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Guest Post: “Digital Future”- Just Another Phrase for Keeping Track of the Serfs

Tyler Durden's picture


Submitted by James E. Miller of the Ludwig von Mises Institute of Canada

 “Digital Future”- Just Another Phrase for Keeping Track of the Serfs

Thus one government intervention begets a further government intervention.  Because government has failed in its primary task…politicians ask, in effect, for price and wage fixing; and we are driven toward totalitarian control.

- Henry Hazlitt “What You Should Know About Inflation

Though commenting on the state’s backing of union thuggery, Hazlitt pinpoints one of the essential rules of conduct for public officials.  That is, intervene in private life to appease one wealthy interest group to then create the groundwork for further power grabs with the inevitable disaster which emerges.  Thankfully, blatant usurpation of authority by lawmakers is still frowned upon by many taxpayers.  That’s why, less a case of opportunistic disaster (“you never let a serious crisis go to waste” as lifelong parasite and former ballerina Rahm Emanuel put it), authoritarianism is achieved in small doses.

Can’t be feeding the people too much information on what their money is really being used for, now

At the beginning of April, Canadian Prime Minister Stephen Harper revealed his budget for the fiscal year of 2013.  Contained within the budget, besides the promising feature of axing 12,000 public sector sponges, was the provision where the Royal Mint of Canada is to cease the production of pennies.  The government blames the cost of production for its decision while ignoring the culprit of relentless currency debasement.  As Maple Leaf Metals Exchange founder Chris Horlacher documents:

In the late 1960’s the quarter and dime were ended in the de-facto sense.  Those coins used to be made from 80% or more silver but after the price of silver began to exceed the face value of those coins they were quickly pulled from circulation and replaced by a nickel imposter.  After it became too expensive even to use nickel then the government turned to steel in 1999 in order to continue creating what now amounted to little more than a casino token.

The penny followed a similar trajectory.  It was made from nearly pure copper up until 1996, at which point the government turned to zinc in order to make them.  In only 2 years it could no longer even maintain the zinc penny-standard and has made them out of steel ever since.  Now it’s farewell to even that denomination of currency and for the first time in Canadian history there will no longer be such a thing as 1/100th of a dollar, all transactions will be rounded to the nearest nickel.  Don’t expect that to last very long at this pace.

With the Canadian penny slowly making its way to the dustbin of currency history, the Royal Canadian Mint has its sights set on a new target: tangible, hard money in general.  From the National Post:

Last week, the Mint announced the release of MintChip, a completely digital currency. “Money, as we know it, is fine for today, but tomorrow is a different story,” says an introductory MintChip video. “MintChip is better than cash, since you can use it online.”

MintChip stores value in a physical chip, and transfers money between chips using heavily encrypted “value messages.” The system has no centralized database. “They’re calling it anonymous … their intention is that it’s no more associated with who you are than [traditional] currency,” said Jacqueline Chilton with Glenbrook Partners, a California-based payment consultant.

The trick here is that nothing government does is voluntary.  The forced usage of the Canadian dollar via legal tender laws renders the assertion of “voluntary” laughable.  The Mint claims the chip can be used anonymously but this assurance comes from the institution in cahoots with a central bank that can’t manage a simple metal standard for more than a few decades.  According to the Bank of Canada’s inflation calculator, a basket of goods that cost $100 in 1934 (the year the Bank of Canada was established) costs $1,683.33 today.  That’s a 1,583.33% increase!

Then again, inflation to the benefit of the state and other first receivers of newly printed money was always the objective of the Bank of Canada.  The “lender of last resort” justification was just a euphemism for financing the government’s stranglehold on society.  The banks are guaranteed a liquidity backstop to their risky lending (and subsequent payout of exorbitant executive bonuses) while John Q. Public is squeezed at the gas pump and the grocery store queue.

Central banking has always been about centralized control over what Murray Rothbard referred to as the lifeblood of the economy; the universal medium of exchange known as money.  The real impetus behind the “Mintchip” is not convenience but an insidious desire on the part of the ruling class to assert their dominance over free transactions by forever digitizing their history.  Governments have been waging a war on anonymous business since central banking became the norm.  According to Pace University economist Joseph Salerno, the Federal Reserve has eliminated the issuance of denominations of the paper dollar over $100 since 1945.  As Salerno writes:

This has made large cash transactions extremely inconvenient and has forced the American public to make much greater use than is optimal of electronic-payment methods. Of course, this is precisely the intent of the US government. The purpose of its ongoing breach of long-established laws regarding financial privacy is to make it easier to monitor the economic affairs and abrogate the financial privacy of its citizens, ostensibly to secure their safety from Colombian drug lords, Al Qaeda operatives, and tax cheats and other nefarious white-collar criminals.

