Update:On the MtGox collapse. This is surreal
http://www.reddit.com/r/Bitcoin/comments/3fe92x/im_ashley_barr_aka_adam_turner_the_first_mtgox/According to this, MtGox ended up with the 500,000 coin deficient because Karpeles was spending bitcoin from customer accounts to pay office expenses back when bitcoin was between $1 and $30.
I finally gathered a small group of employees to pressure Mark into answering how we spent more money than we've made, his answer was simply:
"My grandmother lives in a castle in switzerland"
MtGox was basicly run like the FED.
The early Bitcoiners all thought that Bitcoin would eventually arrive at something trustworthy that was a replacement for fiat. Instead, Bitcoin, Dogecoin and the successors may end up dragging government fiat dragged down to the level of a farce. All money is becoming RPG money.
For instance, I do not think there is any difference between the counterfeit $100 US dollar bills and the real ones. The counterfeit 100 Yuan bills are apparently identical or even higher quality than the real ones. There is no difference between the counterfeit FED dollars and the real ones. So you have people that need to work to eat and pay rent and if they dont work, they starve or are homeless. Then you have people who have bought up sixty houses, in money paid as a gift, which is from an effectively counterfeit source. Similarly, banks counterfeit currency through derivatives and buy real collateral or leverage up. Another example being the two financial bailouts (secret, classified, completely fraudulent, a scam on the public), the quantitative easing program and the savings and loan crisis.
So you just have people printing money for nothing, in various ways of varying levels of obfuscation and buying up all the real assets in the economy. All the land, the gold, the companies and so on.
A cynical person would ask, if the laws exist not to stop counterfeiting but to restrict counterfeiting to group in political control.
Instead of creating money, the banks issue bonds that the government sells, then the banks collect interest on the bonds from the governments. All of the taxes people pay, are paid to the banks/families issuing the bonds and to spend money, the government has to sell more bonds to finance operations. Anyone attempting to re-monetize gold/silver or simply issue money with out a debt obligation, simply gets assassinated. Bribery and assassination is mostly how the system is maintained within a country and between countries that system of currency, was historically spread through military conquest.
Which is another reason that the United States keep threatening Russia with nuclear war whenever it threatens to adapt a "sovereign" monetary system system where the government can issue money, instead of paying interest to foreign banks for the privilege of having money.
Print fake money, buy up all the real assets. A cynical person could look at the whole global financial system as a scam.
When the Britain occupied a country and established a colony in Africa, people would complain that they dont have laborers or slaves to wipe their ass. So the first thing the British did was take control over the land, create an artificial scarcity of land through government regulation and law (assigning parcels and making huge chucks of land unavailable for sale, by giving them to oligarches for pennies or making them unavailable via law). Then the government took control over and monopolize food production and distribution (often through oligarchs). Before people would just grab land, grow as much food as they needed or barter for it or just take empty land and live there. Once monopoly control over land and food was established, people needed to work for money to buy food or they would starve. They needed to pay rent to the land owners or they would be homeless, while scarcity of land was maintained through force. That is how labor markets were created. Monopolization or forming a cartel over everything that is needed for human survival and forcing people to buy it through the market system for labor.
The number of hours people need to work to pay rent, buy a hour or purchase food is centrally controlled by the United States Government. The FED goes in and props up the real estate market or gives banks money through the QE program to buy up vacant houses and remove them from the market, to maintain scarcity and current rent/housing prices, preventing rental rates from falling, even as demand for houses decreases. The government centralizes food production and pays farmers to leave land fallow or subsidizes them to produce or alternates between the two to squeeze out small farmer (who receive less from the government stabilization programs) to further centralize control over food into a smaller and smaller number of corporations.
You have Agenda 21, zoning laws and federal ownership of state land and other methods of artificially imposed scarcity over land. In San Francisco, for instance, a cartel of real estate developers has used zoning laws and other methods to ensure no new construction takes place, forcing rents to skyrocket to over $5000/month. San Francisco is the poster child for Agenda 21 development, with a person working 60 hours a week shuffling power point slides for a multinational corporation to make $150,000 per year and half of their money going to the government as taxes and the other half going to pay rent, with nothing left over after expenses for savings or accumulation. Personal ownership of property becomes impossible except for executives earning 10 or 15 million from exercising their stock options for Fortune 500 companies, being pumped by the FED Quantitative Easing program, while the rest of the economy is destroyed or centralized.
