This article was written by Charles Hugh Smith and originally published at his Of Two Minds blog.
Editor’s Comment: The war on cash is ongoing, and destructive to personal wealth and independence. So it comes as no surprise that the same insider interests who manipulate the currency, and are ushering in the cashless digital control grid are also moving to derail or even destroy independent digital currencies as well.
BitCoin and other cryptocurrencies have demonstrated the power of the market and individual even in the online and digital society that is otherwise based on tracking, monitoring and biometrics. How could those who crave power over society possibly let it go without a challenge? Will free people find a way around it in the cyber world of the future? The answer is a hopeful probably-yes… but it won’t be easy.
The Future of Money
by Charles Hugh Smith
The cartels and state organs are frantically trying to co-opt, outlaw, corral or control this disruptive technology.
To say that the future of money is blockchain-based crypto-currencies and payment platforms is to state the obvious nowadays. If this wasn’t the case, then why are Goldman Sachs et al. (i.e. the global too big to fail banks) rushing to patent their own proprietary versions of blockchain technologies? Why are banks investing heavily in companies that are trying to establish a global blockchain platform for banks?
The reason is that banks understand their core reason to exist is threatened by peer-to-peer, decentralized payment platforms and currencies. If payments no longer need to be routed through a centralized trusted institution, then one core function of banks disappears.
If peer-to-peer lending and securitization becomes easier and cheaper due to the blockchain, then banks’ function of allocating capital also vanishes.
Gordon White and I discuss The Future of Money (and its connection to meaningful work) (1:11 hrs; be forewarned we cover a wealth of topics, from philosophy to higher education to gardening to creating value in an economy that is being disrupted.)
Since money–currency that serves as a medium of exchange–no longer needs to be issued by central banks/states, central banks/states are also in danger of being mooted/bypassed as enterprises and people realize they can escape the relentless destruction of their purchasing power by inflation-seeking central banks/states.
If you aren’t familiar with blockchain technologies and crypto-currencies, and how these innovations are disrupting centralized banking and state-issued currencies, here are a few articles to start with:
Why Wall Street Is Embracing the Blockchain—Its Biggest Threat
“The premise of the Bitcoin platform—a decentralized, trustless, replicated ledger of transactions—is the virtual opposite of the centralized, trusted, guarded, model of modern securities processing, which has long relied upon DTCC, among others, as a central authority,” reads a treatise the organization released alongside that canned quote from its CEO. In other words, the DTCC realizes that it’s embracing an existential threat.
Forget How Blockchain Works, Talk About What It Does
Blockchain: The next big thing (or is it?) (5/9/15)
All that is needed, blockchain boosters argue, is a “killer app” to find a use for the breakthrough, in the same way that web browsers made the internet useful. Some still think that a currency is the most promising application, but plenty of engineers are throwing other ideas against the wall to see what sticks.
Bitcoin Blockchain Technology In Financial Services: How The Disruption Will Play Out
“For an entire industry to be focused on a new technology within three years [of it being known beyond the initial core of enthusiasts] without it actually even disrupting them even 1% yet is an interesting reality,” says Chain.com CEO Adam Ludwin. For instance, he notes that in 2000 the recording companies’ reaction to Napster was not to invest in digital models but instead to sink money into lawsuits.
Nobody can predict precisely how blockchain technologies will disrupt centralized banking and currencies, but we can predict the blockchain will disrupt the current cartel-state arrangement that benefits the few at the expense of the many.
The cartels and state organs are frantically trying to co-opt, outlaw, corral or control this disruptive technology. Here’s an analogy: North Korea has managed to co-opt, outlaw, corral or control the Internet, and how prosperous and productive is North Korea?
We cannot let the banks and central banks/states co-opt, outlaw, corral or control blockchain technologies. If they “win,” our economy will stagnate and the slide to complete implosion will be unstoppable.
The Future of Money (podcast, 1:11 hrs, with host Gordon White)
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Charles Hugh Smith is an economic expert and author who offers insights at his Of Two Minds Blog. Please visit and support his work there.
Hmmmm….,trying to destroy all crypto currency but then put out their own and ban cash,is it just me or do you see a problem here folks?You good on basic shit have some precious metals as they have stood the test of time,a bit of bit coin(pun intended) good for buying on the deep web,things you do not find at say a local show.