Privacy has been sacrificed to ensure fewer transactions go undocumented.  As long as large scale purchases and payments are recorded, the goons at the IRS and tax collection agencies around the world are better able to legally plunder more wealth from the citizenry.  Politicians remain unwilling to let the party come to an end despite economic recession decreasing the amount of tax revenue flowing into their coffers.  Spending money that isn’t theirs is all they know.  Instead of living within their means, they opt for more thievery to keep buying votes.  While the Eurozone crashes and burns due to unsustainable welfare states and lawmakers addicted to profligacy of public funds, both Spain and Italy have put a limit on large cash transactions.  Tax evaders, looking for nothing more than to alleviate the pain of the tax enforcer’s whip, have become the enemy for not ponying up to satisfy the various highway gangs at the local, state, and federal levels of government.

The introduction of the “Mintchip” is really just another extension of the state’s effort to wield supremacy over private affairs.  It is creeping socialism under the guise of efficiency.  But, as anyone familiar with the nature of state understands, government efficiency is an illusion.  As anonymity in free transactions goes, so goes another barrier on further centralized planning.

Lew Rockwell’s rule of thumb follows that anything the government or its apologists in the media claim must be assumed to be an outright lie.  The development of the “Mintchip” for “convenience” is no different.

If the state wanted to save Canadians money, it would relinquish its control over the monetary sphere and put an immediate end to perpetual inflation.  Instead, keeping track of the serfs is the real name of the game.


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Thu, 04/12/2012 - 15:49 | 2339121 CH1
CH1's picture

The more fiat alternatives, the better.

Fri, 04/13/2012 - 11:02 | 2341650 boogiedown
Thu, 04/12/2012 - 14:36 | 2338842 2DollarBill
2DollarBill's picture

One can only use MintChip for purchases under $10. They test marketed something like this in Guelph, ON about 10 years ago, but it failed.  And this attempt will fail too.  Retailers aren't going to deal with the added expense when they sell are selling  a pack of skittles.

Thu, 04/12/2012 - 15:03 | 2338939 Crisismode
Crisismode's picture

What are they charging for a Unicorn?



Thu, 04/12/2012 - 15:01 | 2338845 buzzsaw99
buzzsaw99's picture

I'm sure this system will be every bit as secure as my windows software. HAHAHAHAHAHA!!!

Thu, 04/12/2012 - 14:38 | 2338849 sudzee
sudzee's picture

From the RCM:

The Challenge

The Royal Canadian MintChip Challenge invites software developers to create innovative digital payment applications using MintChip, a development phase technology available only to challenge participants. Developers and the public are also encouraged to share ideas for how a digital currency can be used. Winners will receive approximately $50,000 in gold bullion from the Mint as well as promotional exposure. Prizes will be awarded for the apps that best demonstrate the potential value of the MintChip technology and have the greatest potential impact on digital payment technology. Submitted apps can run on Windows, iOS, Android, BlackBerry, or desktop and mobile browsers.

The Mint will provide participating developers with a software developement kit (SDK), two microSD MintChips, and two remote MintChip accounts they can use to integrate the Mint's technology with their digital payment applications.

The public and developers have approximately four months to share ideas and build their submissions. A panel of distinguished judges from the tech industry, venture capital, media, and retailers will select winners, and the general public will vote to identify a "Popular Choice" winner.

Challenge Goals:

  • Create software applications and proofs of concept utilizing MintChip
  • Highlight potential advantages of the technology and digital currency

To join or find out more about the challenge click here.

The winner gets what?

Thu, 04/12/2012 - 20:48 | 2340086 MeelionDollerBogus
MeelionDollerBogus's picture




"Developers and the public are also encouraged to share ideas for how a digital currency can be used. Winners will receive approximately $50,000 in gold bullion from the Mint as well as promotional exposure"

Someone really REALLY doesn't want people to say they're too good for this thing because they've got gold. Mmmm hmmm.


Thu, 04/12/2012 - 14:42 | 2338858 penexpers
penexpers's picture

"I need to inspect ya asshole saaaaa!"

