---------------------------- Original Message ----------------------------
Subject: Mar 16: banksters benefit from the BIS Basel enforcement
From:    iamback
Date:    Mon, March 16, 2015 8:47 am
To:      "Armstrong Economics" <armstrongeconomics@gmail.com>
--------------------------------------------------------------------------


True hope (as opposed to abject failure) is recognizing reality and making the adjustments needed to be prosperous.

If no one adjusts, then the abyss will be much worse.

All (or most) of Europe's banking and sovereign debt is a house of cards with insignificant actual solvent Tier 1 capital. The insolvent sovereign bonds are used as the Tier 1 capital for the banks' reserves (even in Germany). The banks are not forced to mark-to-market until Greece (et al) actually default. Thus the entire extent of the collapse is hidden from the accounting. The defaults will spread like dominoes due to mark-to-market rules of the BIS Basel rounds (and hmmm the banksters created a Basel system to cause the collapse and usher in their one-world reserve currency "solution") once the first defaults get underway. Armstrong had correctly predicted Austria to be the location of the first defaults. And now we see it has started. Draghi's QE will buy a few months hiatus only (and line the pockets of the banksters under the ruse of "domestic policy objectives" bullshit).

The entire thing is going to collapse horrifically.

---------------------------- Original Message ----------------------------
Subject: Mar 16: Armstrong is a central bank apologist & will fail to restructure before we crash & burn
From:    iamback
Date:    Mon, March 16, 2015 7:37 am
To:      "Armstrong Economics" <armstrongeconomics@gmail.com>
--------------------------------------------------------------------------



Careful with following everything Armstrong says. He is a central bank apologist and he wishes for a restructuring hoping the coming abyss will be avoided. But he will fail.

His computer model timings are correct. His interpretation of his computer model timings is sometimes flawed. For example him advising you that a mortgage will protect you from a housing collapse or egregious taxation. He can't be sure of that! He is hoping for a Solutions Conference, but remember the Petri dish model in my "Understand Everything Fundamentally" in my essay linked from the opening post of this thread.

The cancer doesn't slow down until the host is dead (food supply is exhausted).


---------------------------- Original Message ----------------------------
Subject: Mar 16: Armstrong lacks understanding of the importance of bottom up, leaderless paradigms
From:    iamback
Date:    Mon, March 16, 2015 7:49 am
To:      "Armstrong Economics" <armstrongeconomics@gmail.com>
--------------------------------------------------------------------------



Yes Armstrong's historical knowledge is impressive, but his interpretations are flawed by his top-down organization world view. Armstrong's computer model is (in theory) not subjective nor colored with human emotions and thus giving a purely statistical correlation of historical cycles with present data.

Armstrong is valuable source of information, but one has to understand the subjective bias he brings to the table. Armstrong believes central banking and fractional reserve debt is good for mankind. He doesn't seem to understand that is a scourge of mankind (and it is also synergistic with collectivized corruption, e.g. government).

Armstrong lacks understanding (or appreciation) of the importance of bottom up, leaderless paradigms.

If we only had the top-down paradigms, the human race would have destroyed itself long ago.

---------------------------- Original Message ----------------------------
Subject: Mar 16: Armstrong lacks understanding of the importance of bottom up, leaderless paradigms
From:    iamback
Date:    Mon, March 16, 2015 7:49 am
To:      "Armstrong Economics" <armstrongeconomics@gmail.com>
--------------------------------------------------------------------------



Yes Armstrong's historical knowledge is impressive, but his interpretations are flawed by his top-down organization world view. Armstrong's computer model is (in theory) not subjective nor colored with human emotions and thus giving a purely statistical correlation of historical cycles with present data.

Armstrong is valuable source of information, but one has to understand the subjective bias he brings to the table. Armstrong believes central banking and fractional reserve debt is good for mankind. He doesn't seem to understand that is a scourge of mankind (and it is also synergistic with collectivized corruption, e.g. government).

Armstrong lacks understanding (or appreciation) of the importance of bottom up, leaderless paradigms.

If we only had the top-down paradigms, the human race would have destroyed itself long ago.

---------------------------- Original Message ----------------------------
Subject: Mar 16: Armstrong is a central bank apologist & will fail to restructure before we crash & burn
From:    iamback
Date:    Mon, March 16, 2015 7:37 am
To:      "Armstrong Economics" <armstrongeconomics@gmail.com>
--------------------------------------------------------------------------



Careful with following everything Armstrong says. He is a central bank apologist and he wishes for a restructuring hoping the coming abyss will be avoided. But he will fail.

