April 2021 - cypherpunks - lists.cpunks.org

*SPAM* RE: DAN KAMINSKY DIES FROM VACCINE
by lolwut 30 Apr '21

30 Apr '21

Spam detection software, running on the system "mail.pglaf.org", has identified this incoming email as possible spam. The original message has been attached to this so you can view it or label similar future email. If you have any questions, see the administrator of that system for details. Content preview: Content analysis details: (4.8 points, 4.0 required) pts rule name description ---- ---------------------- -------------------------------------------------- 0.0 URIBL_BLOCKED ADMINISTRATOR NOTICE: The query to URIBL was blocked. See http://wiki.apache.org/spamassassin/DnsBlocklists#dnsbl-block for more information. [URIs: imgur.com] -1.9 BAYES_00 BODY: Bayes spam probability is 0 to 1% [score: 0.0000] 1.3 RCVD_IN_BL_SPAMCOP_NET RBL: Received via a relay in bl.spamcop.net [Blocked - see <https://www.spamcop.net/bl.shtml?37.120.193.123>] 1.3 RCVD_IN_VALIDITY_RPBL RBL: Relay in Validity RPBL, https://senderscore.org/blocklistlookup/ [37.120.193.123 listed in bl.score.senderscore.com] 0.5 SUBJ_ALL_CAPS Subject is all capitals -0.0 SPF_PASS SPF: sender matches SPF record -0.0 SPF_HELO_PASS SPF: HELO matches SPF record -0.1 DKIM_VALID Message has at least one valid DKIM or DK signature 0.1 DKIM_SIGNED Message has a DKIM or DK signature, not necessarily valid -0.1 DKIM_VALID_AU Message has a valid DKIM or DK signature from author's domain 0.8 RDNS_NONE Delivered to internal network by a host with no rDNS 2.8 DOS_OUTLOOK_TO_MX Delivered direct to MX with Outlook headers

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Libertarians: Homeless or Actively Building a Home? Choose one.
by grarpamp 29 Apr '21

