Jim shares precedence of allowing innovation to flourish, so that government seizes the innovation and makes it their own. To the global elite, this allowance makes it all the easier to round-up the innovators and send them to horrific fates. This secret plan is terrible news, no matter how you feel about crypto…

by Jim Rickards via Daily Reckoning

Interest in Bitcoin is red hot at the moment. It’s impossible to open a website, listen to a podcast, or watch a video in the financial space without hearing about the meteoric rise in the price of Bitcoin.

Maybe you know a “Bitcoin millionaire” who bought five hundred Bitcoins a few years back for $50,000 and is now sitting on a Bitcoin fortune worth over $2,000,000. It’s true, those people actually do exist.

Yet the crypto-hysteria is distracting you from a scary truth no one is talking about. There is every indication that governments, regulators, tax authorities, and the global elite are moving in for the crypto-kill. The future of Bitcoin may be a dystopia in which Big Brother controls what’s called “the blockchain” and decides when and how you can buy or sell anything and everything.

Furthermore, cryptocurrency technology could be the very mechanism used by global elites to replace the dollar based financial system.

In 1958, Mao Zedong, the leader of the Communist Party of China and China’s dictatorial leader was confronted with demoralized intellectuals and artists who were alienated by Communist rule. As a policy response, he declared a new policy of intellectual freedom.

Mao declared, “The policy of letting a hundred flowers bloom and a hundred schools of thought contend is designed to promote the flourishing of the arts and the progress of science.”

This declaration is referred to as the “Hundred Flowers Campaign” (often misquoted as the “thousand flowers campaign”). The response to Mao’s invitation was an enthusiastic outpouring of creative thought and artistic expression.

What came next was no surprise to those familiar with the operation of state power. Once the intellectuals and artists emerged, it was easy for Mao’s secret police to round them up, kill and torture some, and send others to “reeducation camps” where they learned ideological conformity.

The Hundred Flowers Movement was a trap for those who placed their trust in the state. It was also a taste of things to come in the form of the much more violent and comprehensive Cultural Revolution of 1964–1974 in which all traces of Chinese bourgeoisie culture and much of China’s historical legacy were eradicated.

Something similar is going on with Bitcoin and the Distributed ledger technology (DLT) today. Governments have been patiently watching blockchain technology develop and grow outside their control for the past eight years.

Libertarian supporters of blockchain celebrate this lack of government control. Yet, their celebration is premature, and their belief in the sustainability of powerful systems outside government control is naïve.

Governments don’t like competition especially when it comes to money. Governments know they cannot stop blockchain, in fact they don’t want to. What they want is to control it using powers of regulation, taxation, and investigation and ultimately more coercive powers including arrest and imprisonment of individuals who refuse to obey government mandates with regard to blockchain.

Blockchain does not exist in the ether (despite the name of one cryptocurrency) and it does not reside on Mars. Blockchain depends on critical infrastructure including servers, telecommunications networks, the banking system, and the power grid, all of which are subject to government control.

A group of major companies, all regulated by government, have announced a joint effort to develop an open-source blockchain as a uniform standard for all blockchain applications. The group includes JPMorgan, Wells Fargo, State Street, SWIFT, Cisco, Accenture, the London Stock Exchange and Mitsubishi UFJ Financial. That’s not exactly five guys in hoodies working in a garage. That’s a sign of the corporate-state consortium taking over.

An elite U.S. legal institution called the Uniform Law Commission, that proposes model laws intended for adoption in all fifty states, has released its latest proposal called the “Uniform Regulation of Virtual Currency Businesses Act.”

This new law will not only provide a regulatory scheme for state regulators, but will also be a platform for litigation by private plaintiffs and class action lawyers seeking recourse against real or imagined abuses by digital coin exchanges and facilities. Once litigation begins, anonymity is the first casualty.

Cryptocurrencies and the Super-Elites Plan

Consider the following additional developments:

On August 1, 2017, the SEC announced “Guidance on Regulation of Initial Coin Offerings,” the first step toward requiring fundraising through blockchain-based tokens to register with the government.

