There is a bitcoin craze at the moment, with prices of bitcoin skyrocketing. Bitcoin is still far from ready for prime time, but as it matures, it will change society’s fundamental operations much more than the Internet did. The net, after all, only allowed people to talk and shop more efficiently. By comparison, bitcoin eradicates the government’s ability to operate.
Let’s begin by looking at what a bitcoin is. It is money. It is a new form of money that isn’t issued by a government. Governments don’t have a monopoly on coming up with things you can trade and barter with, and bitcoin is one such non-governmental barter instrument. The difference between bitcoin and all other such tokens of value that have been invented over the years is that nobody is in control of the money supply, and nobody is in control of the money flow. This means that nobody can start the printing presses to eradicate your savings, and nobody can seize or see your wealth or income. You can think of it as an open-source currency compared to proprietary, state-issued currencies.
There is no central bank. This is a revolutionary concept. People can trade cash at a distance without going through an intermediary. The first time you send the value of a cup of coffee to a friend in India on a Sunday, without any transaction fees, and they have the money instantly, without anybody but you knowing of the transaction, your jaw drops.
This would have been but a curiosity, if it weren’t for the ridiculously strong business case to cut banks and credit card processors out of the sales loop for corporations, which could roughly double the profits in retail sales. This means that there’s a very strong force for universal uptake of this new currency.
As nobody is in control of the money supply (it is set to grow predictably at a slowing rate until 2140), and demand increases with a limited supply, the price for each bitcoin increases. This is what we’re seeing now, as more and more people realize bitcoin’s business potential. Also, there is value in the concept that you don’t have to trust any single person to store or to transfer bitcoin – not your government, not your bank, not Western Union – is something completely new.
So why does bitcoin have value? How is it, strictly speaking, money? People who ask this tend to be stuck in the idea that only states and governments can issue money, but that’s not the case. What we see as money has changed many times, and when Marco Polo came back to Europe from China in the 13th century, people were mocking him for bringing home banknotes. “This is not money”, they would say, and burn the Chinese banknotes. Money was coins. If you dismiss bitcoin just because you’re not used to seeing sequences of rare prime numbers as money, make sure you’re not scoffing at banknotes as people were in the 13th century. If people use it as money to trade, it’s money.
It is important to realize that while the Internet has changed life in the IT industry tremendously, from a government standpoint, the net hasn’t changed much at all. If anything, it has reinforced existing structures: consumers spend their state-issued money more efficiently, credit is borrowed more and better from state-regulated banks which expands the money supply and keeps people happy, and it has created new industries that can fuel the economy. Oh, and it also lets citizens submit governmental forms more efficiently.
The only flip side to the net, from a government angle, would be that some people use the Internet to violate state-issued monopolies on entertainment distribution, which has been seen as a problem that needs to be dealt with swiftly and harshly, but other than that, the internet really isn’t much new from a government standpoint. Think about that the next time you see a politician who doesn’t appear to get the net: for them, if they’ve been in government too long, there is nothing much to get.
So we essentially have four different types of players that keep the economy going, and by extension, the government funded and operational. One, there is the government itself, which issues money and regulates banks. (For this exercise, I include the central bank in “government”.) Two, there are commercial banks which are in complete control of the money flow, in exchange for sharing that insight with the government and letting it siphon off as much as it likes to operate itself. Also, commercial banks expand the money supply when people ask for credit, so credit is good as the economy is measured today (“growth”). At the bottom of the food chain are, three, corporations which are tasked with using this system, running all its operations through these banks, and four, the ordinary citizen, who is supposed to be doing actual work and actually produce something that fuels the entire ecosystem.
What bitcoin does is cut the banks out of the loop, and by extension, the government’s ability to operate.
Those wars you have seen on TV? They are all fueled by this mechanism – the ability for banks to keep people happy in letting them spend imaginary money, while simultaneously giving the nation-state the ability to control as much of the money flow as it likes (and siphon as much as it likes off for itself).
Now, bitcoin isn’t going to drive its adoption just because it is impervious to state control and insight. Rather, its adoption is going to be driven by the strong business case for corporations to cut banks out of the loop – more specifically, cut bank profits out of their own profits.
The normal reaction for a government would be to use its entire arsenal of force against any phenomenon that threatens the government’s ability to function to this degree. But bitcoin is resilient to that. There is no central point to shut down. You can’t point a gun at a prime number and expect things to change. And we all know how effective governmental attempts to shut down peer-to-peer networks have been (even if it has been a low-priority issue so far that they haven’t really cared about).
A while back, I wrote that bitcoin is “The Napster of banking”. Perhaps there is a better analogy – perhaps it is the Skynet of banking. There is no central mainframe to shut down, and the intelligence in bitcoin is completely distributed with the single goal of obsoleting central banking.
In this regard, people at Business Insider who compare the bitcoin trade and its current price spike with the bubble around Beanie Babies in the early century come across as dangerously shortsighted and ignorant. Bitcoin is not a plush toy, it is not a commodity. It is an economic agreement, and as such, has value like any other contract that improves your business. This particular contract improves every business except banks.
So is bitcoin ready to take over the world? Far from it.
There are many problems with bitcoin today, but they are becoming less severe than the problems that plagued it one, two, and three years ago. In short, we’re seeing kinks being worked out, scratches being polished, and dents being straightened. But there are many reasons why bitcoin couldn’t take the place of state-issued money today, even if it is on a strong trajectory to do so in the next decade or decades.
The liquidity to state-issued money is one thing that strikes me immediately. In any economy, you need bridges between payment systems that are in use. Today, the vast majority of such bridging is handled by a Japanese bitcoin exchange known as MtGox. This is an unacceptable single point of failure in an ecosystem (proven by two hours of outage today). Further, lags of 10 minutes are common with MtGox’s trading engine (I’m seeing 400 seconds of lag right as I type this), which is just ridiculous when the financial world at large is dealing with micro- and nanosecond trading.
Bitcoin is getting there. But it’s not there yet. When it gets there, expect governments to panic and society to be reshaped into something where governments cannot rely on taxing income nor wealth for running their operations.