His computer model timings are correct. His interpretation of his computer model timings is sometimes flawed. For example him advising you that a mortgage will protect you from a housing collapse or egregious taxation. He can't be sure of that! He is hoping for a Solutions Conference, but remember the Petri dish model in my "Understand Everything Fundamentally" in my essay linked from the opening post of this thread.

The cancer doesn't slow down until the host is dead (food supply is exhausted).

---------------------------- Original Message ----------------------------
Subject: Mar 16: Euro is not an example that nations won't want a one-world reserve currency
From:    iamback
Date:    Mon, March 16, 2015 7:27 am
To:      "Armstrong Economics" <armstrongeconomics@gmail.com>
--------------------------------------------------------------------------



The Euro was not a reserve currency. It replaced the national currencies and it was a partial attempt at a European Community political union too with the Troika or at least the European Commission and EC Parliament.

Clearly the Euro + EC failure will be used to support the concept of a one-world reserve currency that is orthogonal to the domestic politics and currencies of nations. Because for example, Euro is toast because the banks were required to buy sovereign bonds of for example Greece, but Greece borrowed in Euros when there was an ingress of capital surge, but now have to pay it back while there is an egress of capital exodus, and Greece has no policy tools because they don't control the Euro central bank.

The nations of the world will agree to a one-world RESERVE currency (not a political union!) because they resent the free ride the USA has gotten by being in control of the world's reserve currency.

But please realize this is all just a ruse for the global banksters to have even more control and do even greater corruption in the future by cleverly hiding their central banking manipulation in "international policy objectives" just as the Fed is hiding their funding of the banksters in "domestic policy objectives".

It is one big charade that even Armstrong is gullible about.

The only way the powers-that-be will allow Bitcoin to become the one-world reserve currency is if they control it. As I said, Bitcoin is controlled by 1 - 4 mining peers (i.e. they have greater than 50% of Bitcoin's network hash rate), thus the powers-that-be will be able to easily control Bitcoin when they are ready to take over control.

Perhaps you don't understand that you could have 20 mining pools all secretly owned by the same entity. In proof-of-work, the variance of earnings is inversely related to the percentage of the network hash rate the mining pool has, thus users will always favor mining pools that have double digit percentage of the Bitcoin network hash rate.

Bitcoin will never be decentralized. I already quoted upthread my other thread that explains how to get true decentralization by having multiple competing currencies each pegged with an options market to the domaindominant unit-of-account. This will be the future of crypto-currency. But this will not be a dominant unit-of-account. The dominant unit-of-account will always be what is regulated, because fractional reserve banking (i.e. debt-based booms and busts) is demanded by the public that loves debt financiing and it is inherently a bankrupt financial system paradigm.

They said that it would never happen in Wiemar Germany too. Ask Ann Frank how that worked out.

Your worst fears will come to fruition.

Armstrong is hoping it won't, but he knows damn well the danger that we face.

---------------------------- Original Message ----------------------------
Subject: Mar 16: Fed achieved which domestic policy objectives?
From:    iamback
Date:    Mon, March 16, 2015 4:30 am
To:      "Armstrong Economics" <armstrongeconomics@gmail.com>
--------------------------------------------------------------------------

Let me expound on my prior post a bit.

What domestic policy objectives were achieved by the Fed? They bailed out the banksters. They did not help the Mainstreet economy, because velocity of money is down by more than -50%. Why will this one world reserve currency be different? There are banksters in every nation on earth. For now, they just happen to be concentrated in New York (and lingering in London) for the moment, because that is where the seat of financial (and military) power is held because the USA (and formerly England) holds the world's reserve currency [i.e. they are the current financial capitals of the world].

---------------------------- Original Message ----------------------------
Subject: Mar 16: Armstrong implicitly agreed that the central banks wield much power
From:    iamback
Date:    Mon, March 16, 2015 4:07 am
To:      "Armstrong Economics" <armstrongeconomics@gmail.com>
--------------------------------------------------------------------------


Armstrong has implicitly agreed that who ever controls the central bank of an internationally coveted unit-of-account, has the power to cause massive booms and busts amongst the investors who covet that said unit-of-account.

Good to see he has admitted I am correct.

