Economic Totalitarianism

[trollercoaster]

*shudders* I have seen quiet a few stories which involve her launching objects at people.

The sexual promiscuity doesn't surprise me either, the Clintons are buddies with Jeffrey Epstein.

[trollercoaster]

http://sputniknews.com/us/20150626/1023863390.html#ixzz3e7hYfMof

[OROBTC]

...

I think the time will arrive soon to go dark.  Go dark (or "Go Galt") in America?  Yes, I am afraid so, at least for a while.  When you cannot even critique a judge's decision on something, that is violation of our First Amendment.

Violating our Constitution is something that has been seen here rather a lot just in the past few days:

-- SCOTUS on Obamacare

-- SCOTUS on gay marriage (note: it's wording I object to, let gays have civil unions and the .gov bennies, but don't make conservative churches be forced to marry those outside of their own moral rules, same with bakeries, etc.).

-- Obamatrade deals (why so secret guys?)

-- And now this (thx, trollercoaster).

*   *   *

Batten down the hatchez, bitchez.

Making no income means no Income Tax.



EDIT: HB, TPTB!

[minor-transgression]

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
secretly.

Hush now, the Red King is sleeping ...  
 

[TPTB_need_war]

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
secretly.

Hush now, the Red King is sleeping ...  

And TPTB played hardballbusting in Greece:

http://www.armstrongeconomics.com/archives/34234
http://www.armstrongeconomics.com/archives/34228

The world really needs what I am working on. I'm accelerating my efforts.

[TPTB_need_war]

Justus and rocks, I am going to address your two recent posts...but in a whitepaper.

Rocks you brush off centralization due to spamming the mining network without even considering it deeply. I've developed a model of centralization which is more scientific.

From the perspective of a Bitcoin user, every possible thing that can go wrong with Bitcoin can be categorized into one of two failure modes:

• A payment you belive to be valid, isn't (double spend)
• You are unable to perform a payment that you want to perform (denial of service)

Users may have other requirements including but not limited to:

• Anonymity of identity, linkability, traceability, and or value transferred.
• Expediency of transfer.
• Protection of store-of-value, which can include decentralized control over debasement, inability to do malfeasance which causes a run on the coins, etc.
• Protection of fungibility.

Thus you can see your piecemeal model isn't going to work. You need a more general model of decentralization.

+1.  Justus, I've been reading some of your work and I really like your push to clearly and precisely define the cryptocurrency terms we're using.  Here's what I had jotted down yesterday, which sort of jives with the two points you made above:

   Bitcoin is decentralized if no entity exists with the ability to costlessly double-spend or bar valid transactions from the blockchain.

Thoughts?

You are describing one of the effects of decentralization, but not decentralization itself.

[TPTB_need_war]

OROBTC,

I have come to realize that most of the behavior in this thread can be perhaps be explained by fear. (psychology being another of my other autodidact flirtations...they say a "jack of all trades is a master of none")

For example, fear that their investment in Bitcoin can only be safe if they slay all attempts to better it (even if BTC value was safely pegged across chains, because they fear dilution of their "to the moon" expectations).

Similarly I think goldbugs are defending the indefensible because they're trying to convince themselves to ignore the justifiable FUD (fear, uncertainty, doubt) they sense is creeping up on them.

My problem with precious metals is that the only time I've ever bought and sold any from a person on the street, I got a horrendous exchange rate (roughly double the melt value). And there wasn't enough liquidity available to make viable for anything near to survival. I see lots of buyers stacking but no buyers using, thus in the future this becomes a one-sided market of sellers of hoards and no buyers using. This means you will sell your precious metals only at a dealer who can proxy them off to large liquid investor markets. You are not going to meet up with investors in the streets.

The totalitarianism is going to take control over all these market makers because there will not be any black market in cash to escape from government regulation, because paper cash will be (is being already) eliminated. If you argue that Bitcoin will be that cash, then just buy Bitcoin instead because who would then meet up in the street to trade a good with higher utility and safety for one that risks life and limb every time it is traded? if you argue that Bitcoin could go to zero, I can argue that gold can too because the greatest common denominator between illiquidity and expropriation is the same as zero value.