This is a labor extraction system. Taxes only exist to remove money out of circulation, so that more money can be counterfeited. The literal objective of the system is enslave people and extract the most labor from the population as possible, in the most efficient way.
The homeless, the people who cannot afford rent, afford to own land, or purchase food, under the government controlled real estate and food rates, become wards fully supported by the government (40% of US population currently). Useless eaters to be depopulated. The homeless and destitute, who clutter and shit on the streets of San Francisco, to be rounded up into FEMA camps, disposed of.
Prisons, foreign wars, welfare and fake government jobs serve to burn off the excess productive capacity of the society, to maintain a scarcity of capital. Similarly, only the wealthy can afford children, housing space, private education, child care. Only the most useful slaves in the labor extraction system gets to reproduce to the next generation.
When you look at the FED/government system, it is a labor extraction system. It is actually a superior form, merging Fascism and Communism.
Under communism, workers were assigned jobs and if a person showed up 30 minutes late to work, they were sent to a forced labor for six months. If they showed up late again, they were sent to Siberia. Communism in Russia was a system of slavery. Workers were provided with housing and food. Housing, food and the requirements for human survival only consumed 4% to 6% of industrial output. People were lazy and were not motivated to work or were not as useful slaves. Instead of labor camp, in the United State the threat is homelessness or being forced to rely on government support and losing access to good housing, expensive organic food and then developing diabetes, becoming sterile, obese and developing cancer.
So the United States becomes a society, where the industrial capacity to produce everything that is consumed for basic survival is less than 4% of expenditures or labor for inputs, but where the top portion of the society (the middle and upper middle class) has 80% of their income consumed by a rentier class that has through government regulation and manipulation monopolized ownership of all things required for human survival. The privatization and monopolization of water, electricity, communication, food (all Agenda 21 objectives).
In water monopolization, a private corporation buys up the water rights for a city and studies show that every year the rates are hiked by three times inflation. The monopolization of internet access (a single service provider per area) is not natural, as there were previously dozens of providers but was a result of government action at the local, state and muni levels (complicated). Once monopolized the provider then hiked rates at 3x to 5x inflation. San Francisco, where land ownership has been monopolized and where zoning laws and cartels prevent construction of newer or higher density housing, you see rental prices increasing at a large multiple of inflation and much faster than wages. The cost of healthcare is similarly increasing at 3x to 5x inflation and much faster than wages and the rate of growth has accelerated since Obamacare after the resulting market consolidation. Similarly, the tax rates are increased every year, leaving people with less of a share of their income to be spent on survival and life.
So the economy will eventually reach a point of collapse and crisis. With multiple oligarchies, each monopolizing one aspect of human survival and demanding a greater amount of each person's fixed income each year, until the whole society is driven into destitution and poverty or until a political change and restructuring occurs.
If you look at the trends, soon the US economy will consist of
- two communication companies, each of which monopolizes internet service in each geographic area
- two to four media companies
- two to four food companies who control the whole pipeline from farm to store
- a few water company that monopolizes water distribution in each geographic area
- two healthcare companies "competing' in each geographic area
For example, here is the comcast and time warner coverage and overlap maps. Notice how competition is divided up, so that there is no competition and a single monopoly without any geographic area.
There are similar maps for healthcare after Obamacare and for the food market.
This is the organic food market, that controls food distribution and pricing to the consumer
This is the banking industry
It is not going to stop there. It wont stop with 4 companies. For ISPs, there are already only two companies and Time Warner and Comcast have already tried to merge into a single monolithic national ISP with monopoly control. The merger was only set back temporarily. The government at the current rate will begin approving those mergers within a few years. Or else the companies will be separate, but owned by the same transnational holding company.
So we are seeing mergers within a country and we are also seeing mergers between companies. The stock price of these mega companies, is bid up with FED money and then they print shares to buy out smaller competitors. We are also seeing not only consolidation within the boundaries of individual nation states, but across national boundaries.