29 Apr '21

https://brucewilds.blogspot.com/2021/04/americas-political-system-leaves.ht… https://mises.org/power-market/three-states-libertarian-voters-may-decide America's Political System Leaves Libertarians Homeless Sadly, in America's two-party political system Libertarians are left Homeless. The libertarian philosophy or ideology has many facets. Running through all of them is the idea that less government is generally a good thing. This reminds me of what President Ronald Reagan, famously said: The nine most terrifying words in the English language are "I'm from the government, and I'm here to help." Such words resonate with most libertarians. While the government may claim it has good intentions history shows it often finds a way to muck things up. This is due to the fact that "government" is comprised of both corrupt and fallible human beings. This is a toxic combination that tends to create policies that screw things up. This takes a variety of shapes, including costly or unintended consequences. While some people write a blog for financial gain, others of us do so seeking as wide a base of readership as possible in order to have our opinions heard and share ideas. It is fair to say that on occasion some readers, with opposing opinions refuse to agree to disagree. Below is a comment from one of those fellas taking issue with my claim libertarian views do not align with those of the right, part of what he is saying reflects the confusion surrounding libertarian philosophy. Libertarian, or far-right, what's the difference? So many times in the past, I've read blogs and websites from the far-right, in which they love to cloak themselves in the term of "libertarian," but the rest of the Rational world understands your dog-whistle politics and misanthropic social ideals. Do your criticisms flow both ways? Where's your hard-and-fast criticism of the political ideologues on the far right? In truth, the views of those claiming to be libertarians often conflict with those of other libertarians and even the Libertarian Party. We tend to be an odd lot and that is why the Libertarian Party may be doomed to failure. It seems the elephant in the room is the question of exactly where one person's rights start and where another begins. A libertarian is committed to the principle that freedom and liberty are the most important political values. This means we should be able to make our own choices about our own life, what we do with our body and our property. In short, other people should not forcibly interfere with our liberty, and we should not forcibly interfere with theirs. Over the years, you would think the failure of big government to address our problems and woes would have convinced more voters expanding the role of government is not the answer. The cost of big government and the reality Washington seldom accomplishes its goals is beginning to nibble at the theory more government is good for society. While Government may be better at giving people access to services and good at passing popular laws, the private sector is by far more efficient and better at controlling costs. Over the last two centuries the United States government has been steadily moving away from Adam Smith’s idea of limited government and towards the view of Abraham Lincoln that government should do for the people, whatever needed to be done. The Democratic Party has long been thought of as the party of "big government." Filled with believers that more government can make things right they claim they care about the "little guy," women, workers, minorities. They are big supporters of unions, more rules, and more regulations. We, libertarians, looking for a port in any storm often find ourselves in the Republican camp but it is a poor fit. In politics many of the positions people take reek of conflict. The pursuit of an agenda or political advantage often results in people working together who would not otherwise normally socialize with one another, politics makes strange bedfellows. An example of this is how President Obama had the support of business-minded Republicans when pursuing trade deals while his party fought the idea. Another example of this is how the mainstay Republican party stabbed Trump in the back on several occasions. Clearly, it was Libertarians and Populists that allowed Trump to get elected. In a piece authored by Tho Bishop via The Mises Institute, he writes, "Since 2016, the role of libertarians in political discourse has tended to devolve away from a relevant political demographic into a weird scapegoat for the Left and Right." Bishop goes on to point out what I contend is a major problem, and that is, while the libertarian electorate may not be valued, it is a very important demographic. This is because during Presidential elections those voting for a Libertarian Presidential candidate can flip enough delegates to give one party an undeserved victory in the electoral college. Libertarians are often misunderstood, they believe people are basically good and are endowed by their Creator with natural rights, including the rights of life, liberty, and property. In the United States, libertarians often embrace a political philosophy that advocates small government and is culturally liberal and fiscally conservative. This is far different from what is offered up in America's two-dimensional political spectrum mainly made up of conservatives with rigid right-wing social values and liberals that embrace big government and the spending that supports it. The Trend From 20% To 35% Is Clear And Continues Big government is not just an American problem and tends to be even worse in countries established long ago. It seems corruption and government both tend to grow in unison over time. The reality of ever-larger government has manifest itself in more scandals as departments overreach their missions. This can be seen in the military, the IRS, NSA, and huge incomprehensible bills being passed by Congress while our government often fails to accomplish the tasks it is given. Like the Populist, until the system changes, libertarians should expect to remain a small swing group looking for a home. As for the idea of reforming or improving our election system, that is very unlikely to happen as neither major party wants to introduce a change that might benefit the other. The entrenched interest of the elites within the system block change. The small hope for change can be found in shifting demographics that are rapidly shrinking the Republican Party. If they do not adopt a more populist message and a big tent policy they will continue to lose power. This could have a very negative impact on America going forward. The polarization we see today may be mild compared to what we see in ten years if a large segment of the population feels its voice is silenced. If the checks and balances in our system fail, expect anger to grow as more Americans begin to feel even more left out in the cold. The saying "be careful what you wish for" may again be proven true as those wanting more government intervention experience the limits of government and bureaucracy while burdened by the financial cost it imposes. We must remember that government is often not constrained by the power of the purse to strive for efficiency, where a business fails when it does not meet its goals of providing a good service or product at a reasonable cost government muddles on. The open-ended theme of larger Government is generally a mechanism to in some way transfer wealth. Mandates often unfunded are fostered upon business organizations and private citizens. A new proactive movement of “cuteness” cloaked in a veil of flexibility and diversity has allowed politicians and bureaucrats to use terms like "Private Public Partnership" and "quasi-government entities" that mask just how deep its roots have grown. These terms open a pathway for politicians to tinker without the personal financial risk that a businessman must take. Those within government love being creative especially when they do so on our dime. The use of sun-set legislation is underused when it comes to extending and renewing government bodies. We tend to forget that the best time to kill a monster is while it's small. It is the nature of bureaucracy to expand. It often takes courage to make difficult and unpopular political and economic decisions that will cause pain but benefit society in the long run. A political system that encourages sidestepping these issues to pander to the masses in exchange for remaining in power pays a tremendous price that can stay hidden for only so long. This is a trap America has slipped into, getting out of this will prove quite difficult. I seriously question whether we have the fortitude to take the necessary steps required.

