Bitcoin, a privately controlled independent currency, is nothing short of revolutionary. Bitcoin, however, has a major drawback: it does not address the key issue of interest.

We recommend you watch this 100 second introductory video first.

by Anthony Migchels

(henrymakow.com)

Bitcoin was developed by Satoshi Nakamoto and launched in January 2009.

There are currently more than 8 million Bitcoins in circulation and after predictable initial price swings after its launch, they have traded at a fairly stable rate of about $5 for more than six months now.

Bitcoin basically is a debt free unit: it comes into circulation through 'mining': the solving of complex algorithms by clients yields new Bitcoins.

However, no more than 21 million can be mined so there will never be more than that in circulation.

Bitcoin is important and actually nothing short of revolutionary. It is the first notable independent internet currency.

WHY IT MATTERS

Its key strength is its peer to peer design. The issuing organization's sole function is to provide the client software and on-line market place where Bitcoins can be traded for other currencies. It plays no role in the creation of the money supply.

In this respect, it is a real assault on the Money Power's stranglehold on our money supply.

It allows businesses and consumers to diversify their methods of payment, making them a little less dependent on the Government/Banking monopoly.

It also shows that a free market for currencies already exists. Of course regulators are inimical to them, but current legislation does allow for all sorts of units.

In fact, there is very little to stop free market currencies, provided those looking for opportunities are dedicated enough.

CONVERTIBILITY

Furthermore, Bitcoin is the first free market unit in the world that creates convertibility to other units through a currency exchange. This is an innovation that is underrated by most commentators.

Mutual Credit-based barters can use Bitcoin technology to create convertibility without dollar/euro backing.

Unsurprisingly, legislators bribed by banks have already voiced 'concern' about Bitcoin's independence.

Apparently some naughty drug dealers are using Bitcoin to finance their operation. Its peer-to-peer character makes it suitable for this kind of transaction. Just like cash.

And cash too, as we know, is under attack from Big Brother who would like to know everything we buy and sell, and make us completely dependent on his monopoly infrastructure.

So Bitcoin's existence is very useful for all monetary reformers as it will allow us to gather information about the strategies that the adversary will use to disable it.

DRAWBACKS

Notwithstanding these revolutionary breakthroughs, Bitcoin does suffer from a basic flaw.

It's designed to behave like Gold. Nakamoto clearly believes Austrian Economics is the last word, including the idea that hyperinflation is the main threat to the system.

As a result Bitcoin suffers from the same problems as Gold: it is deflationary and expensive.

There is never enough of it. True, Bitcoins can be divided in ever smaller denominations, so 'physically' there will never be a shortage, but it means Bitcoin is designed to appreciate for ever and this is the definition of deflation.

INTEREST

Worse still, Bitcoin does not address the interest issue. There is no possibility for cheap credit and if the unit matures, a banking system will be necessary to provide credit based on deposits.

Not only will this exacerbate the scarcity of money, it will also lead to very high cost for capital.

Yet another problem is that with a full reserve banking system as required by Bitcoin (and Gold too, by the way) would allow the Money Power to mop up the money supply through compound interest within one or two decades, as you can find out here..

The basic conceptual flaw is, that Austrian Economics believes a currency should be a good store of value first and foremost. This is the fatal mistake: money is a means of exchange, and it is the agreement to use it as such that gives it value, not the other way around. This is even true of Gold today: the reason Gold is now expensive, is because many investors are speculating it will be currency again.

Because of this design flaw, Bitcoin is being hoarded by its users. They prefer to have it sit in their 'account', instead of spending it, hoping it will appreciate. As a result turnover is lower than it could be. The unit is already an object of speculation, hindering its primary function: to finance normal trade.

CONCLUSION

Bitcoin is a revolution and a badly needed bit of fresh air. Peer to peer and independent of banks and Government it is an example for all of us. Yes, we should press for reform at the Government level, but no, we should not await it. There is a free market for currencies and it is ours for the taking.

However, it is not credit based and it does not allow for interest free credit. Its deflationary by nature, which is very problematic.

Its decentralized peer-to-peer nature and its convertibility mechanism are its main strength. If these can be harnessed in interest free credit based units, they would be unstoppable. The Money Power would be really hard pressed.

Bitcoin is a shot heard far and wide, but it is only the proverbial first shot across the bow.

1. Most do not descend from the Biblical Jews. They are Khazars, from southwest Asia.

2. Judaism is a racial credo more than a religion. It designed to maintain racial cohesion, in this case the Khazar bloodlines.

In the absence of a more satisfying religion, many Jews sublimated their religious urge into Communist and left-liberal causes. This impulse has been hijacked and nurtured by Jewish financiers who are creating a "new world order" with other elitists. Many Jews are unwitting pawns, profoundly out of touch with their own truth. They are foot soldiers and cannon fodder in a diabolical multi generational plot to destroy Western Civilization.

As is widely known, East European or Ashkanazi Jews (90% of the total) were descendents of Khazars, a Turkic people who converted to Judaism in the 8th Century. The empire of Khazaria sat astride the Black and Caspian seas extending from the Urals to Romania. "That the Khazars are the lineal ancestors of Eastern European Jewry is a historical fact," Jewish historian Alfred M. Lilienthal writes in an essay Judaism : Religion or Race. "Many Christians may have much more Hebrew-'Israelite' blood in their veins than most of their Jewish neighbors."

Jews wishing to understand their roots might do better to visit Kiev than Jerusalem. They might learn more by studying a web site like http://www.khazaria.com than the Old Testament. The Torah (the first five books of OT) has helped Jews maintain their identity for millennia; unfortunately it may have been the wrong identity.

RACE POSING AS A RELIGION?

