, 08:53:57 PM
"What you apparently did not enter into your analysis is that in F.U.B.A.R. mad max collapse, if you attempt to spend gold, you become a target for marauding gangs and also in any government haven a target for expropriation by the government."

let me read your palm ... you are fortunate to have made it into a totally collapsed world ...

I see you opening your door. The local "community worker" is there, and he asks for "your  donation"
to this weeks worthy cause - the junior section of the militia is upgrading to fully automatic weapons -
and he expects a brown envelope.

In 1000 words or less, write out how you will explain to him that you only have barley, wheat and
dried goods, and persuade him to either take those or to get the militia to restore your electricity
so you can transfer some cryptocurrency to them. Welcome to the new world. 


@generalisethis - Things are going to go from bad to worse, as in Greece. The cause is excessive
fiat debt, caused by Central Bank policies. Bitcoin is the best remedy available, but once
economies ditch monopoly currency creation, allow zombie banks to fail (they are really only
Unions for the rich) then investment can get directed to sectors likely to grow or at least
collapse less quickly. At that point, as Hayek pointed out, there is no justification for Central
Banks, and as a consequence, centralised controls become inefficient and fail.   
184  Economy / Economics / Re: Economic Totalitarianism on: July 28, 2015, 09:30:10 PM
There seems to be some doubt about the possible role of gold within
a total societal collapse. At a fundamental level, food, ie calories,
in a defined format are money. But this form of money is not very useful.
It does not assist communication of needs and wants across a network
to any great degree. In a near-total collapse therefore something similar
to the old trimetallic currency would quickly become a form of liquidity,
and though it could be cigarettes, or whiskey, of tinned sardines,
a mixture of gold and bitcoin could work together given enough
infrastructure is retained.

Which brings me to the subject of Liquidity: MA only partially understands
its importance judging from his posts. Put simply, once Liquidity goes,
we _will_  have to fall back to gold and bitcoin. Further, it will be very
difficult to re-create the liquidity once the confidence that supports it is
destroyed. (I hesitiate to judge - it is more of an assessment.)

I have been thinking about Hayek these last few days: I seem to recall
it was his advice that kept the UK out of the EuroZone. You have to wonder
why, despite all the warnings, did they go ahead with that? Perhaps
the present march to Fourth Reich is no accident.

Hayek had much to say in his "The Denationalisation of Money" that is
relevant today: not only for QE, but also for alternative currencies.
His argument [p93-106] is that Central Banks are, shall I say, barbaric
relics, whose existence is necessary because of government mandated
monopoly of issuing currency. Once alternative currencies are in place
and are allowed to compete on a level playing field, Central Banks
are an unnecessary encumbrance.

Much of the dysfunction within the money markets, the financial and the
political arenas can be traced back to Central Bank interventions - as
can be seen quite clearly in the control of Greece.   
185  Economy / Economics / Re: Economic Totalitarianism on: July 25, 2015, 07:31:17 PM
"The time has come the Walus said, to talk of many things: of shoes -
and ships - and sealing wax, of cabbages -and Kings" - Through the Looking Glass.

In case you missed it, there is growing disillusionment with Central Banking.
The mainstream predictions are beyond a joke, and they seem to have replaced
shamen, witchdoctors, snake oil salesmen and fortune tellers as purveyors
of selective truth based on dubious concepts that at least one Nobel Prize winner,
Hayek, suggested was best avoided. What does that leave?

If the sole purpose of Central Banking is to make the Rich richer, and the
Poor poorer - Trickle Up economics, in other words, - surely straightforward theft
would be more efficient. In either case Central Banking is an illusion we cannot afford.

Despite my narrative thus far, I am not yet advocating an immediate end to Central
Banking. To do so would invite adjectives such as "Fantasy" as levelled at recent
proposals within Greece. I am content to see the financial sector collapse under its own
absurdities over the next decade or two, with the unavoidable pain and suffering that
the absense of banking will bring.

I would draw your attention to the efforts of various governments in cyberwarfare:
to stuxnet; to FinFisher. Put simply, if Central Banking collapses, government s will
have no alternative but to go after bitcoin. They are already targeting bitcoin as
a means of mapping social networks, that also gives them the ability to seize control
of bitcoin accounts (see reported capabilities of FinFisher.)  

"And all the little Oysters stood. And waited in a row. . . . . "

Guess what happened to the Oysters?
186  Economy / Economics / Re: Economic Totalitarianism on: July 19, 2015, 10:25:42 PM
Just a couple of personal thoughts:

Socialism? - That's like worrying about a nosebleed while morbidly obese.

Keep an eye on events in Spain. They had put legislation in place to control
and to tax links on web pages. When Google refused to play ball, and cut
off services in Spanish, the legislation got stalled, and may get dropped.
They will probably try again maybe in a different format, if history repeats.