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Cryptocurrency: Offers A New World of Choices Free From Force Theft Subjugation War
by grarpamp 29 Apr '21

29 Apr '21

Biden To Propose $80 Billion For IRS, More Power To Chase Down High-Income Tax Evasion The Biden administration is expected to propose giving the IRS $80 billion and granting the agency more power to track down tax evasion by high-income individuals and corporations, according to the New York Times, citing 'two people familiar with the plan.' The proposed funding would be an increase of two-thirds over the agency's entire budget for for past decade. The 10-year proposal would also include new disclosure requirements for small business owners not organized as corporations, as well as other wealthy people who could be hiding income from the IRS. Those using so-called pass-through corporations (such as the one the Bidens used to funnel $13 million through tax loopholes), as well as people holding wealth in 'opaque structures,' would be subject to new reporting requirements. The additional money and enforcement power will accompany new disclosure requirements for people who own businesses that are not organized as corporations and for other wealthy people who could be hiding income from the government. The Biden administration will portray those efforts — coupled with new taxes it is proposing on corporations and the rich — as a way to level the tax playing field between typical American workers and very high-earners who employ sophisticated efforts to minimize or avoid taxation. -New York Times According to the report, some $700 billion in tax revenues recovered over 10 years by the beefed-up IRS will help pay for Biden's next stimulus injection - dubbed the "American Families Plan" - which is expected to cost at least $1.5 trillion. It will follow Biden's $2.3 trillion infrastructure package, which follows some $5.3 trillion already passed for pandemic relief (Ethereum hit all-time highs today, coincidentally). The new plan would include universal prekindergrten, a paid federal leave program, and childcare affordability measures - as well as free community college for all. Biden also plans to pay for his printing bonanza by raising the top marginal income tax rate for wealthy Americans to 39.6% from 37%, and wants to raise capital gains tax rates for those earning over $1 million per year - including income received through stock dividends. The Biden administration is likely to portray the $780 billion recovered over 10-years as a conservative estimates - as it only includes money directly collected through enhanced tax audits and additional reporting requirements - and doesn't count people or businesses who choose to pay more taxes after previously avoiding them. Previous administrations have long talked about trying to close the so-called tax gap — the amount of money that taxpayers owe but that is not collected each year. This month, the head of the I.R.S., Charles Rettig, told a Senate committee that the agency lacked the resources to catch tax cheats, costing the government as much as $1 trillion a year. The agency’s funding has failed to keep pace with inflation in recent years, amid budget tightening efforts, and its audits of rich taxpayers have declined. Mr. Biden aims to change that. His economic team includes a University of Pennsylvania economist, Natasha Sarin, whose research with the Harvard University economist Lawrence H. Summers suggests that the United States could raise as much as $1.1 trillion over a decade via increased tax enforcement. Mr. Summers praised Mr. Biden’s expected plan in an email late Monday. “This is the broadly right approach,” he said. “Deterioration in I.R.S. enforcement effort and information gathering is scandalous. The Biden plan would make the American tax system fairer, more efficient and, I’m confident, raise more revenue than official scorekeepers now forecast — likely a trillion over 10 years.” -New York Times The Biden admin's $80 billion plan would also provide the IRS with a dedicated funding stream, allowing the agency to 'steadily ramp up their enforcement practices without fear of budget cuts, and to signal to potential tax evaders that the agency’s efforts will not be soon diminished." Former IRS commissioner under President George H.W. Bush, Fred T. Goldberg Jr., called the new plan "transformative" for integrating several approaches. "Information reporting, coupled with restoring enforcement efforts, is key to improve in compliance," Goldberg told the Times in an email. "Audits alone will never do the trick." "None of this happens overnight. A decade of stable funding is necessary to recruit and train talent and build on the necessary technology — not only for compliance purposes but to meet the quality of services that the vast majority complaint taxpayers expect and deserve."

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Cryptocurrency: How Empires End
by grarpamp 29 Apr '21

