The Show Me Dave

March 24th, 2015

State seal of Missouri

Essentially, this is what motivated me to start this blog over five years ago. I got pulled over in my own hometown, a block from a business that I owned, driving a car that was new with all appropriate papers and I had just turned right on red after coming to a full stop. Because there was a piece of luggage in the front seat of my car, I had difficulty in getting the glove compartment open and removing the car registration within the 15 seconds that the officer was willing to wait.

After being cited for “failing to show registration” I ended up going to traffic court to plead “not guilty” and then I got a year of traffic probation, a social worker and a FBI background check and ten hours of community service. I have never been arrested, never committed a crime and I had a perfect driving record with some years that included driving more than 25,000 miles.

So, I got my first look at how this racket works and believe me, it’s a racket. Watch this Fusion.net documentary about Ferguson, Missouri. Yes, it is about racism, but even more than that it’s about business. It’s about people in positions of power taking money from people without power.

There is a young man that is employed by a company that I run. He’s a reliable, consistent and positive member of our team. He told me that on Sunday he was driving to the auto parts store when he noticed he was being followed by a State Trooper. The trooper didn’t turn on his lights and sirens, but rather he simply followed my associate into the parking lot of the auto parts store.

My associate got out of his car and went into the store. The State Trooper got out of his cruiser and followed the young man into the store. The State Trooper followed my associate through the store and stood next to him while he was waiting at the cash register to make his purchase.

After my associate made his purchase, the State Trooper left the store, did not make any purchases, did not ask my associate any questions and simply left.

My associate is a 23 year old black man. He wants to know what he’s supposed to do about being followed onto private property with no probable cause. What do you think I should tell him? What did I do? I sent him a link to the video below.

photo (5)

Just in case you’re considering claiming that you didn’t jaywalk.

 

This past summer, another associate of mine is a rising senior at a university in New York State.  He worked for me over the summer and is from the Dominican Republic.  After thirty years in business,  and probably close to a thousand employees, I remember this young man as one of the most diligent and hardworking people I have ever known.  When he completes his degree he will be returning to the Dominican Republic qualified to oversee the operation and development of an airport or an airline.

I distinctly remember last summer how he relayed to me that he had received a $60 ticket for riding his bicycle on a section of sidewalk in the local municipality.  It wasn’t like he was attempting to ride his bicycle on a crowded sidewalk or that he was being a nuisance.  He just crossed the road and rode down a section of sidewalk before crossing to the other side of the road.  The police pulled him over and cited him for $60.  That particular resort town has a year round population of less than 3,000 people.  Yup.

This is what they call The Municipal Shuffle, and the following documentary on Ferguson, Missouri explains how the game is played.   For Dave, I later discovered that there was one intersection in my entire town where “right on red” is not legal and yes, I broke the law when I came to a full stop and turned right… on red.  After that experience, it changed my opinion forever about law enforcement, the court system and the thriving business model that this has become.  It’s what Dave calls “a racket” and it’s a business that needs to be put out of business.

What do I suggest?  Walk, don’t drive whenever possible.  Cross at the intersection.  Check your tail light bulbs in your car and your vehicle registration.  Return your library books on time. Don’t speed.  Don’t sue your neighbor for frivolous stuff and pick up your dog’s business and put it in a bag.

photo (6)XX Marks The Spot:  Hurricane, the PWD doesn’t always drink Dos Equis, but when he does I make sure he goes on the signal box for the local intersection camera – SMILE! 

Think twice before calling 911.  I was at a Chinese restaurant a year ago and the owner was fighting with his wife.  They were throwing pots and pans at each other and the woman told me to call the police… then the man told me to call the police.  Instead I helped the man clean up the food after the woman stormed out of the restaurant.  Two years later, I’m now friends with this couple and my wife and I were just invited to their beautiful home this past weekend and my wife helped one of their sons with his 5th grade school project.  No charges were filed, but my dinner was free.

Keep this up for a few months and when you see excessive capabilities of force on display funded by burgeoning municipal budgets in support of militarized local law enforcement simply smile and wave.  Because, within a few months of no one getting any tickets, no one going to court and no one frivolously suing their neighbors… things will begin to change.  Yes, the local auto parts store may see a rise in people replacing their brake light bulbs, but the whole “racket” will be put right out of business.  You know what I say to that?  Good riddance.

Click below to watch “The Policing Of Black Bodies”:

http://fusion.net/video/108471/ferguson-a-report-from-occupied-territory/

 

Just in case you think Dave’s exaggerating:

http://tradewithdave.com/?p=4354

This poster was brought to you by the United States Government’s WPA Federal Art Program.  Your tax money is a terrible thing to waste, but then again, they get paid either way.