Again he attempts to obfuscate his agreement, by confusing himself with an orthogonal issue. Armstrong has this pattern of conflating orthogonal logic which is indicative of a lower IQ. For example, upthread we caught him claiming that the persistent (throughout all human history) elite banksters are irrelevant in terms of master planning because their names change throughout history. The transfer of power as people die does not refute an orthogonal issue. I thus guess Armstrong's IQ is some where in the 130s only. Whereas as mine is considerably higher (and can't be measured well by traditional IQ tests). (note the link to my blog unheresy.com is currently expired, but I renewed it and you click the link again tomorrow it will be back up as the DNS caches clear)

We don't need to prove whether there is a master plan. We can simply observe that central banking wields much power. And the banksters have always been the beneficiaries of central banking. What the people get in exchange is the ability of fractional reserve banking systems to run for decades without defaults, and instead more egregious collective defaults later. These egregious collective defaults transfer more power and benefits to those who control the central bank.

So we don't need a conspiracy theory in order to open our eyes and not obfuscate the facts.

Moving the world's reserve central bank out of the political control of a single nation and into a power sharing agreement among nations, does not transfer that power to the people. It transfers the power to the oligarchs and banksters in all the nations. This is analogous to how voting Republican or Democrat is voting for two heads of the same monster, a.k.a. the DEEP STATE.

Unlike Armstrong who needs a soap-box to sell his collective vision for pushing a political palatable restructuring and monetary reset, we Knowledge Age producers don't need to say a word. We are every day changing the world as I described. Our leaderless paradigms rises from the grass roots like a virus. And thus our paradigms wins in the end. Armstrong can choose to be informed so he understands when his international capital flows data stops functioning properly in about a decade or so from now, because he won't be able to monitor the anonymous flows of our anonymous crypto-currency.

Armstrong is a baby boomer. They think top-down organization is the way to solve problems and organize society. I am an X-gen. I know that systems self-organize and the top-down is either congruent with the bottom-up, or the top-down fails.

I think this is the end of this debate, unless Armstrong can make a point that isn't conflation of facts with hyperbole.


http://armstrongeconomics.com/2015/03/15/sophistry-confusion-over-the-fed/

---------------------------- Original Message ----------------------------
Subject: Mar 16: Fed is not powerless! Indeed the citizens are the problem!
From:    iamback
Date:    Sun, March 15, 2015 5:48 pm
To:      "Armstrong Economics" <armstrongeconomics@gmail.com>
--------------------------------------------------------------------------


Armstrong is asserting that central banks don't have any power, which is bullshit. The Fed caused the booms in the developing countries with ZIRP which caused the entire world to borrow in dollars making the world now short the dollar which will cause a massive economic collapse after 2015.75. This enslaved the world to the dollar. Who ever controls the central bank of the reserve currency, controls the world. Armstrong can rant all he wants about irrelevant details such as the domestic money supply declining due to a collapse of velocity, when in fact the powers-that-be knew exactly what they were doing with ZIRP and the plan is proceeding exactly as planned in order to bring the world to its knees and accept a one-world currency reserve that will be controlled by those somesame powers-that-be. This is entirely obvious and unarguable. If Armstrong persists in these pathetic obfuscation attempts, I am going to just have to ignore him and laugh at it when everything I've said comes true.

http://armstrongeconomics.com/2015/03/15/who-controls-the-money-supply-fed-or-we-the-people/



I already said that Bitcoin is controlled by 1 - 4 mining pools, so it is not controlled by "We The People".



Exactly. Human nature is the problem. And that will not be solved at your Solutions Conference.

Whereas, we Knowledge Age workers are working a technological solution which will render the collective unable to tax. That is a real solution, because it changes the matrix of possibilities.

---------------------------- Original Message ----------------------------
Subject: Mar 16: Untaxable crypto-currency will reform the governments
From:    iamback
Date:    Sun, March 15, 2015 5:27 pm
To:      "Armstrong Economics" <armstrongeconomics@gmail.com>
--------------------------------------------------------------------------

The harder the powers-that-be push to expropriate capital from the
Knowledge Age producers, the more they will drive us into using our coming
anonymous, untrackable crypto-currency and anonymous internet
communication system.

Eventually all the significant production (as we are moving into
technological unemployment on a massive scale as even Oxford U. predicts
47% of all existing jobs to be replaced by automation by 2033) will move
into our untaxable economy because the totalitarianism will not cease
until the cancer has killed the host.

