Indeed, the rather more vulgar term for "stress tests"  LOL

Oh, yes, indeed it is!  ROTFLMAO

FYI a bitcoin is technically classified as an "over the counter (OTC) derivative" it is NOT a "common nor preferred share" in a business "security" (since it is pure-fiat, unbacked and representative of nothing but itself), nor is it token of a "Future Quantity Buying Contract" for any quantity of commodity, material product or produce. It only "represents" the right to an externally derived future exchange-value of itself accepted between it's counter-parties.

A Bitcoin is a commercial "over the counter (OTC) derivative" of the future possible values of itself and it's network, which are only (at best) commercial resources, and not "commodities".

Bitcoins and those who trade or exchange it are totally, completely and invincibly "DEREGULATED" in ALL REGARDS save for so called general “safety and soundness” standards (nobody bitches). Bitcoins (a straight-up "confidence gamble")  fall under the blanket gaming "bucket shop" exemptions to the CFMA that were placed there to exempt State casinos and back door "funded credit default swap" (fCDS) instruments (largely used to bid-rig market prices) from any and all regulation, and therefore, what is good for the private bankster goose is great for the public currency gander.

http://en.wikipedia.org/wiki/Commodity_Futures_Modernization_Act_of_2000

You see almost every other day either Morgan or Goldman go nearly bankrupt dumping (so-called "naked" shorting) massive gold and silver futures contracts to depress their prices and make practically income-less Bonds and counterfeited FRNs look more attractive. In fact they are never "naked", they just ping-pong the (thus -"funded") "counter-party losses" back and forth (keeping any profits of their own) out their back doors effectively sharing known, prearranged, totally "deregulated" fCDS swapfunds to sustain each of their maximum daily losses.

A Bitcoin functions exactly in exactly the same way as a CDS. You fund it's former owner's "loss" (costs) on it, and the next owner funds yours.

Somewhere here I came across somebody wanting to know why none of the BTC Markets did not also trade Investments, Indexes or Funds etc...  Obviously here is your reason.

next answer please....

Market speculators and their antics capriciously determine the latest fiat exchange-value the last fiat Bitcoin that came their way.

The actual "price" of any given Bitcoin remains forever unknown and unknowable until after it has been sold (re-exchange valued) to the next guy, in the future.

The intrinsic and utility values of the "futures derivative contract token" no matter how attractive, are materially too small to be a major factor in it's exchange-value (aka price)

Buying a Bitcoin futures derivative contract token is gambling on the current exchange-value of it's future exchange-value.


The supply of Bitcoins is totally irrelevant and unrelated to their values, and likely to remain so for a long, long time. Small (or even large) quantitative changes in the small intrinsic and utilitarian characteristics of it's values should have practically no impact on it's exchange value, which is solely a "fiat election" of it's futures-market traders alone.

The (largely utilitarian) demand for Bitcoins is thus far for the most part entirely a function of their intrinsic curiosity, utilitarian novelty and speculative exchange values. Their original purpose was as a gambling casino utility, and they also apparently work pretty well to deal with certain other nastinesses at SR and sports gambling sites.

The best way to think of the exchange-value of Bitcoins is as a kind of a "virtual toilet" which regardless of what has been dumped through it only bears the memory-value of the position that it's last user left the seat in. (to it's own current owner, alone)



The supply of Bitcoins has, does and will always have zero to do with the inflation and deflation of their exchange values.

The supply of Bitcoins has everything to do with the fiat exchange value that upper-level "cheap-cheap Bitcoin Pharaohs" are willing to be bothered to settle for, and about nothing to do with the demand for or surplus value of them. Bitcoin millionaires would just as soon be Bitcoin billionaires than  part with them for $80 or something lousy bucks. (unless or until they get a hankering for some more cash)



So far, the needs of speculators to take advantage of or engineer volatile price bubbles and crashes.

Happy Trading! (and remember to leave those seats up guys!)  

The Monetary Inflation of Fiat Bitcoins won't have anything to do with the supply of them for another 30-40 years at least. The supply of them is totally irrelevant to their "current" massive, hourly, fiat exchange-value inflations and deflations, or the "bank holiday" Mt Gox forced itself to call the other day..

You began by referring to the well known economic cancers of "Monetary Inflation" which are caused by:

- adding inflationary pressures by increasing rates of usury on the money supply and thus causing price rises upon everything to pay for it.

- by properly expanding the money supply to serve more workforce members who could no longer be competitive nor productive enough (due to exporting manufacturing and the means of production to slave labour gulags and erasing import tariffs against them) to return the balance of trade wealth (that the fruits of their labours should have represented) back to the economy.

