One-world reserve currency inevitable and will enslave all nations?

[iamback]

Cross-posting this from the Economic Devastation thread:

https://bitcointalk.org/index.php?topic=355212.msg10737131#msg10737131

---------------------------- Original Message ----------------------------
Subject: (idiot Armstrong): One-world reserve currency will cause all  nations to fail
From:    iamback
Date:    Wed, March 11, 2015 9:54 am
To:      "Armstrong Economics" <armstrongeconomics@gmail.com>
--------------------------------------------------------------------------



http://armstrongeconomics.com/2015/03/10/the-one-world-currency-not-arriving-voluntarily/

QUESTION: Mr. Armstrong, do you believe there is a conspiracy to create a one world currency to which the central banks ascribe to? ANSWER: No. That is thrown around by the real conspiracy theorists who see everything as a giant planned plot form people who are actually in control of something. They cannot see that this does not need to be some giant conspiracy to end-up there with some one-world government [Typo: he meant reserve 'currency' as he has often argued the former is impractical and the latter is inevitable]...since no government will surrender sovereignty to some mysterious all powerful elite group. We are headed into a one-world currency not by design and certainly not willingly, but rather by necessity for economic reasons not political. How can anyone in their right mind argue there is a collective plot for the world to move in harmony to a one-world currency under a one-world government? This is power and politics we are talking about. This is like a two-year-old refusing to share a toy. <--- Larry Summers works for the global elite!

Armstrong, if the global elite do not benefit from a one-world reserve currency with one central bank (such as the World Bank where Larry Summers used to be their Chief Economist), then please explain to us (the 63,000 reads of my writings) why the banksters don't benefit from central bank ZIRP and QE now??

You have painted yourself into a logical corner. On the one hand you explain how the banksters are the only ones benefiting from the QE:

http://armstrongeconomics.com/2015/03/10/negative-interest-rates-brain-dead-thinking-that-will-implode-the-world/

...the banks did not lend and instead they went to the Fed and demanded they be paid interest on excess reserves. The Fed complied and pays them 0.25% for excess reserves. The banks can pay ZERO and make money without risk and use the balance for trading.

This entire exercise is brain-dead and it will not end very nicely. All they are doing is wiping out pension funds and the elderly. All those years of advice save for retirement are proven to be total bullshit when banks can convince governments that people should be paying them for the privilege to trade wildly with their money. What a deal. Thank you Larry [Summers].

...moving to negative interest rate just because the former Goldman Sachs boy running the ECB is moving to negative rates thanks to Larry Summers.

https://www.youtube.com/watch?v=AxOUyPKA_vg

...why do we borrow? And a subtle thing happened when we went to the floating exchange rate [in 1971]; before in the '60s if you went to the bank you had E Bonds or whatever and ... said I want to borrow against my savings in government E Bonds, they'd say, "No". It was illegal. And banks were not allowed to lend on government debt. That was correct in the sense you could say it was less inflationary to borrow than to print [i.e. difference between dropping money from banks to (government) borrowers versus Ben Bernanke's famous phrase "dropping cash from helicopters"]. But in '71 that was removed, so if you want to trade futures, you put your money in T-bills and post it as collateral. So now debt has simply become a new way of printing money that pays interest [to the banks!] and we don't understand what we've done so the national debt ... is really just money that is paying interest [to the banksters!] ... the interest payments are about 70% of the total national debt ... and that is why the system will collapse [when interest rates rise] ... in the USA if we had just printed the money [instead of borrowing it into existence from the magic wand of fractional banking], the national debt would only be 40% of what it is today; we are both creating currency and also paying interest on it...

So Armstrong has been pitching this idea that governments could just print the money they need for taxes. So the model he is proposing is where national currencies float against an international reserve currency, so governments can then mess up their own currencies if they wish. He prefer the governments just print the money from their central banks, and the relative success of nations at managing their economic and fiscal policies will determine their relative value of the national currencies relative to the inevitable one-world reserve currency.

But by Armstrong's own admission, trade only accounts for 10% of the world's capital flows and thus the vast majority of the world's wealth will choose the one-world reserve currency as its unit-of-account and thus who ever has their hands on the levers for the debasement and fractional reserves rules of the one-world reserve currency (e.g. the elite who run the World Bank, BIS, IMF, etc..) can then speculate and manipulate the national economies at-will. This will be just Goldman Sachs take over of Europe and Greece but on a global economy-of-scale level.

For analogous reasons as to why the Euro failed, the one-world reserve currency with national government debts denominated in separate currencies will also cause the nations to fail just like Greece did. The bottom line is that who ever controls the reserve currency of the world, holds the power to destroy and enslave the other nations.