Thus the world will eventually reach the point that they must give up on
income taxes and just print the money they want for taxes. And therein is
how the Knowledge Age will reform government.

The socialism won't go there willingly. It will have to be pummelled into
the abyss before the system will reform.

Cross-posting from the "One-world reserve currency..." thread. Please direct your comments about this post there.

I post it also here because it explains my model for the Economic Devastation coming.

---------------------------- Original Message ----------------------------
Subject: Mar 16: Armstrong doesn't understand crypto-currency will rise synchronously with the one world reserve currency
From:    iamback
Date:    Sun, March 15, 2015 4:55 pm
To:      "Armstrong Economics" <armstrongeconomics@gmail.com>
--------------------------------------------------------------------------


Armstrong replied to my previous email in a series of discombobulated blog posts. I am going to attempt to reveal his errors coherently, but this won't be easy to achieve.

First he seems to think that I was suggesting Bitcoin could become a mainstream currency because its supply is said to be limited to 21 million coins:

http://armstrongeconomics.com/2015/03/15/bitcoin-will-be-capped-at-21-million/


http://armstrongeconomics.com/2015/03/15/money-electronic-debasement/


I never suggested that the reason a crypto-currency would become widely adopted is due to cap on the money supply. In fact, I have often argued that an improved replacement for Bitcoin must have perpetual debasement. Arguably the cap on the number of Bitcoins can be subverted in the future, because Bitcoin is controlled by about 1 - 4 mining pools, thus in essence Bitcoin is controlled by the governments which can regulate those large mining pools. The advantage of crypto-currency is not a fixed money supply. And Bitcoin is the least likely of the crypto-currencies to become widely adopted because it isn't even decentralized and doesn't even have anonymity. A better crypto-currency than Bitcoin will rise soon.

Note Armstrong's analogy about 21 million coins for 300 million Americans shows that he ignorant about crypto-currency. BTC are divisible down to 1 Satoshi (0.00000001 BTC) thus there is enough fragments of BTC to supply every human on earth. Armstrong is correct that fixed money supply is deflationary and will never be accepted by the public-at-large, but he fails to articulate the reason why. The better explanation of why the public-at-large will not accept a deflationary currency is because it is incompatible with a fractional reserve banking system and thus incompatible with debt. And people love debt. Where there is no usury, there is no economy and nothing moves (as was evident in the Dark Age). The Middle East was similarly stuck going no where (still riding camels and living in tents in the desert) with their anti-usury stance, but the free money from oil and Armstrong teaching them how to hide usury in leasing gold, broke them free from that anti-usury abyss.

Armstrong seems to think that as long as the national government doesn't borrow, then my point about a reserve currency being an enslavement paradigm doesn't apply:

http://armstrongeconomics.com/2015/03/15/debt-reserve-currency/


As I said, the public will always demand a fractional reserve banking system. Whether it is sanctioned by a central bank (e.g. the USA after 1913) or ad hoc by private banks (e.g. the USA in the 1800s) doesn't change the fact that the public love debt. Citizenry especially love when the debts are accrued by the collective (e.g. nation, state, province, city, school district, company retirement plan, etc) because they are under the illusion that they get all the benefits without the individual default risk. The citizenry are under the illusion that the default can't be taken directly from the individual. People are too stupid to realize they end up paying it in taxes or economic collapse.


Armstrong is failing to acknowledge the fact that the nations don't get to decide which currency debt will be issued in, rather the investors and public make those decisions in a decentralized manner. The massive loans in Europe denominated in Swiss francs are one example. Now those loans will default because of the abrupt and egregious rise in the value of the Swiss franc when the peg to the Euro failed. Ditto all the dollar loans in the developing world which will default when the dollar rises through the roof after 2015.75.

Even if a country, state, city, or entity issues their debt denominated in a national currency, they pay a premium (a carrying cost) which is approximately the Black-Scholes implied volatility between that unit-of-account and the more stable reserve currency unit-of-account. The deep math point is that whoever controls the reserve currency has their hands on the levers that can cause massive booms and busts in all economies that are not transacted in the reserve currency unit-of-account.


Absolutely false! This proves that I am a much more sophisticated macro-economist than Armstrong.

The reserve currency issue enabled for example China to repress their consumption sector (c.f. China expert Michael Pettis PhD) and radically overinvest in fixed capital investment, which afforded the West another decade of debt expansion on the back of the unsustainably repressed Chinese consumer and empowered Western consumer.