When all the corporations have merged, to this degree and they exercise monopoly pricing power, the economic structure of the United States begins to look like communism. We have gone from decentralized food production by tens of thousands of small farmers, to two to four companies owning the whole food chain from farm to store.
There is less than 20 years before genocide, economic collapse, political instability, switch to a command economy or other systemic change. None of the graphs for the US economy can keep going for another twenty years.
For instance, no one can spend more than 100% of their income on food, rent or healthcare costs. The rates cannot keep climbing forever.
So the US is doomed. There is a mathematical certainty that the current economic/political system that is driving itself to suicide, cannot continue for another two decades. There is no way the current economic system can survive to the end of Hillary's second term.
- The crisis will likely start in the next 24 months
- all of the people responsible for the crisis will get together and choose the "solution" benefiting them the most, making it even worse
- the bankers/families are figure out some way of keeping the money fraud going in the new system, most of which are being pushed at the UN level, but already meeting fierce and increasing resistance at the local level as people figure out what is going on. If they go through with it, it will have to be at gunpoint and probably entail genocide or something like the Bolshevik revolution.
I looked at the Obamacare and digital health records legislation and how the healthcare industry is being restructured and its like some people sat in a room and said "What is the best and most profitable way to kill off 10,000 people a day who dont have any assets that are taking up resources we could use for something else".
Europe is about a decade ahead of the United States and they are already killing 130,000 people per year in hospitals as a cost saving measure and the US has five times the population.
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http://www.dailymail.co.uk/news/article-2161869/Top-doctors-chilling-claim-The-NHS-kills-130-000-elderly-patients-year.htmlThe demographics are horrible. The US stock market is being pumped by the the QE program. The US stock market is going to crash to level it should be at because of demographics. PE multiples will be about 12 after the manipulation ends. The pension funds are going to go under and there will be municipal defaults like Detroit in multiple cities (again forcing privatization of all assets, mineral, water, land rights and anything that can be sold).
Reality:Then the fact is that debt, currency, laws, they are fake. They are just pieces of paper. They enforced at gun point. Texas might just say "no" and renegotiate of their terms to avoid municipal assets stripping. Its not clear whether power is going to maintain at the federal level or shift to the state level or shift to the UN level. Its going to be determined by military force, not by votes.
Given what I have seen over the last two years and the increase in assassinations and bullshit, I think the world is heading towards crisis, war and anarchy. The new rule seems to be "because you can". If you can do something, you have a right to. If the government can raid 60,000 people a year with SWAT teams, stick NSA anal monitoring probes up someone's ass or take 80% of a person's income, or police taking people's cash from them on the road, then they have the "right" to do that and will do it. If you have the ability to do something, then you have the right to do it, unless someone else can stop you. So the law is becoming absurd and everything is devolving back to realpolitik power relationships.
So people need to stop thinking into terms of laws and fake voting and talking heads on television and begin thinking in terms of realpolitik.
An example:
- The United States has the highest rate of obesity, cancer and diabetes in the world
- Monsanto sells a chemical that it knew causes obesity, cancer and diabetes
- Monsanto knew about it since the 80s and lied
- Monsanto gets massive class action lawsuit for killing people with cancer
- Obama signs bill giving Monsanto immunity from lawsuits
- Monsanto keeps doing it and then gets approval for even worse chemical to kill off the plebs even faster
People need to abandon the idea that the government cares if they live or not and just assume it is trying to kill them. If Wackenhut can make $80,000 per year per prisoner, running FEMA political dissent labor/reeducation/internment camps, then complaining about government torture/murder/assassination/fraud is going to be the new marijuana prohibition.
Another example:
- fracking water is cheap
- fracking water is full of cadmium and benzene and unknown secret chemicals which probably cause cancer
- lets spray fracking water on all the organic food in California to save money, kill all the plebs
So your choices are
1> Move out of California
2> Die of cancer in 20 years because of effects of chemicals which cannot be disclosed because of legal liability
When you complain or protest, the government response is that they pass an "Agro-terror law" that makes it illegal to publish lab tests showing what the chemicals are and makes the lab test inadmissible in court. They also pass a law making it a jailable offense to suggest that agricultural products are unsafe or harmful because of the chemicals they contain.
