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Dear American. Consider Eastern Germany

2 points by novalis78 9y ago

superkuh 9y ago
This skips from idea to idea kind of abruptly without clear linkage but the core idea definitely rings true: freedom cannot exist if all economic transactions are controlled and monitored by a centralized entity. People have to be able to privately enter into exchanges of value. It greases the wheels of the entire economy and prevents things like the State Dept. saying, "No, you can't donate to this journalist." As cash becomes more and more marginalized and moves from the majority of transaction to something seen as inherently shady and criminal some alternate is going to be needed. Cryptocurrencies that are (mostly) private like Monero can fill part of the void but none of them really scale like cash does nor are they as convenient. They have a role to play in preventing an East Germany like situation but they aren't sufficient. We still need cash. But go ahead, try buying, say ... a multi-hundred dollar bike with cash. Or even paying for groceries with it, they'll swipe every bill over $5 with the test marker and look at you quite suspiciously. And countries like India and Sweden are moving aggressively to eliminate it. Even in the USA having large amounts of cash is considered intrinsically illegal by both the police (who will seize the cash claiming it's mere existence is proof that it is to be used for or is from, crimes) and the IRS which makes transfering large amounts of cash something you have to report and be scrutinized for. And if you don't they'll throw you in jail for violating either the Bank Secrecy Act or for "structuring", ie, not triggering the automatic reporting provisions. And people, on a whole, love it. They love the convenience of never actually paying with or holding their own money. A giant multi-national corporation will promise to pay for them and it's reputation is so pristine no business will balk. It's a brave new world. Just like the old (east german) world.

2 points by novalis78 9y ago

This skips from idea to idea kind of abruptly without clear linkage but the core idea definitely rings true: freedom cannot exist if all economic transactions are controlled and monitored by a centralized entity. People have to be able to privately enter into exchanges of value. It greases the wheels of the entire economy and prevents things like the State Dept. saying, "No, you can't donate to this journalist." As cash becomes more and more marginalized and moves from the majority of transaction to something seen as inherently shady and criminal some alternate is going to be needed. Cryptocurrencies that are (mostly) private like Monero can fill part of the void but none of them really scale like cash does nor are they as convenient. They have a role to play in preventing an East Germany like situation but they aren't sufficient. We still need cash. But go ahead, try buying, say ... a multi-hundred dollar bike with cash. Or even paying for groceries with it, they'll swipe every bill over $5 with the test marker and look at you quite suspiciously. And countries like India and Sweden are moving aggressively to eliminate it. Even in the USA having large amounts of cash is considered intrinsically illegal by both the police (who will seize the cash claiming it's mere existence is proof that it is to be used for or is from, crimes) and the IRS which makes transfering large amounts of cash something you have to report and be scrutinized for. And if you don't they'll throw you in jail for violating either the Bank Secrecy Act or for "structuring", ie, not triggering the automatic reporting provisions. And people, on a whole, love it. They love the convenience of never actually paying with or holding their own money. A giant multi-national corporation will promise to pay for them and it's reputation is so pristine no business will balk. It's a brave new world. Just like the old (east german) world.