Also Armstrong is contradicting himself on claiming above that the impetus for a move to a one-world reserve currency will be only for economic reasons and "not political".

https://www.youtube.com/watch?v=AxOUyPKA_vg

...we are going to go to some sort of new international reserve currency because there have been a lot of political problems with it [the dollar, i.e. one nation's debts being financed on the back of the world using that nation's currency as a reserve]...

http://armstrongeconomics.com/2015/03/10/the-one-world-currency-not-arriving-voluntarily/

I “believe” we will be forced into that one-world currency because of the collapse of the Euro and the contagion that will impact Japan. It will become the “solution” to hide the default on socialism. We are already in a declining trend since 2007 for all economies outside the USA. The USA is the only thing holding this thing up. When the global economy turns down, watch the finger-pointing.

The Sovereign Debt Crisis will cause the new currency to emerge for this is how they default. I would like to think that our proposal could be usurped and we end the borrowing, which nobody intends to repay anyway. But let’s be realistic. The collapse will be forced upon the world because of the failure of Marxism. That is the key. The very fundamental idea that government is capable of managing the economy.

The elite have planned this out a long time ago. They BIS Basel rounds have been preplanned for a long time and they slowly are increasing the Tier 1 capital requirements on banks. This will force mark-to-market and everything will collapse.

From that political problem, the world will have no choice but to accept a monetary reset, and the only way to get all the nations to agree to a reset will be for the power of the reserve currency to not be held by any one nation.

So that power will be transferred to an international entity. The elite will pretend it is a fair entity that has representation from all the nations, but as always, they will control this institution.

Armstrong wrote the following posts to try to refute what I had written as quoted below.

http://armstrongeconomics.com/2015/03/11/rothschilds-fact-or-disinformation-to-protect-the-guilty/
http://armstrongeconomics.com/2015/03/10/the-one-world-currency-not-arriving-voluntarily/
http://armstrongeconomics.com/2015/03/10/federal-reserve-confusion/
http://armstrongeconomics.com/2015/03/10/negative-interest-rates-brain-dead-thinking-that-will-implode-the-world/

...This will cause an acceleration of capital flow into the USA, driving the USA stocks to a phase transition bubble near 40,000 by 2017. The Fed will react by raising interest rates, seeing this as an opportunity to unwind their balance sheet and to pretend to be protecting the 99% against the 1% who profit on stocks. (Note Armstrong doesn't seem to understand the Fed will do this because TPTB want the masses to beg for their own demise, its all part of the master plan towards a one-world reserve currency and global Technocracy. Armstrong doesn't understand that at Bilderberg meetings a smaller group of less than a dozen meet to discuss the real plan for the world, he isn't inside the top most circle)

This rise in interest rates will cause the rest of the world (which is short the dollar due to borrowing all the QE which ended up invested outside the USA) to collapse, thus killing the USA exports from both reduced international demand and a stronger dollar.

USA should thus follow into terminal decline in 2017.

Dominoes falling...

It is very sad for me that Armstrong is in bed with the global elite, even if he doesn't realize it.

Of course the global elite don't control destiny. Human nature is in control. But the global elite are indeed playing their role as handed to them on a silver platter by human nature.

Instead of playing into the elite's goals with his Solutions Conference. Armstrong as a programmer should be helping us to create crypto-currency solutions.

Specifically the way to counter the worse effects of the one-world currency are to study my writings about the Knowledge Age which were linked from the opening post of this now 45 page forum thread.

You will probably need a week or two of studying the thread slowly.

I will be the first to admit I needed a week to fully absorb the following works of AnonyMint.

The Rise of Knowledge
Understand Everything Fundamentally

Together these are quite simply the most insightful piece of economic theory I have ever read.

If the author is right and I think he is we are all in the midst of a tragedy of epic proportions.  It is sad unstoppable and will devastate the lives of much of humanity.

The fundamental theme is summarized in my latter essay about "Thought Isn't Fungible":

http://unheresy.com/Information%20Is%20Alive.html#Thought_Isn%27t_Fungible

The Industrial Age relied on large economies-of-scale for manufacturing, which meant that fixed capital investments and NAV calculations sufficed for investment. The world was structured around a fixed return on capital model. This meant that large capital could find economies-of-scale for investment.

The Knowledge Age destroys all that! Big passive capital becomes dumb and impotent. Active capital (actual knowledge) is required in the Knowledge Age.

Thus those who invest in the reserve currency unit-of-account are in a dying paradigm. That one-world currency and eventual failure of the nations into a one-world government will be paradigm of death and eugenics (exactly as predicted in the Bible).

What is rising to take its place is knowledge based currencies where the unit-of-account can be pegged to the one-world reserve currency at a carrying cost by employing options to stabilize the pegged proxy unit. Since Knowledge Age workers will generate orders-of-magnitude higher ROI than fixed capital investment models (i.e. debt models) in the one-world system, the Knowledge Age workers can easily ignore this carrying cost as insignificant.

This is the mechanism by which the Knowledge Age will conquer the one-world reserve currency.

Good day. Armstrong stop being a dinosaur and give me your damn phone number so we can talk.

[coinits]

I do not see anything about the derivatives bubble popping nor BRICS nor rehypothecated gold. I think that the derivatives fraud is the lit fuse to spread the contagion like a wildfire in tinder dry conditions.