- debasing or devaluing the values of a given Labour Exchange Currency by quantitative counterfeiting in a vain effort to pay off old debts,

- by expanding the money supply to bail out reserve banksterers who purchased the corrupt political policies of free trade, but wouldn't cover their own losses that were actually the direct result of them.

Then, for some reason you dropped the topic and began to talk about "Moneysupply-stuff" to do with Bitcoins

The fiat "exchange value" of a "fiat Bitcoin futures derivative contract token", is totally detached from and completely unrelated to the supply or production of them. It is an assumed, stale, past-value, randomly decreed by a fiat penny-stock market. In fact the futures derivative token has no exchange value until after it has been sold to the next owner, whomever and where ever and for whatever that future value might eventually turn out to be decided to be, later on. The only marginal values a bitcoin itself retains is it's intrinsic security and utilitarian transportability, invisibility and anonymity ones.

It's "exchange value" is totally "fiat", it is in no way "hard".
 

Once again we return to Locke and Smith's three distinctly separated concepts of the loose-term "value". These are differentiated as utility-value, exchange-value and intrinsic-value. If we consider the Medium of Investment commodities of water and emeralds as examples, you can see where each can end up isolated into a single category depending entirely upon conditions of chance. In a long drought or in a desert water has all three wealths, emeralds only one. At a feast next to the fountains of a palace garden emeralds have all three wealths and water only maybe one.

In both cases above the "Prime Resource of Labour" alone ALWAYS stably retains at least two if not all three of the natures of value, as it usually does in most all scenarios. It is the prime function of a "money" that it be a suitably stable "Medium of Labour Exchange" value first and foremost!

Difficult to counterfeit paper money is proof that the intrinsic (Saudi Oil backed) value and utility (Global Reserve-Currency Status) value are also necessary. Since the demise of Bretton Woods, and the inevitable deflationary demise of far too rare gold, a private Federal Reserve Printing Company "They-Owe-Us Note" is backed by the exchange-value of the global oil that can only be priced and exchanged in terms of it. (for now LOL)

Bitcoin's silly "Money-Supply attributes" are totally irrelevant to it's wildly gyrating, horrifically volatile and disgustingly unreliable "fiat quarter-hourly" massively inflationary and deflationary exchange values. (plural because there has been no such thing as a single one)

Adding more or losing many Bitcoin futures derivative contract tokens does absolutely squat to the exchange-value of them. They each only represent, solely in the mind of their owner, the memory of what the dude whom they bought them from, took from them and made off with! A few fresh new, or old lost Bitcoins makes nobody else any richer or poorer than the guy who discovered or lost them, and never ever will.

The sole purpose of the so-called "mining strategy" is to continue to autonomously fund the "bitchain" security-confirmation exchange logging network. It will have zero impact on Bitcoin inflation or deflation.

The entire notion of the speculative market-trading of the value of the Bitcoin derivative itself is almost nonsense, if you ever honestly intended it to be a “currency”.

If the BitCoin asset pool were merely valued by simple Debit-Balance and Credit-Balance Bookkeeping all varied-currency-converted values coming into it would always exceed all varied-currency-converted values flowing out of it. It’s mere “funding” would generate a constant surplus that would assure each token’s constant value. But that would require an accountable “Central Exchange Authority” (bank) to take in the values and dispense the tokens for them.

But, the BitCoin “asset pool” is a Derivative Market where the coins themselves are ALSO THE DERIVATIVE, and are only worth their FUTURE (not current), highly volatile gambling-derivative market value, an hour from now. This derivative market also suffers from the underlying "pyramid pressures" where a few Bitcoin-flush “somebodies” got (or feel they deserve) a lot of something for little and are unafraid to go in hard after that something whenever the grass starts looking a bit greener.

Meanwhile the Bitcoin buyers are merely holding a derivative of it’s former owner’s withdrawal from the asset-exchange system. The only thing that keeps it's value-growth expanding are the "buy and holders" who don’t (and can’t really) spend their derivatives anywhere save by cashing them in, or by patiently selling them (at some break even or gain) to newbies or other speculators, so as not to tip the applecart.

The corollary is that despite there being no central boardroom-socialist banksters, the more aggressive BitCoin Pharaohs can (must and do) still take every opportunity to devalue “our” currency, and they are not alone, as other enemies can come in with worthless cash that costs them nothing to feed speculative bubbles and then dump too, to devalue the currency and discredit us..

Bitcoin will never work, regardless of it’s value-transfer utility, if they cannot stabilize the price of it. If nobody can guarantee what it will be worth in the next ten minutes nobody can afford to lend, contract, price, nor comfortably and safely wait the hour it takes to transfer, be paid in or even to spend it.

