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"Norse money-god Niord was famed for being able to give riches to anybody he wanted. In modern Iceland newly-minted money is falling from the digital heavens.
Once upon a time during the financial crisis, there was talk of distributing Quantitative Easing as ‘helicopter money’. A scattergun drop of cash would result in delighted citizens catching falling notes. The economy would recover as citizens rushed to spend their windfall.
Banks suggested that people couldn’t be trusted to actually spend the money, demanding they become the monopoly channel of money. Their corporate socialist government blood brothers readily complied. Crazed QE has expanded governments’ debt piles and enabled banks to lavish vast bonuses on traders who profited from free money while the real economy, at best, festered.
However this week a genuine helicopter money experiment has finally trusted the people. Led by the pseudonymous ‘Baldur Friggjar Odinsson’, bitcoin’s Nordic cousin auroracoin is raining digitally from the Icelandic sky. Similar to Bitcoin with a total circulation of 21 million coins, Auroracoin has two key differences. Half the coins were pre-mined (i.e. produced in private without the public being permitted to join the mining process) while Auroracoin distribution is initially restricted to Icelandic citizens.
When the pre-mining phase was completed, every Icelandic citizen became eligible to join ‘the airdrop’ and claim an equal share of auroracoins, worth around $360 per person.
Now auroracoin can be mined by anybody - although one might argue Iceland is ideally placed to keep mining most efficiently via its highly efficient data centers powered by geothermal energy. A fascinating experiment has been unleashed - a ‘national’ crypto currency on an island beset by significant economic problems.
When Iceland’s bubble burst in 2008, the country’s enlarged banking sector fell apart and the government uniquely (sensibly) let banks fail. This defining capitalist act was anathema to Western politicians who wouldn’t let their banking cronies down. Indeed British socialist Prime Minister Gordon Brown blackmailed Iceland into reparations while ‘masterminding’ the ill-conceived wave of bailouts amongst banks which needed to be left to die.
Offered an EU deal which would enshrine feudal penury, the Icelandic government bravely opted for an independent solution. A recovery of sorts has led to the political status quo being almost restored. However, it came at a colossal cost to Iceland’s currency: the krone has depreciated by 99.99 percent compared to gold since 1960.
An illustration picture shows Iceland banknotes of one thousand Krona in Reykjavik (Reuters / Ingolfur Juliusson)
An illustration picture shows Iceland banknotes of one thousand Krona in Reykjavik (Reuters / Ingolfur Juliusson)
Auroracoin has a finite supply, so no nasty socialist depreciation tricks like printing money can be effected. Likewise, it creates a fascinating experiment in mercantile life. Every Icelander can have 31.8 free coins to begin the process, thus creating a ready pool for trade to take place. The idea is to remove the failed corporatist socialist banker-government nexus from the food chain of money. Move beyond banking and you reach the peer to peer world powering new age finance.
Naturally this is anathema to central and retail bankers alike, while politicians are appalled at the idea of people being sovereign in their decisions. However, that’s the core lesson to be learnt in the digital age: if you don’t have a valid position in the food chain then you will be dis-intermediated. Socialist interventionism is redundant when people are free to choose how they spend their independent currency. As the auroraCoin manifesto notes:
“Crypto currencies are a very important milestone in this fight for liberty. They bring the hope of a new era of free currencies, immune to the meddling of politicians and their cronies.”
Chalk up one for freedom and a mercantile future. Or of course you can prefer to endorse the failed socialist mantra of plenty through intervention and enjoy another 50 years of 99.9 percent erosion in the value of your krone.
Iceland has 96 percent internet penetration, the world’s highest. With 330,000 citizens, the entire nation is as populous as a small city elsewhere. Thus the numbers are highly manageable, while the fact that auroracoin is fully tradable overseas will come as an exciting development for Icelanders, who have been restricted in holding foreign currency since foreign exchange restrictions were imposed. Such capital controls crush trade – q.v. the stagnant British socialist state before Margaret Thatcher reversed the decline of Britain in 1979.