War has been mentioned previously, so what about strategic alliances of, say, Russia and China, ganging up on the west, in particular the USA and NATO? Where does that factor in?

The world's elite do not care about borders. They use the biggest religion of all time against everyone. The religion of Flag Worship. That is how they play nation states off against each other. I do think that it is a big mistake to discredit their ultimate master plan of culling the human race to a population of less than 1 billion.

Rothschild just inherited a multi-billion technology due to the demise of certain partners on a Malaysian flight. How-convenient.

Also nary a mention of black ops programs within the US Military Industrial Complex. The shadow government is very real. Wealth, secrets, and ultimately power has flowed into them for at least 6 decades. In effect they are a more advanced sub-species of humanity using the very thing that you purport to our ultimate safety net - technology.

Governments do not control currency. That is a false assumption. They are a front for the real players. Global Corporate Fascists control the economics of this planet and are the government. While Armstrong is a smart man and seems to have made some timely predictions, I think that he is out in left field with some of his rants.

All of this being said, digital currency is the future. It will be global in nature. But it will not be good for any of us because the technology that they use to control will be so domineering that TBTB will be able to cut you off if you are non compliant with whatever law they decide to throw at you from their pedestals.

Farmland, some livestock, fruit, vegetables, weapons, precious metals, off-the grid power is the way. And as this blue ball spins its way to oblivion it sounds like the best plan for my family and me. Those that are not self-sufficient will end up relying on government handouts and have to be a slave of the nanny state. And she is one mean bitch.

[Beyonce]

I personally don't see anything wrong with a one world currency and actually think it could liberate people from their governments... just as long as it is a decentralized currency free from state manipulation, like bitcoin. Maybe bitcoin will grow to become a defacto world currency eventually which could exist alongside fiat ones but maybe even overtake them eventually.

[iamback]

I do not see anything about the derivatives bubble popping nor BRICS nor rehypothecated gold. I think that the derivatives fraud is the lit fuse to spread the contagion like a wildfire in tinder dry conditions.

I did allude to that. See the underlined text below:

...

The elite have planned this out a long time ago. They BIS Basel rounds have been preplanned for a long time and they slowly are increasing the Tier 1 capital requirements on banks. This will force mark-to-market and everything will collapse.

From that political problem, the world will have no choice but to accept a monetary reset, and the only way to get all the nations to agree to a reset will be for the power of the reserve currency to not be held by any one nation.

So that power will be transferred to an international entity. The elite will pretend it is a fair entity that has representation from all the nations, but as always, they will control this institution.

...

[iamback]

While Armstrong is a smart man and seems to have made some timely predictions, I think that he is out in left field with some of his rants.

Readers here is a link to his amazing predictions that were correct. Armstrong was even born in a house with the street address number of 3.14 (Pi π).

War has been mentioned previously, so what about strategic alliances of, say, Russia and China, ganging up on the west, in particular the USA and NATO? Where does that factor in?

The USA is alienating the rest of the world[1] and this is necessary to create the massive human crisis and distrust between nations that will force the world to accept only a "neutral" third party to manage the world's reserve currency. This new international institution will be setup in a grand ceremony claiming fairness with representatives from all major nations and the reserve being in some way connected to some basket weighting of various commodities and national currencies.

Note the murals at the Denver airport were commissioned by the elite to perfectly depict the above scenario, yet Armstrong ignores these images even I have emailed them to him many times.

Something is rotten in the Denver airport (13 Photos)

The elite know they need 7 years of Tribulations and suffering before the nations can be brought to their political knees and beg for a solution. Even the circumstances of the current Pope are indicating that this 7 year Tribulation begins soon. And someone showed me that Abomination of the Desolation calculation from the Bible also pinpoints 2015.75.

Note the elite in Russia and China are fully onboard the with the Global Technocracy plan (e.g. see China enacting openly in law NSA like gestapo policies) and the one-world currency enslavement plan. They are playing along knowing that it is inevitable and that is the only way they can protect their large wealth and power structure.

[1] Armstrong's points out analogously to how Athens alienated all the other States to join forces with Sparta that lead to the fall of the Athenian Empire.

[iamback]

Also nary a mention of black ops programs within the US Military Industrial Complex. The shadow government is very real. Wealth, secrets, and ultimately power has flowed into them for at least 6 decades.

I have posted many times about the Fourth Branch of the USA government a.k.a. the DEEP STATE which Bill Moyers did a documentary on. And I have pointed out that Donald Rumsfeld admitting on the eve of 9/11 that $2.3 trillion was missing from the Pentagon budget, but all those documents (and investigators) were destroyed (and murdered) at the Pentagon the next day. As well there is a written letter from the SEC admitting that Armstrong's extensive audio recordings of phone conversations that could implicate all the banksters had been destroyed at the WTC buildings.

