Category Archives: Emerging paradigm

Is Big Brother coming to the blockchain?

Financial advisor Jim Rickards thinks so. In a recent article titled, The Global Elites’ Secret Plan for Cryptocurrencies, he says,

“…the crypto-hysteria is distracting you from a scary truth no one is talking about. There is every indication that governments, regulators, tax authorities, and the global elite are moving in for the crypto-kill. The future of Bitcoin may be a dystopia in which Big Brother controls what’s called “the blockchain” and decides when and how you can buy or sell anything and everything. Furthermore, cryptocurrency technology could be the very mechanism used by global elites to replace the dollar based financial system.”

Rickards goes on to say “Blockchain does not exist in the ether (despite the name of one cryptocurrency) and it does not reside on Mars. Blockchain depends on critical infrastructure including servers, telecommunications networks, the banking system, and the power grid, all of which are subject to government control,” then lists a number of significant developments involving major banks, governments, and supra-governmental organizations like the IMF, all relating to their plans to legislate and control the use of blockchain technology, including its use in virtual currencies and financial transactions.

Can they really do that? Of course they can. In the mid-1800s, the U.S. government imposed a tax on banknotes issued by private banks driving them out of circulation; in 1933 the government made it illegal for private individual to own gold, requiring them to surrender their gold holdings in exchange for government sanctioned paper money at the arte of $20.67 per ounce of gold.

What will be the popular response to such measures against virtual currencies? Will people docilely comply, or will there arise massive disobedience and flaunting of the law, just as occurred in the 1930s during Prohibition, and has been ongoing more recently in the war against drugs? If there is such an uprising, I think it will be in defense, not of Bitcoin, but of some yet-to-be-created virtual currency that rewards virtuous behavior and contributions to the common good. –t.h.g.

 

 

 

 

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What in the world is going on? — Part 4

In this interview below Paul Craig Roberts describes the neo-conservative ideology that has driven geopolitics since the end of World War II, and discusses the elite agenda, the prospects for the Trump presidency, and the US economy.

He comes closer than in his earlier statements to highlighting the key control mechanism of domination—the global money system, but still falls a bit short, as indicated by his statement that if there is a severe economic crisis in the US, the Federal Reserve “will have to abandon the banks and save the dollar.”

On that I disagree. Roberts seem not to realize that the FED, as well as virtually all of the other central banks of the various countries around the world, is controlled by the big transnational banks, and that they work together to, as Prof. Carroll Quigley said, create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences.

The banking elite thereby control not only the dollar, but all of the other major world currencies. If the inflation rates or unemployment rates become too high in one country, the central banks can spread the misery around by monetizing various securities and manipulating interest rates and currency exchange rates.

For the past several decades the US dollar has been their primary monetary tool, but the dollar is not the be all and end all in their schemes. You can be sure that the banking elite always have a plan. At some time in the not too distant future when the dollar has outlived its usefulness, it will be replaced by a single global currency that will give the elite even tighter control over financial, economic, and political affairs around the globe.

The flies in the ointment of their plan are (1) a few governments that are bent on steering an independent monetary and financial course, and (2) the emergence of independent, non-governmental and decentralized exchange mechanisms and currencies. In the first case, Iraq under Saddam Hussein and Libya under Gaddafi were easily disposed of (but at tremendous costs). Russia and China pose a much bigger problem for the elite, hence the stalemate in Syria and the drum beat of propaganda against Putin and the fear mongering against the Chinese. With regard to alternative exchange mechanisms, the proliferation of virtual commodities like Bitcoin and others suggests that elite control may be vulnerable to innovative and disruptive technologies. But these virtual commodities mark only the beginning of the new paradigm in money and finance. Ultimately, ways will be found to create an “internet of credit” based on decentralized, personalized, local control and backed by real goods and services.

How to Bring Liquidity Into an Economy, Free of Interest, Inflation, and Boom and Bust Cycles

Abstract
Most economies suffer from a lack of liquidity, especially outside the large corporate and government sectors. This lack of means of payment (liquidity) is a fundamental cause of unemployment and failures of small and medium sized businesses (SMEs). It generally derives from flaws that are inherent in the centrally controlled systems of money and finance and the increasing indebtedness of both the private and public sectors. The surrender of monetary sovereignty by national governments to central banks, and to currency unions, such as the Euro, and their increasing indebtedness, as in  as in the case of Greece, have made it virtually impossible for their economies to thrive.

This article describes how domestic or community liquidity, i.e., means of payment, that enable the process of reciprocal exchange of value, can be created by various entities at various levels, from communities and business associations, to municipal governments and agencies, to national governments. The main obstacles to their implementation are not economic, but organizational and political, yet there is still considerable leeway within which the value of local production can be monetized in the form of circulating private currencies and trade credits created within associations of buyers and sellers. This article describes how that can be done.

Read the complete article here.

This subject will be the main focus of my upcoming workshop in Greece, 16-23 June. You still have time to register and space is still available.