Gravy With Davey

March 16th, 2015

No Bull… just a minotaur or two from Tennessee.

 

Between posing for lifestyle photo shoots for trendy Paris Match magazine, walking out of interviews with CNN,  Greek Finance Minister and professor of economics Yanis Varoufakis is never too busy for an interview with the great state of Tennessee’s Bitcoins with Gravy.  Go figure.

Well, here’s how Davey sees it and I know my sausage gravy, but more importantly I understand just how the sausage is made and the biscuits too.  What I am anticipating is the invocation of a voluntary “living” wage in Greece for the low income bracket.  A blockchain-like technology (possibly Bitcoin) will be imposed.  This will allow for the tracking of all “living wages” in what Dave describes as the “participation economy”.

Just take a look at this paper just out from The Brookings Institute and how it portrays the challenges associated with anonymity and poverty and you start to get a feel for what’s in store.  Once the living wage is imposed then the velocity of money can be established and the V.A.T. tax can automatically be withdrawn at the point-of-purchase.

Why does Yanis have all the  time in the world for a little known broadcaster from Tennessee, but is willing to walk out on “The World Leader In Business” CNBC?  Bitcoin and blockchain technologies hold the solution that he’s looking for.  Make sure to sign up for our soon to be released “Blockchain For Business” paper by clicking on the link at the top of this page.

http://www.brookings.edu/blogs/techtank/posts/2015/03/10-digital-identities-mas-porteous

A Grand Ole’ Nashville hat tip to John Barrett – click here to listen:

https://letstalkbitcoin.com/blog/post/bitcoins-and-gravy-ep-59-yanis-varoufakis

Maybe not a great idea to pose for glamor shots when you’re country is in financial crisis: http://www.zerohedge.com/news/2015-03-13/lifestyles-rich-famous-greek-finmin-edition

If you are trying to explain the blockchain to somebody from Nashville, you may want to try it this way. Tell ‘em to take George Strait’s song and insert the words “Troika Debts” for “exes”, “Germany” for “Texas” and “blockchain” for “Tennesseeeeeeee” ♫

How To Explain The Blockchain Without Taking A Single Breath

March 13th, 2015

If you know someone who is rich, but they have no interest in cryptocurrencies.  If you know a theologian who understands the threat of existentialism but doesn’t have any interest in Bitcoin.  If you know a philosophy professor at your University who doesn’t give a hoot about the blockchain protocol, then ask them about the implications of “a shared history.”

Ray Dalio of Bridgwater said “Velocity is a made up thing.”  Ray was right and it made him and his fellow hedge fund investors billion$.  Looks like the times they are a changin’ and if you know a hedge fund manager and they scoff at this, they won’t be a hedge fund manager for long once the blockchain(s) becomes standard operating procedure.

Trade With Dave Or Goliath

March 12th, 2015

Blythe Masters

Reggie Middleton-Veritaseum      Blythe Masters-Digital Assets

Okay folks… who’s going to provide an objective comparison between these two companies and their services?  One company is backed by Sunil Hirani and who has cleared a mere $2.7 trillion in wholesale transactions at trueEX, one of the Chicago CME’s “largest customer” Don Wilson of DRW Trading Group and run by the ex-JPM commodities executive who invented the credit default swap.  The other firm is run by the man… the legend… the sword-wielding… Google glass wearing… CNBC stock picker challenge winning… Reggie Middleton.

from: http://www.coindesk.com/former-jp-morgan-exec-blythe-masters-swaps-wall-street-for-bitcoin/

Founded by entrepreneurs Sunil Hirani and Don Wilson in 2014, will allow financial institutions to trade digital currencies alongside digitised assets. The platform is expected to launch later today.

Masters, the former head of global commodities at JP Morgan Chase & Co, said:

“Digital Assets has a revolutionary technology platform that eliminates the counterparty risk and lack of transparency that has hindered mainstream adoption of cryptographic technology. The possibilities for reducing cost and risk in settlement are enormous.”

The new CEO, who is best known for her work in credit derivative products, told the WSJ that the new venture seeks to build a bridge between the emerging digital currency industry and Wall Street.

Doing so would result in something “truly revolutionary”, she added.

http://www.wsj.com/articles/ex-j-p-morgan-cds-pioneer-blythe-masters-to-head-bitcoin-trading-platform-1426048878

http://digital-asset.com/

Veritaseum’s Offer:

  1. Create your own bespoke, custom trading vehicles to…
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https://veritaseum.com/

The thing that strikes Dave as most curious about all of this is the idea of “holding” something digital… as if you could hold a zero or a one.  My sense is that the money is in the change making… as in the money changers.

