Crypto wallet

Private banks have made enormous progress at improving technologies for our convenience such as online banking, easy payments, etc. What does it matter if our money is not in our pockets, but in a bank?

Does it even matter that it is not even money, but a credit (called currency) lent to the bank? What we want is convenience and ease-of-use.

The security of the monetary system is hardly our responsibility.


However the current monetary system is destroying our economies with debt, interest payments, inflation, and derivatives, all adding up to a crushing invisible tax on productive people.

In order to continue transacting and saving in a monetary disaster (happens every 40 years or so, and currently overdue), we need a ready-made alternative money.

We could say carry gold and silver around for savings and payments, since they might have been generally accepted through common consent and attractiveness. (Could just as easily have been durable food). But stacking gold/silver coins returns to inconveniences of portability, security, and acceptance.

The inconvenience of transporting the money to make payments soon led to entrepreneurs (goldsmiths) storing the money and issuing portable bills. In the 1944 Breton Woods agreement the US would issue paper and electronic dollars representing (backed by) the gold in their safes (bounty from the war).

As expected, it was not long before printing of dollars exceeded the gold supply, and even coinage lost its precious metal content. Since 1971 in the US, and about 1973 in most other democracies, currency became completely fiat, backed by nothing but the coercion of tax authorities.

Among some recent efforts ingenious initiatives are those that store your precious metals in a vault and issue a electronic coins for your convenience to pay with (by transferring ownership of the gold/silver in the vault).

Crypto coins replace the vault with a blockchain, where owners hold the keys to their coins in their wallets (representing ownership on the blockchain).

Banks and bureaucracies have made using gold/silver and cryptos almost impossible by throttling acquisition. Besides to purchase these (crypto- or precious coins) one needs to have fiat to start with (converting a convenient currency to an inconvenient coin). Even in a doomsday scenario, it is the very fiat that will fail, and thus be worthless to purchase coins.

Furthermore blockchains and safes are still centralised and remote. Yes, vaults and crypto miners can be distributed, but your money is still not in your pocket (wallet). Vaults and miners cannot be downsized to mobile devices. Level two (off-blockchain) proposals still carry the entire network and all transactions at each node.

Even if electronic, it is still a derivative representing a coin in a vault or blockchain somewhere else.
To summarise, the following stumbling blocks are raised:

1. Difficulty onboarding (obtaining coins),
2. Still not having your money in your pocket
3. Inconvenience of payments

1. Onboarding

Currently acquisition of crypto- or precious coins are dependent on:

1. Fiat currency to purchase the coin (or mining rig), and
2. Permission from banks and governments.

Whereas a crypto credit on the strength of production capacity (the tried and proven credit scores banks use) is created exactly as banks create loans. The crypto credit supply is thus simply tradable IOUs created when a vendor accepts payment.

The amount of credit and the terms a vendor will accept depends on the credit score of the trading partner.

Thus participants are free of fiat and permission. (Crypto credit is of course still obtainable with fiat, crypto- or precious coin as well)

2. Wallet

Having your money in your pocket is like carry a coin purse under your control and ownership. That means you are not dependant on a government (currency), bank, a blockchain, or vault, to make a payment.

However it quickly raises the question of security. Unlike physical gold/silver coins that can be stolen, modern crypto wallets typically have two factor authentication and easy online backup, making theft or loss of a device irrelevant.

The different between this proposal and an electronic wallet carrying a key to a coin in a vault or blockchain, is that there is no vault or blockchain. The independent wallets are thus lightweight enough to run on mobile devices.

It is like having physical coins securely in your possession.

3. Convenience

Payments would simply take place over any of the means of communication commonly available such as NFC, SMS, HTTP, etc., and making use of the myriad of services (APIs) already available for conversions, pricing, barcodes, etc.

Solution

The solution proposed is an independent mobile wallet; independent of banks, vaults, blockchains, and level-two’s, (even of other wallets) that contains local transactions.

Partners are identified when a transaction is to take place, and mutual interrogation (for credit rating, for eg.) is private. Just as a stolen wallet cannot be accessed, so the credit score of a personal wallet cannot be altered by the owner.

In order to promote acceptance, in competition with banks, it will need to make payments easier than contemporaries. In some countries there is still a window of opportunity before banks get on board with the tools already in use in East Asia.

Flexible terms (with each transaction) can make it attractive for vendors to accept crypto credit at a premium, or as part payment

National debt, inflation, and taxes

The argument for banks managing our money was that politicians could not be trusted to not inflate the currency for spending on influence.


