Krieger On Peak Government

Tyler Durden's picture

From Michael Krieger of KAM LP

Peak Government

All quotes below are taken from a Bernank paper written in 1999 titled “Japanese Monetary Policy: A Case of Self-Induced Paralysis?”

Although it is not essential to the arguments I want to make—-which concern what monetary policy should do now, not what it has done in the past—-I tend to agree with the conventional wisdom that attributes much of Japan’s current dilemma to exceptionally poor monetary policy-making over the past fifteen years.

Indeed, as I will discuss, I believe that a policy of aggressive depreciation of the yen would by itself probably suffice to get the Japanese economy moving again.

On the issue of announcement effects, theory and practice suggest that “cheap talk” can in fact sometimes affect expectations, particularly when there is no conflict between what a “player” announces and that player’s incentives.

Suppose that the yen depreciation strategy is tried but fails to raise aggregate demand and prices sufficiently, perhaps because at some point Japan’s trading partners do object to further falls in the yen. An alternative strategy, which does not rely at all on trade diversion, is money-financed transfers to domestic households—-the real-life equivalent of that hoary thought experiment, the “helicopter drop” of newly printed money.

Franklin D. Roosevelt was elected President of the United States in 1932 with the mandate to get the country out of the Depression. In the end, the most effective actions he took were the same that Japan needs to take—-namely, rehabilitation of the banking system and devaluation of the currency to promote monetary easing. But Roosevelt’s specific policy actions were, I think, less important than his willingness to be aggressive and to experiment—-in short, to do whatever was necessary to get the country moving again. Many of his policies did not work as intended, but in the end FDR deserves great credit for having the courage to abandon failed paradigms and to do what needed to be done.

What Did You do Tuesday Night?

Well you probably had a lot more fun than I did.  I spent part of the later hours of the evening reading a paper written by The Bernank in 1999 titled “Japanese Monetary Policy: A Case of Self-Induced Paralysis?”  While I have never doubted for a second that this man will print the dollar into oblivion, I have been shocked by the amount of players in the market that have fallen for what I like to call the “Bernank Bluff,” which simply is my view that he needs cover to print more and therefore will tell the market he is going to stop while QE2 is still in action so that he can push undesirable asset price inflation down (commodities) while continuing to print!  I went and read this paper to confirm what I already knew about this man.  Namely, that he is an extremely dangerous psychopath who believes proper monetary policy can save the world from all ills and he is the superman that will implement the appropriate policies for the first time in history.  This is how he sees himself.  In reality, he is nothing more than a parlor magician brainwashed by his own bullshit and who is doing nothing novel, but rather the same thing all bankrupt governments have done since the beginning of time.  He is merely printing money and causing devastating inflation, yet he seems to think he is the first person to come up with this idea! 

As you can see from the first quote above, he basically blames Japan’s woes on bad monetary policy.  He doesn’t take into account the prior booms and bubbles and amazingly can’t seem to comprehend Newton’s third law of physics that each action has an equal and opposite reaction.  But indeed it is this simple inability to understand the basic laws of the universe that has poisoned the economics profession around the world and has spread to the thinking of governments.  This faulty Keynesian religion is exactly why our politicians believe in this preposterous notion of the higher the nominal GDP growth the better and makes them think they can take on infinite amounts of debt with no consequences.  Remember this is the same man who also blames the entire Great Depression on monetary policy failures.  He probably thinks bad monetary policy caused the Japanese tsunami.  The reason this man is so dangerous is he really believes his own crap.  He really does think he has figured it out.  Just like the guy that comes up with a “system” to beat the casino.  Unfortunately for The Bernank, the house always wins and he will go home just as penniless and discredited as that poor sap after his intellectual pockets are emptied out.  Except unlike the gambler the whole world will witness The Bernank crash and burn and it will be written about for centuries to come.