That is a bigger change to society’s fundamental structure than the ability to seek and share culture and knowledge we got with the net.
Robert Podolsky, is the son of famous physicist Boris Podolsky.
Podolsky who was a key in formulating the Einstein – Podolsky – Rosen (EPR) paper on quantum entanglement. Bob is promoting the Titania Project; self-organizing networks of humans which would displace hierarchical government, i.e. anarchy but not chaos.
In the article below we discuss the nature of the market, the constraints that have enslaved the worlds markets, and the free market opportunity that has recently been created by advances in technology. In accordance with the Titanian Code of Honor, and its purpose to advance human creativity, we are doing everything in our power to increase awareness of this new free market, thereby changing the culture of human society in a beneficial way. To that end we are hereby launching the Titanian Free Market Project.
Of the various arenas in which freedom plays an important role, one of the most profound is the market – which I broadly define as the exchange of value between two or more individual people. In any market an ethical transaction is always one in which each party concludes the transaction believing herself to have benefitted from the exchange. For example, if I buy a widget from you, I wanted the widget more than the money I paid for it – whereas you wanted the money more than the widget. This is the nature of win-win transactions. Unfortunately, such transactions become much harder to attain when the market is constrained by external forces.
In today’s world, almost all markets are heavily constrained. Most of the constraints fall into three categories: Sanctions, Taxes, and Regulations. In the case of sanctions, an analysis of their nature and effects could fill a whole book. In fact such a book exists. It was written by the world-class economist, Robert McGee. Reference to it is: A Trade Policy for Free Societies: The Case Against Protectionism, Quorum Books, 1994. I’ll summarize its conclusions, with which I agree, by pointing out:
Trade sanctions never work – which is to say they never produce the intended effects;
They always produce destructive consequences; and
They are highly unethical.
Since sanctions only affect most of us very indirectly, I’ll leave it to McGee to explain them, and move on to a discussion of how taxes constrain trade.
and more recently by the estimable Larken Rose, when a group of people, calling themselves legislators, take resources from one person or group and bestow them upon another individual or group, the process is based on the notion that a certain group of individuals has the right, by virtue of their authority, to commit acts which would be crimes if performed by any of those people individually. That concept of “authority” is the lynchpin of the whole process – because, factually, authority is a myth – or, to put it another way, authority is a shared hallucination induced in us by the most predatory members of our society.
Consider how taxes constrain the market. If an employer, for example, wants to offer you a job, you and he both have to figure in the income tax that he will withhold from your earnings. Whether or not you are aware of it consciously, the employer is a tax collector’s agent – bent on stealing a portion of your earnings. He signs up as a privilege of being in business to take your money for the government and you sign up to let him do it. Or if you don’t, you can’t have the job. Have a fun time supporting yourself without one. By the way, In a free labor market this would not be happening, and the employer’s offer would be more attractive.
When you go to the store and buy something you need or want, the store owner, by means of a sales tax privilege (license), tacks a sales tax onto the price you must pay. You don’t want to pay the tax, but you don’t get the product you unless do. Like the employer above, the store owner is a tax collection agent. She doesn’t like this role any more than you do – but she’s been coerced into serving the state. She wants to be in business for herself but the Government requires her to be an agent for the state, in return for the “privilege” of being in business.
In fact, as things stood until very recently, the only way you could conduct any kind of business transaction without some government taking a share of the proceeds, was to pay cash – which of course is anonymous – and possibly secret from the tax collectors. Do you wonder why our government (and Banks), have launched a move to outlaw cash transactions – to permit only electronic transactions? Mark my words, it’s coming soon.
I hope it’s obvious from these few examples that taxation takes a bite out of almost every market transaction – and that we’d all be better off if it didn’t – as we’d have better choices available to us. At a basic level we could buy and sell goods and services without some third party affecting the pricing.
Regulations drive up prices
And lastly, let’s talk about regulations. When you buy goods and services manufactured or imported by big companies, a sizable portion of the cost pays for the company’s expenses in complying with government regulations. Smaller, more innovative, companies are often driven out of business by such compliance costs. There are many products sold in other countries that are better and much cheaper than their domestic counterparts – but regulations forbid their import, so you have to pay higher prices for the “made in USA” label.
Harry Browne Why Government Doesn’t Work
Harry Browne who was the United States libertarian presidential candidate in 1996 and 2000, wrote the book, “Why Government Doesn’t Work”. On page 97 indicates that the cost of regulation is between 10 and 32%.
“A study by Thomas D. Hopkins of the Rochester Institute of Technology estimated the cost of federal regulation at $600 billion annually, which is 11% of the $5,599 billion national income for 1994. A 1992 study for the Heritage Foundation by William G. Laffer, III, and Nancy A. Bord estimated the net cost of regulation (after allowing for the benefits regulation might produce) to be between 16% and 32% of the national income.
It is impossible to calculate precisely the cost of regulation, but it’s obvious that it exacts an enormous cost from us — and that it eats up at least 10% of the national income. Add that to the 48% that federal, state, and local governments tax away from us, and at least 58% of your earnings are diverted to satisfy the government before you get to spend anything on yourself.”
But the real cost of regulation is incalculable, we have no idea what an enterprising person might have created, but didn’t because his resources, both in time and money, for compliance were stolen from him by the government.
The fact is that we don’t need most of the regulations – they don’t actually serve us. It would be much cheaper and more economical to establish more websites like Angie’s List and Consumer Reports – where we could quickly find out what businesses deserve our trust, what products are dangerous, or where to go for the best deal.
So given that possibility, how did we, as a society, get to our present circumstances: taxed and regulated into near poverty by government authorities that threaten to steal our homes, empty our bank accounts, and/or throw us in cages if we don’t comply with their demands? For the answer to that one, we need to discuss cartels.
The Dominance of Cartels
Most folks think that cartels are something remote – distant. We think of oil cartels in the Middle East or drug cartels in Latin America. Yet the reality is that since the early 1900s, almost every industry in this country has been dominated by a cartel.