On August 1, 2017, the World Economic Forum, host body to the Davos conference of global super-elites, published a paper entitled “Four reasons to question the hype around blockchain.”

On August 7, 2017, China announced they will begin using blockchain to collect taxes and issue “electronic invoices” to citizens there.

Perhaps most portentously, the International Monetary Fund (IMF) has weighed in. In a special report dated June 2017, the IMF had this to say about blockchain:

“Distributed ledger technology (DLT), in particular, could spur change in the financial sector. …. DLT can be categorized as “permissionless” or “permissioned” depending on who can participate in the consensus-driven validation process. Permissionless DLTs allow anyone to read, transact on, and participate in the validation process. These open schemes (that underlie Bitcoin, for instance) could be very disruptive if successfully implemented. By contrast, in permissioned DLTs, the validation process is controlled by a pre-selected group of participants (“consortium”) or managed by one organization (“fully-private”), and thus serve more as a common communications platform.” (emphasis added).

IMF releases require expert translation because they are never written in plain English, and the real meaning is always hidden between the lines. But, the thrust of this report language is clear. The IMF favors “permissioned” systems over “open schemes.” The IMF also favors control by a “pre-selected group of participants” or “one organization,” rather than allowing “anyone” to participate.

This paper should be viewed as the first step in the IMF’s plan to migrate its existing form of world money, the special drawing right or SDR, onto a DLT platform controlled by the IMF. In time, all other forms of money would be banned.

These and other developments all point toward an elite group including the IMF, JPMorgan, the Davos crowd, the IRS, SEC, and other agencies converging to shut down the existing free-wheeling blockchain ecosphere, and replace it with a “permissioned” system under “consortium” control.

Big Brother is coming to the blockchain.

 

    • @CentralTexan

      Exactly. Richards throws out speculation about SDRs, the gold price, Cryptos…, then to back it up, tells us he worked with the CIA, and was present for the LTCM bailout, almost 20 years ago. Now he writes books.

      Like our buddy Jim Willie notes, Crypto’s encryption is hackable (Quantum Computers, 256 bit encryption and the like). Like gold’s manipulation, im pretty sure the Banksters/Deep Staters hacking the Cryptos wont be announcing their scheme in the Wall Street Journal

      Golds encryption isnt hackable, because gold has no encryption.

    • Also,

      Private ledgers defeats the purpose of diffuse, transparent blockchain ledgers.

      Nobody is going to participate in ridiculous ”permissioned” blockchains , since there is no point in it.

       

    • I may be wrong but I think the point he was trying to make, is once the gov gets their neck involved. LOOK OUT! They will not tolerate competition in any form to monetary control.

  1. Everyone I know is completely prepared to leave the West if these assholes become a problem. But if you understand Bitcoin – there truly is very little to worry about. All they can do is make there own coin. No one will use it. The masses will choose Bitcoin. America has nothing to do with the decentralized blockchain. Or Bitcoin.Veritaseum may put the banks out of business. So might Bitcoin.

     

    • Wanted to get into crypto yonks ago Exchanges want name address  phone number email address phone number bank account details… what colour underpants ,,,,,,etc Similar to Nigerian scams.

      No thanks.

       

    • “Wanted to get into crypto yonks ago Exchanges want name address  phone number email address phone number bank account details… what colour underpants ,,,,,,etc Similar to Nigerian scams.” 

        

      No, don’t worry peter, I think this is a real Western Scam. Lol. 

       

    • Just because tools like Rickards choose to run their mouth does not mean that we much choose to listen.  My BS filter is a good one and it is firmly in place.  Not much gets past it.  Experience will cause one of these to generate itself spontaneously for everyone but it can take some time.  Reading a lot can help it develop.

       

  2. Fear is all they can come up with. It has gone too far already, they can’t stop it. Bitcoin makes every individual with a hardware wallet, Goldman Sachs too. They literally become a bank. Next stop $6800 USD!

    BTW – every time one of these fear mongering stories is propagated, Bitcoin’s price pops a couple hundred bucks… so keep it up please!!

