THE PROBLEMS OF INTERPLANETARY MARKETS AND TRADE
I had originally decided to title today's blog "A Bankster Miscellany" given the three apparently different subject matters I intended to blog about. They are, I strongly suspect, related, as such things tend to be in the modern bankstering system and the rampant "financialization of everything" in an age when everything is being financialized and weaponized (and little, by comparison, is actually being produced). We'd much rather sell "crop insurance" and bundle policies upon policies in tranches of "food, weather, and mortgage" derivatives rather than grow real potatoes or corn. In other words, we all know, at some basic level, that the size of the financial economy is all out of proportion to that of the actual productive economy. And as I averred in a blog last week, these bundles of bundles and tranches of tranches that comprise the derivatives problem are a problem precisely because just who owns what, and who has custodianship, is a veritable hall of mirrored blips on computer screens, which blips can be altered at the push of a button.
So here are today's bankstering stories, courtesy of V.T., W.G., and M.D. (the first being simply an image, and note, that MIT is now admitting what Catherine Fitts, I, and others were saying at the outset of the crypto-currency craze):
In yet more confirmation of Catherine Austin Fitts' thesis that no cyber-system is secure, we have this:
And finally, we have this:
Now what does all this mean? There are, I suspect, many plausible scenarios that one could construct from such a seemingly disconnected group of stories. Here is one such scenario, and in constructing it I presuppose that the above stories are all related.
Way back in my book Babylon's Banksters I pointed out the observation of Edward R. Dewey, the founder of the Foundation for the Study of Cycles, that there are essentially only two ways to expand an economy: one can expand it through financialization, which ultimately proves to be self-defeating since one only inflates a currency, or via production, which ultimately means - as he put it - "going outside the bottle", or recognizing that all economic systems are open systems. The clear implication of the latter and of his studies of cycles generally was that eventually, the economic activity of humans would have to expand beyond this planet. And this is where we arrive at derivatives, the space race, crypto-currencies and blockchains, hacking, and the rising use of cash. For many years I've been arguing that there is one, and really only one, way to salvage the financial system of the globe, flooded as it is with derivatives that sum to several multiples of the entire planet's gross domestic product: one must literally produce one's way out of it, by going out and snagging those resources on asteroids (resources, which, I have also argued, were decades ago and somewhat covertly, collateralized). Either that, or else one must claim to have done so and thereby prop up a fraudulent system with an even more massive fraud, or, one may do a bit of both, the latter two options being a space-age version of kicking the proverbial can a bit further down the road, or in this case, a bit further into space. With that perspective in view, we can fairly easily guess the phases of this scheme to back all the paper with something tangible: first, the resources closest to hand (the Moon), then the resources further away (the asteroids) which will need a port of entry (Mars).
In the high octane speculation which follows, I am only speculating on the nature of an interplanetary trading system that is still reliant on electromagnetic communications systems and the limits imposed within them by the velocity of light. The system changes yet again and with even more dramatic consequences when one assumes either the existence of superlimunal methods of communication, or of transport of goods, or both. What I am attempting to show in such speculation is that if there was a growth of "econo-physics" in the 1980s and 1990s as physicists applied the types of analysis typical to quantum mechanics to financial markets, there is a kind of "physico-economics" or "physico-finance" implied by macrosystems of interplanetary trade that necessitates careful rethinking of standard currency and financial instruments.
In short, to make such an interplanetary economy work, however, one has to have an entirely new type of financial system, one that (1) enables rapid financial clearing in an interplanetary system that, conversely, (2) operates at a comparative snail's pace in the actual transport of real resources and goods. It is this extreme dichotomy of the speed of financial clearing and transfer versus the speed of real resource transport that I believe the blockchain system was originally designed to solve: an allegedly secure system able to clear quickly and, as it were, at the speed of light. Imagining such a system in place to handle clearing between the Earth and Mars, for example, highlights the difficulty, for current publicly known standard electromagnetics communications systems would take anywhere from about 10 to 20 minutes to travel from Earth to Mars depending on their relative positions, not to mention return signal time. After all, it takes 8 minutes, thereabouts, for light (and hence any signals) to travel one way between the Earth and the Sun. Given this time delay, any price fluctuations between negotiators on Earth and those on Mars are going to occur much more slowly than they do between negotiators on this planet. (In making this observation, I am assuming, for the sake of the argument, the various scenarios that different space agencies have been promoting in recent years: interplanetary travel and asteroid mining by means of chemical or nuclear rockets, and so on.) By parity of reasoning from this lag time phenomenon, there is thus greater stability and much less volatility in the system over time, and room for (here it comes) means and methods of the physical transfer of media of exchange and bills of credit based upon that physical transfer because of that comparative slowness, stability, and lack of volatility. (Of course, conversely, if one wants to follow the "fraud" line of exploitation of such a system, one could use that "lag time" between physical transfer and financial clearing to great effect in a manner similar to the way that banks use the float, or used to use the period of checks clearing, to their advantage).
In short, in such a system, over time, and paradoxically, as the system grows in physical and temporal extent, the speed of transaction within the macrosystem slows. In turn and as a result of this, the use of actual physical media of exchange could potentially grow over time, while on a local level, speed of transaction (and hence the phenomena that we've seen emerge in the last few decades of algorithmic trading centers being located as close as possible to the networks and markets they trade on) would grow. Within an interplanetary system, the danger would arise that financialization could rapidly outstrip physical transference of resources and production, and thus, the easiest way to put a "governor" on the system to check that possibility would be via the actual physical exchange of physical media of exchangei. It would become - again very paradoxically - almost the only and necessary way to do so.
What all of this seems to imply is that the nature of "cash" and "money" and "currency" is going to change, because crypto-currency and digital currency in general has been revealed to be anything but secure, and stable enough to support such a system of interplanetary trade. The time needed for the execution and clearing of a transaction between planet A and planet B will now become an important factor in the calculation of price, risk, and value, and these in turn will be much more closely tied to the physical transference of goods and resources ("transaction" here meaning the total transaction, the financial clearing AND the delivery of goods). We are looking at a weird kind of synthesis of "cold hard cash" or actual physical bills of credit, and an electronic clearing system, one which has but few precedents in monetary and legal history(though there are some prescient clues). I hope, at some point, to outline those clues because they will, I suspect, play some sort of role in how this interplanetary system might function.
Of course, the other side of these musings is the transference of goods and resources. What happens if a technology is invented to allow the transference of goods to occur at the same speed as the financial clearing? What if, in other words, one had a technology that allowed the teleportation of such goods and services, and in amounts that would be profitable? Doing so would be, again, stablizing over time, though the volatility of the overall macro system would increase due to shorter lag times between financial transfer and the physical transfer of goods.
All of this to say that, perhaps. if these speculations be true or even close approximations to the type of thinking currently taking place in various "deep states" and "breakaway civilizations or societies," then we have, perhaps, yet more reasons that so many states within the USA are passing state resolutions about bullion and against Central Bank Digital Currencies, at the same time more and more countries want to buy bullion, and go to the Moon.
There is a prediction that comes out of all of this, and that prediction concerns what will now become a deep and far-reaching examination of what constitutes money and currency. There are few clues in human history, because the situation is new... unless, of course, you have been busy reading people like Zechariah Sitchin, whose antiquities business was located in Rockefeller Center....
...gee... fancy that...
...See you on the flip side...
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