"But how to do it right? That's the big question."

I'm thinking that when the time is right, the how will not matter.
187  Economy / Economics / Re: Economic Totalitarianism on: July 19, 2015, 01:05:00 AM
@generalisethis - parasite is accurate. The mathematics of the financial system is
very similar to the parasite-host, and that of the predator-prey systems. There
are some important additional factors: whether the parasite adds any survival
advantage to the system; and whether the system we have converges to a bad

The present financial system resembles "Monopoly" too closely. Society relies
too much on the ability and sophistication of the political system as arbiters of
coercion. When the political system is pwned by the monetary system the parasite
becomes the host. We rely on the kindness of sociopaths, of the kakistocracy,
as promoted by this system, for our survival.

So, do not rush to judge Greece, or Germany. Had the Greek parliament decided
that chaos was better than the prospects of a "bailout" we might have gained
some insights and answers while watching from what we hope is a safe distance.
As for the eternal question Qui Bono? see also this:

It is interesting that Ireland will pay billions for decades in a modern form of
Danegeld and only a select few insiders aware of the flow. Expect the flow to increase
until it can no longer be hid. 
188  Economy / Economics / Re: Economic Totalitarianism on: July 15, 2015, 08:16:01 PM
Also from

“So what we have is a non-existent group that has the greatest power to determine the lives of Europeans. It’s not answerable to anyone, given it doesn’t exist in law; no minutes are kept; and it’s confidential. So no citizen ever knows what is said within. … These are decisions of almost life and death, and no member has to answer to anybody.”

I'm shocked, shocked to find that gambling with peoples lives is going on in this establishment.
Where are my winnings?

If you believe that this group has more functionality than a chocolate teapot, I have some islands you may want to buy.

And do not become too fixated on MA he is dealing with reality in his own way.
189  Economy / Economics / Re: Economic Totalitarianism on: July 14, 2015, 09:16:42 PM
@TPTBNW - I finally figured you out - you are an optimist!

Some background information re China:
Prof Steve Keen expects a crash in China within the next two years:
“This is the talk I gave at the FT/Alphaville conference in London, covering why we crashed in 2008"

I would have thought that Martin Armstrong, after what he has been
through, would have a better insight into our future. He seems to believe
that if socialism is eliminated all will be well. It looks to me that he
may need to take another look at the output from his models.

I'm watching these ripples working their way back towards where the stone
will hit the water circa 2020 at the very latest. I *think* the ripples are there
because TPTB are moving back to high ground and they don't have much time
to get things done.

I haven't worked out what this means for bitcoin, but I'll get there. 
190  Economy / Economics / Re: Economic Totalitarianism on: July 11, 2015, 09:25:32 PM
The TTIP vote. They knew it would not get through, despite the details being
kept secret.

Then, after a few weeks, the vote goes through with a huge majority. What?Huh

What happened to get several hundred of the EU lawmakers to change their minds?
And how did those pushing the TTIP know they could get the votes? In a couple of weeks?

The more I think about this the more suspicious I become - make that paranoid.
191  Economy / Economics / Re: Economic Totalitarianism on: July 11, 2015, 09:18:05 PM
The best thing about M$Access is the front-end. There are other
SQL based applications, postgresQL, mySQL that will run on both
Linux and on Windows, though I speak only from Linux experience.

The WINE application may allow some of the M$Access code to
run on Linux, but I have not checked the current situation. It
is unfortunate that making the transition requires far more skill
than setting up an maintining the systems afterwards.

HTH. Apologies for the OT.
192  Economy / Economics / Re: Economic Totalitarianism on: July 11, 2015, 09:12:03 PM
Theoretically mixmaster should provide good enough anonymity if
used with pgp. Most Linux based mailers eg Mutt, include hooks to
process both pgp and transmit via mixmaster.

For Mixmaster to be effctive, messages (encrypted) are passed though
several mailhosts and eventually delivered (encrypted) anonymously
to the recipient.

Regrettably, any encrypted message or any posts to remailers are
going to be like walking around with a ladder on your shoulder in
a thunderstorm.

If things are really that bad, emigration might be the best option.
193  Economy / Economics / Re: What is bitcoin backed by? My favorite answers on: July 11, 2015, 09:02:05 PM
If you understood what money is you would not ask that question.
Do You ask what is gold backed by?

The banker JP Morgan famously answered that gold is money and nothing else.
Today bitcoin is added to the list of things that are money

Do not allow yourself to be defrauded by present day bankers. They wish to
present the credits and debits they find in their T-accounts as money.
They talk about "the money supply" when they mean "the debt supply"
Some ninety-seven percent of the "money" in circulation is no more than
an obligation on someone to extinguish a debt to someone else. The
remaining three percent is money - gold, silver, bitcoin. Everything else is no
more relevant than the position of beads on an abacus.