29 Apr '21

https://internationalman.com/articles/how-empires-end/ How Empires End Authored by Jeff Thomas via InternationalMan.com, “Experience hath shewn, that even under the best forms of government those entrusted with power have, in time, and by slow operations, perverted it into tyranny.” – Thomas Jefferson Histories are generally written by academics. They, quite naturally, tend to focus on the main events: the wars and the struggles between leaders and their opponents (both external and internal). Whilst these are interesting stories to read, academics, by their very nature, often overlook the underlying causes for an empire’s decline. Today, as in any era, most people are primarily interested in the “news”—the daily information regarding the world’s political leaders and their struggles with one another to obtain, retain, and expand their power. When the history is written about the era we are passing through, it will reflect, in large measure, a rehash of the news. As the media of the day tend to overlook the fact that present events are merely symptoms of an overall decline, so historians tend to focus on major events, rather than the “slow operations” that have been the underlying causes. The Persian Empire When, as a boy, I was “educated” about the decline and fall of the Persian Empire, I learned of the final takeover by Alexander the Great but was never told that, in its decline, Persian taxes became heavier and more oppressive, leading to economic depression and revolts, which, in turn led to even heavier taxes and increased repression. Increasingly, kings hoarded gold and silver, keeping it out of circulation from the community. This hamstrung the market, as monetary circulation was insufficient to conduct business. By the time Alexander came along, Persia, weakened by warfare and internal economic strife, was a shell of an empire and was relatively easy to defeat. The Tang Dynasty Back then, I also learned that the Tang Dynasty ended as a result of the increased power amongst the eunuchs, battles with fanzhen separatists, and finally, peasants’ revolts. True enough, but I was not taught that the dynasty’s expansion-based warfare demanded increases in taxation, which led to the revolts. Continued warfare necessitated increasing monetary and land extortion by the eunuchs, resulting in an abrupt decrease in food output and further taxes. Finally, as economic deterioration and oppression of the citizenry worsened, citizens left the area entirely for more promise elsewhere. Is there a pattern here? Let’s have a more detailed look—at another empire. The Spanish Empire In 1556, Philip II of Spain inherited what was regarded as Europe’s most wealthy nation, with no apparent economic problems. Yet, by 1598, Spain was bankrupt. How was this possible? Spain was doing well but sought to become a major power. To achieve this, Philip needed more tax dollars. Beginning in 1561, the existing servicio tax was regularised, and the crusada tax, the excusado tax, and the millones tax were all added by 1590. Over a period of 39 years (between 1559 and 1598) taxes increased by 430%. Although the elite of the day were exempt from taxation (the elite of today are not officially exempt), the average citizen was taxed to the point that both business expansion and public purchasing diminished dramatically. Wages did not keep pace with the resultant inflation. The price of goods rose 400%, causing a price revolution and a tax revolution. Although Spain enjoyed a flood of gold and silver from the Americas at this time, the increased wealth went straight into Philip’s war efforts. However, the 100,000 troops were soon failing to return sufficient spoils to Philip to pay for their forays abroad. In a final effort to float the doomed empire, Philip issued government bonds, which provided immediate cash but created tremendous debt that, presumably, would need to be repaid one day. (The debt grew to 8.8 times GDP.) Spain declared bankruptcy. Trade slipped to other countries. The military, fighting on three fronts, went unpaid, and military aspirations collapsed. It is important to note that, even as the empire was collapsing, Philip did not suspend warfare. He did not back off on taxation. Like leaders before and since, he instead stubbornly increased his autocracy as the empire slid into collapse. Present-Day Empires Again, the events above are not taught to schoolchildren as being of key importance in the decline of empires, even though they are remarkably consistent with the decline of other empires and what we are seeing today. The very same events occur, falling like dominoes, more or less in order, in any empire, in any age: The reach of government leaders habitually exceeds their grasp. Dramatic expansion (generally through warfare) is undertaken without a clear plan as to how that expansion is to be financed. The population is overtaxed as the bills for expansion become due, without consideration as to whether the population can afford increased taxation. Heavy taxation causes investment by the private sector to diminish, and the economy begins to decline. Costs of goods rise, without wages keeping pace. Tax revenue declines as the economy declines (due to excessive taxation). Taxes are increased again, in order to top up government revenues. In spite of all the above, government leaders personally hoard as much as they can, further limiting the circulation of wealth in the business community. Governments issue bonds and otherwise borrow to continue expansion, with no plan as to repayment. Dramatic authoritarian control is instituted to assure that the public continues to comply with demands, even if those demands cannot be met by the public. Economic and social collapse occurs, often marked by unrest and riots, the collapse of the economy, and the exit of those who are productive. In this final period, the empire turns on itself, treating its people as the enemy. The above review suggests that if our schoolbooks stressed the underlying causes of empire collapse, rather than the names of famous generals and the dates of famous battles, we might be better educated and be less likely to repeat the same mistakes. Unfortunately, this is unlikely. Chances are, future leaders will be just as uninterested in learning from history as past leaders. They will create empires, then destroy them. Even the most informative histories of empire decline, such as The Decline and Fall of the Roman Empire, by Edward Gibbon, will not be of interest to the leaders of empires. They will believe that they are above history and that they, uniquely, will succeed. If there is any value in learning from the above, it is the understanding that leaders will not be dissuaded from their aspirations. They will continue to charge ahead, both literally and figuratively, regardless of objections and revolts from the citizenry. Once an empire has reached stage eight above, it never reverses. It is a “dead empire walking” and only awaits the painful playing-out of the final three stages. At that point, it is foolhardy in the extreme to remain and “wait it out” in the hope that the decline will somehow reverse. At that point, the wiser choice might be to follow the cue of the Chinese, the Romans, and others, who instead chose to quietly exit for greener pastures elsewhere.