Here’s an example of the money changers having a bad day:

Here’s an example of the money changers who make it up in volume:

Perry’s Theory Of Forms

March 10th, 2015

You’ve probably heard of Plato.  Well have you heard of Andy Perry?  You thought there was a correlation between risk and return.  You thought Black-Scholes was going to hold.  Then Dave has one question for you.  If cash is riskless in a Black-Scholes model, then why are corporations using that cash to reduce their float and what does that say precisely about volatility and the volatility smile?

Andy explains:

Money is a way of channeling and controlling trade, but where any particular instance of money fails, trade finds a way. Trade (as human interaction) is ubiquitous, like air and light.

Which brings us to interest rates. Earning interest is – was, a positive function of modern money, that is to say it is a positive reason why people wanted the kind of money that is available now.

Interest is validated as an expression of the contemporary social value of money in terms of itself. In other words, interest on money is paid in money to express its value at that specific time. This additional money that accrues to owners of money by virtue of possession expresses the fact that money is valuable. Interest proclaims that all things being equal, anyone within society should/will be able to use money to extract value.

It is a license, a legal permit, to extract value from within the society. ‘Extract’ value is important, as you will see in a minute.

This definition of interest is of central importance because it contains within it a model of the society into which the created money will go. It makes plain that there WILL be opportunities to use money profitably (in a way which can extract value), within the given society.

It follows from this that the interest function is in essence a statement about a given society. And it is fundamental to the way that modern capitalist societies differ from pre capitalist (‘feudal’) ones. Modern capitalist societies will offer opportunities for wealth extraction/ transfer, non capitalist societies do not guarantee this. This is the fundamental rhetoric and ideology of capitalism.

From this positive functionality of opportunity an apparent negative functionality is implied: That it is possible that there might be limited or no opportunity of profitable use that can be made of a given amount of money. This possibility is defined as ‘risk’.

But this can be shown to be a demonstrably false argument by means of a simple illustration:

If there were an infinite number of possible profitable ways to utilise money what would the effect be on interest rates? Despite the fact that there would be little or no risk, interest rates would be high. Because there would be high demand for money After all, what would incentivise the lending out money when there were countless easy ways to directly invest it at high returns?

And what would be the effect of an opposite environment of high risk and few profitable ways to utilise money? Then interest rates would be low because there would be little or no demand for money. In this environment, investment opportunities as opposed to money would be at a premium.

This directly refutes the idea that interest is an expression of risk. It is precisely the opposite. The amount of interest charged is NOT a reflection of risk it is a reflection of the lack of risk.

Further it directly refutes the idea that money produces wealth. Money extracts wealth from profitable opportunities. Without these profitable opportunities money is worthless.

As I argued above, interest is a statement about a society. So what does the MONETARIST refusal to obtain interest from the money they issue- ‘ZIRP’, say about society now?

It says that there will be no ways to profitably extract wealth. It is effectively the end of a capitalist society.

 

The rest of Andy’s take on risk and return is here:

https://unitedstatesofeverywhere.wordpress.com/

 

How we got here:  Value Walk explains -  Even if tranches are a bad idea, it doesn’t mean they won’t become popular

“You might even conclude that investors are just choosing the yields that meets their investment needs without thinking too hard about the risk.”

Citi Recommends synthetic tranches: http://www.valuewalk.com/2015/03/is-citi-seriously-recommending-synthetic-tranches/

 

GM on their strategic “path to do this anyway”:

DETROIT (AP) — General Motors announced a $5 billion stock buyback as part of a plan to return more cash to investors. In return, an activist shareholder decided to drop a potentially divisive bid for a seat on the company’s board.

The moves, announced Monday, are part of a deal with Harry Wilson, a former member of the government task force that restructured GM coming out of its 2009 bankruptcy.

“We basically said thank you,” Wilson said.

Talks with Wilson’s group had been going on for about two weeks, GM CEO Mary Barra said Monday. She said other major shareholders agreed with the buyback.

She indicated that the buyback might have come without Wilson’s prodding. “We were on a path to do this anyway,” Barra said Monday.

 

And just in case you were wondering – “Volatility is not risk.”

“Keep a multi-decade time horizon. Buffett thinks long term. Being able to have a longer time horizon allows you to . . . reap the inflation-beating rewards [stocks] deliver.”