Already there has been an overwhelming rush of Icelanders clamoring for their free auroracoins. They are at the forefront of the new era of money, a new era of freedom to choose. "
EDIT***
this is supposed to be more of a crypto currency thread then any kind of political side type thread.
I thought it was interesting that a country would get behind the crypto currency experiment.
personally, I think it will suffer from the same problems as fiat, and then some once the security is compromised as we saw with bitcoin
This message was edited 1 time. Last update was at 2014/03/28 18:22:08
That has got to be one of the most propaganda laden things I've read in a long time.
The irony is that Iceland is the kind of odd ball economy where something like this actually might work, especially since they can restrict its availability to a specific region and ensure that everyone in that region has some coins which on its face means everyone has the resource and is able to exchange it. And unsurprisingly, that's not what happened. Most of Iceland (and by most I mean nearly no one) hasn't participated at all and, shockingly, no one is using the coins for anything other that curious money laundering. Only 6% of the pre-mined coins have been claimed and no one is exchanging them for anything except for a curious case of money laundering that has the Icelandic Parliment entertaining notions of banning of currency.
I can't even tell if this article is serious or what side it's supposedly taking on the issue (or whether the author cares about the issue except as a way to go on a political rant). I'm honestly tempted to write the dang thing off as Onion levels of fake news buffoonery but something is telling me the author was actually serious.
Like watching other people play video games (badly) while blathering about nothing in particular? Check out my Youtube channel: joemamaUSA!
BrianDavion wrote: Between the two of us... I think GW is assuming we the players are not complete idiots.
Rapidly on path to becoming the world's youngest bitter old man.
In 2008, a mix of bank deregulation, political corruption, and illegal banking transactions combined with the economic recession to completely collapse Icelands banking system. The powers that be at the time, realized they couldn't possibly save the banks and simply let them fail to avoid dragging all of Iceland into bankruptcy. As a result of very strict economic controls, Iceland's economy has struggled the last few years. One of those controls is on the Icelandic Krona, which can't be exchanged overseas.
Auroracoin is a cryptocurrency born of the crazy notion cryptocurrencies actually work combined with resentment over the banking collapse in Iceland. Coins were pre-mined (though how anyone claims the number of coins in any crypto-currency is 'finite' is beyond me) and then offered freely to everyone in Iceland. A total of of over 10 million coins I believe. Unsurprisingly, no on in Iceland really cares. The coin isn't really being adopted and in the past 2 days since the "airdrop" only 6% of the coins have been claimed (they're free I remind you).
That guy uses socialist like Samuel L Jackson uses melon fether.
We were once so close to heaven, St. Peter came out and gave us medals; declaring us "The nicest of the damned".
“Anti-intellectualism has been a constant thread winding its way through our political and cultural life, nurtured by the false notion that democracy means that 'my ignorance is just as good as your knowledge.'”
I suppose it may work, and it probably won;t harm Iceland to try.
Someone is really going to have to explain 'corporate socialist' to me though.
RegalPhantom wrote: If your fluff doesn't fit, change your fluff until it does
The prefect example of someone missing the point.
Do not underestimate the Squats. They survived for millenia cut off from the Imperium and assailed on all sides. Their determination and resilience is an example to us all.
-Leman Russ, Meditations on Imperial Command book XVI (AKA the RT era White Dwarf Commpendium).
Its just a shame that they couldn't fight off Andy Chambers.
Warzone Plog
I vacationed there a couple of weeks before the crash. Gorgeous country and fantastic people.
Not sure this is the solution to their woes, I suppose trying it won't hurt. Not sure if businesses can afford the experiment and risk selling actual good or performing services based on these at a large enough scale for it to make a difference.
Every time a terrorist dies a Paratrooper gets his wings.