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Cryptocurrency: Activists on Ballot to Fuck with NY BitLicense, Crypto Wealth Enters Politics
by grarpamp 29 Apr '21

29 Apr '21

https://abolishthebitlicense.com/ https://www.article78againstnydfs.com/ Vote for John Oliver; it's real! He is on the ballot in NYC. I am running for Public Advocate of the City of New York and Crypto Bitcoin Paperboy Love Prince is running for Mayor of New York City. Pierce Brock, why did you donate to NYC corrupt politicians that are the one that block the repeal of the New York BitLicense? Fuck Yes !!!! I am on the ballot as a Democratic Party candidate in New York City !!!! Help me get elected and I will fuck with the Bitlicense !!!! I am now an official candidate for the second most powerful position in New York City. If someone want to write something about all the Bitcoiner running for a city position in New York city, ping me! What a roller coaster ride !!!!! I am on the Ballot for Public Advocate !!!! For those here who don't know me, I had a small Bitcoin business company in 2013 New York City with more than 150 stores in the Bronx and Upper Manhattan and the BitLicense was promulgated. I have been pissed ever since. The corrupt judge never looked at the case: https://www.article78againstnydfs.com/press.php It has been a roller coaster to get on the ballot. Page #3 .... Right there ... https://vote.nyc/sites/default/files/pdf/candidates/2021/ContestList_6.22.2… https://preview.redd.it/82j5wxd9azv61.png?width=1066&format=png&auto=webp&s… They tried to kick me off that ballot ... they tried, and I made it! Fuck them, and you can quote me! https://preview.redd.it/y3d5cf23bzv61.png?width=988&format=png&auto=webp&s=… And regarding the other person, Paperboy Love Prince, quoted in the WSJ: "The service would run on blockchain and employ locally-mined digital currency. [...] The profits, the resources that come from them will go back to the citizens." The ride from HELL !!!! This is pure joy right now! https://www.wsj.com/articles/all-you-need-is-love-says-nyc-mayoral-candidat… https://preview.redd.it/29kvxz83czv61.jpg?width=1600&format=pjpg&auto=webp&… We have more coming out but now we need your help to tell the story out there. I feel joyous ! Fuck yeah ! If you are in New York City, contact me, +1.718.701.0140 Theo Pierce, According to the list you donated to all the corrupt politicians. What are you trying to prove?Why didn't you check with the NY Libertarian first? https://www.google.com/amp/s/nypost.com/2021/03/13/child-star-turned-bitcoi… With you money you could instead work to help the real anti corruption people. Why are you making our work harder? Theo ChinoCandidate for Public Advocate.https://chino.ws or https://theochino.us For those outside New York that don't know, here is Paperboy song explaining the issue: https://www.youtube.com/watch?v=66g1V9EnqzA

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Cryptocurrency: Bitcoin Fog Service Raided, Coin Privacy Seeks New Popup Operators
by grarpamp 29 Apr '21

29 Apr '21

https://decrypt.co/69318/alleged-operator-of-336-million-bitcoin-mixing-ser… https://www.wired.com/story/bitcoin-fog-dark-web-cryptocurrency-arrest/ https://bitcoinmagazine.com/culture/alleged-bitcoin-mixer-operator-arrested US authorities on Tuesday arrested Roman Sterlingov in Los Angeles, according to court records, and charged him with laundering more than 1.2 million bitcoins -- worth $336 million at the times of the payments -- over the 10 years that he allegedly ran Bitcoin Fog. As with filesharing, these legacies of service fall only to be replaced by many more instances of far more resistant services utilizing all the accumulated knowledge and techniques to date. Privacy is always in demand, thus will always spawn an ever growing variety of services, protocols, and designs to service those entirely valid rights and needs of humanity. While swaps will continue to pop up and operate throughout the forseeable future, crypto privacy protocols are advancing... coin join/shuffle/fusion services and wallets, dark exchanges, DEX, statistical Monero and cryptographic Zcash, plus many newer things in the development pipeline.

