Trump calls out the big guns at the Mexico-United States border…

A few moments ago, President Donald Trump issued a statement describing his authorization of national guard troops to provide back up for federal customs and border agents along the Mexico-United States border. Mr Trump caused a little confusion on 3 April 2018 during a conference with some Baltic region presidents when he told the press that the Administration was “preparing for the military to to secure our border between Mexico and the United States.” Military was a poor word choice thus the confusion not only in published press reports but on the part of the Mexican government as they considered Mr Trump’s proposal last Tuesday..

Under 18 USC § 1385, no part of the Army or Air Force can be used as a “posse” to execute any U.S. laws. The Department of the Navy has rules that follow Posse Comitatus Act, but I can see a president trying to get around that hole in the law by arguing that the statute does not specifically prohibit the Navy and the Air Force from playing police.

Under 10 USC § 12406, however, the president can “call into federal service members and units of the National Guard of any State in such numbers as he considers necessary to repel the invasion, suppress the rebellion, or execute the laws.”

Mexico may not take too kindly to an implication that their citizens are invading the United States, but a significant number of Americans, particularly those living along the southwest border, may believe that. I don’t see the actions of Mexicans attempting to enter the United States without so much as a visa or passport as being aggressive, especially those who get in front of a border agent and are willing to plea their case for some type of amnesty.

What could be looked at as aggression would be a tragic scenario where a guardsman shoots a foreign national. Gunned down by a federal or state law enforcement agent is one matter. Gunned down by a soldier becomes an international nightmare.

 

A brief history of nation-states and currency

The following brief outline on global trade, world, and U.S. history will help your children, grandchildren, nephews and nieces get through two semesters of a boring college lecture ….

“To celebrate a fiat currency is to celebrate poverty and theft. It is an acknowledgement that nation-states, central banks, merchant banks, and government treasuries were created to launder money.

Original wealth is the result of theft. When property was created, the desire to steal increased. Land means ownership of productive power. To increase your wealth, you stole land and shared some with your cohorts who would then form a moat around you and protect you from commoners and other barbarians.

Trade is a method by which you claim a stake in another tribe’s resources. As trade with peoples outside your tribe and later kingdom increased, there had to be a way to exchange value without giving another tribe direct claim to your land. The solution: issue currency. The more currency you have, the greater claims to wealth you can make.

The first mistake made was assuming that merely producing more coin by digging for more gold would lead to more wealth. The only thing that caused was inflation. Inflation erodes value and spending power and also invites war because other tribes don’t like the idea of their buying power being eroded because you went off, worked South American native inhabitants to death, and shipped home more gold. In order to slow down the erosion, tribes, now countries, created central banks and merchant banks to launder money.

In order to launder money, the king had to seek out new channels for spending and investing gold. He laundered it by issuing debt from his treasury through his central bankers at which time the original holders of wealth i.e. land holding thieves with coin backed by land, could convert gold into bonds. The king also laundered coin by granting charters and investment capital to stock companies, companies that would sail to foreign ports and establish trading posts. They would purchase raw materials and slaves in one port, transfer the raw materials and slaves to another port, and finally transfer finished product to your country. Sales and taxes on those sales would increase your treasury and pay back your bond holders.

In order to further increase your booty, you would use different types of promotions and incentives i.e. freedom to practice religion, freedom from prolonged imprisonment, freedom from a nagging wife, etc., to get more people from various tribes to move to your new colonies voluntarily where they would produce more goods and services and pay taxes, hence increasing your largesse. These colonies, filled with various free and enslaved people who other wise would not give a shit about each other, would become a nation-state, which simply boils down to a forced confederation of people who have little in common and giveth not a shit about each other.

Later on, someone, probably a disgruntled cousin, would get the ridiculous idea to form a democratic government, but even with that tweak in how the oligarchy controls the economy and currency, the model remained intact.

The takeaway. Whether slave or freed person, your being here was a manufactured event based on false premise along with the creation of an artificial country. The nation-state is the result of money laundering.

When Bitcoin becomes a transmitter of valuable information

Bitcoin is not for speculation. Bitcoin is about the transmission and exchange of valuable information attached to a digital currency that measures the value of the information. The volatility we are seeing in the market for Bitcoin is based on the fear of missing out on a pop in value.

I think in the near future what will eventually drive the value of Bitcoin is the underlying value of the information that the individual sovereign either possesses or can produce. It is likely that person A holding Bitcoin may look at person B who allegedly has some information, x, and determine that the person B’s information or ability to generate useful information has no value. Think of someone in London approached by someone from Somalia who wishes to trade in Somalian currency. The Londoner wouldn’t touch it.

You may argue that scenario already occurs in the real world, that trader A is not required to transact with trader B. In a centralized world, trader B would bring a discrimination grievance against trader A for refusing to trade. In a decentralized, voluntaryist cyber world, no matter how much cryptocurrency you hold, the value of your true currency, the information that you possess or can produce, will determine your digital currency’s value.