So what is a cartel? It is simply a shared monopoly that exists for just 2 purposes:
To maximize the profits of the cartel’s members, and
To maintain the monopoly position of the cartel.
As far as the definition goes, cartels don’t sound all that ominous. But here’s the kicker. Every successful cartel persuades a government to enforce the cartel’s rules. This eliminates the possibility of real competition – thereby decimating the otherwise free market. And governments go along with this partnership because they too get a benefit. At the very least, governments get bigger, their budgets grow, and their power over others expands. Workers in these government bureaucracies acquire more “responsibility” (power), get promoted to supervise more people, get raises and an increase of their prestige. Little wonder they like acting in complicity with cartels.
A few examples are in order. Central Banks, financial brokerages, academic institutions, political parties and all of the so-called professions are run by cartels. If you need a license or an academic degree to do it, it’s run by a cartel. And if you are licensed, you are a member of a cartel. Whether you are a doctor, lawyer, therapist, dentist, veterinarian, carpenter, plumber, electrician, hair dresser, or a general contractor… in short anyone with a “license”, you have unwittingly bought into a cartel. The government is itself a power brokerage cartel. That’s why you need government permission (a license) to drive a car, fish in the river, modify your home, ingest a medicinal herb, or otherwise do the things you would do just as well or better without a license.
Thus it is that, at the behest of the cartels, the government, be it federal, state, county, municipal, or special district, steps in and tinkers with the market in a variety of destructive ways:
Commercial banks, as permitted by government, lend money they don’t have – again stealing your money and outright defrauding everyone in the market. In addition they report your transactions to the IRS – empowering them to steal from you.
Speaking of the IRS, it is estimated that, on average, one dollar out of every three that you spend goes to pay for your vendors’ expense in attempting to comply with all the tax codes that apply to them. Again that makes everything you buy in the market more expensive than it would be otherwise.
Taxing Agencies at all levels of government collectively steal over 50% of your money. If they didn’t, you’d have twice as much money with which to participate in the market.
Tariffs on imported goods are supposed to protect domestic producers – but the net effect is that consumers have to spend more to make desired purchases.
So called Money Services Businesses (Money Transporters) include credit/debit card processors, banks that make wire transfers, and a miscellaneous category. To use these businesses’ services you have to be willing to divulge your personal and financial data to them. Their main drawback is that, in compliance with government mandates, their records are transparent to most government agencies. So you can’t use them without revealing where you are and what you’ve purchased. If the “powers that be” disapprove, they are quite capable of intercepting you as you leave the store.
So why do we tolerate all this government interference in our lives and our markets? The answer is mainly because the enforcers of these practices wear quaint costumes and have a monopoly on force. They carry badges, tasers, pepper spray, batons, gavels, and guns, which the government gives them permission to use with impunity to enforce their “laws”. It would be just as correct however to say it’s because most of us have been indoctrinated into believing that these weapon-wielding thugs and their black-robed and expensively-suited supporters somehow have “authority” on their side. This is a blatant lie! No one has a right to do collectively what would be a crime if done by an individual. When a cop pulls you over for a busted tail-light (not a crime) and winds up beating you up and hauling you into jail, he has committed assault, battery, and kidnapping. If he shoots you dead, it’s murder.
Real Market Freedom
Since you are still reading, you understand that to have a truly free market we must be able to side-step sanctions, avoid taxes, and safely ignore regulations. As unlikely as the fact may seem – the means to accomplish this is in hand today. The key is the judicious use of the recently invented digital currency called “BitCoins”.
Pros and Cons
Before discussing the tools needed to avail yourself of the BitCoin economy, let’s briefly examine the ethics of side-stepping sanctions, avoiding taxes, and ignoring regulations. Quite frankly, if you still believe sanctions, taxes, and regulations are good things, you are living in the matrix. Wake UP! If you have any critical thinking skills that haven’t been beaten out of you by the mandatory youth indoctrination camps (schools), read this article for an in-depth discussion of ethics, law, and government.
Because the major cartels control the creation of government edicts, the establishment of sanctions, taxes, and regulations is, you can be sure, not for your protection or benefit – but for theirs. Their financial interests are at stake – and when they win, you lose. If you think otherwise, you believe a series of lies that the BORG has created to manipulate your mind.
Tools for Achieving Market Freedom
The primary tools for achieving real market freedom are anonymous browsers, strong encryption, virus/malware protection programs, and digital currency. So what are these tools?
An anonymous browser, or anonymizer, allows you to visit websites without your identity or i.p. address being recorded or compromised. Thus whatever you do on the websites, your visit is truly private and cannot be traced back to your computer or identity. While there are multiple such browsers available, the best known and most widely used one is called Tor. You can download it for free at the preceding link.
Strong encryption is needed so that your privacy cannot be compromised by an examination of your computer’s hard drive, or your portable drives and flash drives. If Uncle Sam suspects that you are participating in the free market, you can bet your last dollar one of his minions will try to figure out what you are doing – and there are a number of techniques by which this can be done if you don’t exercise certain precautions.Similarly, if you encounter the TSA at an airport or elsewhere, you may be subject to an invasion of your computer privacy even with NO suspicion. Hence the need for good encryption. TrueCrypt disk encryption and Smart Encryptor file and folder encryption appear to be good choices, and can be had for free at the preceding links.
Malware protection is widely available on the Internet – and there’s nothing to keep you from using multiple programs to ensure that what one program misses another can detect. These programs aren’t perfect, so it behooves you to use more than one. Two good ones that come to mind are Malware Bytes and AVG.
Now we get to the interesting new technology that makes the free market a reality: Digital Currency. There have long been digital currencies available, but in the past they’ve all been susceptible to government intrusion – for the simple reason that their creators set them up using a website that could be attacked by the shutting down of the website or the raiding of the headquarters of the system’s creators.But a few years ago a brilliant anonymous computer programmer invented a digital currency called BitCoins – and everything changed. The BitCoin system has no central server or physical headquarters, but instead is what has come to be called a distributed peer-to-peer network. Those who are familiar with online file-sharing will realize that the immunity of file-sharing programs is based on this same design concept. Its primary features are these:
The entire BitCoin system is heavily encrypted.