    • Did you know estimates are that only 5% of the gold in circulation was turned in? Most citizens declined to participate. And that was back in a time in our country’s history that the population believed it’s government.  They had credibility still. Now, no one trusts government, and fewer and fewer are afraid of it.

      And I have to ask – because I have no clue. How does one go about confiscating a crypto-currency? Just for argument, let’s say Bitcoin is our target. You issue a decree banning it’s use. Bitcoin immmediately rises $600 because people sense your weakness – and figure your US dollar is going to collapse – so they double up buying 2x, because they know it’s over. And they need to leave the sinking ship as fast as possible – before it can’t buy any more bitcoin, not because it’s illegal, but because the dollar is going to  ..30..cents. Because the system is failing.

      The US will be isolated from the rest of the world now – we’ve been bad – we’ve ruined it for everyone – and we will pay a price for it.  Here in Brazil – the real has lost %50 of it’s value since 2013. People buy bitcoin here because they can keep their purchasing value up. THe banning of it would do nothing because people pay Bitcoin to each other – you need no one’s permission to transact. I can assure you that the .gov of Brazil is not going door to door confiscating Bitcoin. What would that look like? Looking for your hardware wallet? Your memorized seeds? A sheet of paper? Then do that for millions of people. NO.

      You see – it’s over. It’s already over. Bitcoin has won. Bitcoin has already won. We can argue all day over whether that is a good thing for humanity, or a hideous thing.

      But it won’t change the fact that Bitcoin has won. And as the rest of the world pours into Bitcoin, it will soar into the hundred’s of thousands of dollars. Be a coin holder, not an ETF holder.

    • @silversnout

       

      Most citizens in the 1930s declined to participate in FDR’s gold grab because they had little to no gold at all.  My grand parents were typical of that era.  They had a $5 gold piece on rare occasion.  The rest of the time, silver coins were their money because they were too poor to have much gold.  Even when the infamous EO #6102 was issued, it still allowed people to hold up to $100 face value in gold coins.  The really fun part of EO #6102 was that it telegraphed this move a month in advance, giving those who were so inclined a whole month to move their gold to Canadian, Mexican, or European banks before the order came into effect.  So, it is clear from all this that FDR’s order was aimed not so much at everyday citizens but at the banks who were holding most of the gold in circulation and were refusing to lend out any of it.

      The Great Depression was caused by these banksters as a way to milk American citizens of their wealth.  They do this about every 80 years and they have a smaller version of it about every 40 years… just to ensure that the milking of other people’s wealth is pretty much complete.  Lately, the deal is to get “bailed out” by the US Gov, which is to say us tax-payers, when the banks screw up.  This is theft on an unimaginably grand scale.  The US Gov needs to stop enabling this behavior by allowing those who run their banks stupidly or greedily to go bankrupt.  The USA has some of the best bankruptcy laws in the world and they should be used when and where appropriate.  The banks need to know that they will not profit from such financial antics in the future.  They also need to know that when they behave stupidly, there will be consequences… as in federal prison time… as well as wealth claw-back that will be used to help pay back those they have robbed.  They also need to be barred from ever again working in any financial institution at any level above that of janitor.

       

    • Well, the way I see it is that because cryptocurrency’s are electronic payments that go through the communication system, the government can track them and they can figure out who is using the currency.   I believe that they may track and come after individuals using the currency once it is deemed illegal or substituted for another one.   At the end of the day, I just don’t trust them.

  3. I wonder how many sheep will leave, I think most will do exactly what they are told. The masses are usually wrong, and the banker are not Americans or any nationality, they are Citizens of the World. Crypto’s are going up for a reason, and nothing happens without reasons, and my money is on the Bankers being the reason.

     

  4. That’s right – in Japan – they are the national currency now. Bitcoin Bonds are being created. I guess that’s why Roger Ver moved to Japan. Everyone uses Bitcoin for daily transactions. The USA is quickly degenerating into a morass of income harvested, mind screwed idiots. Ruled by a police state. Only an idiot with no self respect or awareness would stay imo.

  5. Bitcoin is immoral & is not decentralized, it is the precursor to the Mark of the Beast currency that TPTB will roll out after the collapse of the dollar so they can track, trace & tax all of humanity.  All those who pump this backed by nothing digital illusion of wealth are promoting the enslavement of humanity.