Are you aware that Armstrong documented the entire Russian Crisis, LTCM derivative failure, and connection to Yeltsin and Edward Safra.[1]

[1]

http://armstrongeconomics.com/2013/07/12/so-who-really-tried-to-blackmail-yeltsin-takeover-russia-nsa-cia-or-investment-bankers/ http://armstrongeconomics.com/2013/03/23/berezovsky-is-dead/ http://armstrongeconomics.com/2014/05/04/conspiracy-or-just-one-step-at-a-time/ http://armstrongeconomics.com/2013/09/11/us-seizing-russian-assets-in-nyc/ http://armstrongeconomics.com/2013/07/01/european-politicians-are-realizing-blackmail-is-the-game/ http://armstrongeconomics.com/2014/03/18/the-us-did-not-cause-the-fall-of-the-soviet-union-that-is-a-false-belief-on-both-sides/ http://armstrongeconomics.com/2015/01/16/black-thursday-january-15-2015/ http://armstrongeconomics.com/693-2/2013-2/can-the-world-really-abandon-the-dollar-as-a-reserve-currency/ http://armstrongeconomics.com/wp-content/uploads/2012/03/looking-behind-the-curtain4909.pdf

In effect they are a more advanced sub-species of humanity using the very thing that you purport to our ultimate safety net - technology.

...

All of this being said, digital currency is the future. It will be global in nature. But it will not be good for any of us because the technology that they use to control will be so domineering that TBTB will be able to cut you off if you are non compliant with whatever law they decide to throw at you from their pedestals.

True but I guarantee you that we hackers can out tech the TPTB and the NSA. I will quote myself to explain why (we are more numerous!):

http://unheresy.com/Information%20Is%20Alive.html#Algorithm_!=_Entropy

Algorithm ≠ Entropy

Proponents of the technological singularity theory cite the exponential increase in computing hardware power such as Moore's Law and recent software advances such the sophisticated Spaun artificial brain which can pass simple IQ tests and interact with its environment; also IBM's Watson computer which defeated Jeopardy and chess masters, subsequently was recently programmed to do lung cancer diagnosis more accurately than human doctors.

However, the speed of the computing hardware and the sophistication of the software has no relevance because creativity can't be expressed in an algorithm. Every possible model of the brain will lack the fundamental cause of human creativity— every human brain is unique. Thus each of billions of brains is able to contemplate possibilities and scenarios differently enough so that it is more likely at least one brain will contemplate some unique idea that fits each set of possibilities at each point in time.

http://unheresy.com/Information%20Is%20Alive.html#Thought_Isn%27t_Fungible

Thought Isn't Fungible

To make the computers as creative as the humans would require inputting the entropy from all the human brains. Yet there is no plausible way to extract the future uniqueness of human brains other than to allow them interact with the environment over unbounded time, because the occurrence of creativity is probablistic (by chance) as the dynamic diversity of human minds interact with the changing environment. The term unbounded means there is no way to observe or capture that uniqueness a priori other than through the future of life as it unfolds.

Inmates can be forced to do manual labor because it is possible to observe the performance of the menial tasks. However, it is impossible (or at least very inefficient and imprecise) to determine whether a human is feigning inability or giving best effort at a knowledge task. Manual labor is fungible, i.e. nearly any person with average IQ and dexterous limbs can be substituted to do the task. Whereas, knowledge production such as programming the computer, authoring content or developing marketing plans, requires diversity of thought.

The 160 IQ genius Microsoft founder Paul Allen refers to this as “specialized knowledge” in The Complexity Brake, yet he thinks the brain is finite because he apparently didn't consider that every finite human brain is unique; thus systemic creative thought possesses dynamic unbounded entropy.

Ray Kurzweil responded that the human genome (DNA) has a finite information content, and claimed that humans possess a canonical brain which is differentiated by what is learned from the environment during each human lifetime.

Since the portion of the human genome pertaining to the brain has an entropy in the millions or billions, each human brain is potentially at least one-in-a-million or one-in-a-billion unique. Notwithstanding that uniqueness, if human evolution was entirely encoded in a finite genome, then it would be mathematically possible for a plurality of humans to have identical brains at some point in time as the brain forms before differentiation from non-identical learning environments. However, the brain is learning and exposed to the environment as it is forming in the womb, thus there is never a point in time where the brain was entirely structured from only the information in the DNA.

Thus evolution is not just an encoding from the environment to the genome, rather a continuous interaction between the ongoing environment and the genome. Thus for computers to obtain the same entropy of the collective human brainpower, they would need to be human reproducing, contributing to genome and interacting with the environment in the ways humans do. Even if computers could do this, the technological singularity would not occur, because the computers would be equivalent to adding more humans to the population.

The implication is that the creativity of humankind is enhanced as the human population grows. And culling the population to increase average IQ would reduce human creativity. Resilient systems don't have low entropy.