The value of a BitCoin is determined by its perceived value – as in any free market.
Exchanges exist that allow one to buy BitCoins at the going price with other currencies on a global basis. While these exchanges could be attacked or destroyed by government, the BitCoin system wouldn’t even hiccup – because exchanges are easy to set up and new ones would spring up faster than government could take them down. You might want to consider setting one up yourself.
BitCoins are used anonymously – so the identities of buyer and seller cannot be determined by a third party.
The system generates new BitCoins by means of a process called “mining” which occurs at an ever-diminishing rate – so when 21 million BitCoins are in circulation the mining stops and the number of BitCoins will remain fixed thereafter. This insures that BitCoins cannot suffer from inflation and their value cannot be debased or manipulated, as is the case with today’s fiat currencies.In fact, as the value of BitCoins continues to grow they will experience deflation – meaning that the buying power of each BitCoin increases. This is unlikely to be a problem, as the smallest denomination of a BitCoin is .00000001 – thus, if the value of a BitCoin grew to $1,000,000, the smallest denomination would still be worth about 1¢ in the marketplace.
Let’s take a moment to compare BitCoins with other currencies. The value of a currency ultimately depends upon how useful it is to its owners. Every viable currency exhibits these properties:
The world’s fiat currencies exhibit all of these properties except one – Scarcity. When a central bank issues trillions of currency units (as does our Federal Reserve), it steals the buying power of every unit in circulation. The value of each unit diminishes and prices appear to rise. In this way the buying power of the dollar has dropped by more than 96% since the establishment of the Federal Reserve in 1913. This inflation is actually a hidden tax. Fiat currencies enable governments to tax the people, without the majority of people even being aware of it.
Moreover, fiat currencies are linked to the banking system, which destroys all monetary privacy, because the government requires the banks to report any “suspicious activity” in your account. This is done under the pretext of protecting the public from “money laundering” and the sale of “contraband” (i.e. drugs and guns). As a proponent of the free market, I am much more afraid of the government’s invasion of my privacy than I am of the threat of money laundering or contraband. After all, “money laundering” just means “financial privacy” and “contraband” simply refers to ownership prohibition, which the government has no moral right to impose.
So let’s examine other currencies – backed by gold or silver. These provide durability and scarcity, but are not as portable or readily divisible as BitCoins. Moreover, their use is expensive. Transporting any significant amount of gold or silver requires security measures and a trustworthy carrier. How are we to know whom to trust? And if you successfully ship your gold to a secure facility in Singapore, how are you to use it? And who is to say that a regime change in Singapore won’t jeopardize your holdings there. The need to entrust your holdings to a third party is a significant risk.
Alternatively you could buy physical gold or silver and keep it with you at home. But now you have to provide security against theft or government “confiscation”. To think your government won’t raid your home and confiscate your gold is naïve – they’ve done it before and are likely to do it again.
By contrast, BitCoins provide all four desired properties: scarcity, durability, portability, and divisibility. In fact, so portable are BitCoins that you could use some to make a purchase from someone in a foreign country – anywhere in the world – and no one would know, nor could any government stop you. In addition to the desirable features described above, BitCoins provide financial privacy, the scarcest commodity in today’s global police state AND immunity to government manipulation. The only way the use of BitCoins could be curtailed would be to shut down the Internet in its entirety – but in today’s world, this would be a disaster for the entire global economy, as well as for communications and transportation systems. Even if an EMP pulse were to knock out 99% of all the computers and the internet, the entire chain of transactions, known as the “blockchain”, is stored on every computer running the BitCoin client. When the Internet came back online, you would still have all your BitCoins. And the system, being open source, would repopulate itself. Voila!
The Titanian Free Market Project
In keeping with the ethics of the Titania Project, we are hereby launching the Titanian Free Market Project. In future articles we’ll bring you more detailed information about:
Access to free market Tools
The proper use of free market tools
Advantageous ways to establish a free market business and
Specific business opportunities in the free market.
Free market risks and how to deal with them.
The BORGhates the idea of a truly free market – because a free market, such as I’ve described above, cannot be controlled, taxed, or otherwise manipulated – not by the cartels, not by the banks, not by the IRS, not by the courts, and not by the gun toting thugs who serve these interests. The reason the government has control of the “money” is because it is theirs – they own it. Give to Caesar, what is Caesars! And they can keep it! BitCoins are outside the jurisdiction of the government, totally off shore, existing only in cyberspace!
For this reason it is altogether predictable that governments the world over will attempt to intervene – by whatever means they can – and I’ll tell you when things will come to a head. It will get really nasty when employers and employees realize that both will benefit when employees’ salaries are paid in BitCoins – thereby completely bypassing the banks and all their snoopy complicit reporting – not to mention that the income tax will be in its death-throes at that point. Can you see it?
The governments’ first step will be to outlaw BitCoins – to prohibit them – to make it illegal to own them or trade with them. We’ll be told that those who use them are drug dealers, money launderers, pedophiles, porn brokers, smugglers, gun runners and terrorists. Of course we’ve all seen how effective previous attempts at prohibition have been. They fail quickly enough when transactions are not anonymous. No one need know that you own or trade with BitCoins, if you observe a few simple precautions while using them.
Bitcoins in Dollars
As far as transforming our world, BitCoin is a game-changer. It offers all the same reasons to buy it as gold and silver, plus you can send it around the world in an instant! It is outside the purview of any government and using BitCoins does not contribute to Governmental terrorism. It takes money, and, for the first time in history, puts it in the hands of the WE THE PEOPLE! The time is now to buy BitCoins and start trading them for things you need. The value has gone up over 1200% since the beginning of the year! Start by dumping the dollar for BitCoins and deprive the BORG of the resources they need to enslave you. As more and more people continue to use them the value will continue to go up. Which would you rather have – BitCoins, a currency that is increasing in value or the dollar, a currency that has been systematically devalued by 96% since 1913?