  6. You mean the Devil is after us? Thanks for posting!!! Just one problem – everyone will continue to use Bitcoin after they “roll out” what ever their coin is. You can’t make Bitcoin illegal BECAUSE THERE IS NO WAY TO ENFORCE THE LAW. You have to be able to stop it. And there is no way to stop it. Sorry Charlie.

    BTW – Bitcoin is the MOST moral currency out there. And it is decentralized – that’s the whole point.

  7. As much as I hate government control, I know it is coming. I have little doubt that Bitcoin was invented by the CIA as a test balloon for their coming global currency. The story about an obscure Japanese man inventing Bitcoin is laughable. As for government control, it is already happening in China, causing Bitcoin and other cryptos to take a dive. Russia is also said to be looking at Ethereum. Absolute control over what people and buy and sell in the future is a certainty — if they can even buy or sell at all. Ultimately, the coming global ruler will demand his mark for buying and selling, and the people will cast their silver into the street, probably because all other currencies will be outlawed. As the global crypto emerges (Fedcoin, anyone?) it might have gold backing, but you can be sure that the plebes will not be able to get their hands on physical gold. I suspect that beside owning all real estate and everything else in the world, the super elite will try to preserve their wealth in physical gold, but the global dictator might outlaw them having gold as well!

    • “… and the people will cast their silver into the street…”

      Yes, they will.  They will take their silver to the nearest black market and buy what they need and want with it.  Does that qualify as “casting it into the street”?  It could be seen as just that, IMO.

  8. Please, will someone attend some critical thinking classes here? The whole point of a mathematical software solution to exchanging value is that commodity backing is not only not required, IT IS UNDESIREABLE!

    Why? – Because the .gov could always confiscate the commodity, or alter it’s value by decree. Bitcoin’s value in part lies in that it needs no backing to have value! Nothing to confiscate. It cannot be seized, censored , blocked, or stopped. There are also no “charge backs” with Bitcoin. Once it is sent – it is sent.

    The whole point here is that the .gov has no business being in anyone’s pocket except for a small tax donation annually, to keep things running. The Roman people had better roads, schools and water than we do – they paid less than 1% annually in tax to the emperor. Now is when our system comes down, governments fail, and we together,. without a bunch of pedophile congressmen and women, put it all back together again in our image. Not theirs.

    The system comes down now. Hope you all got your supplies.

     

    • “The whole point here is that the .gov has no business being in anyone’s pocket except for a small tax donation annually, to keep things running.”

      lol… The US Gov is making a career out of putting their big beak into everyone’s business, whether or not We the People think that it is none of their business.

      The discussion here about bitcoin is interesting.  It shows that some of us have great faith in the power of the federal gov to screw up things that aren’t broken, while others are assuming that affecting these crypto-currencies in any way is impossible.  Would that this were so!  Unfortunately, governments exist to control all that can be controlled AND to destroy that which cannot be controlled.  Either way, anything that looks like it is profitable or working against their interests WILL be taken over OR it WILL be destroyed.  History is pretty clear on this aspect of government, especially when government feels threatened by something.  Make no mistake… anything that threatens the banks WILL be seen as a threat to the US economy and government and strong action WILL be taken against it.

       

  9. “Nobody would buy it.”  That’s what I said about bitcoin when it was eight bucks. They’ll be all over it just like flys on sh*t. Especially after the FED who will probably be the primary owner of said coins manipulates the price upwards a bit.  I can see it. If they get rid of their own paper currency many people will revert to using chunks of barbaric relics to exchange goods and services with.  The bank stirs won’t win that one.

    • No one owns any gold or silver sir. Almost literally, no one. (Well, maybe you & me)  That’s why it can’t work. They have value – great value – but they do not exist in circulation. If you have a phone – you can buy bitcoin. And send bitcoin. And get paid for your job in Bitcoin. See the difference? It has to have UTILITY!