While it may be cute to try to confuse the "fiat" phenomenons of devalued/overvalued Monetary Inflation/Deflation with the "hard" phenomenons of Commodity-Resource Inflation/Deflation, there really can be no confusion and there is little room for any notion of marginal "Price Inflation" save within the context of the introductory Marketing Pyramid of a new Commodity-Resource, Item or Product.

When the first entrepreneur discovered salt, oil or gold for instance, they likely had no idea of the intrinsic-value, utility-value or exchange-values of them. In most all of these cases, the lucky dudes named Sitoshi brought some of their new "intrinsic curiosity" back to the encampment, and noticed their pals also had a curiosity about it, so he promptly gave them some in exchange for a few extra cups of their grog and went back a day or two later to the place he found that for more, to continue his enterprise. He did this because he was made drunkenly aware that this new "common curiosity" of his seemed to have both an intrinsic(curiosity) and what remarkably seemed to be an exchange value!

Meanwhile his pals noticed that you could salt meat to keep it from spoiling and even use it to make other crud taste better or use oil to make wagon wheels move more smoothly or was easier to light for light or heat, others noticed the hottest chicks loved earrings and bangles made out of the yellow shiny stuff. This second echelon "second floor-down" of low price meddlers had developed or discovered that Sitoshi's kool new "commodity" resources had utility value, separate from their common intrinsic value that increased their (greatest and most desirable of all) "exchange value".

Owing to these new discoveries Sitoshi's small second floor-echelon of Sitoshi-Resource Pharoahs began to market their new wares as bagged salt, bottled torch fuel and bullion to make chick-magnet jewellery. Buzz and newly discovered utility values allowed third and fourth floor-down echelons to "Price Inflate" (discover) the same Sitoshi-Resources their wholesalers got for grog into hard assets they could sell for boats, tents and fancier rides for their shorties. Finally fifth and lower floor-down operators in the marketing pyramid's echelon really started to exploit even newer and better utility values leading the price discovery of their new commodity resources into becoming something closer to reaching for the most treasured and coveted crown of either being a utilitarian commodity resource of serious hard-asset exchange value, or just a too-rare "wealth itself". (eg: emeralds)

Of course all these things didn't happen at once because, in the pre-refrigerated ancient world, salt (in high demand) was the first well known and widely traded form of a widely accepted Medium of Labour Exchange Currency (aka "money"). Indeed the further it had to be conveyed to deliver it, the more it's intrinsic value was "Price Inflated".

Salt worked as a "money" only so long as it retained it's aura as a rarity of constantly assured value. Salt's price-demise (Price Deflation)  as a currency no doubt came about with the invention of the Sauna bath where people suddenly became aware it was as common as sea water.

While one might find some reason to create the confusion of calling it "price inflation or deflation", most of us properly define those phenomenon as "Price Discovery". Unforeseeable, unpredictable, undesirable and nasty, "behind your back" economic fluctuations caused by Monetary "Inflation or Deflation" are the only "flationy" bubble-type things that everybody always cares about remedying.

There are three echelons of commodity resource values:

The top floor is occupied by Mediums of Labour Exchange Currency of Assured Value
The second floor is occupied by extreme rarities like gems, art, antiques and (lesser) precious metals or Mediums of Savings
The bottom floor is occupied by all other (finite or not-so) commodity resources which are Mediums of Investment

The top floor occupants must struggle to retain their tokens value to save everyone from starving to death.
The second floor contains rare and finite things certainly assured to only ever inflate in value
The bottom floor contains stuff that may inflate or deflate in value, it's a circus of games we call an economy.

The seeming "price inflation" of "finite" Mediums of Savings ("hard" assets) are the direct and unavoidable arithmetic consequence of "infinite" (or at least much less finite) economic growth.

Nowadays individual commodity resource "price inflation/deflations" are minute and relatively insignificant components of all large economic pictures, save in the area of marginal profitability and comparative advantage analysis. There's nothing anyone can really do about them, they come and go, they have to exist.


Bitcoin is a "fiat asset" it is not a "hard asset".

The Fiat Bitcoin "Bitchain-Securitized Bitcoin Futures Derivative Contract Token" has only a small actual intrinsic value owing largely to the novelty and curiosity of it's uniquely secured residence in the secured encrypted exchange-chain in which it only functions and resides. It also has utility value in the way it's easy to conceal, easy to transport, impossible to counterfeit, is mutually owned and profited from buy all of it's users alone and hopefully (more so in the future) requires no third party to use as a barely somewhat viable "medium of Byzantine-exchanges".

It's utilitarian value is only that of a contract-token of the past value of the last transaction in which it was involved where it's former owner, by mutually agreed upon "fiat", made off with the asset value of it's current owner. It still has no value other than in the mind of it's current contract owner who bought it's "futures contract" in hopes of getting and making off with an equal or greater asset value for it's possession in the future, when he trades it in (for another fiat labour exchange currency) or "exchanges" it some other product or service.