I entirely agree with Armstrong. There is no way the debt market will agree to be denominated in some decentralized crypto-currency with no regulation. Because debt operates by leverage and fractional reserves, and thus the people prefer to be lied to and told that defaults will never happen and so the ultimate default is delayed by grouping everyone together in a collective with a central bank. This is more desirable to the public than individual failures haphazardly and more frequently.

Thus a one world reserve currency is coming, and it will not be a crypto-currency. Rather it will be something controlled politically by the powers that be. Everyone who participates in the mainstream debt and bond markets will be operating in that reserve currency dominated system (even if there is a 2-tier system with some nations retaining their own national currencies that float against the reserve unit-of-account).

But my point is orthogonal to that reality. Debt is basically useless in the coming shift from the Industrial Age to the Knowledge Age. Most of all the productive value produced in the future will be from knowledge work. This is not labor. It is not fungible like labor is. Thus it can't be financed. If Armstrong would read my essays, he would understand that there is radical paradigm shift underway which will make the debt based economy wither.

Thus those in the debt based economy with their stored money capital will be in the one world currency enslavement system.

The knowledge age workers do not need any monetary capital. We can generate earnings that are 100s or 1000s times our housing and other expenses. We don't get a rats ass about storing money. We want to save up and store more knowledge.

In our economy, we will be using a fully anonymous and decentralized crypto-currency (that is perpetually debased so it forces rapid dissemination into more knowledge production). We won't pay any taxes, except for the portion of our income that we choose to declare to justify our lifestyle to the tax authorities. The vast majority of our economy will go untaxable.

And our economy will be growing very fast while the debt based economy will be shrinking or growing very slowly.

We can peg our currency to the one world reserve currency using an options market, at some carrying cost (determined by relative volatility). We will choose to use our crypto-currency because our freedom and innovation requires we not be dictated to by a central authority, whether it be taxes, the tsuris of kafkaesque KYC and AML which interfere for example with micropayments, FCC regulation of the internet, etc..

Thus in the end, our currency wins and decentralization wins; and central banks and debt die. The one world reserve currency will be an ephemeral failing paradigm. It will be where all the unproductive people hangout and leech off the collective and default on the lenders. It will go into pernicious and terminal decline into an abyss or Dark Age. While our economy will rise up and take over.

Thus Armstrong, you are entirely missing the big picture. You will get your silly one world reserve currency, but it won't last long.

http://armstrongeconomics.com/2015/03/15/fiat-and-the-abuse-of-using-this-term/


And that is why the Knowledge Age will destroy the one world reserve currency debt based economy.


There won't be a perfect world. The one world reserve currency will be another collective debt morass over time. While the Knowledge Age will be rising up from very small. Eventually when the Knowledge Age becomes the dominant portion of the global economy, then the public will find some way to tax it and clawback to the collectivized failures that human nature prefers. They will do this by put a chip inside everyone's body that can track thoughts. This is the 666 system written in Revelation. But that is some decade or decades from now. The Achilles heel of the Knowledge Age decentralization ultimately rests on the fact that we can't yet operate our mind without our physical bodies.


Incorrect! Our problem is the human nature that people love debt, because they like to consume before they earn. Wealth is power law distributed. That is a fact. Thus the middle and lower classes envy collective debt as a way to redistribute from the wealthy back to the lazy. They don't understand that this honey is what attracts the flies of government corruption.

Direct democracy will never be a solution, because human nature doesn't change.

The Knowledge Age is a technological paradigm shift which renders the collective powerless to tax (most of the economic activity which won't be tangible thus can't be tracked once we have good anonymity technology implemented).

But even the Knowledge Age will eventually succumb to this pernicious human nature.


Exactly agreed. But realize that the one world reserve currency and reforming governments is not the only solution in play at this juncture. The Knowledge Age is also rising. Armstrong seems to view this as either-or; i.e. mutually exclusive choices. Rather both of these "solutions" will be ongoing simultaneously.


This is precisely why the Knowledge Age will move to our coming anonymous crypto-currency. The governments will not be able to track it, nor can they shut it down, even if they shut down the internet. Sorry we hackers are smarter than them. We win. They lose.

Armstrong doesn't understand crypto-currency. Thus he doesn't understand what is possible. I am an expert programmer in crypto-currency. I know. Armstrong doesn't. Period.