Claude Shannon showed us that the capacity for information content is equivalent to the entropy of a system. As elucidated above, the entropy of our universe is inseparable from life, thus information is alive.

http://unheresy.com/Information%20Is%20Alive.html#Knowledge_Anneals

Knowledge Anneals

Unsophisticated thinkers have an incorrect understanding of knowledge creation, idolizing a well-structured top-down sparkling academic cathedral of vastly superior theoretical minds. Rather knowledge primary spawns from accretive learning due to unexpected random chaotic fitness created from multitudes of random path dependencies that can only exist in the bottom-up free market. Top-down systems are inherently fragile because they overcommit to egregious error (link to Taleb's simplest summary of the math). Given Kurzweil's sensationalized magnum opus is the technological singularity, it is surprising that he is apparently not well studied in the field of social knowledge formation.

Kurzweil states that the brain is composed of a finite number of pattern matchers and that humans train to be exceptional (unique) to think deeply about some subject matter. Whether Kurzweil is implying that computer brains could have more pattern matchers and/or process information from the environment faster thus obtaining higher levels of cognitive capability from more input entropy so as to attain the claim that computers will vastly outpace human knowledge, he fails to understand a basic fact that simulated annealing (SA) is the only known global optimization algorithm when the subject matter is not known a priori. SA requires many simultaneous, independent small (imperfect trial and error) steps. The free market optimizes better than top-down because the larger number of actors anneals better. So again, the computer brains at best can supplement the supply of humans, but they can't overpower the free market. Frankly I am shocked that Kurzweil didn't realize this, since my A.I. studies in the 1980s is where I first learned about SA.

The knowledge creation process is opaque to a single top-down perspective of the universe because to be omniscient would require that the transmission of change in the universe would propagate instantly to the top-down observer, i.e. the speed-of-light would need to be infinite. But an infinite speed-of-light would collapse past and future into an infinitesimal point in spacetime— omniscient is the antithesis of existential. In order for anything to exist in the universe, there must be friction-in-time so change must propagate through resistance to change— mass. The non-uniform mass distribution of the universe is mutually causal with oscillation, which is why the universe emerges from the frequency domain. Uniform distribution of mass would be no contrast and nothing would exist. Taleb's antifragility can be conceptualized as lack of breaking resistance to variance amplification.

Farmland, some livestock, fruit, vegetables, weapons, precious metals, off-the grid power is the way. And as this blue ball spins its way to oblivion it sounds like the best plan for my family and me. Those that are not self-sufficient will end up relying on government handouts and have to be a slave of the nanny state. And she is one mean bitch.

Sorry none of that nonsense will help you.[2]

You better stop being a dinasour before it is too late.

The Knowledge Age is the only path forward. Technology and prosperity is how you win. Bunker, "man is an island", prepare for shootouts mentality is always a loosing paradigm.

[2]

http://ferfal.blogspot.com/2014/10/the-problem-with-many.html http://ferfal.blogspot.com/2014/11/dual-citizenship-why-is-it-so-important.html http://www.peakprosperity.com/podcast/84705/ferfal-heres-what-looks-when-your-countrys-economy-collapses http://ferfal.blogspot.com/2015/01/the-future-of-preparedness-and-modern.html http://ferfal.blogspot.com/2015/03/6-reasons-why-android-is-better-than.html http://ferfal.blogspot.com/2015/01/private-police-post-shtf.html http://ferfal.blogspot.com/2015/03/would-your-shtf-plan-be-leave-country.html http://ferfal.blogspot.com/2014/12/real-preparedness-facts-why-are-cities.html http://ferfal.blogspot.com/2014/12/pros-and-cons-of-living-in-backwoods-of.html http://ferfal.blogspot.com/2014/11/rural-crime-keeps-getting-worse-what-do.html Your don't need 3000 rounds of ammo: http://ferfal.blogspot.com/2014/10/worst-case-scenario-home-invasion.html

[Possum577]

I like the poll question but the answer choices are mutually exclusive, nor collectively exhaustive.

[iamback]

I like the poll question but the answer choices are mutually exclusive, nor collectively exhaustive.

I was rushed and felt like making the answer choices obnoxious for lack of time to give more careful thought.

Mutually inclusive and exclusive choices also provide information. I like experiments. I get bored.

[Possum577]

I like the poll question but the answer choices are mutually exclusive, nor collectively exhaustive.

I was rushed and felt like making the answer choices obnoxious for lack of time to give more careful thought.

Mutually inclusive and exclusive choices also provide information. I like experiments. I get bored.

Well the options ARE hilarious, that's undeniable. If the options are mutually exclusive then two people can believe the same answer but choose different choices, which skews your results...it provides inaccurate information.

So when is the economic devastation and one world conspiracy stuff expected to begin. I know a lot of the signs are pointing in a bad direction, is there any talk on timing or triggers?

[iamback]

I personally don't see anything wrong with a one world currency and actually think it could liberate people from their governments... just as long as it is a decentralized currency free from state manipulation, like bitcoin. Maybe bitcoin will grow to become a defacto world currency eventually which could exist alongside fiat ones but maybe even overtake them eventually.