Ok, so back to the speech.  As you can see in third quote above The Bernank talks about how “cheap talk” can be used successfully by Central Bankers.  This is KEY.  This is exactly what these bozos are doing when they say no more QE.  It is a boldfaced lie and they know it.  People in the markets will believe anything.  Do investors do any critical thinking anymore?  Next, in quote four he discusses how basically Centrals Banks can directly or indirectly just give money to households.  Is this the form QE3 will take?  It will be interesting to think about.  Or maybe that is QE4.  In any event, both are coming whether disguised as something else or not. 

Finally, there is the last quote and this is a real winner.  He basically shows all his true colors.  He cheers FDR as some sort of god when in reality the U.S. NEVER got out of the depression in the 1930’s and in fact stagnated as a result of this polices like the 1933 confiscation of the American people’s gold (money).  This is the key.  He singles out the one president in American history that CONFISCATED THE PEOPLE’S MONEY.  The Bernank is a fascist and he is confiscating your money right here right now by slaughtering the purchasing power of the dollar right under your nose.  Baaaah.

So What is Bill Gross Talking About?  

So the biggest bond guy on the planet, the same guy that has repeatedly been saying there won’t be QE3 apparently “tweets” that the Fed could actually move to rate caps on 2-3 year treasuries which is actually QE to infinity (as predicted by me and many others).  So why would he tweet this rather than just wait until his next monthly letter?  Well he is a pretty connected guy and there is a Fed meeting next week.  He also isn’t the type of fellow that likes to look like a fool in public so clearly he wanted to put this “out there” so he is seen as on top of things.  While many people are talking about this, people don’t seem to be getting the joke.  If this is indeed the Fed’s next step, it is a game changer beyond game changers.  First of all it would mean a policy to print infinite money if necessary without having to announced further rounds of QE.  Even more importantly, I am willing to bet that wherever the Fed announces a rate cap along the curve will be exactly where the Chinese holdings of treasuries are situated.  The Chinese probably told Tiny Timmy Geithner and The Bernank that they want out and this would guarantee them an out at the highs!  It’s brilliant.  Plus, with the terms of trade going against China and other Asian nations as a result of higher commodity prices, this will provide much need cash to then go buy up resources all over the world.  This would make commodity prices absolutely explode through the roof as China would without a doubt use a lot of this money to buy the necessities of life and then subsidize them at home to quell unrest.  How is no one talking about this!

Peak Government

While I spend a lot of time highlighting TPTB’s plan to form a world government, currency and central bank that doesn’t mean I think they will succeed.  In fact, just as Wall Street played their hand too aggressively after being bailed out and are now going to go down for the count this round, The Powers That Be have also played their hand way too aggressively and not only will their dream of planetary control through a global fiat money system run by them completely fail, but their policies will fail so spectacularly and publicly that it will lead to what I call ”peak government.”  Governments right at the moment are as big as they will ever be in our lifetimes.  This is in my opinion a great thing for humanity and freedom but the transition to more localized rule of law will be tricky.  We must be rational and help the sheep out as their world crumbles around them.  They will be scared and looking for mommy.  Governments won’t be in a position to help so we will need to do the heavy lifting.

Peace and wisdom,
Mike

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
TruthInSunshine's picture

If you see something, say something.

Help bring the confused & dazed sheeple, who can't reconcile what they're reading, hearing and being told with what they're seeing with their eyes around them.

These are trying times for sheeple.

Bring them to the side of light, goodness, morality & Ludwig von Mises.

If you see them, say something:

 

http://farm1.static.flickr.com/27/100874288_a5ff91b322.jpg

nope-1004's picture

Good stuff Mike.  As always, greatly appreciated.  Your views are clear and to the point.  You're absolutely right.  Benocide is a total psychopath who is using all available "tools" (weapons) to inifluence the "world economy" (of mass) and in so doing, "destroying the dollar" (destruction).

He and slimy tim need to be put in jail.  Period.

 

centerline's picture

+1  -capped.  Good read today.  Definately some interesting perspective to consider.  Thanks.

trav7777's picture

nah; he's just a believer in a fishbowl.

He's spent his life studying things that aren't true.  The pseudoscience of economics is only relevant during an aggregate growth phase.  We're not in one anymore.

