Dave’s IQ

Money must be a store of value?

There was a time when that statement was true. That time was before there was a global electronic network capable of transferring a variety of forms of trust at the speed of light that you can carry in your pocket. That time was before the rising threat of capital controls and the reality of having your entire economy shut out of monetary transfer systems such as SWIFT.  That was a time before Dwolla, a time before Ripple and a time before Bitcoin.  That was a time before the reality of the very near reversal of Gresham’s law due to very nearly zero levels of friction enabled via global payment systems based on ideas such as the Coincinet.

One of the big threats today to governments is the existence of paper money and its anonymity. One of the big realities of today is the advent of technology systems based on Ricardian contracts where the receipt is the transaction, the block chain provides a public record of all transactions and the ever-rising Q in QE is resolved through the emergence of triple entry accounting systems.

I’ve been arguing for some time that this debate is not one designed to create a new global monetary system based on gold. This agenda is one designed to eliminate the anonymity and privacy associated with paper money. Indeed the central bank policies of extracting 6% annual interest from the system has inflated away the purchasing power. I’m not denying that and the fact that fiat money has not been a reliable store of wealth.

My point is that money serves two purposes (store of wealth and double coincidence of needs) and when it comes to satisfying the double coincidence of needs within a framework of anonymity paper money has done and continues to do an excellent job. It is this job of anonymity that must be eliminated if governments are going to be successful in resolving the entitlement programs through the imposition of means testing, turn the war on terror into a war on paper currencies and finally roll-up the sovereign authority of the nation state into a single world government administered through a single global financial system in the biggest Debt for Equity swap in global history.  Why do you think the Central Banks are exploding their balance sheets through the acquisition of sovereign debt?  Foreclosure on the nation state is coming to a technocracy near you.

Since starting this blog over three years ago I have been harping on the plan for the introduction of a divorced currency system where you will have two forms of money. In my opinion, this is part of that agenda, but all you will hear about is how worthless paper money is and how valuable a gold-backed or fractionally gold-backed currency will be. There is no discussion about how once you turn in your paper money that all of your transactions will be tracked using the same exact technology that is expressed in the Bitcoin block chain.

If you think I’m wrong in my assessment, just send me an email and if you want me to publish your position right here on the blog let me know.

tradewithdave (at) gmail (dot) com


Last week I wrote a post on what I believed is truly behind the agenda to eliminate all paper money:


Here is a link to an excellent and informative article from Jon Matonis on the reality of the loss of privacy relative to electronic forms of money.  Please note the triple distinction between the focus of Jon’s article (the loss of anonymity due to Coinbase’s policies being quite similar to Paypal and/or Google’s creeping IP creepy line) and my particular focus on the panoptic nature of Bitcoin’s block chain.  Bitcoin usage can and is confidential if measures are taken to make it so.  You may think of it by comparison that you can use Facebook and maintain a certain level of privacy, but you need to know what you are doing because “ignorance of the policy is no excuse” when it comes to being spied upon.

To summarize an otherwise complex technical discussion, Bitcoin is capable of being private up to the PGP level.  However, Dave believes most people won’t use it that way and whether they voluntarily submit to the equivalent of Federal Reserve System oversight through systems like Coinbase or simply don’t know how to anonymously access the internet, the very basis of how a block chain works creates a system that operates in a vacuum and therein lies what Dave would describe as the law of conservation of information.  The convenience of systems like Coinbase will likely override individual desires for any level of anonymity which would be even close to being equivalent to what is possible for a privacy expert or simply a privacy enthusiast.

Here’s Jon’s article for Payment Source: http://www.paymentssource.com/news/swapping-bitcoin-privacy-for-banking-convenience-3013278-1.html?zkPrintable=1&nopagination=1


You can read more here:

Divorced Currency: http://tradewithdave.com/?s=%22divorced+currency%22+

Bitcoin:  http://tradewithdave.com/?s=%22bitcoin%22+

Triple Entry Accounting:  http://tradewithdave.com/?s=%22triple+entry+accounting%22+

The Coincinet: http://tradewithdave.com/?s=coincinet

Jim Rickards:  http://tradewithdave.com/?s=%22jim+rickards%22+

George Soros: http://tradewithdave.com/?s=%22jim+rickards%22+

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