Unfortunately, perception matters. To understand this look at this image:

Think of money as the young woman, and debt as the old woman.
They look the same but you cannot see money and debt at the same time.
When you hold money, you hold a scarce resource. When you hold debt
you are enslaved.
194  Economy / Economics / Re: Economic Totalitarianism on: July 09, 2015, 08:31:31 PM
Regulatory Certainty .... like the TTIP?

Of course there have to be Treaties between countries, and of course there
have to be negotiations to get the Treaties, and it follows that there needs to
be a means of settling disputes. When you find that the Treaty places
global entities above national interests, justice is not served. And, IMHO
war may become the favoured method of settling disputes.

Greece now has a chance to not only get out of the EuroZone, but also out
of the EU. There would be a certain irony if the TTIP forced the UK out of the
EU given the totalitarian drift of the current government.

More here:
"Last year, the Commission, seized by a rare and inexplicable fit of public accountability, launched a public consultation on the issue. However, when 97% of the 150,000 respondents expressed intense opposition to the inclusion of ISDS, the Commission reverted to type, making clear that it would not drop the controversial provisions from the negotiations."

RUN ...... AWAY ......

"After months of wrangling and horse trading, the European Parliament finally passed a resolution on the secretly negotiated EU-US trade deal, the Transatlantic Trade and Investment Partnership (TTIP). The reason it had taken so long was that the President of the European Parliament, Martin Schulz, decided at the last minute and in time-honored fashion to postpone the original vote, scheduled for June 10, when it became apparent that a majority of MEPs might actually reject the bill (read: Democracy on Hold: President of European Parliament Suspends Vote on Secretive U.S.-EU Trade Pact as Tide Turns Against It)."
195  Economy / Economics / Re: Economic Totalitarianism on: July 05, 2015, 03:00:57 PM
Some of the recent main stream media reporting on Greece is verging on the hysterical.
It did, however, clarify a few things that I had forgotten.

Some years ago, the area where I and my family lived was "liberated" - by rebels.
"Terrorists" by another name. I worked for the government, and conditions varied from
daily checks under my car to occasionally sleeping fully clothed with a weapon and fire
extinguisher by the bed.

In these situations, however, weapons are of very limited use. Eventually there is
a confrontation. The thing I came to realise is that the rebels have their own integrity.
Ultimately, it is a struggle for legitimacy, and you eventually may have to put your
life on the line for your faith - not necessarily for your religion, but certainly for what
you hold most dear. It is the ultimate in taking responsibility for your actions. Some of
my colleagues were less fortunate than I, and paid the price for their beliefs.

Today I listen to some Greeks worrying about what comes next, and it seems what
they want is for someone else to take responsibility for their decisions. To those
I say you deserve nothing for you have no faith in your leaders.

In other threads, I could explain that the world will end in three months, or three years,
or thirty years, and they would ask - Should I buy or Sell? They want someone else to
take responsibility for their actions. They have no faith in their beliefs.

What does that say about gonvernments and their currency - "the full faith and credit" ?

When faith fades, government will not survive long.

196  Economy / Economics / Re: Economic Totalitarianism on: July 01, 2015, 08:43:25 PM
Spain was an early adopter of bitcoin. Surprising since TPTB have also
used Spain as a form of legal icebreaker. Spain's "gag law" comes into
effect today. You may be aware that allegedly, the TTP _requires_
nation states to enact a law along these lines. Hence no need to look to
democratically elected bodies as the source for this, it was agreed

Hush now, the Red King is sleeping ...  
197  Economy / Economics / Re: Martin Armstrong Discussion on: June 29, 2015, 09:59:47 PM
Today there are two groups of Scots: Unionists;
and those who feel they have been well and truly shafted by Westminster.

Mostly by sins of omission, like omitting to mention that the fracking rights
had been sold off the week before the referendum, or praising the industries
involved in green energy, and omitting to mention the plans to slash the
budget subsidy. These omissions seem to roll out every week since the vote.

The clincher though was fear. The whisper ... that pensions might be at risk
in an independent Scotland.

That particular fear factor will not work in Greece, because the Troika have
already made their intentions plain. But there are others.
198  Economy / Economics / Re: Economic Totalitarianism on: June 21, 2015, 10:01:36 PM
@TPTBNW - "Bitcoin became another fiat" - that cannot happen because Bitcoin is money.
"We will sink into a Dark Age and everything will be expropriated." - a little understated, but true.
"For the first time, then, we know that in private, British and US government
agencies are taking seriously longstanding scientific data showing that a
business-as-usual trajectory will likely lead to civilisational collapse within
a few decades - generating multiple near-term global disruptions along the way."

Be careful what you wish for.