As far as Japan...wtf?  They're a net exporter so they are supposed to what, go MORE mercantilist?  Yeah, that will work out real well.

EVERYONE cannot devalue at the same time; there is no net effect.  Other than fucked up paperholders

TruthInSunshine's picture

Which will be the least ugly fiat in all of fiatski land and why, at the end of the day?

I don't expect anyone to know or be able to produce a precise answer to what is a deceptively complex question that is made more so by the uncertainty of future events and reactions to those events, but rough arithmetic tells me that the USD has a shot at outperforming the euro or yen over the intermediate term.

I'm not emotionally vested in the USD and I detest the very system that allegedly sets its value on world markets (as with any major currency), but if the world's in for a turbulent flight for the next few years, I've yet to see any convincing argument set to paper that the euro or yen will outperform the USD over that time frame (I'd love to read a well-reasoned opinion supported by some concrete data).

theMAXILOPEZpsycho's picture

...I don't know; I hate the people at work so I'm telling them to buy facebook shares as soon as they can

Atomizer's picture

LOL. That's rich! Might want to suggest Pandora & Winnebago as a rock solid long term investment stock.

Random_Robert's picture

Excellent Picture, TIS!

Combines the sheeple alegory WITH the famous deer in the headlights image....

The image is so relevant, that my cynical self is giggling almost uncontrollably. 

 

Oh, and MK's analysis seems spot-on. Bernanke has demonstrated over and over again that his greatest goal in life is to be an illusionist rather than a scientist.

TruthInSunshine's picture

Combines the sheeple alegory WITH the famous deer in the headlights image....

The image is so relevant, that my cynical self is giggling almost uncontrollably.

I also like it because it shows the sheep clearly tagged (on their ears).

I am very much not a tin foil type prognosticator, but the tagging is symbolic of the fact the fact that the governmental-corporate alliance is very much able to decimate whatever we held out as our clear notion of 'privacy' and any rights thereto.

Modern vehicles with black boxes that track our driving pattern and (soon) location, GPS devices that can literally track us in real time and record our past movements (and be accessed remotely), smart phones that can do the same as well as be tapped and downloaded - absent any warrant or even reasonable cause - producing immediate and very private data on demand, and PCs that can watch us (with cable boxes that do the same coming soon - ostensibly to track our channel surfing AND snacking patterns).

U.S. highways and vehicles will be incorporating RFID technology within a few short years that will be able to remotely monitor any particular vehicle, its speed, location, and other data regarding it (RFID chipping is already being used on high value pharmaceuticals and other transported high value goods).

It's all good, however. They tell us we have a Constitution, and I once heard it reflected that we were born and endowed with particular and fundamental inalienable rights (i.e. can't be stripped away by government), though there aren't many in positions of power who seem to recall this lately.

FreedomGuy's picture

There is no Constitution as you understand it.. It looks like it is in English for all to read but it is not. According to our Supreme Court it is actually in a language only they understand. The amazing thing about it is that over time it always says exactly what the government wants it to say. It's quite amazing how well it lines up so that you can produce infinite social programs, income redistribution, restriction of all sorts of speech, particularly in business, seize private property to give to other private entities, infinite taxes, everything! It's a wonderful document that allows government to do whatever it pleases as long as it's determined to be "good" for us.

I am so glad we have this document. In fact, it is very similar to having no document at all come to think of it.

Anyway, when every intersection has redlight and speed cameras, your car is tracked, your phone is tracked, your internet usage is recorded and you yourself are stamped with identity code...all of life will be perfected. No bad things will happen to us and we will do exactly as we are told, controlled in the wisest ways possible and live the most productive lives possible as determined by some wise central council. I can hardly wait.

As for me...I'd rather live in the Middle Ages during the plague.

CH1's picture

Can I come just after the plague? :)

Almost Solvent's picture

Cost of oil (going higher) over the long term will actually force the system to lose most of this crap anyway and limit the power of the government in the process. 

 

 

Shell Game's picture

+++   ...though, watch what you wish for, Dark Ages coming [check], Plague coming [???].

