The Eye of Sauron Has Spotted Bitcoin

Yesterday the Wall Street Journal published an article entitled “Web Money Gets Laundering Rule,” an article framed in typical central bank newspeak warning of money laundering and growing “concerns” that new forms of cash bought on the Internet might be used to fund illicit activities. [1]

This concern for possible laundering and illicit activities is banker newspeak indicating that banksters are really concerned about the possibility people might be able to escape the global web of banking activity spying and find a way out of debt slavery caused by central bank controlled currencies.

Furthermore the bankers worry bitcoin [2], the virtual currency in question, might actually provide a way to independently and objectively value banker currencies in terms of purchasing power – not just relative values between managed banker currencies, which have no tight correlation with purchasing power. And, a derivative of providing an objective measure of cartel-controlled currency purchasing power is that wealth can be transferred into bitcoin, where its purchasing power can remain reasonably stable. In fact, if bitcoin survives, the purchasing power of bitcoins will rise over time.

If bitcoin does indicate a relationship between its own value and purchasing power relative to banker currency, it will start a mass exodus into the new currency as people try to find a way to protect their assets and wealth from contrived currency devaluation.

Part of the problem with measuring banker currency relative values, is that even while objective value (purchasing power) of all banker currencies is being destroyed, the relative values still maintain the illusion of worth. Historically, gold and silver represented a fungible, transportable, private, and no counter-party risk money, whose price provided objective values of a banker currency’s purchasing power. The banking cartels learned how to suppress the price of gold and silver with massive manipulation to support the illusion that paper currencies, especially those issued as debt, are maintaining purchasing power.

Bitcoin, until recently a fledgling new alternative currency, has stepped up to its fate and destiny, as the giant eye of Sauron has taken notice and doesn’t like what it sees.

Recent currency events in Argentina and Cyprus have given wind to the sail of bitcoin and its possible destiny of fulfilling its original intention of providing private, stable, accessible, outside the banking cartel system, currency.

Coincident with Argentinian peso’s smooth straight line fall against the dollar beginning in 2010, bitcoin became fully operational that year with prices as low as 6 cents per BTC (a single bitcoin). Over that same period the Argentinian peso has fallen from approximately 0.26 cents to 0.19 cents against the USD, a drop of 27%, while the value of bitcoin has risen from 6 cents to $73 (this morning’s rounding of last purchase price) or a gain of 121,566 %. Both of these comparisons are against the dollar. But one of the many benefits of bitcoin is, unlike gold and silver, which are overwhelmingly rigged to maintain the illusion of dollar strength, the bitcoin is not rigged. So, in a world of total financial deception, there exists a tiny light of truth because bitcoin can be used as an objective value for cartel currency purchasing power (with proper scaling). We can get objective purchasing power values because purchases of bitcoin represent the selling of national banker currencies for bitcoin; more specifically it represents a loss of confidence in the banker currencies and can be thought of as selling the banking system for bitcoin.

I could not find a bitcoin exchange located in Argentina, so a direct expression of the value of bitcoin in terms of the Argentine peso is not available, but looking at neighboring Brazil, since January 23, 2013, the value of bitcoins versus the BRL has increased from 48 BRL to 180 BRL, an increase of 275%. During that period, the BRL appreciated against the ARS by only 4.4% and the BRL against the dollar just 1.84 %. Therefore, it is safe to say: bitcoin is providing independent and objective valuations of the currencies in which it can be exchanged. It’s clear bitcoin is gaining value against the BRL far faster than the BRL against other national banker currencies; and the same we can assume would hold true for bitcoins purchased by Argentinians if bitcoin had an exchange in ARS.

In fact, a quick survey of BTC against BTC exchange available banker currencies, indicates the BTC rising against all published exchanges (banker currencies), signaling an overall devaluation in purchasing power in banker currencies as compared to bitcoin (as would be the intuitive expectation for gold and silver, but those currencies are being pushed even lower.)

Argentina again slips into the tyranny of capital controls, banking ‘holidays’ and deepening depression, while banksters fronting for the IMF remain in control of Argentina’s wealth, progress, and value of their national banker currency. It’s clear that alternative currencies including gold, silver and bitcoin are the most efficient and best way to protect financial assets from ravishment of bankster financial fraud.