Wow, what a long strange Trip it’s been! Many of my friends know me as Morpheus. You know “The Bringer of the Dream“. I use this handle, tongue in cheek, as a way to explain the co-incidences of my experience, living in this kind of science fiction movie. When you find yourself in a movie you have to get a stage name, So Morpheus it is!
After the events of 9/11 i came to the realization that the government is a criminal organization, and therefore I had to quit feeding it. I have chosen to live outside the Matrix, so I have to hustle for my daily bread. The more I move into the future the more I am moving to a Agorist Lifestyle. I like to work and provide value to those I encounter. I have sold cars, home improvement, advertising, home security, windshields, solar power. Now I mostly sell Bitcoin. The main reasons being I don’t need a license, bank or permit to do it. All I need is a phone and that’s it. Since February 2014 I haven’t had a job and I live on what I make selling Bitcoin. I like being semi-retired. No one tells me what to do how to do it when and where to do it, what clothes I can where and when I can use the bathroom! I’m not rich however being able to do what I want to do when I want to do it has incredibly high value for me.
On 2001/09/11, I was running a direct mail company called “The Direct Hit” with my x-wife Keele. In the year 2000, just outta the chute the company did Frn$300,000. Month before 9/11 we did a quarter million bucks in sales and the month before that over a quarter million as well. We had 9 people banging on the phones and we were rocking, it was crazy. Here’s where I thought the x-con makes it big. He does, just “Not Today!” as Buzz Lightyear would say. Well the universe had other plans for me. 9/11 hit and that stopped us cold. Then we had the Anthrax in the mail. September all the contracts we had called and canceled. Did 5 Grand in September. I was looking like I was cold cocked in the face.
I couldn’t get myself figure out what was the next best direction to go. Keele was pregnant with my son. We were having house built in Anthem, Arizona. We were bleeding money. We moved the business to working in our dream house, it just wasn’t the same. I went into a tailspin. Keele got an offer to work in Florida of a competitor. We sold the house, filed bankruptcy and the IRS had my ass in a sling.
As a result of going to Florida, I met Robert (Bob) Podolsky at a Libertarian meeting near West Palm Beach. I knew right away Bob had some of the answers I was looking for. Bob started talking about Creativity and Ethics and how they were linked. He shared with me that hierarchies create the problems so they can justify their existence. Being sort of a Libertarian, even though I have the privilege of never voting, I knew that the Government was bad, almost Evil. The Federal Reserve was Evil, and being a recovering Roman Catholic, I knew Organized Religion was a snow job.
Bob let me know these entities were not separate, they were just parts of the same Organization, a cartel really. To be more precise they are parasites operating as part of the Power Brokerage Cartel we call as the B.O.R.G. The B.O.R.G. is an acronym coined by Bob, which stands for Banks and Big Business, Organized Religion, and Government. These are the institutions that most people think of to SOLVE problems, Actually they create the problems first and then they Manage these created problems, for a small fee of course! Many of the concepts Bob was explaining to me made more sense than anything else I had ever heard, especially since Bob had a solution to the Hierarchical problems
After understanding what the source of ALL the problems in the world were caused by this hierarchical group of Psychopaths known as the BORG, Bob also let me know that there is actually a solution to the BIG PROBLEM. To correct this imbalance, individuals are needed to create competing, non hierarchical groups know as Octologues, which is a group that work unanimously to direct energy in any ethical way they see what they fit. Its simple really: in an octologue members must agree or the group can not make a decision. The simple beauty here is the system actually encourages feedback. In a typical hierarchical construct that most of us live in it boils down to this: If we wanted your opinion we would be giving it to you. The surveys are simply there to understand how well the information is being accepted and how much more marketing needs to be done for whatever threshold is needed for WHATEVER they are selling. These Pyramid structures are created specifically to avoid, eliminate and destroy any feedback and ere as the non hierarchical Octologue feedback is fostered and encouraged.
War, Ethics, Taxation, Slavery and the Federal Reserve
The only reason a country goes to war is for control of resources, it is not for noble reasons. Some people believe that war are fought for noble reasons like freedom, security, oppression of “bad guys”. Many other people think believe war is the worst atrocities of the planet. Bob Podolsky dispels the notion that wars are fought for noble reasons. The government says it is our duty, it is our responsibility, it is our social responsibility etc, etc, etc.
Control of resources
Nonsense! The only one reason why wars are ever fought, that is for control of resources. Those resources might include Oil, Natural Gas, arable land, access to seaports and Slaves. Slaves are free sources for which many wars and history makes it very clear. When you study history closely you will see this is so
Years of research have led me to believe that humanity is facing a really BIG PROBLEM – one that will make us extinct in the near future…Unless they are corrected! The Big Problem is created by hierarchical organizations at the top of the pyramid, consistently making unethical decisions. These decisions are generally based on the Utilitarian Ethic. Utilitarian ethic decisions are deemed to be good, as long as as the effects of the decision supposedly helps more people than it harms. The problem is that we are harming some people and helping some people. This fallacy comes from the 4th comforting lie: Majority rule makes the best group decisions.
What gives an organization the right to harm anyone? When an individual harms someone else, that act is criminal in nature and is called theft, assault, extortion, fraud or murder. However when a large organization harms someone those acts have new names known as: taxation, arrest, seizure, monetary policy or war. These acts though disliked, are considered in the society of the early twenty first century, to be generally acceptable and a necessary evil of society.
Titania exists to solve a problem that humanity currently faces. We call it “the Big Problem”. Some of its symptoms are:
Government generally acts in the best interests of the public.
The evidence that refutes the validity of these myths is so vast that it is amazing that anyone still believes them. Most of us have met reptiles more honest, wise, and caring than the political leaders we know. Yet millions of people are still comforted by this lie, so we need to address it here.