Universal Basic Income, an idea whose time has come…again

In ancient Israel, Mosaic Law, in addition to the division of the land among the tribes and families, delineated several ingenious provisions to assure the welfare of all. Recognizing the tendency in organized societies for inequities to develop over time, it prescribed such measures as the sabbatical year, the jubilee year,  gleaning and the prohibition of usury. Some of these, in some form, were carried over into the Christian era, but over time mercantile and industrial demands overshadowed social concerns. The mid-twentieth century saw tremendous gains in productivity along with renewed demands by the laboring class and racial minorities for a more just distribution of the collective wealth, but over the past 35 years many of the social programs that were instituted by governments have been under systematic attack by powerful reactionary forces resulting in massive increases in the disparities of income and wealth. These disparities bring with them increased violence, crime, addiction, and deteriorating quality of life for all.

Now, with automation rapidly reducing the need for human labor, the separation of livelihood from jobs is becoming an obvious necessity.

Here below are two pertinent videos, and this article mentions a few places where basic income allowances are being tried.

Thomas Greco’s 2017 Summer Workshop in Greece

Following last summer’s exciting and successful workshop in Greece, Thomas Greco will again this summer be conducting a workshop in Monetary and Financial Innovation for the New Economy at the Alexandros campus of the Kalikalos Holistic Summer School on the beautiful Pelion peninsula in Greece.

[Edit:During the 2017  workshop Tom will again have the assistance of Matthew Slater and the benefit of a guest appearance by Prof. Jem Bendell of Cumbria University (UK).]

View southward from Alexandros

In this week-long workshop we will examine the problems and deficiencies of both conventional money and local currencies and exchange systems, and delve into the principles and practices of innovative exchange and finance.

Over the past three decades, a great many complementary currencies and exchange schemes have sprung up, gained some degree of acceptance and notoriety, then faded away. This workshop will focus in on the reasons why none of them has become a significant factor in their community economies, and uncover the principles of design and implementation that need to be applied to make exchange alternatives more effective, robust, and scalable. It will also cover new ways of providing entrepreneurs with the resources needed to bring their ideas to fruition and achieve success in the marketplace.

Alexandros Center

Alexandros Center

This course is designed especially for social entrepreneurs, government officials, enthusiastic agents of change, and serious students who are ready to co-create a new sustainable and convivial economy from the bottom up. In this highly participatory workshop, we will use a combination of presentations, discussion groups (some on the beach), videos, and simulation games, to dive deeply into the process of exploring and developing innovative methods of finance, exchange, and value measurement. Participants will have the opportunity to showcase their projects and ideas and receive feedback from the group.

Here is an opportunity to work with one of the world’s leading experts in innovative economics, finance, and exchange, and to collaborate with like-minded peers to create a new economy that works for everyone, while enjoying a delightful summer holiday on the magical Pelion peninsula. Come join us in a process of inquiry, discovery, sharing and collaboration.

The workshop will run from 16 to 23 June, 2017. Space is limited so register early at http://www.kalikalos.com/community/x/exchange-finance-new-economy-thomas-greco/.

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 All the perplexities, confusions and distresses in America arise not from defects in the Constitution or Confederation, not from want of honor or virtue, as much as from downright ignorance of the nature of coin, credit and circulation. –John Adams, second president of the United States.

Just as the political monetary system trends power toward the state, so the system based on true money will release the natural forces that trend society toward private initiative, enterprise and democracy. Pending this fundamental reversal, all resistance to statism is futile. As long as the only available monetary system is political, exchange, that process by which the social order functions, will never accomplish its natural purpose, the development of prosperity and freedom.– E.C. Riegel, Flight From Inflation

Israel Slaps Capital Tax on Bitcoins

According to Barter News Weekly, the Israeli government will now charge capital gains tax on profits made from Bitcoin transactions. here is their report:

TEL AVIV – Transactions involving Bitcoins in Israel could be treated as barter transactions, and profits from coin sales could be charged a capital gains tax.

Late last week the Israeli Tax Authority issued a circular detailing the authority’s stance on the taxation of cryptocurrencies, saying that the Bitcoins and other cryptocurrencies shall be treated as assets when sold.

Cryptocurrencies are often considered to fall into a legal grey area for the purposes of taxation, with some countries classifying them as financial instruments, or currency, or an equivalent of a currency, or an asset.

The ITA has now decided that any cryptocurrency sold in Israel shall be regarded as the sale of an asset, and, subsequently, will carry a potential capital gains tax obligation.

The profits made from the sale of cryptocurrencies will need to be declared to the tax authority.

Some experts have noted that if the currency is treated as assets, any businesses accepting crypto-coins as payment will need to treat the transaction as a barter transaction, and will be required to complete their tax filling obligations accordingly.

The treatment of cryptocurrency as an assets does not preclude any transactions from falling under the scope of the country’s VAT system.

It has been said that, “the power to tax is the power to destroy.” Well, the decision of the Israeli tax authorities to tax Bitcoin transactions as asset transfers may not destroy Bitcoin as a speculative medium, but it will surely inhibit its use as a payment medium. The money and banking cartel hates competition.–t.h.g.

A World Without Money and Interest

During my October tour, I gave three presentations in Kuala Lumpur, Malaysia and another in Sardinia, Italy. Two of the Malaysia presentations were at the International Forum on Inclusive Wealth, but I do not yet have recordings of those. The third was an extended presentation and discussion (on October 10) at the Institute of Advanced Islamic Studies titled, A World Without Money and Interest: A pathway toward social justice and economic equity. Here below is the video of the proceedings, or you can watch it on YouTube at https://youtu.be/8BejigzDAVY. The audio only is here, and the slides that were used in that talk can be viewed here.