So how well do the banks do by comparison?

Self-funding (bank-free currency)

We are painfully aware of the severely distorted distribution of wealth on our planet, and how it came about.




But what can we do about it?

How to pay for Universal Basic Income

The merits of UBI are obvious, so this essay will focus on how to pay for it.



A public central bank will provide UBI for everyone. Here is the proof…


While welfare penalises participation in the economy, with UBI one is free to take a job or create your own products or services without having your UBI clawed back.

This has proven to lead to a renaissance of ingenuity and creativity, rather than the disgrace and discouragement of welfare.




OK, here are the numbers !!

Taking the Canadian population of 30 million as the example, then if every adult received $12,000 per year that would amount to 360 billion.

Since private banks create Canadian dollars out of nothing, then so can the government as was the case prior to 1973 by the Banque du Canada, saving interest payments of 60 billion.

The public Banque du Canada would need to introduce new currency as the economy grows to maintain price stability. Assuming a growth rate of 2% on a GDP of 1.5 trillion that amounts to 300 billion.

To sum up (in billions)
(360) – Universal Basic Income
60 – Interest payments
300 – Price stabilisation

This $360 billion is created by the country anyway.
It is up to us to decide whether it

• goes to private banks (the very mechanism by which the rich become richer at our expense) or
• comes to the people (who produce it).

Please support COMER and IMMR and to return to a democratically managed currency as it was prior to 1973.

Basic income is a necessity



How to pay for Universal Basic Income

Invisible tax

Inflation is an invisible tax on wages and savings.

The purchasing power of new currency comes from the dilution of our wages and savings.

But the inflation of the currency supply is far greater than we think.

We all understand that the increase in consumer prices on the shelves (CPI) erodes our purchasing power, but the real inflation rate is much higher. It is the rate at which the currency is actually increasing.



This real rate of erosion is hidden by our productivity (more work, more throughput, more production, with that same inputs) that makes the difference between CPI and M2/3. We work harder and smarter to keep inflation down, but the benefits do not accrue to us, but rather to the currency creators.

This tax accrues to banks.

The inflation of currency also explains the long term increase in stock prices, since that is where much of it ends up, buying up control of listed companies with created currency.



The Network of Global Corporate Control clearly shows the beneficiaries of this bounty of invisible tax on our savings and wages. This currency is created out of nothing, issued as debt at interest.
Note that these loans are claims on our assets, and that bankruptcies lead to the expropriation of those assets.

Also note that the interest to be paid is not also created, thus interest payments come out of the existing currency supply (loans). This inevitably leads to reduction in currency supply, busts, and bankruptcies.

Governments have to keep borrowing more and more just to make those interest payments, eventually forfeiting pensions, gold reserves, land, and infrastructure to restructuring and austerity. The largest single expenditure at all levels of all governments is interest payments. Governments tax us to pay banks.

Governments are simply another type of organisation such as the Vatican, or General Motors. While GM sells motorcars and the Vatican sells hope for their income, governments extort their income through tax agencies, courts, police, and incarceration, ie., the largest government agencies exist for coercion. (If government services were valuable, they could sell them)

Likewise, corporations have to keep growing, churning, and externalising costs onto labour and the environment to pay for financing. This system needs new wars (another large government agency) or corporate capitalism dies. Government- and corporate machinery is devastating us and the earth in service of banks and bureaucracies.

It is access to this volcano of currency that empowers a small group to run corporations, bribe politicians, grease bureaucrats, influence courts, pollute our planet, dispossess and enslave humanity, and cause wars (the grandest of thefts).

They suck the life out of governments, corporations, and individuals through interest and dispossession, while taking control of them through equity, bribery, and destitution.

While we cannot fight them, we will make them obsolete and irrelevant.

Invisible tax

Free money alternatives

We have been trained to accept that capital comes from savings. Savers are paid interest, and lenders are charged a little higher rate to cover expenses, and hopefully make a small profit in the end.
Well, we now know this is not the case...

Removing the constraint of currency for full employment

It is common knowledge that banks do not lend out savings, but rather create money out of nothing when a contract is signed.

For example, the currency (account balances) for a mortgage does not exist until the contract is signed. Then a bookkeeping entry gives the bank an asset and the borrower a liability.

This newly created currency can then be used to purchase a house, materials, contractors, etc.
But there's a catch ...