The Constitution is dead, long live the Constitution.

tsx500's picture

...and the 'rant of the day' award goes to .........

Gully Foyle's picture

TruthInSunshine

You missed two.

Removal of incandescent bulbs so a heat signature can be tracked at a distance and body locations can be pinpointed easily.

RFID tags in clothing, and I assume damn near everything else, so you can be tracked easier.

People have caught on to location by phone whether it is on or off. How many have you seen microwaving their clothing to destroy the chips? Or wear only hand woven articles?

But the flaw with technology is it can be turned on you. One of the Moscow Rules "Technology will always let you down" is there for a reason. Wait until those damn faceless etrrorists start hacking drones.

 

 

flacon's picture

Can I microwave my passport? It has an RFID chip in it now - and it's advertised as having one. 

FreedomGuy's picture

I probably missed several, but you get the point. The worst new thing I heard was that Obama favored an idea in Congress to put a chip in every car that monitors the miles you drive. You will get a tax based on those miles. Besides being an infinitely stupid idea (A Mini Cooper that drives more miles will get taxed more than a Hummer that stays in town???) it is really a big step toward ultimate control. That same chip can tell if you ever went over the speed limit at which point you could pay retroactive fines and it is really just a single step from having all of us just wear a GPS chip ourselves.

What really bothers me is that this doesn't bother them...at all.

fajensen's picture

Wait until those damn faceless etrrorists start hacking drones.

"The terrorists" are too retarded for that.

Hovever, I do have some contact with former colleagues that, like myself, have experience with enginering and defense systems and are currently suffering, like self!, in various boring, dead-end, adminstrative jobs. When we get a few beers we actually think that there might be a business to be made in producing drones that will quietly fly 10 kg of payload to a GPS "address", available at an affordable price and no strings attached. The technology is all COTS these days, it just needs integration.  

The non-prescription medical business could probably use such a machine - and why the hell should Obama be the only person who can send a robot to sort somebody's shit out? Someone will do it anyway, so why not we?

New World Chaos's picture

This + bitcoin + tor + google = TPTB's worst nightmare

i-dog's picture

bitcoin + tor + google = dependence on the internet still being freely available

 

New World Chaos's picture

Was just thinking about that.  See long post below for possible solutions which we need ASAP.  We also need Google insiders who will be prepared to at least partially restart it elsewhere when the shutdown order comes.

Clark Bent's picture

A simple right click, and the deer becomes your screen saver!

SuperRay's picture

HAH! so i was one of the only morons who actually took the time to go into the city and look for the empire state rebellion rally, which consisted of two photographers with some old video equipment and about eight nerdy types testing on their iphones.  My visions of solidarity shriveled up like Weiner's weiner after he saw those pictures...

Beatscape's picture

Fascinating.  Speaking of the government,  the Senate just voted 73 to 27 to end government incentives for ethanol--a negative for many related ag names including fertilizer stocks (POT, MOS, CF, AGU), seed names (MON, SYT) and farm equipment names (CNH , DE, AGCO). However, bullish for livestock producers including (SAFM, TSN, SFD, HRL).

 

Seer's picture

About fucking time!

Not sure that the fertilzer companies will be much affected.

It'll help me a bit, but that's not why I'm against ethanol (been so since before I had any interest in feed prices).

Subsidies are price-hiders.

Silver Dreamer's picture

War produces plenty of fertilizer.

Milestones's picture

Most before the war than after; what comes out of the north end of a south bound bull.   Milestones

squib's picture

+1 for staying in character

centerline's picture

lolololololololol  :-)

FreedomGuy's picture

Now let's vote to end those farm subsidies and we will be making real progress. It seems to me that this would be a good thing to do during a time of record high crop prices.

falak pema's picture

How vital is sex? How essential is government?

Can we talk of peak sex? Can we talk of peak government?

They are not tangible commodities. But as immaterial in their hold on us as the notion of life and after-life.