The reason it's grossly unstable "fiat price" (intrinsic+utilitarian+exchange value) changes so radically, nonsensically and foolishly with such suicidal volatility is because it is abused by it's supposed "promoters" as if it were "somebody else's" penny-stock, ideal for speculators to "play" by "penny stock marketeering" trading-speculation "exchanges" who think they are Wall St.

---

I'll get to your second and third comments in a bit  

You just don't get it do you? A "money" is a Medium of Labour exchange "*Currency*" (*meaning it can vary a tiny bit in value or quality from yester-day to current-day to tomorrow*) that is guaranteed to be of a reliable, more or less constantly repeatable value to everyone who uses it. Those needy for a constant, consistently valued utility of Labour-exchange include bushels-of-bonuses banksters, speculators, entrepreneurs, manufacturers, merchants, professionals, false-flag terrorists, street sweepers and even robbers. We all expect to be paid in something we can reliably use again to claim our rewards as we choose later.

Nobody can afford to get paid in something that they have no clue what it might only be worth an hour from now.

Even a slave has the freedom to decide to be fed, starve or just commit suicide, depending upon the certainty of what his reward for servitude will or will not be.

Without an assured value a "fiat bitcoin" can never ever become a "money".

Well were going to have to find some sort of a use for it, because thus far as a "money", it's little more than a glorified "virtual toilet" who's sole "value" depends entirely upon how the last guy might leave the toilet seat, an hour from now.

The simple fact is that as long as the "Exchanges" continue to foolishly operate as "Penny-stock Markets" treating Our Labour Exchange Currency" as if it were some other poor dupe's "penny stock" to be bid up and down like a toilet seat Bitcoin can never ever become a "money".

with a toilet-seat valued "bitcoin futures derivative token" it is impossible to:

- get paid in Bitcoin for either past or future services in stable terms relative to the value of any other "Medium of Labour Exchange Currency"

- pay anyone for any good or service in Bitcoin in stable terms relative to the value of any other "Medium of Labour Exchange Currency"

- know the futures value of Bitcoin in stable terms relative to the value of any other "Medium of Labour Exchange Currency" an hour from now

- lend nor borrow Bitcoin in terms of Bitcoin

- agree to or form any sane contract for anything valued in Bitcoins

- even trade Bitcoin in exchange for anything with any certainty it will be worth the cost of it an hour from now

the only thing it works as is a fiat futures derivative contract for the future fiat value of Bitcoins.

(and of course if you have a "donation" to sell that costs nothing.)

Depending what hour your Bitcoin transaction passed through a "Bitcoin toilet" today, the current "fiat" toilet lid's position returned to you either $190 or $145 (likely mostly counterfeited) Federal Reserve Corporation "They-Owe-Us Notes" for it.

Well no, it is and always has been endemic to the operation of trading exchanges who by virtue of their business model are required to "pool" both cash and BTC in hopefully "segregated" accounts, but it's also a temptation any online "wallet" system would also be vulnerable to.

It's true that segregation is the best and lower risk, lower profit policy, but it often simply does not make "business sense" for them to do so. This has always been the "bankstering" case from the ancient coin banking-smiths of old to the paper banking-smiths that popularized the "Paper Receipt Notes" we all use as "mediums of labour-exchange currencies" today. If idiots are foolish enough to lend you their assets for free you have to be a fool not to make the best advantage out of holding them all!

Bankstering and money exchanging began long before the invention of worthless paper Receipt-Notes. In 48BC Julius Caesar was among the first to take notice of these frauds and implement a publicly owned for public profit mint and coinage system to both combat (private profiteering, usury and corruption) and return the profits from the operations of it's sorts of vital economic necessities to the public benefit. Indeed, he was subsequently assassinated, largely by them primarily because of his largess.

The war between public servants and corrupt private banksterers is as old as history itself.

Well were going to have to find some sort of a use for it, because thus far as a "money", it's little more than a glorified "virtual toilet" who's sole "value" depends entirely upon how the last guy might leave the toilet seat, an hour from now.

Yeah like depending on which way the last guy left the toilet seat you either get $140 or $190 for a bitcoin any hour of the day.

Well this is the whole deal. Certainly it has to always continue to rise in value or "gradually deflate" (simply our profits or "interest" for adopting and spreading the adoption and wider use, ever-more widely of our "money") but we can't ever be pleased to see it inflate, such that we all lose!!

So not only should those "Bitcoin Pharaohs" who have profited most immensely from it be eager to support it, but our exchanges have to stop thinking like penny-stock markets, by actually assisting speculators to long and short it excessively without any sturdy disincentives to deter or make such deliberately mischievous activities unprofitable.

