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Here is my theory. The US did behind the backs of the Federal Reserve, which is currently it's biggest enemy and threat and it's an internal enemy, controlled b

Here is my theory. The US did behind the backs of the Federal Reserve, which is currently it's biggest enemy and threat and it's an internal enemy, controlled by the Private Banking economy. The Federal Reserve remains an economic black hole, sucking out money from the US system (at 6% of Profit on Interest in Bonds Raised). Consider the system where the 6% dividend paid out to the share holders of the Federal Reserve is untaxed. Further as US debt spirals, the bonds raised increases and the 6% dividend increases further. It's like a sequence 1.0001 Raised to the power of n will finally start diverging very fast beyond a certain point. Bitcoin takes you back to the days of the US around the Boston Tea party. When the British asked how do you deal with currency, the colonists replied - We print our own notes (not backed by debt paid to the UK). The Federal Reserve represents a similar debt trap. Bitcoin breaks free from this. That's my 2 bit coins.

neilxdsouza 14y ago
A few points to add to the argument above Consider the following scenario: I am a very rich man : i have 1 trillion dollars, everybody else has < 1 million dollars. Goal : I want to continue being the richest man on the planet and control its resources An easy way: Whatever new assets are created, I raise the price far above the value that normal people can afford. If they can afford 1 million, I offer 50 million. It doesnt make a difference to my life, because I have 1 trillion, but I put it out of reach of all the people who have 1 million. In 1977 my parents bought a 1 bedroom apartment for INR 47000. At that time, my dad told me, salaries for average jobs were about INR 600. 100 times 600 = 60,000, so the max leverage was about 100 times. Today in 2013, an average white collar salary in India is about 50,000 a month. Today In Bombay in my locality a 1 bed apartment is 85 lakhs (INR 8.5 million). What's the leverage? 50,000 x 1000 = 50,000,000 = INR 5 million. My leverage is > 1000 times. But wait, if you consider the dollar (my dad was a marine engineer who earned in dollars), I have seen it go up from INR 18 to today's INR 50. So multiply that another 4 times, my leverage is about 4000 compared to 1977. What happened? Inflation. a. Now consider the 6% dividend the Federal reserve share holders pay themselves on the interest gained by bonds raised. b. I need an asset where I do no work, but earn money. Every year people do economic business activities and generate wealth. Private equity companies invest in these companies and hence are able to increase their investors holdings. But consider the extra income from 6% dividend. This is money that gives them an extra edge over everybody else. If the US raises 1 trillion dollars in bonds from the FED at 1% interest, the FED income is USD 10 billion. 6% of USD 10 billion is 600 million USD. But that income is only for the year 2013, to understand the total interest you must add up for all the bonds raised where the debt has not been paid back. The private banks have this extra money to play with, which keeps increasing their ability to jack up prices and decrease the common man's leverage.
neilxdsouza 14y ago
Consider the following hypothetical conversation between President Barack Obama and the Intelligence team. President: Hey guys - what's going on. In my presidential campaign I promised to clean up this financial mess, so todays team meeting is about how we clean this up. Can someone please enlighten me on this. Agent 1: Well sir the main problem is US debt, it's a monster gone out of control. When the act was created in 1913, they forgot at 1.00000001 raise to n for sufficiently large n will diverge to infinity. We have unfortunately crossed the point of no return. President: Well, is there a way out, like an alternative currency? NSA Agent 2: Well sir, there is something, but it's kind of weird and requires a system reboot. President: Explain, anything is better than this shit. NSA Agent 2: Well the last president who tried to mess with it got asssinated. President: I have no plans on going up this way, can we sneak it in. NSA Agent 2: Well we need a new currency, but if we say that aloud, the whole world will blow up. And we need it to not be backed by debt. Let the old currency work for a while, then we will kick the new one in when it spreads really well. President: What about currency control. NSA Agent 2: Well it works on 256 bits crypto. President: That doesnt translate, english dude. NSA Agent 2: Well we can control the currency, we can do 2048 bits with our computers for a while now, which means that we can generate new currency whenever we need it. President: Well, in that case, you have my permission, go for it. God speed, you have my presidential blessings.

neilxdsouza 14y ago

A few points to add to the argument above Consider the following scenario: I am a very rich man : i have 1 trillion dollars, everybody else has < 1 million dollars. Goal : I want to continue being the richest man on the planet and control its resources An easy way: Whatever new assets are created, I raise the price far above the value that normal people can afford. If they can afford 1 million, I offer 50 million. It doesnt make a difference to my life, because I have 1 trillion, but I put it out of reach of all the people who have 1 million. In 1977 my parents bought a 1 bedroom apartment for INR 47000. At that time, my dad told me, salaries for average jobs were about INR 600. 100 times 600 = 60,000, so the max leverage was about 100 times. Today in 2013, an average white collar salary in India is about 50,000 a month. Today In Bombay in my locality a 1 bed apartment is 85 lakhs (INR 8.5 million). What's the leverage? 50,000 x 1000 = 50,000,000 = INR 5 million. My leverage is > 1000 times. But wait, if you consider the dollar (my dad was a marine engineer who earned in dollars), I have seen it go up from INR 18 to today's INR 50. So multiply that another 4 times, my leverage is about 4000 compared to 1977. What happened? Inflation. a. Now consider the 6% dividend the Federal reserve share holders pay themselves on the interest gained by bonds raised. b. I need an asset where I do no work, but earn money. Every year people do economic business activities and generate wealth. Private equity companies invest in these companies and hence are able to increase their investors holdings. But consider the extra income from 6% dividend. This is money that gives them an extra edge over everybody else. If the US raises 1 trillion dollars in bonds from the FED at 1% interest, the FED income is USD 10 billion. 6% of USD 10 billion is 600 million USD. But that income is only for the year 2013, to understand the total interest you must add up for all the bonds raised where the debt has not been paid back. The private banks have this extra money to play with, which keeps increasing their ability to jack up prices and decrease the common man's leverage.

neilxdsouza 14y ago

Consider the following hypothetical conversation between President Barack Obama and the Intelligence team. President: Hey guys - what's going on. In my presidential campaign I promised to clean up this financial mess, so todays team meeting is about how we clean this up. Can someone please enlighten me on this. Agent 1: Well sir the main problem is US debt, it's a monster gone out of control. When the act was created in 1913, they forgot at 1.00000001 raise to n for sufficiently large n will diverge to infinity. We have unfortunately crossed the point of no return. President: Well, is there a way out, like an alternative currency? NSA Agent 2: Well sir, there is something, but it's kind of weird and requires a system reboot. President: Explain, anything is better than this shit. NSA Agent 2: Well the last president who tried to mess with it got asssinated. President: I have no plans on going up this way, can we sneak it in. NSA Agent 2: Well we need a new currency, but if we say that aloud, the whole world will blow up. And we need it to not be backed by debt. Let the old currency work for a while, then we will kick the new one in when it spreads really well. President: What about currency control. NSA Agent 2: Well it works on 256 bits crypto. President: That doesnt translate, english dude. NSA Agent 2: Well we can control the currency, we can do 2048 bits with our computers for a while now, which means that we can generate new currency whenever we need it. President: Well, in that case, you have my permission, go for it. God speed, you have my presidential blessings.