---------------------------- Original Message ----------------------------
Subject: Mar 16: Armstrong doesn't understand crypto-currency will rise synchronously with the one world reserve currency
From:    iamback
Date:    Sun, March 15, 2015 4:55 pm
To:      "Armstrong Economics" <armstrongeconomics@gmail.com>
--------------------------------------------------------------------------


Armstrong replied to my previous email in a series of discombobulated blog posts. I am going to attempt to reveal his errors coherently, but this won't be easy to achieve.

First he seems to think that I was suggesting Bitcoin could become a mainstream currency because its supply is said to be limited to 21 million coins:

http://armstrongeconomics.com/2015/03/15/bitcoin-will-be-capped-at-21-million/


http://armstrongeconomics.com/2015/03/15/money-electronic-debasement/


I never suggested that the reason a crypto-currency would become widely adopted is due to cap on the money supply. In fact, I have often argued that an improved replacement for Bitcoin must have perpetual debasement. Arguably the cap on the number of Bitcoins can be subverted in the future, because Bitcoin is controlled by about 1 - 4 mining pools, thus in essence Bitcoin is controlled by the governments which can regulate those large mining pools. The advantage of crypto-currency is not a fixed money supply. And Bitcoin is the least likely of the crypto-currencies to become widely adopted because it isn't even decentralized and doesn't even have anonymity. A better crypto-currency than Bitcoin will rise soon.

Note Armstrong's analogy about 21 million coins for 300 million Americans shows that he ignorant about crypto-currency. BTC are divisible down to 1 Satoshi (0.00000001 BTC) thus there isare enough fragments of BTC to supply every human on earth. Armstrong is correct that fixed money supply is deflationary and will never be accepted by the public-at-large, but he fails to articulate the reason why. The better explanation of why the public-at-large will not accept a deflationary currency is because it is incompatible with a fractional reserve banking system and thus incompatible with debt. And people love debt. Where there is no usury, there is no economy and nothing moves (as was evident in the Dark Age). The Middle East was similarly stuck going no where (still riding camels and living in tents in the desert) with their anti-usury stance, but the free money from oil and Armstrong teaching them how to hide usury in leasing gold, broke them free from that anti-usury abyss.

Armstrong seems to think that as long as the national government doesn't borrow, then my point about a reserve currency being an enslavement paradigm doesn't apply:

http://armstrongeconomics.com/2015/03/15/debt-reserve-currency/


As I said, the public will always demand a fractional reserve banking system. Whether it is sanctioned by a central bank (e.g. the USA after 1913) or ad hoc by private banks (e.g. the USA in the 1800s) doesn't change the fact that the public love debt. Citizenry especially love when the debts are accrued by the collective (e.g. nation, state, province, city, school district, company retirement plan, etc) because they are under the illusion that they get all the benefits without the individual default risk. The citizenry are under the illusion that the default can't be taken directly from the individual. People are too stupid to realize they end up paying it in taxes or economic collapse.


Armstrong is failing to acknowledge the fact that the nations don't get to decide which currency debt will be issued in, rather the investors and public make those decisions in a decentralized manner. The massive loans in Europe denominated in Swiss francs are one example. Now those loans will default because of the abrupt and egregious rise in the value of the Swiss franc when the peg to the Euro failed. Ditto all the dollar loans in the developing world which will default when the dollar rises through the roof after 2015.75.

Even if a country, state, city, or entity issues their debt denominated in a national currency, they pay a premium (a carrying cost) which is approximately the Black-Scholes implied volatility between that unit-of-account and the more stable reserve currency unit-of-account. The deep math point is that whoever controls the reserve currency has their hands on the levers that can cause massive booms and busts in all economies that are not transacted in the reserve currency unit-of-account.


Absolutely false! This proves that I am a much more sophisticated macro-economist than Armstrong.

The reserve currency issue enabled for example China to repress their consumption sector (c.f. China expert Michael Pettis PhD) and radically overinvest in fixed capital investment, which afforded the West another decade of debt expansion on the back of the unsustainably repressed Chinese consumer and empowered Western consumer.


I entirely agree with Armstrong. There is no way the debt market will agree to be denominated in some decentralized crypto-currency with no regulation. Because debt operates by leverage and fractional reserves, and thus the people prefer to be lied to and told that defaults will never happen and so the ultimate default is delayed by grouping everyone together in a collective with a central bank. This is more desirable to the public than individual failures haphazardly and more frequently.

