$4400 and Counting

2017 October 4
by drdog09

Part of a news release that the IMF has released —

Let us start with virtual currencies. To be clear, this is not about digital payments in existing currencies—through Paypal and other “e-money” providers such as Alipay in China, or M-Pesa in Kenya.

Virtual currencies are in a different category, because they provide their own unit of account and payment systems. These systems allow for peer-to-peer transactions without central clearinghouses, without central banks.

For now, virtual currencies such as Bitcoin pose little or no challenge to the existing order of fiat currencies and central banks. Why? Because they are too volatile, too risky, too energy intensive, and because the underlying technologies are not yet scalable. Many are too opaque for regulators; and some have been hacked.

But many of these are technological challenges that could be addressed over time. Not so long ago, some experts argued that personal computers would never be adopted, and that tablets would only be used as expensive coffee trays. So I think it may not be wise to dismiss virtual currencies.


So here you have the head of the IMF doing a stream-of-consciousness kind of thing about virtual currencies. Now one can interpret the piece one of two ways —

1) The blockchain is here to stay and central banks need to subvert it to their purposes. Threat response.
2) The blockchain is our salvation and central banks need to remain aloof to their rise in usage. Ignorance response.

Myself, I pick (1) as their choice. Persons in the high echelons of quasi-government typically don’t pronounce more than they notate or telegraph. They wish to keep the back door open just in case they were wrong. That way they don’t have to admit to failure.

This is the piece I find amusing — “For now, virtual currencies such as Bitcoin pose little or no challenge to the existing order of fiat currencies and central banks. Why? Because they are too volatile, too risky, too energy intensive, and because the underlying technologies are not yet scalable. Many are too opaque for regulators; and some have been hacked. ” Sweetie, half of that is a feature not a bug. Energy intensive? Well I keep my bits on a eWallet on my smart phone which does not consume much juice at all. The volatile component, well just give it time. As the user base gets larger buy/sell ratios will tend to even out. Right now the total market cap for BitCoin is $80Bn. That is equivalent to the total GDP of the state of Mississippi. Not much indeed.

The IMF focus is financial as is the referenced paper. That means they have blinders on what is really going to happen in the blockchain tech. The ultimate winner in my view is the blockchain that is capable of all the following —

* Contract
* Invoice
* Insurance
* Third party participation
* Settlement

— all in one ‘chain’ or wrapper of multiple ‘chains’. BitCoin is incapable of the first four. The blockchain that is capable of performing all 5 functions will win. That capability bypasses the need for SWIFT for example that is run by the first rung banks.

Providing these components would tend to make any blockchain impervious to the central banking authority as most businesses do not want the govt peering into their business affairs. Blockchain privacy would be one of the reasons that people would adopt the tech. Hence the opaqueness that LeGrande complains about would continue and be enhanced.

I suspect that due to their desire to subvert something like BitCoin to their purposes will be the primary reason that they will fail in the attempt.

28 Responses leave one →
  1. 2017 October 4 4:18 am
    drdog09 permalink

    LV shooter radicalised? — https://www.infowars.com/breaking-sheriff-says-las-vegas-shooter-could-have-been-radicalized/ — The common theme for last few years is that a Leftist loses it and goes on a rampage. The idea of the lone rouge militiaman running thru the countryside killing people is so rare these days they need to fund an anthropology seminar to discuss if the species is extinct.

  2. 2017 October 4 4:23 am
    drdog09 permalink

    Here’s a thought — http://www.bbc.com/news/world-europe-41493014 — If Catalan splits from Spain what currency do they adopt? The Euro or BitCoin? Either would work but the Euro would be equivalent to just putting on a different set of chains as far as currency. BTC would provide complete independence.

  3. 2017 October 4 4:37 am
    JimNorCal permalink

    It’s the “sole source” thing that’s really insulting. They didn’t even open it up to other bids.

    A contract award for Equifax’s data services was posted to the Federal Business Opportunities database Sept. 30 — the final day of the fiscal year. The credit agency will “verify taxpayer identity” and “assist in ongoing identity verification and validations” at the IRS, according to the award.

    The notice describes the contract as a “sole source order,” meaning Equifax is the only company deemed capable of providing the service.

  4. 2017 October 4 4:46 am
    JimNorCal permalink

    A comment from the JOM blog. No link given.
    “The FBI is analyzing the tapes the shooter made as he killed. He supposedly sent a live feed offshore…”

    And this:
    Curious quote from Las Vegas sheriff on the shooter: “This person may have been radicalized, unbeknownst to us, and we want to identify that source.”

    Not sure what this means …

  5. 2017 October 4 4:57 am
    JimNorCal permalink

    The “may have been radicalized” is from the Guardian, quoted here.

  6. 2017 October 4 5:02 am
    JimNorCal permalink

    Just one location to start.

    Shake Shack Replaces Humans With Robots..
    “Fast-food chain was once hailed by President Obama for paying high entry-level wages.”

  7. 2017 October 4 5:13 am
    drdog09 permalink

    Jim, 6,

    They can still provide high wages — $25/hr x 0 hrs — The CFO smiles cause the math is undeniable.

  8. 2017 October 4 5:29 am
    drdog09 permalink

    Additional footage to support the 2nd shooter — https://www.youtube.com/watch?v=4bPwXdUFCxE — Look at where they place the mouse p0inter. Appears to be automatic flash fire.

  9. 2017 October 4 6:57 am
    justrand permalink

    Drdog, but there aren’t any other Windows missing on the Mandalay Bay or any other hotels around there…and none of the windows open in any of the hotels.

