[liberationtech] Bitcoin and The Public Function of Money
dk at telekommunisten.net
Sun Nov 4 07:12:37 PST 2012
On 04.11.2012 00:53, StealthMonger wrote:
> Bitcoin prevents inflation and helps tax evation [sic] (the system
> itself is hard to regulate) 
Bitcoin is not unique at being useful for tax evasion, in fact it's not
even popular among large scale tax evaders, who have better means. In any
case, the majority of producers will not be evading taxes, especially
We can not eliminate the State-based tax system by evading it, only by
replacing the socially necessary functions it performs with
actually-existing non-state forms, an unwillingness to understand and come
to terms with this is what makes so many revolutionaries, ancaps
especially, continue to be baffled by the continued existence of the
State, or even actively support a "night-watchman state" with the State
reduced to being nothing more that a brutal enforcer of property rights,
since deep down they must realized that private property itself is a
social construction, and worry that in a truly free society their property
privileged would surely vanish.
One of the main components of the delusion that tax evasion is somehow a
threat to the State is the false belief that States require taxation to
spend. States do not spend taxes, rather they simply spend money into
existence. Taxes are used to manage demand, and sometimes to create
incentives, their primary function is to manage prices. Tax obligations
also create the base demand for government money or securities. This has
been the case even before fiat money, see for instance the history of
split tally sticks in the UK.
>> Under US law, for example, Barter in Bitcoins is just as taxable as
> States describe their pronouncements as "law" in an effort make them
Once again, you are unwilling to distinguish between form and function.
laws are agreements among people, and as such, are socially necessary,
States make laws that enforce the interests of the ruling class, because
the State is the instrument of the ruling class.
>> Many Bitcoin users I know are kind and thoughtful people and all of
>> the developers I know are.
> Are you suggesting that there is something unkind or thoughtless about
> promoting a free market?
It's not a suggestion, it's a fact. The "free market" is a psychopathic
ideology, there is zero doubt about this, except among cultists. As Robert
Shiller argued, the efficient market hypothesis is "one of the most
remarkable errors in the history of economic thought."
Humans are not utility maximizing, dis-utility minimizing "hedonistic
calculators" (to use Veblen's term), the behavioral assumptions of market
fundamentalism are well know to be untenable. Also well know is the fact
that there is such a thing as "market power," that results from inequality
of distribution and advantage among market participants. Market mechanisms
do not protect against misallocation of productive resources, and certainly
do not guarantee justice.
Markets have a place in society, they allow social production on a larger
scale than gift or communal economies, but they are not some sort of ideal,
and can only exist when supported and managed by social institutions that
are not "markets."
Particularly markets that use money, because transactions that are based on
a commodity-money-commodity circuit effective money supply is affected by
economic cycles and sectoral balances, and thus needs to be actively
adjusted to prevent crisis and glut. This is well studied and understood in
monetary economics, and not even your fellow cultists like David Friedman
would not deny it, for instance, in a 2002 article for The Los Angeles
Times, Friedman wrote "Until U.S. economic growth is more balanced and its
emerging public finance challenge more manageable, it's likely that our
economic prospects will fail to fire investors' and consumers' enthusiasm.
An expanding public sector may be necessary at a time of global terrorism."
To get beyond authoritarian, centralized State forms, we need to develop
alternatives. We can only develop alternatives by recognizing that the
current forms came to exist and continue to exist because, no matter how
badly, they do perform socially necessary functions, and thus any new forms
can only come to exist when they can perform these functions in better
> Resource starvation? Anonymous markets have thrived throughout
> history, and probably before.
Do you care to inform us of any period of history where markets thrived
while not supported and managed by non-market social institutions?
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