On The Tranching of Government and Currency
Louisiana has just passed a in response to copper thieves (who steal public copper lines and sell the metal to salvage yard wholesalers) that effectively makes it illegal for cash to be used in second-hand transactions. Only currencyflow with an electronic footprint can be used.
Any such regulatory capture or abuse encourages a gradient of gray/shadow/illicit or alternative markets. Indeed, some of the most robust and thriving global markets were sparked by short-sighted, mousetrap laws that only served to drive talented entrepreneurial talent towards a HUGE untaxable exits (unless you accidently took the bullet-in-the-head).
In our steadily declining regulatory environment (carefree bailouts, enforcement of consumer crushing behavior etc), we are unlikely to see a single holistic alternative regulatory/market entity emerge. There’s no Blackwater market-state lurking in the wings. There’s no coherent alternative monopoly on violence.
Instead, we’ll see regulatory tranching. That is, the layering of multiple tiers of government – local, familial, state, national, market, and even technological. And perhaps the first step will be currency tranching. One medium of exchange for each potential tier, tied to the activity or storage that matters for that relationship. (In other words, value as defined by productivity, and not longevity.)
For example, if I were an OWS participant, I may use bitcoin to conduct my business internally. US dollars to exchange with organizations that operate on that platform. Thousands of US dollars to form one unit that matters on the international governance platform (147 mostly finance companies that control the world). A personalized currency stack, or a portfolio in classic terms. Most interestingly, it’s put together by you.
You’re already experiencing the currency (albeit in a minuscule way) if you keep some money in a a virtual medium like your Paypal/Google Checkout/etc account. You’re already experiencing this if you live pretty much anywhere outside of the United States.
Note: I’ve been extremely skeptical of alternative currencies, and have more often than not dismissed them as utopian fantasy. Had to redefine value and the goal per the above to really get what the industry will look like.
-Shlok
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