In other words… if you never sell a stock, then you can never lose money and Warren Buffett is going to live forever.

http://www.newsmax.com/Finance/StreetTalk/Coumarianos-investment-Buffett-stock/2015/03/06/id/628653/

It Just Does/Doesn’t Matter! It Just Does/Doesn’t Matter!

March 7th, 2015

Ned Naylor-Leyland of Quilter Cheviot Asset Management is interviewed on the latest Keiser Report. Max and Ned explore that question that was originally posed by Bill Murray in Meatballs about the difference between Camp North Star (the Occident) and Camp Mohawk (the Orient)… It just doesn’t matter!… It just doesn’t matter!  There may be an eastern camp accumulating the gold and a western camp getting all bitcoiny, but the final scorecards in the global gold game still remain to be posted on the wall of the posh Caddy Shack.

Ned explains (at the 12 minute mark):

What does Dave have to say about all this. Well, Dave’s no financial advisor like Ned, but Dave would suggest you get your single ounce of gold or at least a roll of what Max describes as  ”lifesavers.” Then again, when you’re ready to get serious, here’s Ned’s website: http://www.quiltercheviot.com/contact/ned-naylor-leyland-2/

http://www.quiltercheviot.com/latest-news/gold-and-the-financial-markets/

The Real Asset Company’s gold backed cryptocurrency:

http://therealasset.co.uk/gold-investment-products/gold-backed-crypto/

Bill Murray explains why whether you buy gold or not… it just doesn’t matter… because Camp Mohawk is backing up the truck:  https://www.youtube.com/watch?v=e9mf3Bypyk8

The Cul De Sac Economy

March 5th, 2015


♪♪There’s no party going on right here… come on now… celebrate!

“Deposits, withdrawals аnd transfers аrе legal,” Bill Barhydt said. “There iѕ nеvеr a party in thе middle.” Transfers don’t bear the same restrictions facilitated by a third party.

When you’re Breaking Bad economically, it’s always tough to beat out that guy who lives in a brick rancher in a non-descript cul de sac with the ambient glow of grow lights expressing “money as a technology” peeking out of his basement windows.

Announcing Abra… as in Cadabra. Think of it as the www.localbitcoins.com of smart phone peer-to-peer transfers. Where everyone’s a teller and nobody’s talking.

http://www.launchfestival.com/abra/

https://www.goabra.com/

♫Little CTO… You’re Really Lookin’ Fine ♪

March 3rd, 2015

File:1969 GTO Judge.jpg

“The wave of change is at once unavoidable and heading straight for you.”  Gavin Wood (Effective) CTO Ethereum on facing the music and The ’69 Judge.

photo Gtoman

 

Dave’s written plenty of blog posts about Ethereum and the work of Vitalik Buterin.  With the exception of Vitalik’s attempt to replace “anno domini” with “the the year of Satoshi”, Dave doesn’t find himself judging Vitalik too hard.  However, judging Ethereum’s strategy has become somewhat of a hobby since the self-appointment of Vinay Gupta as Chief Twittering Office and official appointment as “Ethereum Release Coordinator.”  Is it just me or does that sound like something that may involve Corrections Corporation of America?  Then again, maybe it’s more like that early 1980′s hit TV series starring Lee Majors as the Unknown Stuntman ~ Fall Guy.  I think Lee drove a GTO… but I digress.

Dave has done a few takeovers and a few turnarounds and knows what confusion looks like when he sees it.  Dave also knows that being able to say “I’ve got the pink slip daddy” when it comes to your Little Deuce Coupe is one thing, but that doesn’t keep the tank filled and the tires road worthy if the burn rate exceeds the incoming flow of gas money.

As crew chief, clearly Vitalik is not attempting to humbly share pre-launch credit with the other Ethereum team members.  When you’re preparing your Oscar acceptance speech for “Best Crypto not built on Bitcoin” you don’t refer to your downstream posse as “many of whom”.  No!  To the contrary, you give a shout out by individual name or Coinye (that would be Dave in this instance) may just grab the microphone out of your hand and do it for you.