I think initially there will be a significant rise in precious metals off this coming final low (< $1050, probably $850 or less) because there will be a panic as the sovereign debt contagion dominoes and $200+ trillion of global wealth will finally abandon bonds as  safe haven and run into the dollar, us stocks, gold, and Bitcoin rather indiscriminately. But after the USA tops out in 2017 (due to rising dollar choking off exports and the ingress of those safe haven funds peaking), then we will descend into a totalitarian hell worse than anything in the last 309 years. At that point, it will become clear that gold and paper cash are dead.

Those who think paper cash isn't close to being eliminated in third world countries, I can tell you that I am increasingly surprised how many people pay here in the Philippines with a card (frustrating as hell to go the grocery because it slows the queue considerably). Also what is likely is during the coming contagion, TPTB will turn up the dial on the pressure on cash by refusing to supply sufficient cash thus those with cards will become like kings envied by the rest of the population. Filipinos can emulate and adopt new things incredibly fast. I remember there was a Shell gas station commercial with a Ferrari and the phrase "hey Joe wan Joe". Within days and for months hence, I was called from the distance incessantly where ever I went in the hinterlands with "Hey Joe wan Joe". If you are talking about getting commerce done, filipinos will use the most efficient means available with lightning speed of adoption. They are simply that resourceful and flexible when their basic daily needs are threatened.

So you want to sell out of your diversification into gold in 2017. By that time, you should have the clarity you need on cryptocurrency. I am nearly certain they will be the safe haven for the astute by that time. But we have some seriously intense work that has to be accomplished between now and then. The outcome is far from certain from the current vantage point.

I would just caution you to average down into gold. Don't rush your purchases. The bottom for private assets around October perhaps.

[OROBTC]

...

TPTB

I responded in "the other thread", but so as not to cheat bitmixer, I do not want to duplicate my message here.

I applaud ANY efforts to make BTC better (or create a better successor).

*   *   *

Yes, I see LOTS of people paying with cards too (esp. at 7-11s).  And there IS a War on Cash, no doubt.  But, IMO, the War on Cash may be slowed in that cash is great for corruption...  But, you and Armstrong are right, the War on Cash is the likely trend, even if it takes a while (my guess).

Re gold, I have taken careful note of your predictions, in particular 2017.  Should there be a combination of 1984-style Big Brother and a sharp rise in the price of gold (say $3000) around that time, yes, OK I will sell some.  And probably buy a crypto that I can figure out and that seems more .gov resistant.  Balance the portfolio.  If gold does not reach the $3000 or so, well tough luck.  Life is an experiment.

[trollercoaster]

http://elpais.com/m/elpais/2014/05/28/inenglish/1401272039_980140.html

http://elpais.com/m/elpais/2015/06/30/inenglish/1435681072_581012.html

[generalizethis]

New scenario:

We are moving towards a corporate state were governments are slowly/quickly/surreptitiously supplanted by conglomerates that can more definitively guarantee and defend your user-defined safety. They will be more programmed (feature rich) than dictated, more efficient than top-heavy, and more user friendly than user threatening. These corporate superpowers will usurp power from the old guard as they don't need to build armies, but only have to have the capacity to build them more efficiently, more quickly, and more technologically adaptable than their adversary. DACs and self modifying programs will overwhelm potential adversaries with their ability to create armies and to modify consumer materials at a pace that swarms (and re-purposes) advancing armies with the full might of the society (consumer base) that they control. This corporate government model will be tested by the current system with overwhelming and catastrophic results.

My thought is that this system of government will work better for us (at least humans) if they are an archipelago of corporate states that have benefits for specific consumer states that would be considered drawbacks for other consumer states. A one corporation to rule them all would be subject to one fatal flaw to destroy them all and be also subject to rage against the machine. Better to have competitors than to have malaise or the constant threat of revolution within the system.