The underlined is myopic delusion:

https://bitcointalk.org/index.php?topic=966977.0

As best we can make multiple crypto-currencies (so we get decentralization through competition) but none of them will compete with the one-world reserve currency in terms of being the widespread unit-of-account. That is why I proposed the pegging feature using options.

[iamback]

I hope everyone understands the implied point in the OP of comparing the Euro vs. Greece to the one-world reserve currency vs. nations.

Greece was forced to borrow denominated in Euros during the speculative inflow of investment at the turn of the 21st century, but as Germany was more productive they benefited more from the Euro and Greece had no way to devalue their debt. So they are repaying the debt with a lower productive economy with massive egress of speculative investment.

The same problem with happen when the reserve currency for debt is SDRs and then all nations will be repaying their debts in SDRs while they won't have the policy tools to inflate nor deflate their debt burdens to respond to volatility in relative productivity and speculative ingress and egress of capital. Effectively they become a slave to the international central bank who can issue fractional reserve debt denominated in SDRs, which the banksters will surely have in their back pocket again. Just like the Fed now is pumping debt into the developing world making them short the dollar, then it will pull the rug from under them by raising interest rates sending the dollar higher and causing them to repay debt in more expensive dollars.

The only solution to this problem is for the Knowledge Age to rise and say "I don't need stored monetary capital, I need knowledge". I will quote from myself about this as follows.

The Rise of Knowledge

Financeability of Knowledge

As explained in the “Economy of Knowledge” and “Energy of Knowledge” sections, knowledge doesn't exist now if it isn't dynamically adaptable in the future. The only systems in nature which can do this, are those that are composed of autonomous agents without top-down control, e.g. ant colonies, the neurons and synapses of the human brain, free markets, and unregulated social networks.

Due to aggregating and concentrating capital via an interest rate, as opposed to dispersing and scattering capital, finance mathematically must over time reduce the quantity of autonomous decisions (at least decisions about who receives funding to produce). Thus if financing were the predominant long-term trend, knowledge could not be.

The more potential energy in the knowledge capital, the more priceless it is sell its future. There are knowledge producers such as the creator of the open-source software movement, who absolutely refuse to work at any price where they don't have sufficient ownership of their knowledge, so as to prevent limitations of its potential future use. Due to the transactional cost Theory of the Firm which provides for the economic existence of the corporation, corporate capital accumulates by defending or increasing the transactional cost between otherwise autonomous knowledge producing actors. Thus increasing corporate control of knowledge is the antithesis of increasing knowledge. Knowledge can only increase by increasing the autonomy of the knowledge producing actors. This tension is depicted graphically.

Thus, finance and corporations are inherently ownership centralization paradigms. Whereas, knowledge ownership can not be centralized without destroying it.

For example, if a corporation purchased a huge library of software modules or books, written by different authors, the managers could create nothing with this without the authors (or others) who are knowledgeable of these modules or books. If these authors were not already organically interacting, then they would not be able to at any price, unless there was interoperability knowledge potential enumerated by some knowledgeable person(s). Thus always the knowledge is owned by the knowledge producers. When a knowledge producer is gone, the knowledge previously produced is destroyed, if it was not adopted by another sufficiently knowledgeable producer.

The Inverse Commons explains that unlike sharing of hard resources, the sharing of knowledge increases the value of the shared knowledge. Current knowledge becomes more valuable as it gains more future potential uses, and only autonomous knowledge actors can maximize diverse use cases of interoperability.

Software has minimal financing requirements, e.g. one or two humans with computers can write software that launches a $millions start-up. I did this once or twice by myself with no employees (e.g. CoolPage.com by 2001 if in Shadowstats inflation-adjusted dollars).

Knowledge Investing

Since the ownership of knowledge can't be transferred with money, financing incurs the risk of guaranteeing knowledge to spontaneously create itself where it did not already exist. No level of guaranteed interest rate can compensate for this lack of knowledge in the act of financing. What attracts savers to be passive capitalists is the economy-of-scale, where the due diligence effort (i.e. knowledge production) applied does not rise significantly with the amount saved (i.e. loaned) at interest. The collective politics will guarantee (insure) the return by debasing the money as necessary to pay for the lack of knowledge production— another evidence that financing is a centralization paradigm because knowledge can't be owned with money.

Whereas, equity investment has no guaranteed return and requires knowledge production.

“Equity investments” that are based on consistent dividends, are essentially a low knowledge production investment decision with a semi-guaranteed return similar to financing. It is instructive to note that as of 2008 “No stockholder has made a real inflation-adjusted penny in equity in Coca-Cola in 46 years.”.

Passive capitalists will find it nearly impossible to venture into high-tech knowledge investing, because they necessarily must approach it from the financing perspective, as their objective is to deploy large quantities of capital passively, i.e. to approach the theoretical constant marginal utility of gold. For example, Buffett's BYD (which makes electric cars) investment has performed poorly. A scientifically knowledgeable person knows that the energy-density of batteries is not ROI competitive with petrol.