Thus a one world reserve currency is coming, and it will not be a crypto-currency. Rather it will be something controlled politically by the powers that be. Everyone who participates in the mainstream debt and bond markets will be operating in that reserve currency dominated system (even if there is a 2-tier system with some nations retaining their own national currencies that float against the reserve unit-of-account).

But my point is orthogonal to that reality. Debt is basically useless in the coming shift from the Industrial Age to the Knowledge Age. Most of all the productive value produced in the future will be from knowledge work. This is not labor. It is not fungible like labor is. Thus it can't be financed. If Armstrong would read my essays, he would understand that there is radical paradigm shift underway which will make the debt based economy wither.

Thus those in the debt based economy with their stored money capital will be in the one world currency enslavement system.

The knowledge age workers do not need any monetary capital. We can generate earnings that are 100s or 1000s times our housing and other expenses. We don't get a rats ass about storing money. We want to save up and store more knowledge.

In our economy, we will be using a fully anonymous and decentralized crypto-currency (that is perpetually debased so it forces rapid dissemination into more knowledge production). We won't pay any taxes, except for the portion of our income that we choose to declare to justify our lifestyle to the tax authorities. The vast majority of our economy will go untaxable.

And our economy will be growing very fast while the debt based economy will be shrinking or growing very slowly.

We can peg our currency to the one world reserve currency using an options market, at some carrying cost (determined by relative volatility). We will choose to use our crypto-currency because our freedom and innovation requires we not be dictated to by a central authority, whether it be taxes, the tsuris of kafkaesque KYC and AML which interfere for example with micropayments, FCC regulation of the internet, etc..

Thus in the end, our currency wins and decentralization wins; and central banks and debt die. The one world reserve currency will be an ephemeral failing paradigm. It will be where all the unproductive people hangout and leech off the collective and default on the lenders. It will go into pernicious and terminal decline into an abyss or Dark Age. While our economy will rise up and take over.

Thus Armstrong, you are entirely missing the big picture. You will get your silly one world reserve currency, but it won't last long.

http://armstrongeconomics.com/2015/03/15/fiat-and-the-abuse-of-using-this-term/


And that is why the Knowledge Age will destroy the one world reserve currency debt based economy.


There won't be a perfect world. The one world reserve currency will be another collective debt morass over time. While the Knowledge Age will be rising up from very small. Eventually when the Knowledge Age becomes the dominant portion of the global economy, then the public will find some way to tax it and clawback to the collectivized failures that human nature prefers. They will do this by put a chip inside everyone's body that can track thoughts. This is the 666 system written in Revelation. But that is some decade or decades from now. The Achilles heel of the Knowledge Age decentralization ultimately rests on the fact that we can't yet operate our mind without our physical bodies.


Incorrect! Our problem is the human nature that people love debt, because they like to consume before they earn. Wealth is power law distributed. That is a fact. Thus the middle and lower classes envy collective debt as a way to redistribute from the wealthy back to the lazy. They don't understand that this honey is what attracts the flies of government corruption.

Direct democracy will never be a solution, because human nature doesn't change.

The Knowledge Age is a technological paradigm shift which renders the collective powerless to tax (most of the economic activity which won't be tangible thus can't be tracked once we have good anonymity technology implemented).

But even the Knowledge Age will eventually succumb to this pernicious human nature.


Exactly agreed. But realize that the one world reserve currency and reforming governments is not the only solution in play at this juncture. The Knowledge Age is also rising. Armstrong seems to view this as either-or; i.e. mutually exclusive choices. Rather both of these "solutions" will be ongoing simultaneously.


This is precisely why the Knowledge Age will move to our coming anonymous crypto-currency. The governments will not be able to track it, nor can they shut it down, even if they shut down the internet. Sorry we hackers are smarter than them. We win. They lose.

Armstrong doesn't understand crypto-currency. Thus he doesn't understand what is possible. I am an expert programmer in crypto-currency. I know. Armstrong doesn't. Period.

As phrased it was not clearly not an erroneous insinuation in attempt to paint your false assumption on the meaning of this thread, because you were too lazy to read the thread first.

(hope you are good with logic, so you can comprehend that sentence)

And again in the subsequent post, you displayed again that you failed to read the link I had provided when I corrected you. So there is a pattern of your behaviour (i.e. failure to read), which supports my angst towards you.

PLEASE STOP WASTING MY TIME.