As for the speculators, the error they make is using valuation methods created in a centralized, coercive political economy to assess the value of a currency designed for a decentralized cyber society. A speculators are enjoying the upside of Bitcoin’s market appreciation, but as the currency becomes more expensive and reaches its 21 million digital currency cap, will these speculators be able to purchase any more of the currency? Or, will they be able to ride out the inflationary characteristic the coin takes on should it become a matter of two few Bitcoin chasing too many goods? Will lower income individuals who may have made their first purchases with their credit cards be able to recover the dollar value of the coin in order to pay off increasing interest rates?

Not to mention the competing currencies that will eventually knock off Bitcoin from its perch. As technology improves such that “information rich” individuals create their own cryptocurrency, individual sovereignty will be complete. Just like western nations trade with each other based primarily on similar values and culture, the information rich will do the same. As the value of their currency increases so to will the demand from vendors who will likely prefer hold in reserve the currency of the information rich versus the “information poor.”

I believe that the information poor or “information losers” who were lucky to get a few pieces of a coin in the early days will not be able to participate on either side of a cyber trade in the future. Their focus should be on building their information gathering tools versus pursuing a quick fix, get rich path.

Cyber space will remain decentralized by the silos created by the information rich will prove daunting for the information poor.

A person living in the internet shouldn’t have to pay taxes

Nyota Uhura is on a quest to digitize herself. She creates digital product on her laptop, transmits her finished product to her clients via the internet, and gets paid primarily in cryptocurrency. Every now and then she accepts fiat currency issued by a nation-state in part because as a mini-sovereign she likes to have a reserve currency for emergency use or in case a hole-in-the-wall restaurant on a south Florida beach doesn’t accept BitCoin.

She probably spends too much time socializing in cyberspace. Facebook and Instagram keep her in touch with her brothers and sisters in Congo or her cousins in Brooklyn. As a busy creative she sends out for food via Uber Eats and uses Uber or Lyft to get around.

She is not naive about the public safety protection that Atlanta markets to its residents. She has a home security service that she communicates with via broadband. She uses her laptop as a surveillance camera courtesy of her broadband access provider. She keeps a shotgun and feels confident in her self-defense skills. If she were a pilot, she would avoid Atlanta’s biggest amenity, Hartsfield-Jackson International Airport and opt for the smaller Charlie Brown airfield.

Why then, she asks, should she even pay taxes?

Her friends rebuttal is that she should contribute to the public services that she uses to get around; that she should pay for use of the streets and use of the police protection. On a national level, she should support Medicare and the national defense, and social security because these programs help provide security for her future.

And she should be ashamed of herself for not showing the ultimate allegiance to her government by avoiding the use of America’s fiat currency. Her failure to use it, they argue, only negatively impacts the nation’s economy by devaluing the dollar through shrunken demand.

Nyota expected the canned rebuttal from her friends and family. She responds, however, with a rebuttal they are not prepared for, one based on value. Being coerced by a false sense of duty and obligation to pay for sub-par protection services makes no sense to her. She hasn’t bought in on the police’s public relations campaign that they are there to protect the public and would like her taxes reduced by whatever the city assesses as her contribution. She has no enemies in Russia, North Korea, Syria, Afghanistan, Iraq, or Iran other than the enemies created by U.S. policy. Since she didn’t create these enemies, she would also like her taxes reduced by the amount of her contribution to these services.

Nyota pays a sales tax when she eats a cheat meal at McDonald’s. She also contributes to the transportation tax when she pays her Uber driver for a lift to the grocery store. She literally works in another jurisdiction, cyberspace, and because of this, Nyota believes she should not have to pay a federal income tax, especially to a government that provides low value protection services.

A strong legal and political argument will have to be crafted and promoted to bring about these changes, but at least Nyota is thinking about exit.

The new cyber society will see the poor pay more for government

I sense a major “cost shift” for tax payers over the next twenty to fifty years as the more affluent of United States citizens move more of their survivability activities into cyber society versus current brick and mortar society.

I believe one key will be the use of cyber currency by an increasing number of service providers and producers. Less dependence on fiat money and more reliance on a block chain that cuts out the middleman providing for faster payment systems. In addition, the affluent are re-imagining the use of public infrastructure by using it less frequently or more efficiently. Think drones, driver-less & fuel efficient vehicles, or the delivery of groceries via Instacart.

The affluent will also find more innovative ways to provide security, from improved security technology to private police forces. In short, as the affluent pursue an increasingly self-sovereign approach to life, they will make the case for dishing the traditional services of the State while arguing that their tax burdens should be less. Why support police and road services that hey hardly need. If anything, they will argue, let us reduce our tax bills by the amount that we spend on providing these services for ourselves.

For low income individuals and a large proportion of communities of color, they will experience the burden of the “cost shift” as tax jurisdictions pass on the costs of providing traditional State services to these communities. These communities will not be able to bear the burden given their low incomes. Services will be reduced as traditional government finds itself facing competition from non-State actors financed by the more affluent.

The State will react violently at first. It will create laws designed to slow down the affluent’s abandonment of the traditional State system. It may, ironically, use net neutrality laws to slow down deployment of the advanced networks necessary for delivering services to taxpayers leaving the system. It will further reduce renewable energy subsidies to residents that generate electricity at their residences.

I don’t expect the State’s attempts at holding sovereign individuals hostage will be successful. The attempts will invalidate the State’s arguments that it represents democracy when the actions to squelch freedom are the furthest from the truth.