Dave wasn’t one hundred percent sure that the Little Ethereum GTO was due for an overhaul until the self-proclaimed “Effective” CTO blogged about the condition of his whip.  The first couple of passes when Dave read it, all I could think of was that I had pulled into Pep Boys for a simple oil change and this service writer that sounds like the teacher from the Charlie Brown cartoon comes out dressed like Ronnie from the Daytonas and starts singing the following tune:

♫ Wa-wa… wa, wa, wa, wa, wa, wa ♪ (Yeah, yeah little GTO)
♫ Wa-wa… wa, wa, wa, wa, wa, wa ♪ (Yeah, yeah, little GTO)
♫ Wa-wa…  wa, wa, wa, wa, wa, wa ♪ (Yeah, yeah, little GTO)

 

About this time, the entire retail store turns into one of those singing and dancing choreographed flash mob thingys that you see on Youtube that normally happen at a train station or the Mall of America (when it’s not been evacuated for terrorist threats).  Everybody breaks into this Grease like soundtrack reminiscent of John Travolta and Olivia Newton John…

(actual soundtrack from crypto release nightmare is found here: https://www.youtube.com/watch?v=o_FSicQWimU)

Gonna save all my money (turnin’ it on, blowin’ it out) and buy a CTO
Get a helmet and a roll bar (turnin’ it on, blowin’ it out) and I’ll be ready to go
(Turnin’ It on, blowin’ it out)
Take it out to Pomona (turnin’ it on, blowin’ it out) and let ‘em know(turnin’ it on, Blowin’ it out), yeah, yeah
That I’m the coolest thing around
Little buddy, gonna shut you down
When I turn it on, wind it up, blow it out CTO

So, what did Chief Gavin Wood have to say exactly about Ethereum’s impending release.  Well, you can read it for yourself but Ðave took the liberty of checking the tread level for you…

1.  Gavin is “wearing multiple hats of ÐΞV and advisory.”  That can be convenient when it comes time to change hats.

2.  “The board will be recruited from accomplished professionals with minimal conflicts of interest; the present set of “founders” officially retired from those positions.

3.  “ÐΞV will function much more as a department of the Foundation’s executive rather than a largely independent entity.  Key word is “much.”  That’s an accounting and governance term for ♫ Wa-wa.

and

4.  Probably the single most important executive communication regarding the launch of Ethereum was amazingly written; “As I write this, I’m sitting on a crowded early commuter train, Vinay Gupta in tow.”  Now that’s saying something.  I had no idea Monsieur Gupta got up that early.  Heck of a job Vinay.

Gavin apologized ostensibly to everyone who sent their Bitcoins to Ethereum in anticipation of the launch by saying “I’m sorry it has been so long without an update.”  I guess we should be thankful that he can tow Vinay and type a major strategic path document simultaneously.

Oh, regarding that burn rate.  Don’t worry… like the carburetor on a GTO it’s “choked up” and “soaked up”… Gavin explains:  “The last 2 months has been somewhat busy, choked up with travel and meetings, with the remaining time soaked up by coding, team-leading and management.”  Ka-ching.

What about the accounting?  I’m glad you asked.  Time for a milepost on the irreversible nature of an income statement by drawing a line in the sand with the one money man (Aeron) “stepping down.”  The search begins for “successors” to the success next week.  Time to divide and conquer when it comes to finance.  In the turnaround game, that’s called a soft fork to finance.  In the music business it sounds like this… ♫ Wa-wa… wa, wa, wa, wa, wa, wa ♪

Are you finding yourself wondering how much it’s gonna cost you for a new set of tires and a tank full of Ethereum “gas” for your little GTO?  Read it and weep:  https://blog.ethereum.org/2015/03/02/gavs-ethereum-d%CE%BEv-update-v/

It’s Not The Moustache That’s Brass

February 26th, 2015

http://www.theukgold.co.uk/

www.treasureislands.org

Chaos As A Service: The Implications Of A Global Synchronous IOU

February 24th, 2015

http://upload.wikimedia.org/wikipedia/commons/thumb/e/e5/Reeses-PB-Cups-Size-Trio.jpg/640px-Reeses-PB-Cups-Size-Trio.jpg

The Snack Stack:  “You got your money in my internet.  You got your internet in my money.” 

or

How “pay me later” became “pay me now” which became “pay me before”.

 

(Editor’s Note: this is Part 1 in a series)

You will be hard pressed to find a nicer fellow in the cryptocurrency Bitcoin blockchain space than Meher Roy of the Hyperledger project.  Meher could not be more friendly and deferential on the outside while being more pointed, direct and downright disabling on the inside.  I mean who else, comes out of nowhere with blockchain/sidechain/ethereum is nothing more than a database kryptonite and tells both globetrotting Bitcoin master Andreas Antonopoulos and Ripple CEO Chris Larsen “Dudes… you’re wrong.” in a single sentence?  That is precisely what Meher did when he launched his paper An Architecture for the Internet of Money on November 26, 2014.