One general rule for investing in knowledge production, is to invest close to what you know well. Because knowledge is inherently local and autonomous. If there is some popular investment theme, then it must have a very low relative knowledge production— the extreme case is depositing money in the bank, where the depositor doesn't even care how the money is invested.

The creator of the open-source software movement enumerated some business models that apply to knowledge production. The general concept is to not own the preexisting base of knowledge (it is always owned by the individuals and can't be transferred with money), rather to create a market for the services of the preexisting knowledge producers. In short, top-down fund some incremental advance in knowledge production and own the market for it. Remember that in the Theory of the Firm, corporations only exist where there is a transactional cost (barrier) to the autonomous knowledge producers achieving the same market organically. So the key is to identify these market barriers and invest to solve them.

Passive capital is financing those hard resources in the internet space, e.g. the massive server farms that serve the billion users of Facebook and Google, funded by collecting ad revenue rents on all internet activity— an implicit attempt to make knowledge capital subservient. Yet given the non-autonomous top-down control of thousands of knowledge producing employees, and the requirement to defend the transactional cost that sustains the corporate profit, Facebook and Google can't produce software diversity fast enough to service all the features that users want. Diversified software start-ups will flourish.

[iamback]

And here is Mikes solution.

https://www.youtube.com/watch?v=ijwcDMf1HFs&list=UUThv5tYUVaG4ZPA3p6EXZbQ

Maloney explains some of what I wrote about in this thread.

Maloney in this video is also astute (but the second guy is a tinfoil hat...is that dufus Ed Steer from Doug CaseyResearch.com):

https://www.youtube.com/watch?v=_KJTtY5im1o&index=36&list=UUThv5tYUVaG4ZPA3p6EXZbQ

[futureofbitcoin]

Man, what's with all these conspiracy theorists popping up these days? It's ruining the forum.

Look, no one is forcing you to use bitcoin or anything else. If you think it brings you benefit, use it, if not, don't. Why does it matter who created it? Why does it matter if this made-up 'illumati" created it, if it clearly brings benefit to the people? Conversely, even if some really well-meaning people created policies that are horrible, then we shouldn't use it.


Evaluate policies/technologies by themselves, don't evaluate it based on who created it. Why does it even matter if the creator gains a larger benefit than you, if you can gain benefit from it?

If you think that no matter what you do, you're just a powerless slave to the elite, then just go commit suicide or something. Lol.

[iamback]

The money banks create goes by default into other banks. Thus even if the bank does not attract deposits they can borrow money from their neighbor banks. This is not free and the cost to do this is artificially set (in the US) by the FED. It is this cost that is the true limiting factor on how much money a bank can create.
This interbank lending rate is called the Federal Funds Rate.

Nothing prevents Coinbase from doing fractional reserve off chain lending. The underlying asset cryptocurrency, however, is fixed and limited in supply. Thus if when Coinbase starts doing this it will be operating much like the fractional reserve banking system did when we were on a gold standard.

The key to understanding the scam is the realization that bank lending is not limited by their deposits. Rather they create they money and in the process debase/devalue the currency of everyone else.

Correct if there is no Central Bank to print more fractional reserve receipts to bailout bank runs, then the banks fail from fractional reserve lending (which creates money out of thin air). The scam of Central Banking is the people agree to collectivize the debasement over the entire banking and financial system. This delays the defaults (in our case for the past 80+ years), which ends up making the default a global abyss of epic proportions as what we will see over the next 7 years starting 2015.75.

The reason we ended up with a Central Bank in the USA in 1913, was because the monetary system was so dysfunctional towards the end of the 19th century, we were having bank runs and depressions often.

Fractional reserve banking is a natural free market result. It can't be stopped with regulation (because the political system will always be captured by the banksters).

The only solution is the one I am writing about in my new thread:

https://bitcointalk.org/index.php?topic=985481.0

As usual, I don't expect most readers to understand my point.

[iamback]

Look, no one is forcing you to use bitcoin or anything else.

Obviously you have not even read nor comprehended the thread. No where did I write that crypto-currency was not part of the solution. In fact, I wrote the opposite, stating the crypto-currency is part of the Knowledge Age solution.

[iamback]

Armstrong has no answer to my challenge. He goes back to his repetitive theme of blaming the problem on bureaucrats and his hair-brained idea of "direct democracy" as a solution. Voting (politics) is never a solution and can always be subverted by the human nature of collectivism.

http://armstrongeconomics.com/2015/03/11/german-and-spanish-key-banks-fail-us-stress-tests/

This is just becoming a total mess and above all, we really cannot afford perople calling the shots who have zero practical experience beyond making their family members rich on the side.

[futureofbitcoin]

Look, no one is forcing you to use bitcoin or anything else.

Obviously you have not even read nor comprehended the thread. No where did I write that crypto-currency was not part of the solution. In fact, I wrote the opposite, stating the crypto-currency is part of the Knowledge Age solution.

Fair enough, I haven't read this thread. The title itself is enough to make me want to puke. Along with a bunch of other threads about the illumati and whatnot recently, I have a very low tolerance for these kinds of conspiracy theories.