Another example:
- whistleblower leaks immoral government program
- punish the whistleblower
- lie about the program to congress
- keep doing it. privatize program to hide it in the private sector. pass fake law no one can enforce to pretend to rein in program that was already illegal. Does the government try to appear to address problem while doing nothing in reality.
There is no intent, or intention to stop anything. The focus is on stopping whistle-blowers and covering up corruption.
- No one intends to stop the program
- No one intends to stop the corruption
- Anyone pressuring for the corruption to be prosecution, gets murdered, prosecuted or punished themselves
So there is a question of
- "Is my government run by parasitic sociopaths?"
- "Are they going to do the right thing?"
- "Does my government address corruption or protect the corrupt? Does the legal system work""
- "When a corrupt and illegal program is revealed, is it shutdown or does it continue."
- "Am I being slowly killed? Does my country have a high cancer rate, diabetes or obesity rate."
- "Are people in my country attacked for stating obvious or verifiably true statements? Is truth and common sense criminalized?"
- "Is my government focused on absolute and totalitarian social control above the interests of its citizens?"
When Bitcoin Becomes Political Relevant and Dangerous:So I think Bitcoin is reactionary. The open source movement, the maker movement, the redecentralize movement seem to be moving in a common direction in response to what we are seeing in society.
- people like to not have their stuff stolen
- people like not to be killed
- people like not to be ruled by sociopaths who make absurd proclamations and demand they are obeyed (laws)
- people like to not be poisoned
- people like to be free from enslavement/control grids and airport anal cavity searches
- people like to be free from terror threats and external danger used to herd them into "protection" by the people creating the threats
- people like to not be enslaved
I think Bitcoin and the alts are going to be ignored. Until someone
- buys up land
- moves people onto the land
- issues their own altcoin
- uses it for paying labor working on the land area and and making infrastructure investments/improvements.
- uses the coin to achieve self-sufficiency and for capital investments for generating exports
Then there will be a massive totalitarian response against altcoins and Bitcoin. That is when it enters the contest for political power. That is when it lays bare the reality of money.
The FBI and everyone but the CIA (Who was interested in using it), completely ignored Bitcoin. The FBI still ignores Bitcoin after almost six years and doesnt care. However the second an Indian reservation or territorial unit announced its intention to issue its own cryptocoin, the FBI descended upon them within twelve hours.
I did some modeling and found that internal transactions do not affect price at all. So if you have a barber and he accepts Skycoin, Bitcoin and Dogecoin, and someone gives him 10 dogecoin for a haircut, it does not affect dogecoin exchange rates. So the person issuing the currencies he accepts, can essentially print coins to purchase the services and labor of the people accepting the currency natively at its current exchange value. So people accepting bitcoin at $100/Bitcoin and keeping the Bitcoin is different than a merchant using bitpay who sells the Bitcoin immediately for cash. Bitcoin becomes a means of transmitting currency, rather than an actual currency.
The price of the currency is based upon balance of payments and capital inflows and outflows. People selling Bitcoin for USD, drives down price and inflows increase price. So people can trade the current 6 billion in Bitcoin back and forth in infinite volumes and it wont affect the price internally at all. The market cap is completely fake. For instance, I could sell Skycoin for 10 million market cap and then list them and say the market cap is 1 trillion. As long as everyone or most people agrees that it is 1 trillion and refuses to sell for less than 1 trillion, then any coins sold for less than that will be bought up quickly and the price just stays there. The people who the coins must circulate through (people in position to hoard or provide liquidity, control the price in absolute terms and have infinite scope for manipulation. Therefore coin prices might not be stable without fixed rate of inflation and foreign reserves to offset that type of manipulation. We saw exactly this type of behavior when currencies were pegged to gold, with countries determining the convertibility to gold by fiat/agreement among each other.
If a person lives in a territory unit and benefits from the infrastructure investment in that territory unit (community, town, village), then they are likely to accept that unit natively as payment. You may even have overlapping acceptance.
That is where I see Bitcoin going in ten years. I think smart contracts are interesting, but are a distraction. They are the direction that interests banks but are not going to be socially disruptive.