You see, it seems that while Andreas had referred to Bitcoin as “the internet of money” and Chris Larsen had referred to Ripple as “the internet of money” Meher was tightening down his thinking cap and decided that due to a variety of ubiquitous barriers to global entry (cough Putin) neither Bitcoin nor Ripple were the internet of money and he doesn’t mind telling you just that.  Regardless of who got their peanut butter in who’s chocolate cup first, Dave is here to tell you.  It’s not how you stack your cups Joel Monegro that matters so much as who is doing the stacking. 

Even IHOP Flies A Flag on National Pancake Day ~ “Free” Stack ~ March 3, 2015″

Before Dave delves into Meher’s short stack in an attempt to flatten his fork resistant pancakes a bit, allow me to tell you a short story about Dave’s fav-o-rite pancake maker… Mrs. Dave.  Mrs. Dave is not only wife, mother and hotcake maker, but she’s also our in-home network administrator.  Don’t ask Dave how she does it, but she can put more haiku on a Roku Box and rig up more Microsoft workarounds than Steve Ballmer has “developers! developers!” dance moves.  I’m just waiting to come home one day and find her climbing up a telephone pole while explaining to me how the state utilities commission allows her to rebroadcast the Super Bowl via drone just so long as she doesn’t actually sell advertising, but she needs me to download Senator Ed Markey’s latest draft EFF bill just to make double sure that her definition of “FREE”  isn’t as in “FREE Barrett Brown.”

So my wife and I are talking about a internet connection that she is setting up for us in a business location when I ask her a question.  “Honey, why do you think there are so many internet connections in this commercial area, but none of the companies choose to share their connections?  I bet in an apartment building there’s a connection for every resident… just think of the money they could save if they shared their internet.”  My wife explains to me that people don’t want to share their internet connections because they don’t trust their neighbors, they don’t know what they may be downloading and folks (that would be Barrett’s mom) don’t want to get in trouble for something illegal that their neighbors did.

That seems like a reasonable explanation, but of course Dave’s mind immediately turns to next gen distributed storage applications such as Maidsafe.org and Storj.io and the latest IPFS Alpha and how they are going to deal with this issue of potentially storing illegal stuff on other people’s hard drives.  Dave’s sure that he’s not the first person to ever think of such concerns and he’s also sure that since the storage is just “bits” and not the entire “bite” then the teeth of enforcement are kept at bay by the private keys of cryptography.

Then again, maybe we’re moving from the phase of a) storing the past on our hard drives and b) processing the present with our bandwidth to c) paying for future network access in advance as what WAS your device is increasingly part of the public domain thanks to Reed Hastings hogging the road with Netflix.  I could discuss such things with Mrs. Dave if she read the blog, but she doesn’t and she’s practical while Dave’s theoretical (Honey! My internet’s not working!) but we both watch Netflix, so back to Meher.

So, two of my intellectual favorites, Meher Roy and Tim Swanson, were interviewed by Arthur Falls on the Beyond Bitcoin podcast about some of the ideas that Meher had proposed in his paper and strategies that the Hyperledger project was implementing.  The content of the interview was fascinating and the prowess of Meher’s mind is only exceeded by his humility which is also exceeded by the humiliation of being exposed as those who claim to have discovered the Internet of Money only to be channeling Geraldo and the Mystery of Al Capone’s Vault (don’t dis Rivera’s 30 million+ viewers).

Is that the “call me maybe” sign or a left jab?

Dave’s not even in the same league as these guys, but it never stopped me from typing before and the way I see it, Meher got it half right, so Dave’s jumping into the blockchain cage match like some guy asking Gina Carano out on a date while attempting to avoid the right hook.

Meher describes a standard as a “public good.”  Now Dave’s not saying that Tim Berners-Lee wasn’t one of the good guys or that Barack Obama plus the AT&T/Verizon duopoly plus an aircraft carrier in the Straits of Hormuz doesn’t equate to a “good” internet kill switch because it probably does.  There are standards that have the capability of functioning as a public good just like the Boston Common has the ability to be turned into a “snow farm.”  However, standards by their very nature emerge from private motivations and personal values and are spread via political strategies and financial means.

http://upload.wikimedia.org/wikipedia/commons/thumb/1/10/Flag_of_Scotland.svg/320px-Flag_of_Scotland.svg.png

A standard is a flag or a “stand hard.”

Yes, it’s true that you don’t have to pay to write a message in the English language (assuming you can use your own blood if a pencil isn’t available and your student loan is paid up) and Noam Chomsky hasn’t changed the meaning of your words while you weren’t looking.  Indeed there is no royalty due to Warren Buffet for measuring the Burlington Northern railroad tracks in miles vs. kilometers even if rubber ducky crony bathtub-isms with Jeff Immelt have permanently let the tide out of our democratic republic of price discovery.