The Argentine peso is falling in value against other world banker currencies; and, as of today, the peso is into record lows as measured against the world’s most rigged fiat currency, the USD. The outlook for Argentinians is bleak as a corrupt government thrashes and gasps for cash to make payments to their foreign banker masters.

Escalating bank insolvency and banker-engineered panic and possible total collapse of the Cyprus financial system is another example just right for testing bitcoin. Turning remaining bankster currency, pieces of paper with goofy pictures on them, into gold and silver and bitcoin is a way around destruction and the gates erected by a one-corrupt-banking model against protecting wealth.

Bitcoin is a better way to measure objective values of banker currencies than the price of gold and silver because the world’s colluding central banks are rigging gold and silver prices with naked shorting and interest rate derivatives that include mandatory and periodic US bond purchases, artificially holding up the value of the USD while suppressing price discovery of banker currencies relative to gold and silver.

The new bitcoin and its noble attempt to provide a limited issue, finely divisible, internationally acceptable, private currency is now facing its first volley of attack from the predatory alchemists of an ancient money scam – the IMF directed world banking cartels.

According to the Wall Street Journal article,

The arm of the Treasury Department that fights money laundering said Monday that the standard federal banking rules aimed at suspicious dollar transfers also apply to firms that issue or exchange money that isn’t linked to any government and exists only online.” [1]

I will not go into the fact that the USD is almost entirely a virtual currency with billions of dollars of laundered drug money and tax payer money laundered through the IRS tax system each year. [3][4]

For centuries bankers have used ancient secrets of turning absolutely nothing into gold; the scam of using your promise to pay as money and then lending it back to you as currency at interest. This system is guaranteed to siphon all the wealth of those forced into its use — slowly at first, and then, by design, faster and faster, ending in a debt spiral to collapse. Over the course of paying back your ‘loan’, which is really your own money to begin with, it becomes necessary to generate extra money to pay the interest on the loan; this action causes the entire financial system to increase the amount of money in the system via loans. New loans include more interest payments and the money supply has to grow again. The long-term effect of even small compounding interest rates is that over the course of a loan (typical home loan time periods), multiple times the loaned amount must be paid back, which results in destructive growth of the money supply and increasingly larger and larger total interest due. The end comes as escalating debt is created to make interest payments, but not before real wealth is streamed away as interest payments to the banking system.

It remains to be seen what will become of bitcoin; facing now its first encounter with fate as bankers take notice and create the propaganda for their first attack. Right now at $73 dollars per bitcoin and daily transactions measured at just under 2 million BTC or $140 Million, bitcoin is just a little blip on the screen, but the growth rate is electrifying and the possibilities are interesting.

Bitcoin priced in dollars has changed by three orders of magnitude since its beginnings. If this continues, soon we will see hundreds of millions of BTC and tens of billions of dollars involved with daily transactions. At those levels, the establishment banking monstrosity would surely bring heavy guns into play.

Bitcoin is not money in the sense that it is not fully portable (requires technology to present itself) and relies heavily on the Internet being available and has no intrinsic value of its own. But as Benjamin Franklin, Abraham Lincoln, John F. Kennedy and many others have found out, it’s not necessary for an honest and stable currency to have intrinsic value, only that it be easily divisible and issuance maintained in correct proportion to the size of the physical (real) market of products and services.

Bitcoin will eventually stop issuing coins at somewhere near 21 million coins and thereafter the currency can never experience hyperinflation via over creation; and, as a side benefit, long term, bitcoins will become more valuable as the price of goods will go down when priced in BTC, meaning this currency should create long-term deflation in prices, something we can all appreciate.

I have been studying and using the bitcoin system for a few weeks now and I sense the infrastructure struggling with the sudden accelerating growth. It would be in humanity’s best interest for a competing, private, limited, stable valued currency to exist, survive and grow and become strong enough to withstand escalating attacks from the banking cartels. The ancient banking families and their paper slavery has to end for humanity to ever be free. By purchasing gold and silver and bitcoins we are taking a step toward the end of banker slavery.

Notes:
[1] http://online.wsj.com/article/SB10001424127887324373204578374611351125202.html
[2] bitcoin.org
[3] http://www.infowars.com/banksters-laundered-money-for-drug-cartels-and-al-qaeda/
[4] http://www.supremelaw.org/sls/31answers.htm – Question #2

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Jack Mullen has been a businessman for more than 25 years, owning 3 radio stations, several technology based companies and a resource development company
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