Thu, 04/12/2012 - 16:04 | 2339172 Samual Adams
Samual Adams's picture

Reminds me of the Supreme Court ruling in favor of Strip searches for all, even for minor offenses and fines.

Gives a new meaning to your freedom/liberty being stripped away....

Thu, 04/12/2012 - 14:53 | 2338893 Quinvarius
Quinvarius's picture

It will be hacked in less than 3 months, making trillionaires of every member of Anonymous, who will then buy every ouce of gold and silver in existance and enter hundreds of trillions in derivatives contracts.  They will not be prosecuted because they will become TBTF.

Thu, 04/12/2012 - 14:59 | 2338920 css1971
css1971's picture

Local electronic currencies springing up in Greece:

With precedents in Austria:


You are seeing there The Great Reset in action. Life goes on, no ravenning hordes.

Thu, 04/12/2012 - 15:01 | 2338929 digalert
digalert's picture

Anonymous transactions? hah

Since requiring ID to vote is racist and discrimination, can anyone get these 'mint chips' without identification?

Thu, 04/12/2012 - 15:20 | 2338990 thismonkeydoesn...
thismonkeydoesnotdance's picture

fuck this shit. im canadian and i am on the phone with my silver dealer as i type this. time to double up on my silver purchases going forward. its funny, my bank keeps offering me 0.65% if i just keep my money in savings (scotia bank) i told them to pump sand because i only believe in PM's i explained to the bank manager that PM's are INFLATION PROOF, and i would rather stay even then lose money or be insulted by a sub 1% return on my clownbuxxx and that the market was one big lie, to which he reluctantly agreed. i see where this fuckery is going, and i dont like it one bit. SILVER BULLET BITCHEZZZZZ!!!!

Thu, 04/12/2012 - 15:23 | 2339016 Shizzmoney
Shizzmoney's picture

Please, how many fucking people barter now?

Plenty, at leatrs in my experience.  But I am in the poker world; it has been harders since we haven't just been able to ship money between each other on poker sites.  But I still have won money online, and shipped to various people to purchase various things that you can't find in Wal-mart.

Plus, I think that's what BitCoin is all about.  The P2P system of currency is basically a barter of digital currency that can be converted, and traded, all anonymously.  Hell, you can use bitcoins to play poker online, buy rugs, guns, and the USD exchange rate has rebounded a bit.

I really hope we all go digital, just ot see TPTB shit their pants when a Anon runs a "eraseSYS" and wipes out all of the zeros and ones these assholes want to create into "money".

Thu, 04/12/2012 - 15:26 | 2339026 Island_Dweller
Island_Dweller's picture

Here, in NZ, the smallest denomination coin is 10 cents.  Australia beat Canada by getting rid of the 1 cent coin (and the 2 cent) back in the early 90's.  Now there's talk of getting rid of the 5 cent piece in Australia too.

Thu, 04/12/2012 - 15:56 | 2339141 Hobbleknee
Hobbleknee's picture

That's called inflation.

Thu, 04/12/2012 - 16:06 | 2339181 Samual Adams
Samual Adams's picture

It's called,  transitory-priced-in-devaluation of fiat currency fucking up your purchasing power/wealth.

Thu, 04/12/2012 - 16:14 | 2339215 Hobbleknee
Hobbleknee's picture

Same difference  :-D

Thu, 04/12/2012 - 16:27 | 2339272 q99x2
q99x2's picture

Tide for currency and sex for drugs.

Thu, 04/12/2012 - 16:56 | 2339376 NuYawkFrankie
NuYawkFrankie's picture

Re “you never let a serious crisis go to waste” as lifelong parasite and former ballerina Rahm Emanuel put it.

You can add midget bath-house-bandit/fudgepacker to that list.

Thu, 04/12/2012 - 17:02 | 2339401 Vince Clortho
Vince Clortho's picture

We can only pray that the CB Cartel is stupid enough to move to an all digital financial system.  How many millions of the best hackers on the planet would have instant motivation to relieve the parasites of their digital accounts and redistibute according to their whim?

Sounds like a good idea for a movie.

Thu, 04/12/2012 - 17:39 | 2339538 Getting Old Sucks
Getting Old Sucks's picture

Just remember one thing for everyone talking about bartering.  Once anyone you deal with is caught by the SS, he's going to sing your name out and you will be in the next cell.  Trying to get around the system is not the answer.  The system must be taken down.

