”Fiat money is backed by men with guns; Bitcoin is not. So why should this thing have any value?” – Statist economist Paul Krugman.
Individual rights and today's issues.
For once, Paul Krugman is right that bitcoin (or as he says “BitCoin” – Krugman usually has trouble with both details and the big picture) is evil. (See NYTimes.) Evil, that is, if you are an authoritarian statist who believes that it is commendable to “monitor” people and control people. Bitcoin is evil if you want people to be robbed of their money through the hidden tax of inflation every year. Bitcoin is evil if you believe that people don’t have the right to decide where to live. Bitcoin is evil if you are a socialist, communist, fascist, crony-capitalist or any other type of authoritarian who do not trust people to run their own lives. They are all the same side of the coin – anti-liberty. In short, Bitcoin is evil if you don’t want people to be free.
Which side of history do you want to be on? That of freedom, or Krugman’s pro-control, big government, big spy, big bank-loving, crony-capitalist, inflation backers? The answer should be clear.
Point by point, Krugman’s article “Bitcoin is Evil” is full of misinformation and misunderstanding of many things.
Let’s look at some of the benefits of bitcoin that Krugman’s technological friends can’t seem to explain to him:
Remember that the central-planners do not like it when people have the nerve to want to avoid having their purchasing power stolen by inflation or to benefit the powerful when they need bailouts. Krugman’s incoherent argument boils down to him saying that any kind of monetary value – such as gold, silver, bitcoin, oil – that is not government money is worthless.
Let’s recall what Krugman stated in 2012:
“It’s true that green pieces of paper have no intrinsic value (except that they can be used to pay taxes, which is actually important), so that my willingness to accept green paper from you is based only on my belief that I can in turn hand that green paper over to someone else. But there’s nothing to prevent that process of monetary circulation from going on forever.”
Math, hard science, and engineering are now going to meet the dismal science and teach it what can happen when you take the ability to scheme to manipulate the money supply away from a select group of powerful people. It is very telling that the article states that Bitcoin is “intended to damage central banking and money issuing banks”. If Krugman and his masters were not worried about the potential of bitcoin to expose their schemes, he would not be obsessing about bitcoin repeatedly over the last year. Krugman et al know that their games that they play with paper money are being exposed by technology and don’t like it. Loss of control ruins their plans to monitor and control everyone else and to take value from every working person to transfer it to someone else. This is why the “dismal science” is not “science” – it can be completely wrong for decades and still exist.
Finally, since Krugman believes the second to last paragraph in his column is a good way to encourage polite discussion, in that same vein: Krugman likes Keynesian economics because it “pushes his big government, central bank, inflation loving, control-freak fetish which pleases his masters in government. ” One should expect better from the New York Times, but alas not any more.
Just remember that Krugman is as informed about bitcoin and economics as he was about the Internet when he said in 1998 when he stated:
The growth of the Internet will slow drastically, as the flaw in “Metcalfe’s law”–which states that the number of potential connections in a network is proportional to the square of the number of participants–becomes apparent: most people have nothing to say to each other! By 2005 or so, it will become clear that the Internet’s impact on the economy has been no greater than the fax machine’s.
As the rate of technological change in computing slows, the number of jobs for IT specialists will decelerate, then actually turn down; ten years from now, the phrase information economy will sound silly.
Krugman is a paid shill, a fool or both (the original link is to archive.org).
I will point out again another instance when Paul Krugman was right: in his 1998 article the title hits the nail on the head: “Why most economists’ predictions are wrong.” Krugman proves the rule.
To quote Jefferson:
“If Americans ever allow banks to control the issue of their currency, first by inflation and then by deflation, the banks will deprive the people of all property until their children will wake up homeless.” – Thomas Jefferson
Jefferson was right.
Clinton-Appointee U.S. District Judge William Pauley found today that the NSA’s bulk data collection is Constitutional. He completely ignores Constitution’s enumerated powers and the Bill of Rights. What a disgrace to the bench and the Judiciary.
It appears he has not read the document, but what can you expect from a hack like him?
In part he states:
The question for this court is whether the government’s bulk telephony metadata program is lawful. This court finds it is. But the question of whether that program should be conducted is for the other two coordinate branches of government to decide.
“Big Brother in the form of an increasingly powerful government and
in an increasingly powerful private sector will pile the records high
with reasons why privacy should give way to national security, to law
and order, to efficiency of operation, to scientific advancement and
the like.” ~ Justice William O. Douglas (1898-1980) U.S. Supreme Court
“Never forget, even for an instant, that the one and only reason anybody has for taking your gun away is to make you weaker than he is, so he can do something to you that you wouldn’t let him do if you were equipped to prevent it. This goes for burglars, muggers, and rapists, and even more so for policemen, bureaucrats, and politicians.”
—Aaron Zelman and L. Neil Smith, Hope, 2001”
“Hold on, my friends, to the Constitution and to the Republic for which it stands. Miracles do not cluster and what has happened once in 6,000 years, may not happen again. Hold on to the Constitution; for if the American Constitution should fail, there will be anarchy throughout the world.”
“We’re kind of thinking of it as a tech ‘surge,’” an HHS official told POLITICO.
One wonders if the “geniuses” in charge of HealthCare.gov are experienced in software engineering or software design. They need to read the classic on Software Engineering/Computer Science/Computer Engineering, the Mythical Man Month.
The summary: Fred Brooks, then at IBM, added more programmers to a project falling behind schedule, a decision that he later concluded had, counter-intuitively, delayed the project even further. This concept is nearly 40 years old and is a staple of most good major Computer Engineering/Computer Science programs.
Does the media not care? No, they are just buying the stupidity coming from Washington hook, line, and sinker.