---------------------------- Original Message ----------------------------
Subject: Mar 15: Armstrong doesn't understand the exorbitant privilege of controlling the reserve currency
From:    iamback
Date:    Sat, March 14, 2015 4:41 pm
To:      "Armstrong Economics" <armstrongeconomics@gmail.com>
--------------------------------------------------------------------------




I am very surprised that Armstrong can not conceptualize what I wrote above. He responded by pretending to himself that I am some simpleton who is only learning from him. He failed to understand I am not talking about the existing debts. I am talking about the new debts that will form after the global monetary reset (restructure or default).

My point is if we look at Greece, it sold its sovereign bonds denominated in the Euro(pean) reserve currency and thus it suffered pernicious (and self-reinforcing downward spiral of) austerity because it was not able to devalue the debt it owed by printing money to devalue its own currency and stimulate its economy by lowering the international cost of its exports and tourism industries.

Even more importantly as we can see with the dollar reserve currency now, countries that sell debt in denominated in their national currencies pay an interest premium compared to when they sell debt denominated in the reserve currency. This is one example of many reasons[1] that those who have control over the reserve currency's central bank, have enslaved the other nations. This is why a USA Treasury official famously said to his Third World cohort, "its our dollar, but it is your problem".

Armstrong is failing to understand that a reserve currency is inherently an enslavement paradigm. And the only possible way to eliminate this paradigm, is to make debt not profitable for investors. I explained how that will become the case with the shift from an Industrial Age to a Knowledge Age. But I think Armstrong is not smart enough to grasp the concept. Or he is too lazy to read the essays I wrote, which I had provided him links to.

Additionally I am shocked that Armstrong is conflating unit-of-account with unit-of-exchange. That is the most basic error. The coming one world reserve currency will not be a circulating currency that is used for retail transactions. If that were the case, then the nations wouldn't even have their own currencies any more. The reserve currency will be used for settlement internationally for exchange between the national currencies which will float against the one world reserve currency. I don't think the nations will agree to give up their control over their national currencies, rather they will just agree to a reserve currency that isn't controlled by the USA exclusively.

[1]	http://www.mckinsey.com/insights/economic_studies/an_exorbitant_privilege http://www.imf.org/external/pubs/ft/fandd/2009/09/cohen.htm http://www.financialsense.com/contributors/john-butler/curse-reserve-currency-triffin-dilemma

http://armstrongeconomics.com/2015/03/14/default-or-restructure/

Bitcoin is not decentralized. Don't make me repeat this FACT again:


In addition to the pools being centralized, Bitcoin relies on centralized checkpoints controlled by the core developers.

Also I had already provided the following link to you twice, don't make provide it again:


Go read and do your homework before you post again (please!).

Armstrong apparently doesn't understand or believe that anonymous crypto-currency is plausible.

http://armstrongeconomics.com/2015/03/14/real-estate-15yr-v-30yr-mortgage-new-electronic-currency-coming/


Anonymous crypto-currency and anonymous internet communication is plausible. Bitcoin and Tor are not sufficient.

We have the technology to do it. It is just a matter of implementation.

Btw, I know how to make a crypto-currency WITHOUT A LEDGER! Completely decentralized! (from a transactions point-of-view) Even if they shut down the internet, they can't entirely stop this currency from functioning. I am not revealing my secret just yet. Soon.

Finally Armstrong capitulates and admits I am correct!

http://armstrongeconomics.com/2015/03/14/real-estate-15yr-v-30yr-mortgage-new-electronic-currency-coming/


But Armstrong still missed the main point. It is impossible to eliminate debt, for that is human nature. Investors buy debt. And investors will measure their ROI against the dominant reserve currency as they do now, thus whether the individual countries sell their debt denominated in the reserve currency or their own national currency is largely irrelevant to the outcome, because the enslavement is caused by what the investors use as their unit-of-account and thus the central bank for the dominant reserve currency will have implicit control over the fiscal and capital account flows of each nation.


Sorry there is no way to make a reserve currency that isn't an enslavement paradigm. All the one world reserve currency will accomplish is transfer the seat of power for control from the USA government and Fed to the international central bank (which of course be controlled by those who have the most power). The only solution is for debt to become much lower ROI activity than the mainstream economy, thus the high ROI Knowledge Age workers will exist in a parallel economy that ignores the socialistic, collectivist economy of government and debt.

Impossible. Bitcoin is not decentralized and no crypto-currency can be entirely decentralized. A single, borderless universal currency would NOT be amazing in a good way, rather it would be slavery because it will always be controlled by those who have the most (political) power.