Thu, 04/12/2012 - 20:42 | 2340069 MeelionDollerBogus
MeelionDollerBogus's picture

Getting around the system is HOW you take it down. tracking people who barter won't work any better than tracking people who make meth or who sell lawn mowers. Meaning nada. Ever. That's how it works. Anonymous.

Thu, 04/12/2012 - 19:00 | 2339776 ebworthen
ebworthen's picture


What problem? 

I promise I won't tell where and what you spend or let your little minty bits get hacked; I promise, cross my heart!  Just look at this face, would I lie?

Thu, 04/12/2012 - 19:02 | 2339798 Herdee
Herdee's picture

The latest scam in Canada is to add huge numbers of F-35's to the total debt of Canada which is around 700 Billion and fast approaching 1 Trillion.(And the world thinks that Canada is doing good?),it's bullshit.Add in a Navy shipbuilding program in the billions too,along with a planned 9 billion dollar super-max prison system.Sound familiar my fellow Americans?Since Stephen Harper got into office, the deficits have gone out of control.Now he's switched over to slash and burn.Him,Rob Anders and others used to belong to an ultra right-wing party in western Canada called "The Reform Party".They got control of the Progressive Conservative Party.The point being that many of these Alberta foothills wackos belong to the same dispensationalist religious sects as Sarah and her nutcase buddy Bachman.George Bush and Tony Blair subscribe to this right-wing protestant prophesy crap too.Harper had a law passed and to this day,Canadians do not know how much money has been spent in Afganistan.(It's a national security issue).Some estimate over 30 billion or more added to the national deficit.These Wako-type wackos actually believe they're doing the Lord's work to usher in the returning of their god to Jeruselum who will reign from Solomon's temple.They'll go to war killing millions in order to make the so-called path for their messiah Jesus.Ya,Harper and his wacko gang fit in perfect with Bush and Blair and have bankrupted their countries to do it.There's only one big problem for Harper though.If the price of oil ever crashes,Canada's budget will be as good as it is south of the border or over in Europe.One last thing,Harper plans to lock up all of Canada's pot smokers and growers and fill up the jails.Even the Texas Governor has warned Harper that it almost bankrupted Texas.Read about it online at Cannabis Culture Magazine and the war on drugs at's own right wing Justice man Vic Toews even screwed an 18 year old girl impregnating her.The guys kids were older than the girl.Divoce quickly set in.This guy's a pervert going on 70!Latest rumours in Ottawa now even point to Harper's own wife screwing the head of the RCMP security detail.Fine bunch,EH?

Thu, 04/12/2012 - 20:27 | 2340036 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

Not one mention of Baracky? You are either stupid or a DNC troll.

Thu, 04/12/2012 - 20:40 | 2340066 MeelionDollerBogus
MeelionDollerBogus's picture

stimpy you eeeediot.

Canada doesn't have an Obama.

Thu, 04/12/2012 - 20:28 | 2340038 Lost Word
Lost Word's picture

The Government has known of the current existence of and has been spying upon the Messiah for at least the past fifteen years. The Messiah was born in New York City, several decades ago. The Messiah broke the code of the Book of Revelation, and the lying and treasonous Government and the lying and treasonous establishment news media has known it since mid October 2001, when the Messiah began sending out emails with the explanation of the Book of Revelation code. For example, Revelation chapter 11 prophesied the 9-11 attacks on the WTC Twin towers, although there was no indication in Revelation that the Government had orchestrated and conducted the 9-11 terrorist attacks.  Unfortunately, neither Christians nor Jews have faith in the Messiah, and the Satanic Government is fightng against the Messiah.

Thu, 04/12/2012 - 20:40 | 2340065 steelrules
steelrules's picture

The currency act of Canada states that two parties can use as payment anything that the two parties agree upon, so one would think that this mint chip will only create a much larger barter system and cashless underground. All of this sounds bullish for bitcoin silver gold and any other non government currency.

I for one have been plowing every last cent I can into silver bullion since it was $7.00, in hind sight the best financial decision of my life.

These government fools think that this mintchip idea will increase tax revenues and stop the underground, I predict the complete opposite. 

Thu, 04/12/2012 - 20:52 | 2340098 blue
blue's picture

who cares ,should have taken Canada over in the 1800's anyway,then we would have more oil ,gold,nickle ,lead,uranium,silver and every other thing that's appreciated the last ten be it.....

Thu, 04/12/2012 - 21:27 | 2340175 steelrules
steelrules's picture

You should care they're coming for you next, and don't forget the war of 1812 you guys did try and take us but we spanked your asses and sent you home. :0

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