Davecoin

File:Pioneers Crossing the Plains of Nebraska by C.C.A. Christensen.png

Step 1:  Circle the wagons.  Step 2:  Eat.  Step 3:  Strategize 

 

For quite a while now Dave has questioned whether or not the so-called Currency Wars are a battle between paper currencies or would it be more accurate to describe it as a battle on paper currencies. You know, like the War on Drugs, the War on Terror, Whip Inflation Now (like a racehorse)… just say NO to paper currencies.

Dave has had the good fortune to be able to sit in on a few strategy sessions.  I have even led my share.  The first thing I always ask when considering what to do next in any circumstance is to define the scope.  How big is the circle that we’re trying to contain?  How large is the undertaking we are faced with?  You can’t even circle the wagons if they don’t have a wheel and the first step to building a wheel is to know how big the wheel is.  Is the wagon a little red one, or are we talking large as in Large Hadron Collider large?

Which would be more difficult; building an entire house with a detailed set of plans or building a deck on your house with your brother-in-law without a detailed set of plans?  How about the difficulty factor of building a dog house for Fido by yourself without the correct materials and sufficient time to finish the job on a mid-February Saturday and the impact on your overall Valentine strategery if you also failed to complete your “Honey-do” list?  Fail to define the scope of an objective and you’re setting yourself up for failure, especially when it’s underestimated.

Maybe you recognize this quote:

“Suppose one of you wants to build a tower. Will he not first sit down and estimate the cost to see if he has enough money to complete it? For if he lays the foundation and is not able to finish it, everyone who sees it will ridicule him.”

Henry Ford said “nothing is particularly hard if you divide it into small jobs.”  That’s why anytime Dave is in the strategy meeting, he wants to know one thing?  What is the scope of the undertaking?  Are we building a dog house or The Biltmore House?  To me, it’s the same difference (if you can say that), and that you will be equally frustrated building a dog house as building a mansion if you don’t define the scope before undertaking the endeavor.

That’s why Dave is going circle back a little bit from here for some of the folks who haven’t been keeping up on the plan.  You see Dave’s been following a hacker fellow named Jaromil for quite some time and Jaromil turned Dave onto certain aspects of “triple entry accounting.”  This revelation led to Dave to some new understanding about where they plan to circle the central planning wagon train on its next scheduled stop.  It doesn’t take the wisdom of a trail boss like Curly (from the movie City Slickers: http://tradewithdave.com/?p=8032 ) to predict the exact spot on the map where the elevation is such that it is the logical place where they plan to establish the next recursion of the global monetary system.

You don’t have to be an engineer to understand that if you want to propel growth that you first must contain growth.  You can’t take the head off an engine and expect it to create the pressure to move the piston and drive the shaft that turns the wheel that moves your minivan any more than you can expect a horse to pull your wagon on an empty stomach?  If you want to capture energy you must first enclose the energy within a framework where you can take the so called Second “Law” of Thermodynamics and put it to work for you.  Whether you’re capturing it at the local Sunoco station,  from the roof of your barn c/o Mother Jones catalog solar panels or plugged into the local TVA New Deal dam hydroelectric turbine, you’re capturing the power of the sun and putting it to work for you one way or the other.

Notice Axel Merck’s comments regarding the value of the Japanese Yen if and when we experience global growth; “Worthless in the long-run.”


When the central bankers decided to quantitatively ease into global debasement, they essentially decided to remove the lid from the engine, to uncircle the circled wagons and to release the energy that was contained within a modern monetary policy based on some reasonable level of scarcity divided by the full faith and credit of the U. S. Treasury/Military Complex.  They have decided to set money free, at least paper money.  As far as Dave can tell, they’re planning on getting rid of it because it has served its purpose.  The original scope that was enclosed within the concept of the Nation State seems to have run its course while what was once simultaneously indivisible and invisible is now as fitting as Adam Smith’s hand in Michael Jackson’s glove (cue music: We are the world… we are the children… we are thirsty).

There’s a choice we’re making
We’re saving our own lives
It’s true we’ll make a better day
Just you and me… and my RC Cola

The move away from a sovereign nation’s paper money into a combination of parallel currencies (think Euro/ novety Drachma co-existence) and ultimately into a divorced currency system where the store of wealth is forever separated from the convenience of satisfying two-parties needs coincidentally is the plan if you ask Dave (http://tradewithdave.com/?s=%22divorced+currency%22+)  That’s why Dave is struggling with the fact that there are more than a few commentators out there who haven’t been keeping up their trading of time with Dave and are still proclaiming the elusive wave/particle duality of all things Irving Fisher known as the velocity of money.

I’m sure that Dave wasn’t the first person to figure this out, but Dave was the first person that I know of who assigned the terminology “Prebit” to describe the introduction of the third dimension to accounting known as the Debit – Credit – Prebit solution to Zooko’s triangle for global financial system oversight (http://tradewithdave.com/?p=14463).  That would be the block chain oversight of your finances specifically to make sure that you don’t cheat on your Social Security Means Test and try to buy cat food that exceeds grandma’s recommended daily requirements, build a food prepper’s pyramid out of cans of Ken L Ration (rhymes with station) beyond your monthly ration (rhymes with passion) or attempt to transact business by actually paying for horsemeat with cash money in excess of $1,000 (or Euros) as you transport a load of European horsemeat lasagna across the English Channel in a protein-packed donkey/horse run for the border arbitrage.