Bitcoin is one thing I do have or keep.
Be well rounded.
Cash, gold, silver, ammo, and all those ‘prepper’ items should do okay for most of us…
Bitcoin is the currency used for Ransom by Computer hackers that break into your Company’s computer system and lock it down, but will give you the key codes to unlock your system for a Bitcoin Ransom.
So yeah I could see this form of crypto payment outlawed. And there is no real value to bitcoin other than some other stupid person willing to take it in on trade, for some other real tangible products. Stoopid people use BitCoin that is nothing more than a digital IOU. Its like buying a Star out there in the universe to put your name on it. A sucker is born every minute. PT Barnum -Still got your Pet Rock Collection?, how about your Beanie Babies collection??
~WWTI…
I’m of a mindset that there is probably nothing more important than disrupting the financial cartels who have enslaved the vast majority so that they, the criminal Banksters can have Power over the rest of us. When they are deposed, and they will be, we will give a collective sigh of relief and begin to live in peace and prosperity once more. Until then, be prepared for “the war to end all wars”. These guys don’t give up. That’s the secret of their success. So for as long as it takes, whatever it takes; no sacrifice is too great, I/we will fight them until victory is ours.
Amen
I use to think that. Not so much now.
The global banking model is broken.
Used to be they encouraged deposits by paying interest, so they could loan those deposits out at a higher interest rate. The largest destination for those loans was secured auto and home loans, very secure.
Then the government began encouraging subprime loans so low income people could buy cars and homes. To protect themselves, banks bundled subprime loans were and packaged them resale like bonds.
Then the 2008 crash rendered most of these financial instruments worthless in the real estate crash banks faced bankruptcy. The government stepped in to save the banks with a program of cheap money to save them. Banks became dependent on the free money. They began to see deposits as a liability, and private loans to risky. So they took free money and play in the market with it, turning the markets into a bubble.
We just traded a real estate bubble, for a market bubble.
When the market bubble blows it will be huge.
PTPO: I agree.
Agreed –
There always has been some kind of dirty global banking practices, but … Things sure did change in a hurry after Bill Clinton repealed the Glass-Steagall Act in 1999.
When there is no more checks and balances in the banking community, and the word “Regulation” becomes a dirty word to them.
We get what we have today – on our way to a full blown Global Depression!
WE DEFINITELY SHOULD REINSTITUTE GLASS-STEAGALL. EVEN SANDY WEILL SAYS SO.
The World Banking System is basically designed to create Debt Slaves so the Banks can control the countries. Print Money out of thin air and loan it out with terms. Brilliant!!!
I want to see President Trump Audit the Fed and almost Wipe off the entire National Debt away with the stoke of the Pen, because we as Americans have been take to the cleaners, fleeced by the Fed loan sharks that have been padding their numbers year after year, and also have a hand in policy making that keeps their criminal enterprise flush with profits.
Yeah, that is why the establishment is scared shitless, and going after Trump, Trump will expose this Crap and save our country a lot of wealth being stolen and looted. FEMA Camp for all Domestic Tyrants. I will even help round them up. Pull them Banking Bitches right off the 9th Tee and handcuff them right there, Rope and pull them behind the cart. Here, Watch this drive!!!
~WWTI…
Trump definitely has my vote and support. The way the establishment is attacking him (DemoRATs and RePUKEs alike), it’s obvious they’re scared to death of him. What scares and angers me is that even though he has the majority of votes, the GOP will try to force him out and get one of their neocon phony lackeys like Ryan or Kasich as the nominee.
Trump is at best the least of the evils. Unfortunately there really isn’t any other choice.
We’ll see if the Powers-That-Be even let him take the Repub side to the general election.
There are some who say he won’t make it to November; another JFK-type murder for hire.
The Friday episode of Caravan to Midnight (www DOT caravantomidnight DOT com) was most excellent, episode 502. Part 3 talked about technocracy and the implementation of block chain technology for banking purposes. When the current financial system blows up I agree, I think this will be a way to start a new system, one that the technocrats will use because it will be a way for them to control every person. Or so they think. Then again there are always rats. And rats always find a way around, a hole in the fence or the wall and they get through. They don’t have enough rat traps to catch everyone.