Suppose you have incredible foresight, and trade the markets, particularly the
US Markets from an unremarkable domestic location in the UK. You have incredible
Capital Gains: how long before you attract the Deep State's interest?
Say 50 percent gain in 10 days? 100 percent in 20 days? 1000 percent in two months?
More? Less? BTW, have you declared your Capital Gains on your Bitcoin?

The Deep State only needs to ask and you could be detained indefinitely for extradition
to the USA pending discovery of whatever just for "being good at your job",
as N Saro claims. Then you face a choice of plea bargaining while in a for-profit
incarceration, maybe, after seven years as in the case of Martin Armstrong.

I'm all for anonymity, and for "free" money, and I believe that when it is generally
understood that there is no way out of this, the right decisions will be made. Until
then, be aware that privacy and anonymity and honesty are not enough.
199  Economy / Economics / Re: Economic Totalitarianism on: June 20, 2015, 08:16:22 PM
It is good to see fresh impetus given to the search for privacy. A secure method
of communication, indistinguishable from money, proven in use, is the next
evolutionary step in the creation of free money - free in the sense of free speech.

Leaving that for the moment, I again state my view that unless a complete answer
is available, the Deep State will continue to absorb the private sector and to
destroy privacy in particular, because that is its design and purpose - to grow.

Three possible outcomes seem likely: Total domination; or shrinkage; or collapse.
Now, unless you have been walking about with a bucket over your head since about
1965, when the USA disowned first silver money and later gold, you must have
realised that things cannot expand indefinitely. Faced with collapse, the Deep
State is doubling down on Totalitarianism - shrinkage is their unacceptable outcome,
but further expansion invites WWIII.

You might think these are vague theoretical concepts until you look at Greece.
There, the only surprise is that DSK was found out, but note that the game advanced
by the IMF goes on without him because the rules are fixed in place.

The game will have only one winner and you ain't even in the Club. So what to do?

For we Doomers, the natural play is to short everything. Anyone attempting that
prior to July 2014 got handily crushed. If you've since made some money shorting oil
related services, congratulations. Forgive me, though, if I expect the gains
available from that escape route to be gradually crushed by regulation and taxation.

"You must be shapeless, formless, like water. When you pour water in a cup, it
becomes the cup. When you pour water in a bottle, it becomes the bottle. When you
pour water in a teapot, it becomes the teapot. Water can drip and it can crash.
Become like water my friend." - Bruce Lee
200  Economy / Economics / Re: Economic Totalitarianism on: June 18, 2015, 08:51:35 PM
 will try to keep this OnTopic, forgive me if I stray.

@generalisethis - you asked why TPTB are not fighting bitcoin tooth and nail?

I think that we agree that the financial system will fail in the near future,
and that the entire Real World will suffer a painful adjustment in the mid term.

For reference purposes this analysis of fiat "money" is excellent but incomplete:
"Be cognisant that when extended real GDP growth falls to or below 0% it will necessarily end the central banking system i.e. death of the $
"For them, the system has, as was the sole objective, amassed wealth beyond the imagination of men and gods alike."
(H/T ZeroHedge)

If you have ever played "Monopoly" you will know that the board game is
structured to provide only one winner. The link above endorses this view in some
detail. And the board game is on sale since the 1930's.

The money system as we know it has some benefits but also some unfortunate
side effects, specifically the inevitability of Economic Totalitarianism.
That dark side of the system cannot be redeemed or counterbalanced, and
is reflected in the growth of an inter-national Deep State. This unchallenged
and absolute power leads to perverse outcomes: absolute corruption as in
kakistocracy; terrorism as in Operation Gladio; paedophilia as in Kincora; organised
criminality as in the laundering of drug profits by major banks; subversion
and regime change as in Harold Wilson's 1974 UK government.
(google for "After Dark British Intelligence" for this and Kincora)
All this is old news. Gagging orders and related actions have stemmed the flow
of information since those days.

But this is not about the actions of the Deep State, it is all about the
reasons for the Deep State's existence and a probable causal linkage to Economic

I will mention that correlation is not causation, and there is no reason to
suppose that specific acts such as those above are directly linked to the flow
of debt and the concentration of wealth. There is some suggestion that the
allocation of wealth is arbitrary, that we are not in a meritocracy, hence
kakistocracy is a probable outcome. What to do?

I will argue that bitcoin, while it may be suited as a reserve currency, will
do nothing to halt the advance of a kakistocracy. Bitcoin has many similarities to
gold and to other precious metals. These have all failed in the past, for the
reasons given above. The blockchain is the new technology, can we use it to
our advantage?

Since my first post on, I have argued for a better cryptocurrency.
This is my constant position, and like you, I am interested in self preservation.
Bitcoin may be the best lifeboat available, but is it good enough?
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