Words and inches are free standards (for now), but the internet is hardly free when it’s not the internet itself that is the expression of value.  It’s network access that counts.  The petro dollar can’t be used to pay your tax bill but it will power your car, but I would suggest you avoid engaging in a debate over “size matters” when it comes to the oil market’s “rig count” with the King of Saudi Arabia or your will end up with a close up view of the mat.

As we move away from the time value of money and displace Irving Fisher in our Michael Woodford drive to the zero lower bounded Chicago Plan, it’s the access to the Super Bowl of Internet Things that we’re looking for because we don’t get to take the seats with us when we leave.  Your ticket is a license to use that seat, not ownership.  Sovereignty is so passe.  You were so focused on the national debt clock that you didn’t actually realize that you owned the nation.  Whodathunkit?

Dave has written a thousand times about the Soros’ political paradigm of substituting “open” for “free” and how when a Realtor holds an open house, the “free” finger sandwiches come at a price to your privacy.  The same thing goes for storage (backdoors included for FREE), bandwidth (surveillance included for FREE) and increasingly access (denied if not PREPAID) which is all that matters in the quantum state of The Union and the so-called emergent velocity of money standard.

Standards, as in flags, originate as an outward expression of an inward value and thereby form a rallying point – think William Wallace’s blue cruxed face in Braveheart.  Just because the Scots still fly the Saltire doesn’t mean that they still value the ideals expressed by Saint Andrew’s crux decussata which was fairly clear by their recent referendum.  A flag doesn’t have to represent a moral or values standard and a moral or values standard doesn’t have to be represented by a flag especially when we have World of Warcraft contained within the network and ISIS contained within a green screen.  The concept of value (as represented by a flag or standard) are not always mutually exclusive or symbiotic, but as Buckminster Fuller liked to say, they’re synergetic.

Meher takes a stand when he says “a standard eventually becomes fork resistant” and a standard is “a public good.”  Dave has sat on some standards making boards and I can tell you from experience… it ain’t so.  Way back in the 1990′s I was a contributor to the United States Department of Agriculture development of the organic standards.  You know those little green stickers that you see on food and textiles that says “organic.”  What Dave thought was a debate about the public good devolved into a political business driving strategy in the cotton industry that resulted in Nike and The Gap making  a last minute reversal of their privately “good” position on an otherwise public policy costing Dave plenty to the benefit of their shareholders – not Dave’s.

A Constitutional Right To Bear Leg Lamps ~ photo Kevin Dooley

You don’t forget a thing like that and making the public good a private enterprise has become equivalent to “doing God’s work” in a Blankfeinian/Himpton Doctrine nature of the administration of economic justice just-us when we use Jon Corzine as the poster child for deferred prosecution and Too Big To Fail as the meme of moral hazard.  Is the leglamp blockstack (blockchain as a lamp stack) somehow immune from such corruption or is the chance of someone getting their eye shot out by a Red Ryder bee bee gun only increasing by the day?

Is the TCP/IP internet protocol suite a public good?  Well, if you include the NSA having a backdoor to your Lenovo laptop or Gemalto sim card as part of the “the only people who don’t want to tell the truth are people with something to hide Barack Obama” doctrine of public good, then who’s to argue?  Just hand over your permanent liberties and get some temporary securities (aka crypto-equities) by pushing the Staple’s Easy Button.  That was easy.  Then again, it’s no coincidence that TCP/IP was originally known as the DoD Model as in Department of Defense.  Such ideas are no doubt what led NYU to cite such current tech hipsters as Benjamin Franklin circa 1737 in their most recent brief in the Twitter case against Attorney General Eric (didn’t he resign?) Holder.

The Internet Engineering Task Force and the Internet Society are fundamentally political enterprises. You could say the IETF is “open” but you can’t say it’s FREE! at $650 to join and if you ask Dave, technically speaking, “rough consensus” as a political structure is roughly the same as what Tony Soprano uses, but no doubt more intellectually bullying in an empathic sense (not).  When it gets right down to it, the IETF is not even an organization based on the definition of the word.  It’s a mailing list… albeit an organized mailing list.

 

To promote the open development, evolution and use of the Internet for the benefit of all people throughout the world.

The Internet Society

There’s nothing about FREE in the ISoc’s mission, but it does cover “all people throughout the world” (must be those Bill Gates “unbanked again) and just like the Super Bowl is “open to the public” it hardly means that the public will be getting in there.  It’s no coincidence that the administration of all things internet is being overseen by a former Verizon staff Kathryn Brown and if you ask Dave, it’s not entirely far-fetched to make a reasonable argument that the fact that internet standards are copyrighted by ISoc that it has an exclusive claim on those standards.  Dave’s jus’ sayin’ unauthorized linking to those standards may be the equivalent of linking to a Stratfor email and could end you up in prison for 5 years.  Yup.  Hey!  It’s a copyright and they’ve got their rights… DMCA’s age not withstanding.

