Gold standard was bad, but Bitcoin standard is even worse

The social welfare program is nothing more than an open-ended credit balance system which creates a false capital industry to give nonproductive people a roof over their heads and food in their stomachs. This can be useful, however, because the recipients become state property in return for the "gift," a standing army for the elite. For he who pays the piper picks the tune.

Those who get hooked on the economic drug, must go to the elite for a fix. In this, the method of introducing large amounts of stabilizing capacitance is by borrowing on the future "credit" of the world. This is a fourth law of motion - onset, and consists of performing an action and leaving the system before the reflected reaction returns to the point of action - a delayed reaction.

The means of surviving the reaction is by changing the system before the reaction can return. By this means, politicians become more popular in their own time and the public pays later. In fact, the measure of such a politician is the delay time.

The same thing is achieved by a government by printing money beyond the limit of the gross national product, and economic process called inflation. This puts a large quantity of money into the hands of the public and maintains a balance against their greed, creates a false self-confidence in them and, for awhile, stays the wolf from the door.

They must eventually resort to war to balance the account, because war ultimately is merely the act of destroying the creditor, and the politicians are the publicly hired hit men that justify the act to keep the responsibility and blood off the public conscience. (See section on consent factors and social-economic structuring.)

If the people really cared about their fellow man, they would control their appetites (greed, procreation, etc.) so that they would not have to operate on a credit or welfare social system which steals from the worker to satisfy the bum.

Since most of the general public will not exercise restraint, there are only two alternatives to reduce the economic inductance of the system.

1. Let the populace bludgeon each other to death in war, which will only result in a total destruction of the living earth.

2. Take control of the world by the use of economic "silent weapons" in a form of "quiet warfare" and reduce the economic inductance of the world to a safe level by a process of benevolent slavery and genocide.

The latter option has been taken as the obviously better option. At this point it should be crystal clear to the reader why absolute secrecy about the silent weapons is necessary. The general public refuses to improve its own mentality and its faith in its fellow man. It has become a herd of proliferating barbarians, and, so to speak, a blight upon the face of the earth.

They do not care enough about economic science to learn why they have not been able to avoid war despite religious morality, and their religious or self-gratifying refusal to deal with earthly problems renders the solution of the earthly problem unreachable to them.

It is left to those few who are truly willing to think and survive as the fittest to survive, to solve the problem for themselves as the few who really care. Otherwise, exposure of the silent weapon would destroy our only hope of preserving the seed of the future true humanity.

Some general points 1. Most of human history has been deflationary (either .8% or 1.8% if I remember my monetary history correctly). That used to be normal

2. There are several ways of having a gold standard, namely one where people use actual gold, one where the exchange rate is set by convention, and one where the government does sets the exchange rate.

Then the dealer doesn't value the pot at 1 tomorrows bitcoin today. His willingness to accept payment in the future points at the discount he sees.

I don't have any interest in bitcoin, I'm a spectator. Edit: I realized that's not entirely true, I got 1.5 namecoin from a fountain a couple of years ago.

Suppose 1 BTC = $X today and $Y in a year. If I pay my dealer 1 BTC today and he doesn't spend it, he has $Y in a year. If he extends me a 0% interest loan for 1 year, there is a probability P Loaning someone an asset at 0% is always worse than holding the asset. The value of the loan is P(repayment) x value of asset in future. The value of the asset today = value of asset in future + option value. There is no escaping this mathematical identity. Provided P(repayment) If you were correct, then you could make a profit by loaning out shares of SPY or other security with a positive expected rate of return at 0%. You can't.

If you disagree with this, please express your disagreement in math.

I don't own any bitcoins, and have no stake in it. I think it's a good idea that might solve the current mess of payment systems, however.

> he always has the option of sitting on the BTC for a year.

Eureka! That's also known as bitcoin hoarding. If the value (in dollar terms) of holding on to bitcoin is indeed greater than spending it, people and financial institutions will hold on to it and primarily keep transacting in dollars. Which leads to a nice logical contradiction, since how can a currency be worth anything if no-one wants to spend it?