It's not like you don't know what's going on when you see the same traders high frequency bidding your basis up with low volume "egg-on" buy/sells. By permitting out of range bids to execute at the same cost single player can rapidly bid the price up 20-30% by burning through as little as a hundred bucks, then sell his thousands into it.

So really it's quite a simple and automatic dampening system you need like an "arithmetic shock absorber". There are two things you have to control, the number of and value-levels of (valid, permissible) bid/ask slots about the "current basis", and a progressive scale of "trading slot fees" that increase exponentially the further they deviate from the "current basis" value.

Of course you may need to keep (out of range) buy-limits there too,(without fee penalty) for support.

So you accomplish three goals; making simple exchanges at current value the "cheapest fee trades", and you make wildly out of range bids or asks that may stampede the market in either direction costly to place the further they go, you keep bids and asks within a given "basis-centric" range and ladder, while you still preserve "support level" bids.

The way I see it is a mechanism that (profitably for the exchanges and us all) simply impedes bubbles, without breaking the laws of supply and demand.

I did. Got in at 120 +- and out at 190 +-.

Overall less mad fees I got about a +50% return in a few days

Only for speculation. (and donating to this forum so-far)...

Actually OPEC-pegged oil-prices denominated in current terms of the private Federal Reserve Corporation's private They-Owe-Us Debt-Receipt Notes (FRNs) is the only grand and stable commodity-resource value of importance that supports their value.

The value of the U.Z.S.R.s "dollar" really doesn't have anything to do with the US balance of trade wealth nor any reserved property nor gold wealth nor US wealth nor "good faith" in anything else but trust the fact that the Tory-Bilderberg Trotskyite-Feds Pentagon Communists won't attack their Tory-Trotskyite Saudi Sheikhdoms even if their enraged fanatic populance make hell boil over.

I totally agree with you and fear that our failing will be in knowing (or understanding) not what it is that we as a new Global-Bitcoin Nation are actually finally trying to on real terms between only us for the benefit of ourselves alone.

I think you'll find plenty of my and other's views in these other "stability" and "futures derivative token" related threads. I'm glad to see your recognition of exactly what is we are all actually talking about here! 

Other / Newbies / Re: stable bitcoin pricing...The "Bubbles with Bitcoins" nightmare
https://bitcointalk.org/index.php?topic=175708.msg1832923#msg1832923

Other / Newbies / Do Bitcoins need something REAL to back them?
https://bitcointalk.org/index.php?topic=180009.msg1880436#msg1880436

Economy / Speculation / Re: Gold collapsing. Bitcoin TOO!
https://bitcointalk.org/index.php?topic=177949.msg1859342#msg1859342

Other / Newbies / Re: Fractional reserve banking
https://bitcointalk.org/index.php?topic=160362.msg1839605#msg1839605

Thanks Melonhead I really appreciate your well considered dissents and i will gladly struggle mightily in kind to answer them to your satisfaction, unless, of course, if and where I have erred  

above I have highlighted everything with which I totally or largely disagree, (and bolded indisputable points) so here go my responses:

First it is a huge generality that turned out to be generally quite wrong (in the latter 20th century days of gold's final demise as a useful "money") that "gold was never a tool of the elites". In fact it was THE TOOL, most largely, though not solely because it was, has been, is, and always will be a chronically far too "limited 'money' supply".

Today, even at best, gold is only a second rate Medium of Savings wealth. If you own more than nearly an ounce of it, you have more than your share of it's "egalitarian" global supply-wealth, which is still ever-shrinking compared to population (and labour wealth's) growths. Gold's egalitarian usefulness as a widely dispersed utility of exchange vanished, along with the broader-based demise of mercantilist "communal-nomic" warfares back in the late 1700's.

Mercantilists chronically kept beating their heads against it's limiting walls by hoarding it through foreign trade surplus only to be faced with the toxin of it's inevitable domestic over-supply, that would reverse the precious trade surpluses they'd hoped would make them wealthier. It took a long time for comparative advantage and the utilities of endogenous money supplies to take hold, and most of that also was, has been and still is quite wrong-headed.

Back in the day while there were still more widely dispersed clutters of gold than there were "labour exchanging" people who needed it's utility as a labour exchange currency it was, as you have pointed out, the most honest, egalitarian and durable triple-use medium of labour exchange value and savings wealth, while also being a commodity in the production of rarely-artistic added-valued luxury goods. But, as the various labour exchanging populations of the planet grew and the economic straight-jackets of it's limited supplies and dispersions did not, things drastically changed.