Jon Matonis weighs in for Forbes on the French strategy prohibit cash transactions in excess of E1,000.00:  http://www.forbes.com/sites/jonmatonis/2013/02/14/france-plans-to-prohibit-cash-payments-over-e1000/

Dave couldn’t help but notice lately that there’s been a bit of a debate raging over the capability for an accurate measurement of the velocity of money.  Some folks are claiming that you can’t measure the velocity of money.  That would be true if you have not put a scope around it.  If you haven’t set up a recursion.  If you simply take “Q” in Quantity and exchange it for infinity while simultaneously claiming that size matters in your quarter pound burger but whether it is made of real meat doesn’t, you’re missing the point.  There is no way to measure velocity and position simultaneously in physics (see Krugman on Black Holes and placing your trust in your pilot’s ability to steer away from one: http://www.nytimes.com/2002/12/31/opinion/crisis-in-prices.html) just as there is no way to know for sure when the Fed’s electronic money printing press has reached terminal velocity.

Witnessing the evaporating relevancy of Congress may be the most relevant indicator that there is clearly no turning back as the helicopter drone is well past the halfway mark in this modern monetary hari-kari Keynesian bombing mission.  However you can measure velocity quite accurately in a triple entry accounting system like bitcoin (http://tradewithdave.com/?p=12776) because position, in the Satoshi Nakamoto sense of the word, remains static, even if the man remains as elusive as the second cat at a Schrodinger’s Fancy Feast.

If we hadn’t passed the point of no return in a Buzz Lightyear approach to central banking structured solutions (it’s not the destination, it’s the journey to infinity that counts – bring plenty of horsemeat burgers), then the deflation/inflation debate as highlighted in Jon Matonis other article on the Road to Krugmania would be the logical donkey/horse meat dichotomy rather than the three-body problem which is resolved in the block chain of the URL itself as a currency.

For example, famed Keynesian economist Paul Krugman ridiculed the bitcoin cryptocurrency saying “it reinforces the case against anything like a new gold standard – because it shows just how vulnerable such a standard would be to money-hoarding, deflation, and depression.”

http://www.forbes.com/sites/jonmatonis/2012/12/23/fear-not-deflation/

If you ask Dave, The Chicago Plan is all about triple entry accounting and it’s all about the ultimate elimination of paper currency (http://tradewithdave.com/?p=13631) due to the fact that paper currency cannot be controlled by “them” as in the “they” previously highlighted in this post.  “They” would be anyone and everyone who adheres to the belief that “the system” as in SIFI (systemically important financial institutions) is more important than the people who the system was designed to serve.  Why do certain people view “the system” as more important than the people?  That’s simple.  If they can get it to serve them exclusively at your expense, then why not?

Prepaid or the prebit which is a key component for the global equilibrium for the transference of wealth from the West to the East will only be capable of being maintained if and when the entire elimination of paper currencies has been achieved.  You can read here just how prepaid and the introduction of the prebit dimension facilitates the Occidental to Oriental wealth transfer: http://tradewithdave.com/?p=14493.

In Irving Fisher’s Theory of Interest, the quantity theory of money and the money illusion finally resolves itself within the triple entry accounting framework and Dave believes that this is accurately expressed within the new and improved DNS strategy based on the same block chain as bitcoin.  You see it’s been a while since Dave wrote about the URL itself as a form of currency as best exemplified by the creative online solution known as Gumroad.com.  You remember those guys at Gumroad.  The ones who let you actually sell a URL and I’m not talking about a GoDaddy auction for such popular domains as “freemoney.com” or “ObamaSkeetShooter.gov”, I’m talking about the Gumroad URL’s that people actually paid Dave to get a secret pass to access.  People did it and just this week, the folks at Gumroad announced direct linking to your bank account (i.e. the Federal Reserve System).

http://tradewithdave.com/?p=10246

http://blog.gumroad.com/

Is it a big deal that Dave is getting some pennies from people who want to see for themselves how a URL itself becomes a form of currency?  Not really.  Is it a big deal that the same block chain protocol that creates the framework for bitcoin is being put forth as the same framework for the entire internet to protect it from DNS attacks?  You bet it is.

Here are a couple of examples of the writers who, in Dave’s opinion, need to employ some velocity to their reading of Dave and get caught up on the third dimension of triple entry accounting systems and their plan to disintermediate fiat paper money in the War on Currencies.

Alasdair Macleod on: The impossibility of economic calculation in a fiat world

http://www.goldmoney.com/gold-research/alasdair-macleod/the-impossibility-of-economic-calculation-in-a-fiat-world.html

Occam’s Razor vs. Rube Goldberg’s Machine:

http://www.zerohedge.com/news/2013-02-11/occams-gold-vs-rube-goldbergs-fiat

If you know either one of those fellows, please see what they think about the impact that solving Zooko’s triangle will have on not only the internet and new forms of electronic money, but on measuring velocity and resolving Irving Fisher’s problem with interest by institution of a global ZIRP environment once and for all.

If you are ready to completely geek yourself out, watch this fresh video where the explanation of the .bit top level domain and how internet integrity and the URL as a form of reliable and trusted currency itself becomes increasingly clear… at least here in Davemania.

On namecoin and the dot bit top level domain: http://dot-bit.org/Main_Page

Before you dismiss the Austrian vs. Krugmanian debate due to the invoking of quantum physics (black holes and terminal printer velocity) into an economics debate, don’t forget Frederick Soddy being roundly dismissed as a crank when he attempted to circle his wagon around a global economic system based on thermodynamics.  Getting rid of paper money is only half of the challenge central planners are being faced with.  Burning up the petro dollar in the process while relegating gold to a fractional reserve rather than the end all be all of measurements of value is the challenge.

If this article wasn’t enough to convince you that there’s a war on for your paper money, here’s some more reading:

http://tradewithdave.com/?p=12776

http://tradewithdave.com/?p=13631

http://tradewithdave.com/?p=14493

http://tradewithdave.com/?p=9935

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