    If there was a 2nd gunman he needed to be either in the room with the shooter we know of, or outside one of the buildings.

  10. 2017 October 4 7:19 am
    bc3b permalink

    The LV Killer’s girlfriend is back in the US and was met by the FBI when her plane arrived at LAX:


    Apparently she was released after questioning. Newsweek has retracted a story claiming she had two Social Security numbers and was married to two different men at the same time.

  11. 2017 October 4 7:21 am
    drdog09 permalink

    JR, who says that the window has to be missing? — https://www.youtube.com/watch?v=-yiFKX9KzgQ — I know I am heading into Tom Clancy territory, but until the FBI or LVMPD have done a 2nd floor to penthouse sweep with no apparent cut outs….

  12. 2017 October 4 7:30 am
    bc3b permalink

  13. 2017 October 4 7:55 am
    bc3b permalink

    UK wants to jail people for for years for viewing far-right propaganda:


  14. 2017 October 4 7:59 am
    JimNorCal permalink

    10, met by FBI and in a wheel chair? That’s what I read but no source.
    Also, speculation that Paddock worked for IRS and found a way to redirect checks to himself from people who died, thus no need to hold a job.
    Sounds unlikely but this case grows more weird not less as days pass.

  15. 2017 October 4 10:04 am
    bc3b permalink

    JinNorCal #14 –

    That could explain how as a retiree, he had so much money for high-stakes gambling, multiple residences, airplanes, etc. None of the positions he held were high income.

  16. 2017 October 4 10:55 am
    JimNorCal permalink

    Other speculation is that his bank robber father told him where the loot was stashed.
    Or, if he’s a convert then Islamic “charity” money could be involved. All sound far fetched.

  17. 2017 October 4 11:22 am
    JimNorCal permalink

    Some of the confusion can be explained by:
    “FAKE NEWS: Newsweek retracts its earlier story that Marilou Danley had two Social Security numbers and was married to two men.”

  18. 2017 October 4 1:12 pm
    drdog09 permalink

    Can they do anything right? First Jim’s ditty in 17 — http://www.zerohedge.com/news/2017-10-04/us-secretary-state-rex-tillerson-deliver-statement-media-shortly — Then this that Tillerson is telling NBC they are full of s#$^. Well he was actually more polite, he called them morons.

  19. 2017 October 4 3:45 pm
    gnqanq permalink

    drdog – you might want to watch the following video. Goes a little into the cryptocurrencies and a little on their history. Interesting info.


    Myself, I believe if you do not possess it, you don’t own it.

  20. 2017 October 4 4:55 pm
    justrand permalink

    There are now leaks within the Las Vagas investigation suggesting they know a LOT more about the nut job …but are withholding it because it is “sensitive”.

    Time will tell…

  21. 2017 October 4 5:16 pm

    If said info makes it look like a right wing nut job, they would be plastering airwaves with by now.

  22. 2017 October 4 5:38 pm
    drdog09 permalink


    Interesting vid. There is a difference with the current cryptos and the one that India launched and most likely Sweden soon. Here it is:

    * BTC, Ethereum, et. al are asset systems. (The use of the coin can be an offer for cotton as in Ethereum’s case.)
    * Anything that the central banks come up with will be a electronic continuance of the fiat debt instruments they have in paper.

    Its an interesting world we are moving into…..

  23. 2017 October 4 5:50 pm
    gnqanq permalink

    drdog – I liked the part showing how the Central Bankers were involved with the basics of crypto’s back in the 90’s. I just have the feeling that it is a rigged game and they are going to play a game of gotcha with the people who go into crypto’s. Thus why I believe in hard assets, whether they be metals, food or other items. A shovel has some value regardless of what money (crypto’s) are value at.

  24. 2017 October 4 6:14 pm
    drdog09 permalink


    Hard assets are still the way to go. I keep a minimal amount of BTC (couple $100) just for transaction purposes when that is more convenient than any other method.

    What baffles me about the central bank’s stance is they don’t seem to be pushing the debit system like the Euros did. It has all the trappings of the debt system and major lock in with the first tier banks.

  25. 2017 October 4 9:13 pm
    justrand permalink

    I am approaching 100% certain that the Las Vegas shooter did not plan and execute this alone.

    And the governmental SILENCE is what has convinced me.

  26. 2017 October 5 3:38 am
    drdog09 permalink

    JR, based on what I read last night there was no 4th floor shooter. All the rooms facing the venue were swept and no cutouts or other evidence found.

  27. 2017 October 5 6:16 am
    justrand permalink

    drdog, even if there wasn’t a 2nd shooter, the nutcase who did shoot must have had some enablers.

  28. 2017 October 5 8:57 am

    After nearly 50 years of marriage, a couple was lying in bed one evening, when the wife felt her husband, begin to massage her in ways he hadn’t in quite some time. It almost tickled as his fingers started at her neck, and then began moving down past the small of her back. He then caressed her shoulders and neck, slowly worked his hand down, stopping just over her stomach. He then proceeded to place his hand on her left inner arm, working down her side, passing gently over her buttock and down her leg to her calf. Then, he proceeded up her thigh, stopping just at the uppermost portion of her leg. He continued in the same manner on her right side, then suddenly stopped, rolled over and became silent.

    As she had become quite aroused by this caressing, she asked in a loving voice, ‘Honey that was wonderful. Why did you stop?’ To which he responded: ‘I found the remote.’.

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