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Exploits: Kaspersky Idents CIA's New Malware
by grarpamp 29 Apr '21

29 Apr '21

https://therecord.media/security-firm-kaspersky-believes-it-found-new-cia-m… Cybersecurity firm Kaspersky said today it discovered new malware that appears to have been developed by the US Central Intelligence Agency. >From a report: Kaspersky said it discovered the malware in "a collection of malware samples" that its analysts and other security firms received in February 2019. While an initial analysis did not find any shared code with any previously-known malware samples, Kaspersky has recently re-analyzed the files and said it found that "the samples have intersections of coding patterns, style and techniques that have been seen in various Lambert families." Lamberts is the internal codename that Kaspersky uses to track CIA hacking operations. Four years ago, after WikiLeaks exposed the CIA hacking capabilities to the public in a series of leaks known as Vault7, US security firm Symantec publicly linked the Vault7 hacking tools to the CIA and the Longhorn APT (another industry name for Lamberts).

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DAN KAMINSKY DIES FROM VACCINE
by b0z0＠SDF.ORG 28 Apr '21

28 Apr '21

https://twitter.com/dakami/status/1374107732500905985 https://twitter.com/dakami/status/1381716799905886210 https://twitter.com/dakami/status/1383695209687502849 https://twitter.com/dakami/status/1383704252963459079 https://twitter.com/BlackHatEvents/status/1386021366424506370 https://imgur.com/a/qcorhsh b0z0(a)sdf.lonestar.org SDF Public Access UNIX System - http://sdf.lonestar.org

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Cryptocurrency: GovCorp Digital Currencies = Weaponizable Money, For Them, Against You
by grarpamp 27 Apr '21