The biggest question is, why does it matter? Why does it matter if the elite has an agenda? Why does it matter if someone wants to create a world currency? If you believe that having a world currency is bad, then you can talk about that, don't bring in the illumati or Armstrong or central banks; what they want is completely irrelevant to whether something is good or not.

From a futurist standpoint, we are currently at a 0.7-0.8 on the Kardashev scale. A type I civilization would be completely global, controling the power of the entire planet. For humanity to have a large chance of succeeding, we need to go beyond a type I civilization. According to Michio Kaku, we already have some signs of a type I civilization's culture, a global language (i.e english), global communications system (i.e internet), and I would argue that a global currency is the next logical step towards achieving type I status.

[OROBTC]

...

iamback is doing us all a great service by raising uncomfortable issues.  The ideas are also complex and require a lot of background reading, which will dissuade many...

Martin Armstrong is starting to grow on me, I had read various of his pieces that he wrote while imprisoned.  He raises topics and refutes others in a way I have not read elsewhere.

And NO ONE can accuse Armstrong of not being brave.  He suffered in prison, and just came out with a nice refutation of one of the grandest of all the conspiracy theories.  No, the Rothschilds do not own it all.

http://armstrongeconomics.com/2015/03/11/rothschilds-fact-or-disinformation-to-protect-the-guilty/

*   *   *

A true story!  By chance my wife met a Rothschild in London back in the late 1970s.  Mr. Rothschild lived near to the family where she was living (as an au-pair).  An elderly man tipped his hat and smiled at her one day.  She went inside and informed the lady of the house what had happened, she thought he was some dirty old man trying to pick her up...  

Mrs. D told her: "Oh, that was Mr. Rothschild, I hope you were polite to him."  

The girl who went on the become my wife asked: "Who is Mr. Rothschild?"  

Mrs. D: "Why, he is one of the richest men in the world..."

[iamback]

---------------------------- Original Message ----------------------------
Subject: Armstrong's hair-brained "direct democracy" idea has failed;  there is only one solution
From:    iamback
Date:    Thu, March 12, 2015 3:49 am
To:      "Armstrong Economics" <armstrongeconomics@gmail.com>
--------------------------------------------------------------------------


Well Switzerland with its unique "direct democracy" (citizens can raise referendums at-will and have a popular vote) has failed to stop the DEEP STATE from instituting the plan for Global Technocracy:

http://armstrongeconomics.com/2015/03/12/switzerland-joins-nsa-is-monitoring-its-citizens/

The Swiss have now introduced the Enlightenment Intelligence Agencies Act which expands the powers of government to secretly track citizens, tap phones, and to do so even if the person is not actually charged with a crime. One by one, every country seems to be turning to Stalinist type tactics and are obsessed with what are their citicens thinking.

Connecting the dots, what is starting to emerge is a bleak picture that those in bureaucratic government know the financial system will collapse thanks to socialism they cannot maintain. Between promises to the people and pensions that are unfunded, the day of reckoning seems to be understood quietly behind the curtain. There is just no other reason to track the movement of every car and every person storing every phone call, text message, and email. What are they so paranoid about? It is always one thing – losing power.

It appears that those deep in the bowels of government are preparing to take society as a whole into authoritarianism all the way to maintain power by force. Europe has already dismissed democratic elections. Brussels has told Greece pay up, they do not care about what the Greek people want. The same in Spain. They rigged the elections in Italy and Scotland. Everywhere we look there is something wrong and it appears they are tightening the shutters getting ready for the economic storm to hit.

What the future holds with government is becoming dark and sinister for it is all about them sustaining control. This seems to be the classic battle between government maintaining power and the people demanding freedom. This is the real battle of history. This can go either way. But it appears we will reach that crossroads all because of greed, corruption, and a financial system that nobody in their right mind would have designed.

There is ONLY one solution to the crisis on the horizon. We will look at this in detail at the Solution Conference. This will be a live stream even on the internet worldwide. We have to deal with the collapsing economy for therein lies our entire fate as a society.

The only solution is to make it relatively very unprofitable to finance ROI with debt. This is what the Knowledge Age will do.

I explained upthread. The one-world system will fall down into the abyss and not be able to compete. The Knowledge Age currencies will be autonomous and numerous, yet pegged to the one-world unit-of-account, but not borrowing in that account because debt won't finance knowledge production (it can only finance tangible things such as factories which are disappearing or become 0 profit activity with the Knowledge Age of 3D printing, etc).

Armstrong's proposed collectivized solutions which he will present at his hair-brained Solutions Conference are just going to lead more of the same collectivized mess. He is not proposing real solutions, rather stop-gap measures to further the collectivization of humanity which is the problem! Human nature can't be altered with organization. Even Armstrong knows this damnit! The only solution is a paradigm shift change in the technology that renders the pre-existing collectivization mode impotent and unable to continue. I have explained that solution.

[Somekindabitcoin]

Nope, but it would probably enslave Russia. Just look at what happened to the Ruble!