      Bitcoin is already emerging as national currency in troubled countries. Everyone will run from the sinking reserve currency – the US Dollar – into Bitcoin soon. South African Rand – collapsing. All my friends living there are on the exchanges purchasing bitcoin to preserve their funds.

    • @bitcoinsnout – Bitcoin is not a currency, is not decentralized, is not anonymous and has no utility other than cheating the greater fool & enslaving humanity.  You are a pumper of a digital illusion of wealth.

    • Most people that I know don’t own any bitcoin either.  Most people that I know don’t have ten bucks.  I agree with the snout that most people don’t own any gold and silver.  It sucks to be them.

    • Agreed @andrew james

       

      ” I agree with the snout that most people don’t own any gold and silver.  It sucks to be them.”

      Indeed it will… but that should in no way encourage any of us on here to emulate them.

      5,000+ years of history is not to be dismissed, denied, or taken lightly.  Gold and silver have value because there are a great many people in this world who know that they have real value and desire owning them.  Currently, this knowledge seems to be in a coma here in the USA.  But many others in Asia and other places are fully aware of the fact that many currencies have died over the years and that when, not if, they do, they can destroy generational wealth.  People who appreciate gold and silver as money do not do so because they are pretty.  They do so because both of these metals have shown their value over time… a LONG time.

       

  10. BITCOIN = Unique Identifier.  Its a giant tracking device for all monetary transactions.

    Distributed Ledger = Ledger that can’t be eliminated by single attack – its distributed all over the place.

    Together its a giant tracking device that can never be eliminated once it is in place.

    Welcome to the future, its going to be awesome.  NOT.

  11. History will not look back too kindly on the bitcoin pumpers, they are shysters that pump this digital illusion of wealth ponzi scheme, what is the difference from them and the wolves in wall street?  Spare me the “Bitcoin is decentralized” talk, it is already proven not to be just like when they were pumping the lie that it was anonymous.  Also, it is not a currency, it is a speculative asset.  It amazes me that so many in the truth movement who are allegedly against the banking system sell themselves to this illusion of wealth, you should be ashamed of yourselves.

    • In Japan and Brazil it is a currency. You in the USA are doomed.

      Bitcoin was never sold as anonymous – it is quite traceable.  It does not require identity though. In bitcoin, the money is sent to an address, not a person. If you control the private key to that address, you control any funds within. I never met a bitcoin pumper – so i cannot help you there. What I can tell you, is that it’s a great feeling to own my own bank. To truly be sovereign with my funds. To not have to involve a third party, never have to ask for permission to get to my money or issue notice that I am using it. It’s more private, but definitely NOT ANON. It was never designed to be.

    • @bitcoinsnout – Change your name since you pump bitcoin all day and night, we are tired of hearing it, go to Japan and stay there, I’m sure you will have fun with your Bitcoin community full of psychopaths and shysters after the collapse.  Stop defending your cyberchrist like some religious cult fanatic replying to every post in opposition to your lord and savior.  If you want to empower humanity teach people about blockchain technology instead of Bitcoin which is a ponzi scheme and will die a horrible death leading to a lot of people getting burned by it.

    • Yeah all the Crypto Pumping Douche Nozzles will repent thier sins. The amoral action of making all that shockingly emepheral money out in cyber  space. They will be the first against the wall when the revolution comes or the rapture…. (which ever comes first)… Rickards is a fear porn merchant and pumps his miserable books for all he’s worth. Meantime…. I suppose I’d better get a bit more Ether lol…

  12. “These and other developments all point toward an elite group including the IMF, JPMorgan, the Davos crowd, the IRS, SEC, and other agencies converging to shut down the existing free-wheeling blockchain ecosphere, and replace it with a “permissioned” system under “consortium” control.”

    Hey Pops, whazzat?

    It’s a gate Mental.

    Don’t much look like a gate to me Pops.

    Cow’s don’t like walking across those pipes laid across the road. They’ll stop short and they’ll just turn around Mental.

    Chicken Shitz – Mental Reflects days of Yore

    @Yohanan,,,,, and @Big_Stacker  I agree with your thoughts.  You may not see the or recognize the gate when you encounter one. Herding will be unnecessary, they’re being implemented around you now.