Oscar Ameringer said many years ago, “Politics is the gentle art of getting votes from the poor and campaign funds from the rich, by promising to protect each from the other”. Another commentator, economist Frederick Bastiat, explained that government is the mechanism by which everyone tries to spend everyone else’s money. Let’s begin our analysis of these and similar assertions by examining some obvious facts.
a) It is an unending source of humor in this country to point out in various ways that politicians almost never keep the promises that they make to the public when they campaign for election to public office. Mark Twain was famous for such humor, as were Joe E. Brown and Groucho Marx. Night-time talk show hosts on television often joke about this widely recognized fact. Yet the lying politicians are never held accountable for their lies. They spend billions of dollars on surveys and polls to find out what the public wants to hear. Then they tell us the comforting lies that we want to hear in order to receive our votes.
They know that they are lying and have no intention of keeping their promises to the public, but there are no penalties for engaging in this practice; so they continue undaunted and unscathed.
b) For generations our government leaders have claimed that they possess the uncommon wisdom necessary to solve the serious problems that our society faces. In their (seeming) attempts to do so they have passed thousands of laws and promulgated scores of thousands of regulations. In attempting to enforce these laws and regulations they have spent trillions of taxpayers’ dollars.
What is more, in passing their laws and attempting to enforce them they have violated almost every provision of our Constitution and Bill of Rights. Worse still, they have violated, and continue to violate, every one of the ten Ethical Principles. Yet, in the final analysis, government has failed to solve even one societal problem. They don’t even claim to have succeeded. Not one politician has gone on record to say, “Look! This problem is finally solved.”
In fact the major problems have escalated dramatically over recent decades. War, violence, terrorism, poverty, hunger, drug addiction, street crime, corporate corruption – you name it – all have gotten worse and worse as the years have passed. Today the likelihood that humanity will annihilate itself with weapons of mass destruction is greater than it has ever been in the past. It isn’t even controversial to state that government has utterly failed to solve any major societal problem. The only controversy to discuss is, “Why has government failed to attain any of its stated objectives to help the people by solving our problems?”
There are several equally applicable answers to this question.
Government leaders are neither honest, wise, nor caring.
a) Government actions consistently employ unethical means in their efforts to solve problems for the public. The most obvious example is the use of taxation to raise money to succor the poor (albeit the rich are succored in this way more than the poor). The end result of this practice is that almost without exception the outcome is the opposite of that which was supposedly intended…and the public suffers more instead of less. And the final, and most important answer to the question is:
To explain this statement we must consider the fact that government as we know it today was invented in the country of Sumer (now southern Iraq) some eight thousand years ago. That government was an outgrowth of tribal society and primitive kingdoms that had previously existed in the region. At that time government was comprised of those individuals who had amassed enough wealth to buy weaponry and to pay and/or coerce strong young men to wield them.
Up until that time these individuals engaged in costly, and often bloody, competition with one another. This state of almost constant warfare sapped their resources and threatened the security of both their assets and their power to rule their individual domains. In this “might makes right” environment they were also frequently attacked by lesser members among their ranks who envied their wealth and power and sought to take over rulership for their own benefit.
To alleviate this problem, the leaders of these disparate and competing groups decided to form a shared monopoly of their power over their constituent subjects. To accomplish this (unethical) end they invented the hierarchic mechanism that we call “government”. The method was simple. All power over others was vested in the leaders who acted as power brokers by delegating authority to their more-favored subjects in return for their cooperation and help in keeping lesser subjects under control and collecting material resources (taxes) from those who had still less power in this hierarchic scheme.
Government is a Power Brokerage Cartel
Such a shared monopoly, whether it be a monopoly of political power, money, oil, electricity, or any other industry, is called a cartel in modern times. So what are the true objectives of a cartel? There are only two:
a) To maximize the profits and power of the members of the cartel, and
b) To stabilize and enhance the position of the cartel’s members in the marketplace that they monopolize.
With these objectives in mind, let’s now ask the question, “Has government succeeded or failed to meet its (true) objectives?” Has government maximized the profits of its members? And the answer is, “Yes. It certainly has done so”. In the United States at the beginning of the 21st century AD, fully one half of the wealth generated by the taxpaying public is turned over to the government to spend as it sees fit. In some other countries, more “socialized” countries, this figure runs as high as 75% or even more. When taxation was first instituted in this country it only usurped about 1% of the nation’s wealth. So we see that government has been very successful in steadily increasing its profits at the expense of the public.
Has government been successful in stabilizing and enhancing its members’ positions in the power-brokerage business? Again the answer is “Yes. Indeed it has.” Today all countries are run by power-brokering governments that operate on similar principles in order to achieve similar goals. So the trend that began in Sumer eight thousand years ago continues today.
The European Union, is an attempt to join the government cartels of Europe into a super-cartel with the power of all its individual government cartels flowing into the hands of a much smaller group of govern-ment leaders.
The United Nations is a similar effort on the part of a much larger group of governments to create a cartel that could eventually take control of the entire world. If permitted to succeed, the UN will eventually constitute an empire whose rulers control the day-to-day lives of every man, woman, and child on the planet. You may ask, “Could such a thing actually happen?” And the answer is, “Yes. It is already happening.” UN plans exist for a world military organization, a world bank, a world court, a world charity, and so forth. Portions of these organizations are already up and running today.
So the upshot of this awareness is that, while government has failed to meet its publicly stated objectives, it has, in fact, been very successful in achieving its true objectives of maximizing its profits and stabilizing its members” positions in the power-brokerage market. This observation and those preceding prove conclusively the falsehood of the fifth and sixth “Comforting Lies”.
The most pervasive variety of this ethical violation is taxation. When a government, of whatever form, coerces its subjects into paying taxes it violates the E+ Ethic by violating Ethical Principles 3, 4, 7, 8, 9, and 10. The common argument, that majority rule justifies taxation is wholly bogus. To see this clearly, consider the fact that government is just a group of individuals. Let’s include in this group elected officials, their appointees, their employees, and even the people who voted for the electorate. All of these people are just individuals, none of whom have the “authority” nor the “right” individually to tax another. Ethical Principle number 9 implies, by simple logic, that none of these individuals can delegate to the group that they comprise the authority to levy a tax.
