Forgetting the FRN: Perpetuating the Myth Is Of No Service to the Cause of Freedom
No longer can SV perpetuate the illusion of the Federal Reserve Note, the US dollar. Many of my articles have discussed the precious metals, in particular silver, in terms of the Fed Note. All the while, I reported that the Fed Note was, for instance, not a medium of exchange, but a “medium of control.” Nonetheless, I marched on in a haze of cognitive dissonance, determining prices via the measurement of a declining asset. I hadn’t yet completely broken free of the gallows of the monopoly-money slaveship, with its red, yellow, blue and green bills. By writing about precious metal values via the keystone money of the dominant culture, I too was perpetuating a myth that had destroyed the world.
But, now I endeavor to never again think of the precious metals in terms of the Fed Note again. The Fed Note is not an asset, a store of value or even a money. The FRN is, as I have written before, a “medium of control,” and exists so that peasants can believe in something, and turn to something for the short-term in a recorded manner; it is much easier to keep tabs on a populations’ transactions if each transaction includes one key ingredient: official exchange units. Although this illusion has been largely deconstructed by the population – which is not nearly as dumb as many would like to think – they still see it as if it will last forever. In so many ways, this is because they have not been properly educated about the alternatives and the implications of there even being alternatives.
And FRN means many things, really, for the FRN is all fiat financial instruments, from the Euro to the Rupee and so on. All of them are the same as It. All of them are the same.
And the illusion is broken. Jeff Berwick of The Dollar Vigilante recently told me that he liked some of the stuff found at this blog, but that I talked too much about the dollar, and he didn’t care about its value since, presumable, he knew its defining trend. Point taken. From now on I will compare the precious metals only in terms of each other and Bitcoin. Why Bitcoin? Because it is easy to understand. Trace Mayer of Run To Gold recently explained the concept to me in the best way I’d ever heard. Thanks Trace.
He told me that the beauty of Bitcoin is that it is a p2p money. Nothing more. It really is just like Napster, BitTorrent and Skype, for example. And just as those became more dynamic as they grew more populated by users, so did their market cap. If these previous p2p file sharing platforms are any indication, such as Skype’s 8.5 billion market cap, then Bitcoin is poised to continue its growth.
Bitcoin is discrete, and in many ways offers an excellent means of transferring money without all the fees of major financial institutions, Credit Card companies and online payment vendors otherwise known as PayPal. It also creates a platform for exchange, in which assets and stocks are open to being gambled on. One can enter into the Bitcoin exchange of, say, grains and crude – or screw it, – and pledge collateral and take profits in the form of Bitcoin.
Yes, the entire Bitcoin platform could fail. Once the grid goes down, then you lose everything. But, this is the same exact problem with It, which does not then therefore imply that Bitcoin is worse than It. That is an error in logic, and a symptom of effective indoctrination. Bitcoin is an alternative, and an alternative more attractive. Bitcoin will not keep you from buying gold, silver, platinum and palladium. All it does is rule out It.
Of course, while the monetary system continues to be brought down by the powers that be, I will have to sometimes mention the dollar. But, from here on out, all attempts will be made to steer away from that artificially constructed slave exchange unit.
With that out of the way, the Mt. Gox Bitcoin index has teetered over the last two days. Today silver is up 23 cents from yesterdays close. The ratio between Bitcoin and silver has gone virtually unchanged from yesterday. Gold has nudged its way back up against $1590, meaning the Gold-Bitcoin ratio sits at 176.66, which is little change from yesterday. In terms of Bitcoin, however, gold has gotten more expensive from yesterday. Platinum, the rarest precious metal, has had an okay day, popping about $15. The platinum-Bitcoin ratio thus stands at 157.77 Bitcoin to platinum.
So, the real story here is that Bitcoin is above $9 for the first time in over a year. The transaction volume in Bitcoins has increased since April. In April, 10,000 transactions took place each day. This month, there have been oftentimes more than 20,000 transactions each day.