Go short on those if you dare!

theMAXILOPEZpsycho's picture

we can totally have peak sex...just look at birth rates in western europe (yes but they still do it for leisure I hear you cry) yes but for how much longer...if something becomes without use evolution has a way of dispencing with it. As our lives become even more anxiety ridden, I'm willing to wager that people will be enjoying less good sex. So yes, I'll short sex in north america and western europe...

...better head for latin america I think and those signoritas!

giocatoli's picture

actually there's not that much sex going on down here either.  sigh.

Lots of boozing and dancing till 5 am, but after that, its straight to sleep...

i chalk it up to the influence of the church.

 

falak pema's picture

keep moving...fortunately the world is round...not flat!...We all know where we'll end up. As long as its not Wisteria Lane! Yikes...

Clampit's picture

Your definition of government must then necessarily include any cooperative interaction between individuals. DRO's are government. Contracts are government.

What we see today is the evolution from centralized mainframe style government to a more distributed network approach. An evolution I suspect will see the white house decommissioned as a tourist destination in my lifetime.

masterinchancery's picture

Utterly false--private cooperation is the absolute opposite of government, which operates by coercion.

CH1's picture

Government is a long, dark scam. Arguments to the contrary are rooted in emotional attachement.

Clark Bent's picture

Who is in charge of this decentralizing evolution? Where are they meeting? 

Clampit's picture

Funny you should ask; the meetings are being held right now in this very forum.

("If you had to identify, in one word, the reason why the human race has not achieved, and never will achieve, its full potential, that word would be 'meetings." — Dave Barry)

uniman's picture

John Connor et. al. Crystal Peak

http://grandfubar.com/greetings-from-crystal-peak

The purpose of our organization is to promote a new social system for our members. Although this may sound suspiciously like "government" there are some important differences.
The similarities are:

  • We take and hold land and natural resources.
  • We promote national defense.
  • We promote a system of law and courts.
  • We promote a political system of dedicated to the protection of the individual against the depredation of the majority, politicians, or private sector criminals.
  • We promote a free-market economic system with strong protection for private property.
  • We promote the general development, security, and welfare of the people.

What? You’re seeking liberation from the silver-tongued devils that already pretend to promote these ideas? Well, please read more carefully. Please pay attention to the differences.

  • The biggest difference is that our system is competitive, non-coercive, and non-exclusive. Our members can opt in or out at any time and they can be members of other political organizations as well. Children are not automatically members against their will and may or may not opt in when they are ready.
  • Another important difference is that we "promote" we do not "provide." We serve as cheerleader and operator of the Bully Pulpit in order to lead people and markets in doing for themselves instead of trying to make these good things happen.
  • The land we take is not necessarily contiguous and will in fact likely overlap the territory of existing political organizations.

The ideals enumerated above are good. The problem lies in their interpretation and the sincerity of the alleged promoters. We offer a new approach and give you the choice to decide.

How to Join

When I stated earlier that members are free to opt in or out at their discretion, I spoke the truth. However, there is also a steep membership fee. You are buying the benefits we provide and agreeing to accept our rules. That is a high price and we do not expect you to easily agree. In fact, as long as you have a "job" and "own" a home and care about your credit score or filing tax forms, we doubt you’ll abandon them in order to join us. And abandon them you must because what we demand of our members is not something that can be balanced with home, job, and school. Weekend warriors can watch the revolution on TV; our warriors our making it happen.

Our offer appeals to those of you who have lost it all. Such as those of you who the system has abused, defrauded, and discarded, or those of you who have no chance of succeeding in that system. Instead of rolling over and dying, why not stand and fight? Perhaps you’ll meet your maker either way, but our way offers at least a chance and is much more fun.

The Fee

You entry fee is that you enroll in our Liberation Army. We use the term "Army" with some hesitation. "Army" denotes military and sounds like violent insurrection. As we have explained in other places, violent insurrection pits our weakness against the great strength of the Enemy. The Enemy is laying an ambush for us by goading us into that doomed strategy and we must deftly dance around the ambush. We will meet the Enemy at a time and place of our choosing not his.