The title is rather misleading, I think: Is there anything actually in this article that implies that the Icelandic government has anything to do with this?
Palindrome wrote: Someone is really going to have to explain 'corporate socialist' to me though.
It's a right-wing belief that the role of government is to provide a minimum level of profitability for large businesses and their investors and upper management. Taxes and debt are used to ensure that every major corporation makes a healthy profit, and nobody has to suffer the humiliation of going out of business. Contrast this with left-wing socialism, which is the belief that the role of government is to provide a minimum standard of living for the average person and taxes are used to ensure that nobody is stuck in crippling poverty.
Or, if you want a shorter definition, it's the US republican party minus all of that nonsense about the religious right (which nobody in power really cares much about anyway).
This message was edited 1 time. Last update was at 2014/03/28 21:04:09
There is no such thing as a hobby without politics. "Leave politics at the door" is itself a political statement, an endorsement of the status quo and an attempt to silence dissenting voices.
Palindrome wrote: Someone is really going to have to explain 'corporate socialist' to me though.
It's a right-wing belief that the role of government is to provide a minimum level of profitability for large businesses and their investors and upper management. Taxes and debt are used to ensure that every major corporation makes a healthy profit, and nobody has to suffer the humiliation of going out of business. Contrast this with left-wing socialism, which is the belief that the role of government is to provide a minimum standard of living for the average person and taxes are used to ensure that nobody is stuck in crippling poverty.
Or, if you want a shorter definition, it's the US republican party minus all of that nonsense about the religious right (which nobody in power really cares much about anyway).
That actually makes a lot of sense. Corporations are people too after all (it's the law!). Someone who applies socialist beliefs to corporations... that's such an interesting idea.
Like watching other people play video games (badly) while blathering about nothing in particular? Check out my Youtube channel: joemamaUSA!
BrianDavion wrote: Between the two of us... I think GW is assuming we the players are not complete idiots.
Rapidly on path to becoming the world's youngest bitter old man.
Palindrome wrote: Someone is really going to have to explain 'corporate socialist' to me though.
It's a right-wing belief that the role of government is to provide a minimum level of profitability for large businesses and their investors and upper management. Taxes and debt are used to ensure that every major corporation makes a healthy profit, and nobody has to suffer the humiliation of going out of business. Contrast this with left-wing socialism, which is the belief that the role of government is to provide a minimum standard of living for the average person and taxes are used to ensure that nobody is stuck in crippling poverty.
Or, if you want a shorter definition, it's the US republican party minus all of that nonsense about the religious right (which nobody in power really cares much about anyway).
That actually makes a lot of sense. Corporations are people too after all (it's the law!). Someone who applies socialist beliefs to corporations... that's such an interesting idea.
An idea that would make Marx turn around in his grave. A perversion of actual socialism. Remember, you are not socialist unless you advocate the social ownership of the means of production.
Palindrome wrote: Someone is really going to have to explain 'corporate socialist' to me though.
It's a right-wing belief that the role of government is to provide a minimum level of profitability for large businesses and their investors and upper management. Taxes and debt are used to ensure that every major corporation makes a healthy profit, and nobody has to suffer the humiliation of going out of business. Contrast this with left-wing socialism, which is the belief that the role of government is to provide a minimum standard of living for the average person and taxes are used to ensure that nobody is stuck in crippling poverty.
Or, if you want a shorter definition, it's the US republican party minus all of that nonsense about the religious right (which nobody in power really cares much about anyway).
Because helping people is evil socialism.
Helping corporations and rich people and then crossing your fingers really really hard and hoping that they will help poor people is the american way.
Palindrome wrote: Someone is really going to have to explain 'corporate socialist' to me though.
It's a right-wing belief that the role of government is to provide a minimum level of profitability for large businesses and their investors and upper management. Taxes and debt are used to ensure that every major corporation makes a healthy profit, and nobody has to suffer the humiliation of going out of business. Contrast this with left-wing socialism, which is the belief that the role of government is to provide a minimum standard of living for the average person and taxes are used to ensure that nobody is stuck in crippling poverty.