In "Separation and Its Discontents: Toward an Evolutionary Theory of Anti Semitism" (1998) Kevin MacDonald suggests that Jews use religion as camouflage for race. Judaism becomes viewed as a benign highly permeable non-ethnic group whose differences with other groups are merely ones of personal belief rather than ethnicity. Conflicts of interest between the Jewish community as a strategizing ethnic group and other groups are minimized. (74)

In "the Future of American Jewry," Irving Kristol wrote: "Jews in America may belong to Jewish institutions, send their children to Sunday schools for religious instruction, proudly identify themselves as Jews ? but their religion, for the most part, is only Jewish in its externals. At the core it is secular humanist." http://www.jewsformorality.org/ashamed.htm

A 1970's survey of American Jews found that less than 50% felt it was necessary to believe in God to be a "good Jew." On the other hand, over 95% agreed that "it is important that there always be a Jewish people" and "every Jew is responsible in some measure for the well being of every other Jew." Only 33% agreed to the proposition:" The primary loyalty of American Jews must be to the US and their fellow Americans." (MacDonald, p.277)

Orthodox Jews oppose intermarriage and conversion. In 1997, the Union of Orthodox Rabbis declared that Reform and Conservative Judaism (the vast majority of "observant" American Jews) are not Jewish. In 1996 Rabbi Harold Schulweis told the LA Times, that conversion to Judaism "is upsetting to some Jews because they feel Judaism is less an ideology than a biology, a matter of chromosomes not choice." (MacDonald 267)

I am not observant but I still consider myself Jewish because my parents and ancestors were Jewish. I don't think race is a bad thing if each race is considered part of the family of man with none better than another. I admire other races and like to see them flourish. But I am not opposed to intermarriage.

"THERE IS NO SUCH THING AS JUDAISM"

In a previous column, I suggest that Judaism is a "flawed religion." I can't subscribe to the view that Jews are "above all other people that are on the face of the earth" (Deuteronomy 7:6). Nor do I believe in the image of God as a merciless judge meting out reward and punishment. True religion teaches us to become more God-like. "Be ye therefore perfect even as thy Father which is in heaven is perfect," said Christ. (Mathew 5:48)

In an email, Rabbi Marvin Antelman referred me to Rabbi Joseph B. Soloveitchik. "According to him there is no such thing as Judaism. The concept is post Biblical and post Talmudic; and he challenged his disciples (he ordained over 2000 rabbis) to find the term (in Hebrew the words is Yahadut) in the Hebrew Bible, the Talmud or Jewish codices."

Antelman, author of "To Eliminate the Opiate" (2002), urged me to find Jewish meaning in the Torah, God and the land. "The Torah and the land of Israel are Divine gifts of God to the Israelite nation. Any so called Jew who thinks otherwise is not a Jew..."

Since God and Israel are based on the Torah, he is really saying, read the Torah. I did and must agree with Arthur Koestler, a Jewish writer who characterized it in terms of a racial credo "which turns out to be illusory."

"The Old Testament is first and foremost the narrative of a nation's history; it gave monotheism to the world, yet its credo is tribal rather than universal. Every prayer and ritual observance proclaims membership of an ancient race...The Jewish faith, as shown by 2000 years of tragic history, is nationally and socially self-segregating. ...It transformed the Jews of the Diaspora into a pseudo-nation . . . held together loosely by a system of traditional beliefs based on racial and historical premises which turn out to be illusory." (The Thirteenth Tribe, 1976, a book which first popularized the Khazars in, p.224)

In his Gospel of Love Christ attempted to transform Judaism from a racial credo into a genuine religion. He proclaimed universal brotherhood and a God of Love. But the Pharisees would have nothing of it. So down through the centuries, the Jews have remained prisoners and pawns of their Pharisees who answer to the financiers.

FALSE CONSCIOUSNESS

In "Esau's Tears: Modern Anti Semitism and the Rise of the Jews" (1997) Albert Lindemann writes: "Jews have been as capable as any other group of provoking hostility." (xvii) They "actually do not want to understand their past, or at least those aspects of their past that have to do with the hatred directed at them, since understanding may threaten other aspects of their complex and often contradictory identities." (535)

Jews imagine they are descendents of the Israelites, irrationally persecuted for the crucifixion, morally superior people and a beacon for humanity. In fact, I suspect they are dangerously out of touch with their own reality. Most are descendents of Khazars who assumed the difficult legacy of the ancient Israelites by converting to Judaism.

Since Judaism is mainly a racial credo, Jews are attracted to other religions. One local rabbi tells people he is a Buddhist. Many Jews have made their religion the creation of a secular Golden Age. Unfortunately this humanist utopia is a hoax. It is sponsored by the Satan-loving financial elites who wish to replace Christian civilization with totalitarian world government.

For example, why else would Jewish Marxist feminists be permitted to alienate two generations of young women from men, motherhood and family? To learn that "the patriarchy" is to blame for everything? To reject and rewrite western culture from the point of view of women?

Throughout history some Jews have aroused enmity by serving as pawns and middlemen for the elites. Unwittingly, many Jews have assumed this role again. They form a core group in the movies, news media, TV, think tanks, universities and government that legitimize the elite and preach contempt for healthy ideals. They are reminiscent of the Jewish core group that engineered the Bolshevik revolution and Communism.

But Jews are individuals and many Jews like myself are opposed to the New World Order. I am inspired by others like Israel Shamir, Mark Bruzonsky and Eric Margolis, courageous journalists who oppose the Iraq war and tell the truth about Zionism. I admire Dr. Judith Reisman who blew the whistle on the Rockefeller's campaign to promote homosexuality. Alan Kors and Harvey Silverglade fight for academic freedom.

I believe many Jews have a profound sense of justice and truth. We want to know who we really are. I think we are Khazars. I don't want to live there but I might visit. "Next year in Kiev!"

april 29 2003