All governments want to do is control their populations. What better way to outlaw cash and be able to follow your trail of purchases. They are doing away with the hundred dollar bills,fifties and twenties won’t be far behind and on down the road.
That’s right they want total control over the$ if they control it and keep you poor you cannot resist the agenda forced on you. I said this before they cannot outlaw guns it just won’t happen. However they can price you out of them by putting a tax and forcing you to get insurance for it. If the gun cost $500 and they put a $1000 tax on it too then it is $1500 which puts most extremely poor folks out of the market. Add a $500 yr insurance policy to it too and you can see where this is going. You haven’t got ammo either. $100 boxes of 50 rnds. $ controls everything and everyone. Those who control the $ control everyone. I like $ just like everyone but I do not worship it. It is a tool to get what I need. If I don’t care about Cadillacs and designer clothes or whatever expensive crap that drives people then I cannot be controlled by $. Everyone desires fancy crap that’s why they are slaves. I like not having car payments and don’t care about designer threads. As long as I’m clean and fed I’m good. Get your guns and ammo while you still can Hillary is gonna tighten restrictions soon.
IMO they don’t need to take our guns.
(Most) Americans lack the testicular fortitude to raise arms against the ‘officials’ that will come to their homes to enforce their laws.
Yes agree “testicular fortitude” and sperm counts are down and men are turning into fags.
Me thinks they must be putting something into the food chain or the water that we drink because the youth of the 1980’s would not had taken half the shit thats being thrown at the youth of today and i don’t think it’s just the propaganda from the schools thats to blame.
We are sheep, we are being treated as sheep
Mr Smith
Yes, they are putting endocrine disrupters in our air, water, soil, and food supply. See Bill Gates, Monsanto, Syngenta, Dow, Dupont, atrazine….
Male feminization, cytoplasmic male sterility, ADHD, Alzheimers, GMO lectins to tear up your guts and internal organs, and all started long before mooslims… brought to you by the industrialists after WWII.
Pesticides, fertilizers that are the main cause of acid rain… it is the never ending story of death.
The $64,000 question is where is the world going.
Historical fact. Currencies fail. Doesn’t matter if they are based on Precious Metal or paper money. Down through history paper replaces PM, then PM replaces paper…….
Currently the world is in love with US paper. China is the next great currency, and the Chinese like gold. The Chinese follow a multi thousan year plan for world control, did I say they like gold!
The Chinese want gold as a percent of their currency support. They value gold. This is a Chinese thing. The last global currency, the British pound was based on gold, they began cutting gold in their coin, much like Rome diluted the silver in Roman currency.
Many have said we should look back to the last currency collapse of the British pound, an example of where we are going, but history says you must alternate. This is what the world has done through out history. The previous currency to the pound was the Spanish real, based on gold and silver.
The last example, the crash of the pound says gold is a distraction. If we alternate, precious metals are not a distraction.
The next global currency will likely be build on gold, silver and a bunch of rare earth metals.
Neodymium may be a good investment.
Yes agree the government wants to do away with cash but i give you all a big warning about running out to buy BitCoins.
First a lot of people (About 30%) get ripped off when trying to buy the coins and I was a fan of the Tor network and used it all the time from code only, not a browser for reasons that i will keep to myself.
Well i picked up a “.Locky” virus on the dedicated machine i use for this “Unusual work” and i suspect that this virus that encrypted all my data popped out of the Tor Client.
Lets face it Tor would be nothing without BitCoins and the same goes for BTC and i think they have taken to eating their own in an effort to force the value of BTC up because they are needed to pay the ransom to get the crypto key thats used to decrypt your files that have been hijacked.
I cannot be 100% sure that Tor is in bed with the criminals because i was also running a program that automates a IE browser to create a lot of META-Data for the NSA/CIA to sniff since they want to know what sites i visit, i didn’t need to tell you that but you have been warned and i will never be buying any BitCoins after this happened to me.
My best guess is that the CIA has control of BTC and they have been known to be running drugs and selling them in the streets off the USA to finance an ilegal war, go ask Oliver North on that one.
We definitely should reinstitute Glass-Steagall. Even Sandy Weill says so.
Whew! I see that I had better get on this site and learn some important facts about the state of our economy!