Moreover, Ethical Principle number 10 states that valid (ethical) laws must protect people from the predatory acts of others. But when a government taxes its citizenry it becomes the predator, which is not only a great evil, but also, a betrayal of the trust of the people that government rightly exists to protect.
In this country (the USA) the average taxpayer gives up half their income to local, state, and federal governments through direct, indirect, and hidden taxes. This fact turns a trusting nation into a land of half-time slaves. The previous statement is not a metaphor – not a figure of speech – but demonstrable fact. As long as we continue to permit the practice of taxation we continue to be stuck in the MATRIX, half our life’s energy stolen from us by coercive taxation.
I have maintained for some time that taxation is government’s most criminal enterprise and that it is, in fact, a form of slavery. Yet it continues to baffle me that so many people cannot or will not see the obvious truth in these statements and insist on arguing that taxation is necessary to humanity’s well being and that it is not slavery at all. “The greatest good for the greatest number” goes the usual utilitarian refrain…which I maintain is one of the greater falsehoods…for the usual reasons. But since these reasons are so elusive to the greatest number I have decided to explain my reasoning in language that (hopefully) anyone can understand, thus settling this dispute once and for all in the eyes of any reasonable person.
While a whole book might easily be devoted to this subject, it is my intention to present here only a brief treatise on the subject in order to make the information as accessible as possible. I present herein three separate, but not entirely independent, arguments to make my case. I call them respectively:
Property Rights is the one usually presented by libertarians in the manner of the late Murray Rothbard. Unfortunately, Rothbard presupposed that most people would accept intuitively that people own their own bodies. From this assumption he then reasoned that this implied the existence of property rights and hence absolute ownership of whatever the individual might create or produce. While the reasoning behind this argument is correct, few people accept it because it is counter-intuitive. It is counter-intuitive because as children it is obvious to us that our parents own our bodies, rather than we ourselves. When we go to school our teachers appear to own us. And when we grow up and become employees it often seems that our employers own us. We also observe as adults that if we refuse to pay taxes we can involuntarily lose possession of all our assets, thus demonstrating that government has a higher claim than we do to whatever we would like to believe we own. In the midst of such a society it is hardly surprising that most of us are unconvinced that we have any property rights not mitigated by government decree.
So it follows that if indeed we have any property rights worth discussing we will need some other way to discover this fact than simply agreeing with the Rothbard assertion that we own our own bodies. Fortunately there is another avenue of reasoning that we can call upon for this purpose. It begins with the definition of an ethical act:
An act is ethical if it increases the creativity of anyone, including the person acting, without limiting or diminishing the creativity of anyone.
As I have shown elsewhere, this definition is logically equivalent to similar definitions in which the word “creativity” is replaced by “love”, “awareness”, “personal evolution”, or any of a potentially large set of resources that are logical equivalents of creativity. I have also conclusively shown elsewhere that the utilitarian definition defining an ethical act as one that does more good than harm is invalid, and that because of this that it follows by simple logic that ethical ends cannot ever be attained by unethical means no matter who (or how many) benefits from such an act.
Now let’s ask the question, “Might it be ethical to steal someone’s possessions, either by force or by deceit?” And the answer is a resounding, “NO!” The scientist depends on her computer. The poet depends on his word processor. The artist needs her brushes and paints. Steal these things from someone and they are rendered less creative. By definition such an act is unethical…bad…evil. It follows logically from this that if we have the “right” to be treated ethically then we must have the “right” to own whatever we are able to acquire without stealing from someone else…and that therefore no one has the right, for any reason, to deprive us of the fruit of our bodies’ labor. By similar reasoning it follows that we do indeed own our own bodies and that any act which abrogates that right of ownership is an act of slavery because it diminishes our self-ownership. If our physical and financial possessions indeed contribute to our creativity, then it follows that the systematic removal of any such resources from our possession is evil and is a form of enslavement. Taxation is just such an act.
The Robin Hood Argument
The Robin Hood Argument is even easier to understand. We begin the discussion with my asking you the question, “Would it be all right with you if I stole your assets?”
And of course your answer is, “No.”
Next I ask, “Would it matter to you whether the theft was by force or by fraud?”
Again you answer, “No.” Then I ask, “Would you care what I did with the money?”
Again, “No.” Then I ask, “What if I gave the money away…would that make it okay?”
Again, “No.” “Suppose I gave half the money to a lot of poor people and they liked it and wanted more. Would that make the theft okay with you?”
Still, “No.” “Suppose all those poor folks elected a bunch of congressmen and I gave the other half of your money to them to spend as they wished. Would that make the theft okay with you?”
Still, “No.” “Finally, suppose those congressmen got together and wrote a piece of paper saying it was all right for me to steal from you and give away the proceeds; and they called that piece of paper a ‘tax law’. Would that make the theft okay with you?”
At this point I hope you have the good sense to continue saying, “No. NO. NO!”
Now I put it to you that the above description is exactly the reality that you face in relation to government as we know it today. The “I” in the example above is the IRS. It takes away your money by means of coercion, intimidation, and force and gives it to others who claim to legitimize the theft on the basis of majority rule, public benefit, wealth distribution, homeland security, etc., etc., etc. To the extent that the above description is correct, the government is a thieving parasite and you are its host. To the extent that you don’t get to keep the fruit of your labor the government owns it, not you; and to that extent you are a slave.
I should say a few words here about how the government steals from you. It does so in three ways. First it taxes you directly by means of income taxes, property taxes, sales taxes, parking and traffic tickets, court imposed fines, school and utility district assessments, licensing and registration fees, gasoline, alcohol, and tobacco taxes, etc. Then there are taxes passed on to you indirectly. Most of these are taxes paid by the businesses which make or import the things you buy. Every time the government requires a tariff for the importation of foreign goods or raw materials it requires you to pay more and get less. If your Toyota dealer pays a tariff, then you are paying more for a car than the free market would charge. If you save yourself the added expense by buying a Ford, then in effect your government insists you settle for an inferior product so that Ford can make a bigger profit. This amounts to an indirect tax. Either way value is taken away from you and given to someone else who didn’t earn it.