The first notable exception to your generality is the "local fools-gold" Basic Economics-Arithmetic lesson of Genesis. A "winning", ruthlessly price-gouging grain-monopolist Tory-Menshevik entrepreneur elite dude named Joseph convinces his lord he should exploit their grain business. Subsequent end of the ice-age dry spell crop failures and famine in Egypt then allow Pharaoh (and his elite Menshevik pal) to enslave his entire populance through the tool of their all too foolishly chosen limited resources of gold as their labour exchange currency. Joseph parlays Pharaohs grain monopoly into a labour monopoly (slavery) through the monopoly on gold the grain exchanges "earned" them.

Although gouging is clearly foul I'm not judging the fairness, just pointing out the implications of the broad false assumptions of a finite public labour exchange currency (that is also an entirely separate easily monopolized commodity) and the inevitably poor results of the inevitably terminal-exchange slavery it ultimately always leads people into. Unfortunately people stubbornly refused to learn a basic understanding of the inherently zero-sum counter-economic arithmetic of that fundamental example. Wiki "Endogenous money"...

Meanwhile in the future-past...

Later the elite Sadducee enslavers parlay their monopoly on the false idol of the "Ten Book of the Dead Mosaic Law stone-engravings" that their post-ice age liberator, the ex-Crown Prince thut-Moses left to them, into a desolationist's Soul Wash™ Business Temple monopoly. By cleverly imprisoning their Ark of their Covenant false-idol, containing it's imprisoned stone idolatries within, in an elite "sanctuary prison", they claim to own all proprietary access to Our Parentage Whom are Heaven and the All Itself, and demand silver "half shekel of the sanctuary" "fiat tokens" (that they alone mint) to run their "imprisoned god visiting" Soul Wash™ machine with optional grimy underbody spray.

Since the only way to obtain a much needed Soul Wash™ to impress your (likely rather outraged) neighbors is to trade real assets of true labour-exchange value like gold etc. for worthless 'fiat half shekels" at a Sadducee's convenient "money changers" bank-MTM booth outside their god-prison, the Tory Menshevik Trotskyite Sadducee's once again enslaved their own people. We all know how the evil fiat silver Sadducee Money Changers getting the gold from the residents of Augustus and Tiberius's occupied territories story went and ultimately ended 40 or so years later. Note that/how the cheap silver Temple Shekel is a "special silver coin-token receipt" (derivative) for another, completely separate store of value that it only "represents".

Meanwhile back in Rome...

Back in 50 B.C., the Pontifex Maximus turned Emperor Julius Caesar took back the power to coin Roman labour exchange currency from the private bankstering smithy-coiners and money changers and minted public coins for the public benefit of all. It's important to note the clear inference that the "soul-detergent reserve" bankstering of "temple shekel tokenage" for sporting and/or other commercially monopolized economic activities was obviously a more widespread phenomenon than just in the Soul Wash™ business.

With the profits on selling and renting this new and plentiful public supply of publicly owned and issued labour exchange currency, and standardizing his new calendar for temporal labour-contractual order, Julius was able to complete huge public works projects of unprecedented scale. By making standard public labour exchange currency tokens of assured value plentiful Caesar won the loyalty and admiration of his citizenry, but the still powerful former private local smithy-bankstering coiners and their money changer crony-monopolists hated him. Economic experts believe this was a major motive behind his assassination. With Julius Caesars death came the demise of Roman prosperity. Taxes increased and so did political corruption. Debt usury and debased reserve-derivative coinage became the rule again. Eventually the public labour exchange currency supply of the Roman economy was reduced by 90%, and thus people lost their wealth, lands and enterprises to the smithy banksterers and Rome sewered into the dark ages.

The first paper labour exchange currency was a new "printed paper" receipt for gold (or silver) that was left in a metal/coin smith's vault.

Coin smith receipts (private coin) had long been the norm because they were way better than hauling around, concealing and securing heavier and/or more valuable gems, gold and silver. The coin-smiths banks had always known that only a small fraction of people return to demand their actual gold (or silver) at any one time. Fiat paper was simply a new and even cheaper way to continue conduct their parasitic gold-hoarding frauds. They continued defrauding the public by printing/coining more "fiat counterfeit" labour exchange currency receipts than they had gold or silver to back. They would then loan out "fiat counterfeit" deposit receipts, (cheaper "coin" or paper token) and collect interest on them, paying squat to depositors.

These paper receipts are often falsely cited as the birth of "fiat" Fractional Reserve Bankstering, but it had long been done with other bronze, brass and silver (etc) low "bullion" content token-coinages before it. It is usually defined as defrauding the value of the fruits of all other people's productive labours by parasitically loaning out many times more counterfeit "fiat" labour exchange currency receipts at a profit than there were genuinely conserved assets of labour exchanging value "reserved" to back them with. Fractional Reserve banksterers had for years earlier already long been minting "Fiat Token Coinage" of silver or other more-worthless "fractional" Fiat Coin-Token Receipts foreshadowing their Fiat Paper-Token Receipt scams.