Though the last points are humancentrix and do not take into account the trashumanist movement that should/could/must take place at some point. We won't know what motivates AI and Transhumans until they exist in a meaningful way.

[dblink]

We are watching the total collapse of Democracy and the birth of a new era, Economic Totalitarianism from arrogant people who are totally clueless beyond their own greed for power and money.

[TPTB_need_war]

Throughout history, there has always been someone around who will take your gold.  They would have to confiscate the guns before they try for the gold, there will be resistance.

I am not asserting they will come take your gold. I have not written that. I am saying that gold you can't trade without being expropriated when you trade it, is the same as having a zero value (assuming the taxation rate is roughly 100%[1]).

My point is what will you trade it for when there is no cash?

And of those things you can trade it for, which of those won't be registered with the government (e.g. real estate, cars).

Also when unemployment reaches 50% and the governments are hiring people by the millions to be snitches and do sting operations, how will you trade while hiding from the government?

If you can't hide from the government, then how can you stop the government from expropriating it via taxation?

Another very effective way to attack goldbugs who try to exchange their gold, is to drive the economy into such a mess that crime becomes rampant, thus most trades will go down as muggings. Oh so you carry your guns to the trade, and the mob brings bigger guns to the party. An arms race back to the era of mobsters... I can be fairly certain how quickly you will tire of that type of world and throw in the towel on gold leaving it to sit in your basement forever useless. You could hold it for 20 years like those who held from $850 in 1980 down to $250 by the turn of the century, losing 1000% gains in stocks and bonds interim.

Also once the rule of law is gone, the government can do basically anything they want to. So expect bullshit such as Civil Asset Forfeiture on your gold when you trade it at a registered dealer. Meaning they seize your income from the trade declaring it money laundering or whatever and you are unable to disprove or win a fight in the kangeroo courts.

There was a former US Treasury official who was quoted by an anonymous source, "We will burn the fingers of goldbugs up to their armpits". Perhaps that might have been Robert Rubin.

[1] I don't assume the tax rate will be 100%, but I think they may force savings into nationalized accounts, meaning in effect 100% expropriation. Also note that that a 90% tax (I believe upper tax rates reached this level in the USA prior to WW2) on capital gains with 500% capital gain, is 72% effective tax on purchasing power (assuming gold's rise reflects the loss in purchasing power of the dollar which may not be the case). Also if you can't prove your tax basis, they might tax as if your tax basis is zero.

[THX 1138]

Thought this might be of interest:

"...ProxyHam, an online anonymity box that puts you a mile away from your IP address...a “hardware proxy” designed to use a radio connection to add a physical layer of obfuscation to an internet user’s location. His open-source device, which he built for $200, connects to Wi-Fi and relays a user’s Internet connection over a 900 megaherz radio connection to their faraway computer, with a range of between one and 2.5 miles depending on interference from the landscape and buildings...The first part is a box the size of a large dictionary, containing a Raspberry Pi computer connected to a Wi-Fi card and a small 900 megahertz antenna..."

http://www.wired.com/2015/07/online-anonymity-box-puts-mile-away-ip-address/

[TPTB_need_war]

Thought this might be of interest:

"...ProxyHam, an online anonymity box that puts you a mile away from your IP address...a “hardware proxy” designed to use a radio connection to add a physical layer of obfuscation to an internet user’s location. His open-source device, which he built for $200, connects to Wi-Fi and relays a user’s Internet connection over a 900 megaherz radio connection to their faraway computer, with a range of between one and 2.5 miles depending on interference from the landscape and buildings...The first part is a box the size of a large dictionary, containing a Raspberry Pi computer connected to a Wi-Fi card and a small 900 megahertz antenna..."

http://www.wired.com/2015/07/online-anonymity-box-puts-mile-away-ip-address/

One of the things we may be able to accomplish with real-time micropayments is to monetize the user's home WiFi routers and internet connections. This will do more to help Net Neutrality than all of Obama's corruption to use propaganda to get dumb ass socialist users to vote for letting the fox manage the hen house.