And finally there are hidden taxes. The most blatant example of a hidden tax is inflation…the illusion of rising prices. Every time the Federal Reserve prints money for the government to spend, the government gets the full value of each Federal Reserve “dollar” printed. But shortly after the money is spent by the government it is absorbed by the economy and the value of every dollar in your bank account is diminished. In effect the government thereby steals the buying power of all of your money without your even knowing that you are being taxed.
All in all, if one includes direct, indirect, and hidden taxes, the average American gives up about 50% of their gross income to local, state, and federal authorities by way of taxes. That means that fully half the fruit of your labor is forfeit whether you like it or not. Is it any less odious to be a half time slave than it would be to live as a full time slave? I think not? Slavery is slavery.
Smart Business Argument
The Smart Business Argument starts with a fantasy. Imagine I am a slave owner and you are one of my hard-working slaves whom I use as labor in my agricultural business. They (and you) plant my fields and harvest my crops, which I sell at a substantial profit. My business depends on them. While you may think that slave labor is free to me, the fact is that it is not. Besides the initial purchase of my slaves, I have to maintain them. I feed, clothe, and house them…albeit cheaply, but it’s not free. I pay for whatever medical expenses I decide to invest in their health and I pay for their management, which includes the services of bounty hunters who round them up for me when they escape. I also have to pay for the tools and implements that my slaves use and the seeds that they plant. All in all it’s an expensive operation. What is more, I am limited in the geographical scope over which I can deploy my slaves, so my business is pretty much limited to the acreage contiguous to my home. This limits my profits still further.
Not wishing to remain so limited I consult a savvy business adviser and soon create a labor cartel together with a number of my colleagues. The cartel in turn goes into partnership with the government. Soon thereafter I round up all my slaves to attend a meeting at which I make the following announcements: “As of today your life will be different. Subject to certain rules and conditions, you and all other slaves will hereby be set free. The purpose of the rules is to reimburse me and my colleagues for the investment that we have made in you. When that debt has been paid, you will be completely free for all time. These are the rules:
1. You can live anywhere in the world you wish. As of today you can live in any housing you can afford. You pay for your own.
2. You can do any kind of work you want to do. You will work whatever hours you and your employer agree upon.
3. You will attend school through at least the age of 18 in preparation for your work. You will pay for your schools through taxes.
4. You may own a business if you so desire and are able to acquire the capital needed to start it.
5. You will carry an identification token all your life and through it your income will be tracked. I will know where you are working and for whom. I will know how much you earn and where you bank.
6. Directly and indirectly you will pay me and my colleagues 50¢ out of every dollar that you earn. This will apply toward payment of your debt to me.
7. If you need to borrow additional money and can convince a bank that you are a good ‘credit risk’, money will be created for you with the stroke of a computer key. This money costs the bank nothing to create and represents no risk to the bank, but if you fail to repay it with interest the bank will take away your house, your car, or any other assets you have that the bank required as collateral for the loan.
8. When the government needs to spend more money than it has collected in taxes, it will ‘borrow’ it from the Federal Reserve System which is a cartel of the world’s biggest banks. It will not need your permission to do this, but you and your descendants will be responsible for repayment of the loan. It will simply be added to whatever you already owe . Naturally the value (buying power) of all the money (Federal Reserve Notes) in your possession will steadily diminish as the Fed continues this practice, so of course your debt to me and my colleagues will never be repaid in full.
9. In order to maintain your sense of freedom you will participate in general elections at regular intervals. The majority vote will determine who occupy the positions of elected officialdom. But the rules above will never be changed to your advantage…only to the advantage of the banking and labor cartels that are actually the owners of the whole system (including you). Accordingly, discussion of these rules will never be part of the general debate at election time.
10. The local, state, and federal governments of the United States will be responsible for enforcement of the rules above in keeping with its partnership in the banking and labor cartels. The courts will adjudicate any conflicts that arise; but discussion of these rules will be forbidden in court and any reference to them will be deemed ‘frivolous’ by the courts. In this way the rules become in themselves a form of law more potent and inviolable than the state and federal constitutions and local charters that might otherwise interfere with the working of the rules.”
The rules above are just “smart business” from the viewpoint of the modern slave owner. Costs are held to a minimum. Productivity is maximized. The slaves manage themselves. There are no rebellions to be concerned with. And yet the slaves are easy to manipulate and control using modern methods of scholastic indoctrination and media communication. What a blessing that most of the slaves have no inkling whatever that they are in fact slaves. This fact alone makes the whole system worth whatever sacrifices the slave owners have made to create it, because there are no organized modes of resistance to the system. Even the organized religions don’t protest the half-time slavery imposed on the public. What a deal for the owners of the system!
In Conclusion, I ask you not to feel too badly if you didn’t get it before now…if you didn’t realize that you are a slave. Most of us don’t get it and billions of dollars are spent each year to keep us in the dark about it. By maintaining the illusion that we are not slaves the system’s owners remain free to continue their perpetuation of the system, with the eventual (though not too distant) goal of taking over the whole world. If we don’t act promptly and with vigor that goal will be attained…very probably within your lifetime. As the goal is neared the deceit will become less and less subtle and the limitations on our freedom more and more pronounced. With the exceptions of 1865 and 1920 (emancipation and suffrage) we have had less freedom every year than the year before. This series of books  points the way to the only viable solution that I can see to the, otherwise inevitable, outcome of global slavery and the concomitant degradation of the social and physical environments of the world…to the detriment of all…including those who will be world’s rulers. It is a universal characteristic of parasites that, in the end, they destroy their host and with it themselves. Now let’s look at another atrocity – the attacks of 9/11/2011.
 See Appendix B of “BORG WARS” by Robert E. Podolsky
 See The Creature from Jekyll Island, a Second Look at the Federal Reserve System by G. Edward Griffin,
 Fully one half of your direct federal taxes today go to pay the interest on such loans.