Or, if you want a shorter definition, it's the US republican party minus all of that nonsense about the religious right (which nobody in power really cares much about anyway).
Because helping people is evil socialism.
Helping corporations and rich people and then crossing your fingers really really hard and hoping that they will help poor people is the american way.
Palindrome wrote: Someone is really going to have to explain 'corporate socialist' to me though.
It's a right-wing belief that the role of government is to provide a minimum level of profitability for large businesses and their investors and upper management. Taxes and debt are used to ensure that every major corporation makes a healthy profit, and nobody has to suffer the humiliation of going out of business. Contrast this with left-wing socialism, which is the belief that the role of government is to provide a minimum standard of living for the average person and taxes are used to ensure that nobody is stuck in crippling poverty.
Or, if you want a shorter definition, it's the US republican party minus all of that nonsense about the religious right (which nobody in power really cares much about anyway).
Because helping people is evil socialism.
Helping corporations and rich people and then crossing your fingers really really hard and hoping that they will help poor people is the american way.
Palindrome wrote: Someone is really going to have to explain 'corporate socialist' to me though.
It's a right-wing belief that the role of government is to provide a minimum level of profitability for large businesses and their investors and upper management. Taxes and debt are used to ensure that every major corporation makes a healthy profit, and nobody has to suffer the humiliation of going out of business. Contrast this with left-wing socialism, which is the belief that the role of government is to provide a minimum standard of living for the average person and taxes are used to ensure that nobody is stuck in crippling poverty.
Or, if you want a shorter definition, it's the US republican party minus all of that nonsense about the religious right (which nobody in power really cares much about anyway).
Because helping people is evil socialism.
Helping corporations and rich people and then crossing your fingers really really hard and hoping that they will help poor people is the american way.
Which sounds impressive until you realize it is only 0.19% of US's GNI (Gross National Income) and I think the UN has set a standard that countries should be donating at least 0.7% of their GNI to developmental aid.
Palindrome wrote: Someone is really going to have to explain 'corporate socialist' to me though.
It's a right-wing belief that the role of government is to provide a minimum level of profitability for large businesses and their investors and upper management. Taxes and debt are used to ensure that every major corporation makes a healthy profit, and nobody has to suffer the humiliation of going out of business. Contrast this with left-wing socialism, which is the belief that the role of government is to provide a minimum standard of living for the average person and taxes are used to ensure that nobody is stuck in crippling poverty.
Or, if you want a shorter definition, it's the US republican party minus all of that nonsense about the religious right (which nobody in power really cares much about anyway).
Because helping people is evil socialism.
Helping corporations and rich people and then crossing your fingers really really hard and hoping that they will help poor people is the american way.
Palindrome wrote: Someone is really going to have to explain 'corporate socialist' to me though.
It's a right-wing belief that the role of government is to provide a minimum level of profitability for large businesses and their investors and upper management. Taxes and debt are used to ensure that every major corporation makes a healthy profit, and nobody has to suffer the humiliation of going out of business. Contrast this with left-wing socialism, which is the belief that the role of government is to provide a minimum standard of living for the average person and taxes are used to ensure that nobody is stuck in crippling poverty.
Or, if you want a shorter definition, it's the US republican party minus all of that nonsense about the religious right (which nobody in power really cares much about anyway).
Because helping people is evil socialism.
Helping corporations and rich people and then crossing your fingers really really hard and hoping that they will help poor people is the american way.
Good news, the US doesn't have a deficit. The government made $2.902 trillion in 2013, so I don't know why everybody is upset about.
Heh... good point.
Then why are we borrowing money again?
Because looking at a single number in isolation like "we donate more than any other country" or "we have more tax revenue than any other country" is pointless?