However, as a new member your life and work will be organized with a military paradigm. You will receive and obey your orders and you will be subject to our discipline.  We will engage in manuvers of peaceful civil-disobedience against the Enemy. You will spend all of your time studying, practicing, drilling, and preparing for the fight. You will likely spend much of your time in the Enemy's POW camps. This is the price of membership.

The Benefit

The benefit is that we will rebuild you as a new man.  We will teach you how to read and how to defend yourself.  We will systematically educate you and develop you towards your full potential.  You will learn the values of self-reliance and cooperative behavior.  Finally, we will resettle you on one of our bases, far from the front line.  There you will begin your transition to a new life as a civilian.  You will be a respected war vet and a man who carries the esteem of knowing that he has played an important role in building a great thing.  You will live out the rest of your life according to the best that your ability, discipline, integrity, and fortune conspire to provide.  Please compare these benefits to your present prospects.

Thanks for reading and have a nice day.

John Connor- Crystal Peak

Now accepting bitcoins for liberation: 1GrqxTjQb7SsPBkdxnPRNmJqseKK8TZaoF

Cathartes Aura's picture

The benefit is that we will rebuild you as a new man.

ahhh, yes, another "all men are created equal" club, with a military flavour.

party on dudes.

 

New World Chaos's picture

+1 BTC for a good manifesto, for putting up the first BitCoin tin cup I have seen on ZH, and for giving me an excuse to respam my Bitcoin-powered Project Mayhem manifesto.  It's kinda similar to yours, but with more anarchy... lets start over with a bare minimum of laws and courts.  Make the elites' pet weasel-word artists rebuild their toys from scratch, and contest every expansion like a hill in 'nam.

-----------------------------------------

Now is the time to get to know your neighbors well, buy local, hoard stuff.  Make your lists, check them twice, find out who's naughty and nice.  No heroics till after the hyperinflation and the bloody crackdown.  That shitstorm will awaken more of the sheeple and peel off some of the cops and bureaucratic drones, because it will be clear that their pensions are already gone.  Also, wait until a large number of protestors are slaughtered or a large number of people end up in FEMA camps.  Need to get more cops and military on our side, so I suspect that he who fires the first shot will lose the revolution.  Let them fire the first shot. 

I don't know anything about real fighting so here are some "softer" strategies which could work:  Get them to waste time or turn on each other where possible.  Leave empty bags around.  If you know someone who works for the Beast, plant some reefer on his property where it will eventually be kinda visible from a road.  This will encourage narcs and civil forfeiture.  Crank-call a rent-a-cop at an elite university and tell him he must have really enjoyed busting up your frat party last week because his dick is so small.  Tell him you know this because his sister is a Craigslist call girl and she compared your huge dinosaur dick to his little pecker.  Tell him he will have to work all year busting parties to match the booze money you took out of Daddy's trust fund for just that one party. 

Encourage them to alienate large numbers of sheeple.  Chinese dissidents (or maybe CIA?) were spreading rumors that the Jasmine Revolution was coming to China and people could express their solidarity by meeting in small groups in shopping areas on a Sunday and just walking around.  The Chinese security bureaucracy has many tentacles and they all compete with each other for how many innocents they can cycle through their interrogation rooms, so they all went and gave the goon squad treatment to a bunch of innocent sheeple.

Go to a donut shop with a friend and talk about this silver bug who was talking about a monster box at the bottom of one of the outhouse pits in the national park but you don't know which outhouse.  Know your local pigmen and dream up devious ways to exploit their paranoia and greed.  Conversely, try not to fall for it when the elites use this tactic on us.  They would very much love for this to turn into a race war or a mutual narc-fest.

Tie the bureaucracy in knots by swamping it, turning it against itself, or forcing it into absurd positions.  If you work for them, even indirectly, quit your job but keep showing up for "work".  Insist on doing things by the book.  Have lots of irrelevant meetings with lots of buzzwords and academic nonsense.  If anyone questions you about this, tell them they lack cooperative spirit/patriotism/respect for diversity/ watever.  If you get snickers and scowls from trustworthy people, take them aside later, tell them what your are doing and keep them as contacts for when the shit really hits the fan.  Go on the dole and max out your CCs and encourage your family to do likewise- but plow the money into PMs and supplies instead of mortgages and consumer crap.