If a metalsmith bankster-parasite had 1000 in resource-asset deposits, he would draw up 10,000 in fiat counterfeit receipt  "money", and lend out this 90% more of fiat-counterfeit receipts to both depositors and non depositors at an even more-parasitic profit. Elite bankstering parasites thus accumulated themselves all of everyone's gold and silver through various (private) fiat counterfeiting reserve-storage schemes.

The issue has always been and still is WHO OWNS AND PROFITS FROM a well moderated and regulated industry of reserve-bankstering (reserve-usury) - not necessarily the honesty or dishonesty of providing for an economy the flexible monetary utilities of it. When our congress (national governments) own, rent-out and control Our Public Labour Exchange Currencies our nations (and thereby us) profit from it. When others own and control it we are all constantly doomed to lose, to "them".

Fortunately or unfortunately, Fiat-valued/devalued Bitcoin poses a really horrific barrier not only to contractors, merchants and entrepreneurs, but to any form of usury and usurers period. It is impossibly Byzantine to even begin to arrange a temporal contract to loan bitcoins in terms of bitcoins. Currently I could loan you a bitcoin with interest in bitcoin today and you could end up paying me back a quarter of my value or owing me three times it's worth tomorrow. My loaning labours might be a total bust or a boon by virtue of random "Physiocratic" chance at any time of any day. Bitcoin such as it is "traded" is a receipt-derivative token that every greedy, self respecting smith would assassinate the purveyors of, melt down and sell off for coffin nails.


You have obviously noted my revulsion at using the lazy epithet 'money' to describe a National Economy's Public's Labour Exchange Currency Tokens. I do so because the term 'money' is a grotesquely imprecise generality that can describe a multiplicity of different subjective "substances" with which people can exchange their savings, efforts and wares.

The inherent relationships between the current values of labourers labours (the only asset we all have to trade/exchange) and the value of their Medium of Labour Exchange Currency are legally binding and irrefutable contractually-temporal obligations, they are not and cannot be cavalierly disregarded as dismissible "assumptions"!

Marx's antique misperceptions that the value of 8 hours of street sweeping work is equivalent to the value of 8 hours of heart surgery work are obviously obsolete Bolshevik-power nonsense. Streets would be paved with dead bodies (as we occasionally still hear tell of in Red China) if such presumptions had had any merit. Marx moronically insisted that the "substance of value was labour," which, in his view, was not a commodity though democidal "labour power" was.

The many old, agrarian Labour Theories of Value (LTV) mistakenly argue the value of a commodity is only related to the labor needed to produce or obtain that commodity and not to other factors except as those other elements can also be regarded as "embodied labour". It's often associated with Marxian economics, but Locke's Theory is also a foundation to earlier classical economic theories from Adam Smith to David Ricardo. The impacts of revolutions, politics, modern automated industrialization, finite resource limits and scientific common sense all disprove the production side of LTV argument, but indisputably uphold the absolute certainty of the current labour-exchange-medium's "obtaining current value" side of it.

Even Adam Smith noted that at the core of the mercantile system (he largely opposed for populist reasons) was the "popular folly of confusing wealth with money," bullion was much the same as many other rarer (savings) commodities, most of which (diamonds he exampled) were superior to it.

John Locke's Labour Theory of Exchange-Value still transcends and resides stubbornly within both the Kleptocratic doctrines of pessimistic Gold-Primitive Malthusian Zero Sum Economics (Mercantilism, Colbertism) and the more altruistic Physiocratic Classical and (progressively more or less nonsensical) Neo-Classical Economics (from Smith and Riccardo to Marxism and Keynesianism) with regard to the concept of a standard, stable media of labour-exchange-value, necessary to conduct economic activities. We can all argue until we are blue faced about what, when, where, why or how what creates or destroys the values of things, even including wealth assets but the current and foreseeably ongoing value of a decent "money" should not rightfully belong among them.

Labour is the only (prime) "commodity" not (directly) sold by capitalists but rather sold by all workers, (including capitalists,) themselves, whose income tends to a minimum unless they are (better situated or) more talented. Even their surplus product is appropriated by the labours of the capitalists. Alan Freeman argues: "This is of course true of other commodities [than labours] also; but other commodities do not walk around the market disposing of their income on an equal basis with their owners or purchasers (nor do so using other mediums to exchange their worths). The cost of labour is determined independently of its capacity to make money for its (owner or) purchaser. This, and no other reason, is (how and) why profits exist.

Einstein argues similarly: "It is important to understand that even in theory the payment of the worker is not determined by the value of his product."