[rpietila]

Unless masochist, get the hell out of the USA. They can't logically enforce the same rules in Philippines, not at once at least. You get to see how it goes and there is some chance that Jesus will come back before the whole of the world is enslaved anyway. Bible says that 1/3 of the world population will die, and NWO plan is more like 90-95%. What follows is that NWO plan does get to start, but does NOT get to consummate before the Lord's return.

Whoever has an ear, let him hear.

[THX 1138]

rpietila, recently I wished a departing Fox News-watching English work colleague well (from here in the UK) on what she believed would be an exciting new chapter in her life moving to live in the USA, while biting my tongue in wanting to point out that it is likely not to be the kind of "exciting" she had in mind. I've found it generally pointless to broach subjects such as threats to privacy, financial security and the quality of life many of us have enjoyed in the West up until recently, without at the very least meeting with eyes glazing over or being dismissed as a complete tin foil hat - so therefore I generally avoid raising these matters.

I kind of agree with TPTB_need_war's earlier post in which he suggested that fear was likely behind a reluctance by many to embrace radically new information or ideas that threaten to unsettle their confirmation bias. And it often seems to be the most intelligent individuals who are the most stubborn in clinging to lifelong belief structures and ideologies (I'm thinking in particular of a friend (possibly ex!) of mine of 30+ years who resolutely bats away any kind of criticism of his beloved socialism, in which Karl Marx would appear to provide the ideal template for evermore, no matter how the world changes).

[TPTB_need_war]

My stance is try to not let your friendship die over misaligned vision. Rpietila and I went through a period recently where our vision was a bit too much misaligned, but seems our friendship survived and our vision perhaps coming more aligned again (friendships need this flexibility).

My stance is try to share things you mutually enjoy and not judge each other. No one is omniscient. The future has many simultaneous paths. His destiny is his, as is yours yours.

rpietila, I don't think it is assured that in every way being outside the USA will be superior to being inside (e.g. TPTB can make a big mess of the Philippines as they did in WW2 and don't assume I will stay in Philippines), or that in every case one will be trapped. But in terms of my personality and desire to travel and live in the developing world (a classification that Greece may soon rejoin), then it behoves me to make sure the next POTUS Hillary Clinton can't use my citizenship to attempt to limit these specific freedoms I cherish.

My one concrete advice (usual disclaimers apply) is try to have much of your wealth liquid (and in your case rpietila sell that castle before Russia takes back the Baltics 2017ish ... and stomach any loss to experience and also as a leasing cost for the events you were able to host there and the fact that BTC will be 1/10 the price it was when you sold it to buy the castle). It appears anonymous cryptocurrency could be the ideal solution for that, but there are risks from TPTB attacking the network and also the technology isn't settled yet.  Precious metals appear to be a good diversification coming into the projected October 2015 bottom (and I'd opt for gold over silver, because this is for liquidity and safety, not for ROI), but I would hope before end of 2017 we have clarity on anonymous cryptocurrency and can get out of precious metals (retaining the usual 2-5% diversification that is permanently held and doesn't need to be sold ever) before the USA goes over the economic cliff in late 2017.

[minor-transgression]

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.

[THX 1138]

Appreciate your input re my socialist friend, TPTB. All too easy for the strong-willed to lock horns. An olive branch has recently been extended.

We each perceive what we see as "truth" by observing its various facets from different perspectives.

A vivid insight you give there, minor-transgression. Few in sleepy old England could conceive of such events occurring here - but who knows what challenges the near future could bring, especially with what course tonight's Greek "no" vote could lead us. That's why I'm here, and other places too, seeking practical alternatives.

[OROBTC]

...

...practical alternatives.

Practical alternatives is right, THX 1138.  That's why I started this thread, to explore ways EACH OF US can find better financial security in times when even the banks and governments are trying to take away our money and freedoms.

Bitcoin and gold are two alternatives.

Further down Preparation Pike are guns & ammo, water & food, farmland, "Plan B Countries", etc.  No end to it.

I hope (but doubt) that sleepy places in old England or in the USA will escape unharmed.  Beware.