Let Them Eat Cake With Licensed Images On It   (photo Mike Mozart)

Meher says “a standard eventually becomes fork resistant.”  I guess the same could be said about access to Brett Favre’s hall of fame induction ceremony.  It’s scheduled for the 1,500 seat atrium at Lambeau Field, but Brett wants it to be held in the 80,000 seat stadium.  Heck… why don’t we just hold it on the internet… It’s FREE!!!  Everyone can come to the public good and then maybe Mrs. Dave can actually sell some of that advertising.  Not gonna happen.

The NFL is about creating a false sense of scarcity (as in football is scarce), when in reality playing football is free and watching your local high school team is significantly more impactful than wasting money on contrived civic pride which is corporate earnings in disguise and Dave has done some work in pro sports and licensing, so I know what i speak of, but I can’t say I’m not interested in seeing how Russell Brand wiggles his way out of this politically incorrect Chelsea pro soccer train wreck.  Maybe I can get some pointers on how to avoid being knocked out by Meher.  But this is only Part 1 of the series, so there’s always money to be made selling George Foreman Grills even if intellectual grok boxing isn’t that profitable – “I feel your pain Dave.”

Let them eat cake is the ultimate call to the Soros Open Society.  It’s like the Jonestown equivalent of free beer tomorrow being as emergently empathic as FREE KOOL AID TODAY!  At its core, this is a debate over scarcity and abundance.  Standards, if they are anything they  are not inherently agnostic.  A standard (think the Federal Reserve System) is either one based in scarcity or one based in abundance (think Christianity or forgiveness of sins, or grace as a standard) or something as ridiculous as printing “In God We Trust” on our money and everyone using it… or writing the date on every check that declares the Year Of Our Lord.  Christmas is just a story… right?  It’s a video downloadable from Netflix.  No?  Yes?

A purchasable communion token from the Free Presbyterian Church Of Scotland

(with single freedoms like this, who needs two concepts of liberty)

Where we run into trouble is when we move from one system to another.  We are attempting to pivot from one standard (say the quantity theory of money) to a new standard (say quantitative “easy”).  One nation under God, indivisible, with liberty and justice is becoming one world under technology with democratized  (i.e. required) participation in everything from vaccines to opt-in organ donation because they know better than you do.  It’s about the collective.  You see, if there was any confidence in the current monetary system there would be plenty of circulation velocity of money and not an overabundance of hoarding Tim Swanson’s “subway tokens”.  People may choose to trust God or not, but increasingly they don’t trust Greece (or the troika) any more than they trust the Swiss National Bank not to pull a fast one on short notice.

The problem with tapering the ponzi (h/t Max Keiser) is that it has to be offset with an equivalent expansion of confidence and if you ask Alan Greenspan such a tapering won’t happen without a “measurable” impact on the price of gold.  This is nothing more than an outward expression of an entire lack of confidence and it can only be manipulated so much and for so long until it breaks.  People understand abundance.  People understand scarcity.  People watched Brian Williams too.  So there.

They “get it” regardless of what you tell them and yes they will buy an Iphone even though a new Iphone is coming out and believe it or not they will start hoarding proverbial subway tokens if they start believing that network access will start being restricted based on a new standard of “global justice” (i.e. resource based economics delivered via London School of behavioral Economics modeling).  This is precisely what has happened to all that money and all that credit that was created since 2007.  Yes, the plunge protection team drove everyone into the shrinking float of equity buybacks, but no confidence has not been restored and that’s why a new global system is being put through its paces.

Meher’s hometown turned down a return to a gold standard by referendum just like the Scottish voters turned down their independence from the crown.  The democratization of morals (7 billion shades of grey) continues to move us from the divine right of kings, to an enlightened form of representative government and resource based economics ala Adam Smith, but now we are hurtling into a democratized world of smartphone enabled personages known as every man for himself (including 2 years of free community college) but subject to being Nudged by Cass Sunstein who has access to all available information.

 

(to be continued…)  IOU:  The Internet Of Money IS The Internet Of You

 

http://www.scribd.com/doc/241975638/An-Architecture-for-the-Internet-of-Money#scribd

https://letstalkbitcoin.com/blog/post/beyond-bitcoin-27th-and-final-an-architecture-for-the-internet-of-money