I prefer to avoid the notion of "labour power" due to it's democidal double-meaning and prefer the "prime commodity resource" description of it's engine-like, all motivational economic natures.




Well in the case of the Bitcoin-system securitized-token futures contract, security itself is the "encrypted crypto-collateral" that is the material substance of the digital trading contract it represents. I used the physical example of an encoded car key (of a chain of similar but all-different proprietary car keys) as a physical comparison to it to illustrate the different sense in which our(my) use of the term "security" is meant. Like serial numbers on Fed-Res-Co's private paper You-Owe-Us-Notes that they rent to us, they are a "security" feature that makes each debt to them unique. The only problem is the insecurity that many counterfeit debt notes could exist and be used with the same debt number on them.

Far better than that, Bitcoins each have an updated home "block" provenance "securitized codeplace" at their point of origin in the single encrypted digital chain that holds it's own records of it's negotiation, making even the use of any other attempted-duplicate impossible.

Once again we return to Locke and Smith's three distinctly separated concepts of the loose-term "value". These are differentiated as utilitarian-value, exchange value and intrinsic value. If we consider water and emeralds as examples, you can see where each can end up in any category depending entirely upon conditions of chance. In a long drought or desert water has all three wealths, emeralds only one. At a feast next to the fountains of a palace garden emeralds have all three wealths and water only maybe one.

In both cases above the Prime Resource of labour alone retains at least two if not all three of the natures of value, as it usually does in most all scenarios.

Gold has always been a "speculated commodity" before, during and since it has been a medium of labour exchange and is still today as a second-rate, bulk Medium of Savings. The entire pre-classical Mercantile Economic System was almost entirely based upon nations speculating about the future wealth and exchange value of their jealously hoarded gold. Before and during the Spanish/French/English empire's unfortunate blundering upon the New World, Euro-Asian-African Economics was entirely an exercise in Mercantile national gold-wealth hoarding for the purpose of speculation.

The hallmarks of Mercantilism are:

• That all raw materials found in a country be used in domestic manufacture, since finished goods have a higher value than raw materials.
  
  
• That a large, working population be encouraged.
  
  
• That all export of gold and silver be prohibited and all domestic money be kept in circulation.
  
  
• That all imports of foreign goods be discouraged as much as possible.
  
  
• That where certain imports are indispensable they be obtained at first hand, in exchange for other domestic goods instead of gold and silver.
  
  
• That as much as possible, imports be confined to raw materials that can be finished [in the home country].
  
  
• That opportunities be constantly sought for selling a country's surplus manufactures to foreigners, so far as necessary, for gold and silver.
  
  
• That no importation be allowed if such goods are sufficiently and suitably supplied at home.

Unfortunately all that Mercantile speculated gold hoarding ended up putting most all of it into the vaults of the ennobled Rothschild bankster Gold Pharaohs, and their Royal cronies. And, so much for the theory that a nation's Medium of Labour Exchange Currency is not related to nor the product of the value of it's exports.

By the 1800's the Rothschilds alone had already defrauded the rest of the planet of half of it's wealth by reserve-usury bankstering coupled to Tory Trotskyite Mercantilism, mostly profiting them in speculative hoards of gold holdings (as savings-wealth, not money).

Even up until America's "neo-Josephs" 1913 reconstruction/WWI war-communism debt sell-out debacle to the Rothschild/Morgan Gold Pharaohs at the ex-African slave importing depot of Jekyll Island and beyond it while the rented-receipt debt note "price"of gold was supposedly "fixed", the bankster speculators continued to hoard it, understanding it's limited deflationary-value (intrinsic) Medium of Savings relationship to economic growth, and leverage as a war-communism financing asset/security, that could also be employed fruitfully (for them) as "backing" for worthless tokens they could rent to those enslaved to them by it.

Excellent point, since it is the mining network infrastructure that  actually backs the securitized network "token" transfers and supports their cryptographic transaction journals. It is actually the vast majority of the "arguably some value" of each Bitcoin token.

Also most people have no idea that their dry loop (or normal phone) line provides a free 48VDC@.25amp of battery power (handy for recharging things, especially if you have just dry loop DSL and it never 130V-pulse-"rings") and the phone networks batteries are not only fully UPSed and totally independent of any grid-utility AC power, their internet service continues to work to all major backbones, unlike local cable/fibre which is all local grid-utility AC powered. Telephone systems inherited their ubiquitous battery mode of power operation because despite going tone and digital they've always still needed to ring bells and latch "hook" relays. Even if you have a 1913-15 candlestick phone (I do) it still works just fine.

So if you have even a small UPS, and/or a 12V battery for your DSL modem and/or just a tablet or laptop (not a power hog desktop) you're still pretty well set for a long power outage with internet connectivity, even without any generator.