27 Apr '21

https://www.aier.org/article/make-no-mistake-programmable-digital-currencie… Make No Mistake: Programmable Digital Currencies Are Weaponizable Money https://mises.org/library/free-money-miracle https://edition.cnn.com/2020/12/04/economy/china-digital-yuan-currency-intl… https://www.wsj.com/articles/china-creates-its-own-digital-currency-a-first… https://www.npr.org/sections/money/2019/08/27/754323652/the-strange-unduly-… https://en.wikipedia.org/wiki/Demurrage_(currency) http://www.naturalmoney.org/NaturalEconomicOrder.pdf https://en.wikipedia.org/wiki/W%C3%B6rgl https://ir.uiowa.edu/cgi/viewcontent.cgi?referer=&httpsredir=1&article=1600… https://online.ucpress.edu/scq/article-abstract/90/3/307/87429/The-Anaheim-… https://www.aier.org/article/supply-siders-losing-ground-in-the-white-house/ https://www.aier.org/article/lets-please-not-insult-stimulus-by-calling-thi… https://www.aier.org/article/the-road-to-serfdomvia-credit-markets/ https://www.pbs.org/newshour/nation/shared-sacrifice https://www.npr.org/2017/10/27/560308997/irs-apologizes-for-aggressive-scru… https://finance.yahoo.com/news/fed-officials-on-the-fence-about-adopting-di… https://goldswitzerland.com/patient-zero-of-the-bubble-pandemic-alan-greens… In the end, sadly, the only thing “trickling down” from Greenspan’s “wealth effect” policies have been the debased dollars in your hip-pocket not the Fed “having your back.” https://www.goldmoney.com/research/goldmoney-insights/why-interest-rate-man… To have monetary planners drawn from central banks and their governments directing economic activity through the selective application of CBDCs would be the final nail in the coffin for personal freedom. Make No Mistake: Programmable Digital Currencies Are Weaponizable Money Authored by Peter Earle via The American Institute for Economic Research, Earlier this year, China began to roll out a project that had long been in the works - a digital version of its currency, the yuan, is now being used in four Chinese cities. The Chinese government sees two major potential benefits to the experiment: a tangible challenge to the U.S. dollar’s global ubiquity, and a way to control how Chinese citizens spend their money. As a government-issued currency, the digital yuan can be manipulated and monitored in a number of ways. Importantly, it is programmable. Writes The Wall Street Journal, “Beijing has tested expiration dates to encourage users to spend it quickly, for times when the economy needs a jump start.” Although the concept of a currency which is artificially inflatable/deflatable on demand seems novel, it has its roots (as do so many concepts) in the theorizing of a long-dead economist. A German entrepreneur by the name of Silvio Gesell witnessed Argentina’s 1890 financial crash firsthand. The ensuing unemployment, poverty, and economic stagnation convinced him that something needed to change. Such crises occurred, he theorized, because people hoarded money out of fear and brought business to a halt, argued Gesell––this he dubbed “poverty amid plenty.” To encourage quicker spending, disincentivize saving, and therefore avoid more catastrophic financial crashes, Gesell proposed money with an expiration date. “Currency Reform as a Bridge to the Social State,” his first published work, detailed a system in which paper bills would expire unless they were stamped––renewed––for a fee. This ultimately meant that holders of money incurred a demurrage cost, which is the cost of holding a given currency. Because of Gesell’s proposed renewal fee, savings had a negative interest rate. He called this Freigold, or “free money.” Speaking of his system’s perceived benefits in The Natural Economic Order, Gesell wrote, Only money that goes out of date like a newspaper, rots like potatoes, rusts like iron, evaporates like ether, is capable of standing the test as an instrument for the exchange of potatoes, newspapers, iron and ether. For such money is not preferred to goods either by the purchaser or the seller. We then part with our goods for money only because we need the money as a means of exchange, not because we expect an advantage from possession of the money. So we must make money worse as a commodity if we wish to make it better as a medium of exchange. At a time when nations were largely on the gold standard, Gesell’s idea was unorthodox (and unpopular). Gesell died in 1930, having never seen his monetary system realized. But just two years later, in the deepest depths of the Great Depression, a handful of small and medium towns in the United States and Europe looked to his proposal to soothe their economic distress. The best-known of these cases was the small town of Wörgl, Austria, in which town official Michael Unterguggenberger convinced Wörgl to issue stamped money known as “Certified Compensation Bills.” The experiment came to be known as the “Miracle of Wörgl,” reflecting the town’s success in reducing unemployment and the relative ease with which Wörgl weathered the Depression compared to the rest of Austria. Hawarden, Iowa, and Anaheim, California, inspired by Wörgl’s experience, soon enacted similar policies. But it must be said that Wörgl’s experiment was likely successful because it, similar to the currency itself, had an expiration date. After just one year, the town put the project to rest. As Jonathan Goodwin wrote, “Once the taxes in arrears were completely paid and when people had paid enough taxes in advance to feel safe and comfortable (at some point they would stop paying forward), the scrip would lose a key part of its attractiveness.” Of course, even if consumption drove economic growth (and there are a number of both economic and reductio ad absurdum arguments that point out the flaw in that concept), the idea of money that can be coded to decay at tailorable rates is disconcerting. Chinese Yuan spot (40 years) (Source: Bloomberg Finance, LP) Central banks are monetary central planners, and the many criticisms that apply to central planning in every other field apply here as well. Their insularity, the blizzard of information they face, and political manipulation result in a preponderance of erroneous, ineffective, or late policy choices, all of which bring about unintended consequences. At times, those unintended consequences become new crises, which demand further policy intervention. Given this inevitability, any expansion of policy armamentaria should be viewed with deep