Stay mobile and stay away from cities.  Get a pickup truck with supplies, and keep up with your rural contacts and survival skills.  You and a few buddies could last quite a while on BLM land if you need to. 

Get some silver and BitCoins while you still can.  BitCoins have the kleptocracy protection of PMs, and they are highly divisible and a lot easier to stuff through an ethernet cable.  The number of coins is mathematically capped at 21 million.  Figure in population increase and loss of coins due to shattered hard drives, etc. and this will be a deflationary currency.  Good for saving, certainly much better than bonds.  I wouldn't be shocked to see a $21 trillion Bitcoin market emerge if the kleptocracy gets really bad.  That means an exchange rate of $1m per Bitcoin (currently $9 per BitCoin).  So even though BitCoin is up 3000x since the first recorded PayPal trades in April 2010, it could easily run up by another multiple of 3000. 

https://www.bitcoinmarket.com/market/tools/

There were many blocks of 10,000 that traded back in the good 'ol days.  I have only a small fraction of that because I bought in last month, but there are probably hordes of crypto-anarchist geeks out there who will ultimately be worth billions of clownbux.  The ones closest to the nerve center will be the richest and they will also hate the system the most.

Now, imagine what will happen after the inevitable hyperinflation, food riots and brutal crackdown.  The government will have lost all legitimacy in the eyes of the people, and everyone will be looking around to see who throws the first Molotov.  Enter BitCoin.  It's just a matter of time until someone posts a YouTube video of a flaming cop car while holding a poster of their BitCoin address.  Only shutting down the internet will stop the distributed anarchist horde from donating.  Word will spread.  Crimminals will target the powerful instead of the middle class.  Eventually the going rate might be .01 BTC per flaming cop car, .1 BTC per flaming cop, 1 BTC per flaming federal building, 100 BTC for a Rothschild dosed with scopolamine and mindfucked into spilling all his dark secrets before he is eaten alive by maggots.  Even this would only be a drop in the horde's ocean of buying power.  I think we are going to have a lot of cypherpunks living in Dubai penthouses surrounded by hookers but wanking to the increasingly creative homebrew snuff porn they finance.  Their combined mayhem fund might even exceed the Rothschilds' mayhem fund.  Even without this level of funding, you can still use your BitCoins to buy liquid LSD from Silk Road, and have it shipped anywhere in the US.  Stalk politicians and dose their car door handles.  Go visit banks and federal buildings with a little bottle of breath spray, blessing keyboards or "employees only" doorknobs or whatever Eris tells you to.

Project Mayhem is coming.  This is the will of Eris, who always knows the one action which will turn any situation into a total clusterfuck.  She is one of our most important allies, and with her help, the whole world will be in flames within two years.

Tsukato's picture

This is great shit. Where can I sign up? Only bad thing is, I'm in China. How can I help?

New World Chaos's picture

This will be an internet-powered revolution for all people of the world.  Anything you learn and share on the internet helps us all.  Anything you do to help yourself (hoarding, buying silver/bitcoins, learning kung fu) helps us all.  Anything you do to help or awaken your neighbors helps us all.  If you know some Chinese who are good at making cheap shit quickly and want to help us Americans specifically, here is an idea for you: 

Mass-produce a long range radio (phased array?) that can create an internet connection with any other such radios within range.  Data should be encoded over a wide band which should be easily hackable to a huge band, even outside the ham radio bands.  This would make jamming more difficult.  Maybe you could even disguise the data as lightning strikes.  Trouble is, I rather doubt this system would be cheap, and I doubt your authorities would approve.

Another option is to make infrared nodes.  High bandwith, low power, impossible to jam.  Problem is it's line of sight only, has to be aimed at its neighbors, probably requires weather hardening and some telescope optics, and is vulnerable to clouds.  Would put these around cities with repeater nodes up in the hills, powered by batteries and Chinese solars (ask Leo).

Thanks and good luck.