  13. It makes no sense that the government cares about bitcoin as it has virtually very little real world use. Sure the criminals can trade it, they can also trade pokemon cards. Eventually they need to trade it for fiat and that’s when the criminals will have issues.

  14. Just a bit of input on this article. I know Jim has talked for some time about the SDR eventually being put forward as the replacement for the US dollar as global reserve currency. In this article he suggests that now this might be a blockchain based version of the SDR.

    Of course, I can’t possibly know for sure if something like this is being looked at, but I can offer this bit of input based on discussions with some experts I have exchanged emails with on all this.

    None of the experts I talk with (including a former IMF SDR expert) are aware of any kind of new version of the SDR (based on blockchain or otherwise) that is being prepared to be put forward as a replacement for the US dollar. If such a thing is being researched, they are not aware of it. Please keep in mind that the IMF simply cannot just announce some new kind of SDR and then declare it to be the new global reserve currency. First, any such significant change to the existing official SDR has to be approved by vote of the member nations. Also keep in mind that at this time the US retains veto power in such voting at the IMF holding just enough % of the vote to deny anything to be passed that the US does not want to be passed. Right now there is absolutely no indication that the political will exists inside the IMF to get that kind of global consensus on a change that significant. With Trump as President in the US, the odds of the US accepting the SDR as a replacement for the US dollar are very slim in my view. In addtion to all this, IMF Chief Lagarde said awhile back that she does not see anything replacing the US dollar as global reserve currency during her term of office (see Bloomberg article link in this article) which lasts several more years.

    Here is what the IMF has done publicly that I am aware of in regards to looking at a broader role for the SDR. Last year they convened an Advisory Group to study the potential for a broader role for the SDR which as far as I know has never issued any kind of update or report on its findings. This spring the IMF held a panel discussion along these same lines at their spring meeting but there was no indication of any kind at that meeting that anything substantial is about to take place in terms of a new role for the SDR (here is an article on that meeting).  If you want to dive into the SDR, I have an entire page of links to articles on my blog that allow you to do that here. I think I have covered this topic about as extensively as anyone.

    So why would Jim write an article like this suggesting something like this is being planned secretly? I can’t answer that. I exchange emails with him now and then and he has never suggested to me that something like this is happening.

    I do respect his ability to predict events and consider him an expert on many topics. I also appreciate that he always takes time to reply to emails and offer his sincere views on questions I may ask. So I would never say that what he talks about here is impossible. He could always have information he has not shared with me and I have never asked him about this.

    All I can say is that at this time I don’t have any indication from any other source that anything like a new SDR to replace the dollar (blockchain based or otherwise) is in the works. The experts I talk to are also not aware of any such plan at this time. So I wanted to offer that bit of information for anyone interested in this topic.

    I can also add that the best information I have at this time is that before we would see anything like that kind of SDR show up, we are much more likely to see some central banks issue digital versions of their own currencies that might use blockchain technology. I do have very good information suggesting that we could see something like that show up in the next 6-12 months. I expect to be able to cover an announcement along these lines sometime soon on my blog.

    But all this takes a lot of time to develop and I don’t the IMF is anywhere near close to having a blockchain based SDR ready to even try and test if they ever do intend to try and go in that direction. They are still in just the study phase as best I can tell.

    I should add that I have always said that if we were to get another huge global crisis that could speed up the pace of things that might be put forward to replace the US dollar for sure. But without that, the information I get from very good sources suggests that this process will take many years to play out and possibly even more than a decade. China is probably more likely to try something like that than the IMF is my best guess right now.

  15. Why is it Rickard’s sounds like Scott Farkass’s Toadie,  …yeah, my big brudda gonna take all your lunch money and you better like it or else, …nyaaa!

    …it’s the one thing his CIA big brudda and inbred banking cabal overlords can’t manipulate, control price, whilst printing fiat thereby sucking the life blood out of every living person on the planet.

    Sorry Jim, Bitcoin might just be the stake driving thru the heart of these blood sucking satanist pedophiles… long Bitcoin & Ag

    -cheeers

     

     

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