concern. This is true of China’s digital yuan, the Wörgl experiment, and any number of other unconventional monetary policy tools in use now or in the future. In the specific case of a currency engineered for customizable demurrage, pernicious applications come to mind immediately. The extent to which those are realizable, however, pivots upon a degree of theorizing as to how “targetable” the programmed change of purchasing power will be. (Because such a system will ultimately require the elimination of cash to be fully effective, the warnings associated with a closely-related unconventional monetary policy, negative interest rates, apply here as well.) A preliminary question is to what extent, or even whether, the induced loss of purchasing power will be communicated by the implementers of monetary policy. It is conceivable that in some nations the disclosure of an impending demurrage operation will be disseminated well in advance and will include specifics regarding the anticipated amount of change; other governments may be less forthcoming. This will likely derive as much from the authoritarian character of the state as from specific policy aims. Further, while in the 1890s the average farmer understood the basics of inflation and deflation (owing to their dealings in grains and other commodities), it may be difficult to expect the same of citizens in the modern age. By announcing that money will be debased by a discrete amount at a certain point in time, individuals, firms, and other institutions holding money––again, assuming these policies are applied on something akin to an M3 basis––will make decisions based not upon their tastes and needs, but rather upon the desire to convert money to another form in anticipation of the loss of purchasing power. The effect of individuals and large financial institutions singling out certain goods as stores of value under the artificial upward ratcheting of time preference would, as do most other forms of monetary tinkering, inevitably create price distortions and possibly shortages, depending on the availability of local goods and services. Should the ability to direct the demurrage be more precise, the implications are much starker. It is conceivable that financial institutions might make the case that their money (more precisely, money in their accounts) should be insulated from those policy measures, thus creating a corporatist monetary system: consumers and unfavored economic actors wrestling with concocted losses of purchasing power, economic elites, their firms, and other court favorites receiving, or being left with, unimpinged purchasing power. Exactly where the lines between the favored and not are drawn, and the occasions upon which they are invoked, are left to the reader’s imagination. A look at the influence exerted by both special interest groups and corporations on public policy is instructive. Chinese CPI (YoY, 10 years) (Source: Bloomberg Finance, LP) But this only opens the proverbial door. History is rife with examples of political initiatives which, however nobly intended or narrowly designed, became blunt tools of widespread oppression. Could a demurrage feature of a programmable digital currency, nominally designed to spur consumption and increase monetary velocity, not ultimately become a broad punitive instrument? It could serve as an intermediate form of a fine for misdemeanors or other legal sanctions: Rather than forfeiting a lump sum, a violator’s account balance could be rigged for an accelerated loss of purchasing power. The argument in support of such a measure may well be that it punishes wrongdoers virtuously, afflicting the health of their bank balance whilst “supporting the economy” or “fostering economic growth.” Although it tempts speculation of a particularly Orwellian tenor, one may imagine––I stress the term imagine as distinct from predict or expect, as this is not a conspiracy theory––the tying of anything from mandatory insurance coverage to getting vaccinated to compulsory voting to be enforceable under the threat of individually-targeted monetary penalties. Whether or not such a measure would fall under the legal category of a Bill of Attainder would also, likely, be a matter of considerable controversy. A state determining that its populace is insufficiently supportive of a military campaign may decide that hardships are not being sufficiently shared: A sudden, unannounced attack on bank balances resulting in an immediate loss of purchasing power could be imposed to align interests. Could a failure to consume certain goods––say, domestic versus foreign––trigger a government-decreed, disciplinary lopping of an offender’s bank balances? In the same way that a former president allegedly used the Internal Revenue Service to terrorize and harass political opponents, a currently innocuous programmable digital currency may, over time, morph into nothing less than weaponizable money. China, by launching its digital yuan project, is traversing new territory in the realm of authoritarian monetary planning. Unfortunately, this endeavor may not be an isolated experiment for much longer; already, officials with the U.S. Federal Reserve are engaging in research to build and test a digital dollar. Central bankers the world over, in fact, are signaling increasing openness to experimental policy initiatives. This particular project is still in its infancy, but one thing is certain regardless of differing cultures or political systems: Central banks of all colors are prone to the pitfalls of central planning and will necessarily inflict unintended consequences upon the populations they serve. Money, in its most basic form, is an irreplaceable facilitator of economic calculation and a social instrument making cooperation possible on a global scale. Policies of the sort which programmable digital currencies bring into the realm of possibility potentially turn those on their head, introducing new possibilities for intentional––and systematic––coercion.

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INQUIRER.net: Throat spray and hydroxychloroquine found to reduce risk of COVID-19 infection—Singapore study
by jim bell 27 Apr '21

27 Apr '21

INQUIRER.net: Throat spray and hydroxychloroquine found to reduce risk of COVID-19 infection—Singapore study. https://newsinfo.inquirer.net/1423624/throat-spray-and-hydroxychloroquine-f…

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