Interesting you should mention Bitcoins, Arjay.

>>...use a system like Bitcoin that bypasses the banks...<<

I have been following Bitcoin's fortunes with great interest, ever since you first introduced me to the concept.

The most significant analogy I can find for it, is the Gold Rush. Given that Bitcoins are "mined", that should not be too surprising, but this is not the only similarity.

For those yet to encounter the phenomenon, here is a relatively recent account of its trajectory.

http://www.wired.com/magazine/2011/11/mf_bitcoin/all/1

The parts that supported my "gold" comparison were:

"Bitcoin had begun in the public-interested spirit of open source peer-to-peer software and libertarian political philosophy, with references to the Austrian school of economics."

Aha, those crazy Austrians and their Gold Standard. What seems to have happened is that some smart mathematician had found a way to produce "gold" electronically.

"Bitcoin’s economy consists of a network of its users’ computers. At preset intervals, an algorithm releases new bitcoins into the network: 50 every 10 minutes... bitcoiners’ computers validate transactions by cracking cryptographic puzzles, the first to solve each puzzle receives 50 new bitcoins."

So, like gold, there are a few prospectors out there, "finding" gold, in the form of Bitcoins. So, why doesn't everyone do it...?

"Where the first miners had used their existing machines, the new wave, looking to mine bitcoins 24 hours a day, bought racks of cheap computers with high-speed GPUs cooled by noisy fans. The boom gave rise to mining-rig porn, as miners posted photos of their setups. As in any gold rush, people recounted tales of uncertain veracity"

Altogether, a very workable concept. So long as the population of merchants willing to accept Bitcoins continues to increase, and the "production" process is not allowed to cause over-supply. Meanwhile - like any untraceable currency (e.g. gold), Bitcoins have some very specific applications.

"Gawker published a story on June 1 about the currency’s popularity among online drug dealers"

Makes sense.

Since Gen Clark seems to have been left behind while you focus our attention on the banks I thought you might find this of interest, Arjay…

There are still 26 days to download – and listen closely to – the 13 MB podcast of BBC Radio 4's (excellent) The Long View: Sovereign Debt.

A nice comparison with Greek's current debt crisis and the way England dealt with one of its.

You will probably enjoy the way the bankers got shafted… though as in most sovereign or national financial situations that is an oversimplification of the whole story.

The more things change the more they stay the same.

Good post about Bitcoin Pericles.I don't like their concept of mining new currency for no real productivity.The peer to peer transfer of money is a positive.This mining Bitcoin would ultimately be very similar to what Commercial and Central banks do at the moment ie create money from nothing that represents the wealth of all society.In this case the wealth of their mining would be more diversely spread than our present banking system.

The perversion at the moment is that our increases in productivity get expressed as debt by private banking corps who then loan it back to us to repay capital + interest.It kills incentive since our Govts act as debt collecting agents to private banks who produce nothing of tangible worth.Currently we see in the USA the FED create $ trillions from nothing and loan it to the people as debt.It is a monumental scam!!

With the instigation of the Private US Federal Reserve in 1913,the Govt then brought in the income tax act in 1914 to service debt to private banks.None of us should be paying income tax as the natural increases in population and productivity provide more than enough taxes for our Govts to function.

Ron Paul generally has the formula right.We need more individual freedoms/responsibility and far smaller far less interventionist Govt.

WmTrevor.While the small banks may get shafted,their CEO's and directors usually clean out the coffers and run free.The really big players never lose.They have too many pawns between us and them to play out their chess game.

Gen Wesley Clark is one of the few good men who has the courage to speak the truth.We all know that the wars are about energy and global dominance,however there is a very sinister agenda by some which they want the world's population reduced by 90% in the name of saving the planet.They have the means to do it via disease,wars,food control,oppression,chemical,psychological warfare,economic collapse and control of our Govts.Many within the elite have been convinced by our scientists that the world will end unless man's use of resoures/energy is drastically curtailed.

This is why the Chinese model of communism is being adopted by the Green movement and Obama.This is what people like Ron Paul are trying to defeat.It is totalitarianism in it's most obscene form.

*While the small banks may get shafted,their CEO's and directors usually clean out the coffers and run free.*

Its these wild claims Arjay, that I have a bone to pick about.

Yes, bank CEOs make great money. A wrong move could lose billions,
so we need the very smartest people in the job. A gold watch won't
do it these days, I am afraid.

Now take some time to study the financials of our big 4, any of them.
Add up what is paid to the CEO and directors. Take a look how many
billions are paid out to shareholders. Payments to the former are frankly
chickenfeed.

Who are all these shareholders making all this money? Anyone
who has a superfund of course. They own most of our banks. In other
words, Australian workers are by far the largest beneficiaries of
Australian bank profits, after the Govt has taken its share.

yabby/quote..""Add up what is paid to the CEO and directors.""

ie less than 50 bonus recievers?

"""Take a look how many
billions are paid out to,..{MILLIONS}..of shareholders.

Payments to the former are frankly
chickenfeed."""

yep it funny how the few[ceo's]
share so much of so little

and the shareholders recierve..so little from so much

""Who are all these shareholders making all this money?
Anyone..who has a superfund of course..."""

lol...as stated previously
fundholders...dont get a share

sure..'their compulsory contributions..
plus share..'income'...seemingly goes into THEIR FUND
but the fuind churns it[gam,bels iot away again[plus votes on the shares]..plus gets all the share benifits

in the end...its all re-invested
[except for the bonus collected
and wages/fees charges/govt taxes etc

THESE few..funds holding shares
""They own most of our banks.""

they take the share dividend
not us...to say us..is only vaguely correct
for by the time we could get it..its been re-invested

and we now hold buggy whip shares..gunns shares..
and empty mine [shares]..and cleanup duties...

our past proffits are gone
or what they bought..was deflated into nuthing..[by the time 'the majority'..collects their 'share'..of all them gutted shares[bonus all round thought for the few]

""In other words,
Australian workers are by far the largest beneficiaries of
Australian bank profits,""

in other words
in our name...but like any pyramid sceme
in the end..the last in..get the least out

or ibnflateion
has devalued your un-inflated dollars..to where your final super..buys you half a beer

""after the Govt has taken its share.''

yes after govt takes its lesser share for the rich
chosing between..paying 15% super super rate[plus govt extras]
...[or 30% wages taxtrate..if they took simply their wage]

and the poor get the same 15%
even if they never reached the tax rate of 20,000
and their 'top up'..is pennies compared to what top/ups
govt gifts to the rich...[all on the lame excuse..of govt cant pay pensions tomorrow[lol]

heck its paying todays
AND TOMORROWS pensions today..[via the top up]

its just a clever scam..so workers
didnt get their pay top up..way back when