But, But, But… CP can’t work because…

“Money Laundering will run amok without top down management”
Almost impossible to do on a large scale because all money goes into the dividend fund and is distributed by merit after a cycle lag time. If participants try to create an overly large dividend on a small forum, that will quickly attract arbiters which defeats the purpose.

“Criminality will run amok without top down management”
At some point the profits of ignoring ever bulging red tape (regulations, laws, permits) become greater than the risks of ignoring them. This creates the opportunity, corruption and danger of grey and black markets.

The unofficial economy easily competes with the official economy because it has much less overhead.

It’s simple arbitrage: more red tape creates greater profit opportunities, which infuriates the “kings” who respond with more controls, taxes, regulations, which creates even greater profit opportunities until enough of the real economy eclipses the controlled economy and the “king” loses power.

CP is a self-correcting system that minimizes parasitic and criminal behavior BECAUSE it is maximizing ALL human potential. However, all complex systems have some parasites and are a bit messy because healthy systems have friction and direct consequences.

Systems use feedback loops and control structures to manage themselves (growth, communication, conflict, etc.) In CP, the “control” mechanisms are transparency, reputation, agreements backed by performance bonds, localized decisions by stakeholders, and basically no barriers to entry. Therefore, there is no systematic and significant economic advantage to operate outside of the castpoints system. In other words, Castpoints is how nature works: it has no competition. It provides and manages a level playing field for trading any resource.

Criminality part 2: “If you don’t delete users and events, people will run amok”
Entities that don’t add value naturally fade away. It’s just not profitable to be a significant parasite on CP. Also, if people don’t like something, they might be better served by leading by example, and or ignoring what they don’t like. A general rule of thumb is that 1/3 of people will like a person, 1/3 will be indifferent, and 1/3 will dislike the person. Why spend any resources with anyone that does not like you?

Actually, we rather like the vampires (value takers) since all their money consistently and readily flows to the value adders, and they can only affect smaller things for a short time.

“We need debt to grow”
For most people, debt is playing with bombs, on a pompous precipice, above slavery’s chasm. “…nature doesn’t like debt. Nature likes redundancies.” — Nassim Taleb

“There are 2 ways to enslave a nation. 1 is by the sword. The other is by debt.” — John Adams, 1826

Gold is the money of kings,
Silver is the money of business people,
Barter is the money of peasants, and
Debt is the money of slaves. ~~ Norm Franz

“Taxes, we need taxes, and more taxes, so many taxes we can’t possibly keep track of them all and have no representation”
Taxes are win-lose fiat decisions and so not used. CP employs “use fee” agreements at the point of sale. These fees are preferentially tied to a transaction’s physical location and can automatically be paid to the local municipality as part of a residency contract. Ideally the local municipality contracts with a larger municipality, which then contracts with an even larger municipality. Boroughs, cites, states, etc., compete with each other like Neil Stevenson enclave’s. By default, each role can only spend and receive use fee money within it’s role plus or minus one level up and down. So in America, a city can only contract with residents, and the county. The county can only contract with cities and the state it’s within. And the state can only contract with it’s county and the federal level. That way it’s in everyone’s best interests to do what they say they will do and there are immediate consequences for mistakes. Currently in America, politicians can promise whatever they want in order to have more power and the maximum consequence is that they might not get reelected. Ohhh, scary. Details.

“We need lots and lots of regulations to protect everyone.”
Regulatory burdens, laws, and central banks are the main challenge. The are all based on the idea of the devine right of kings, aka win-lose relationships. Castpoints, and many other collaborative consumption endeavors, are based on agreements, aka win-win relationships. It’s unlikely the status quo will acquiesce to the competition. Economically, the flow of capital changes from moving from debt (slaves) toward credit (master), to flowing between sovereign individuals (freedom, prosperity).

This is happening in New York City where Airbnb’s business model is “illegal” possibly because hotels spent “millions” protecting their market (passing laws, etc), instead of bettering their product. Airbnb participants spend their money offering valuable products that are often unique. More.
What works better?
– Expensive regulations that have serious systemic flaws as evidenced by the mortgage fiasco, MF Global and allegedly corrupt CFTC regulators that go uninvestigated
– Transparency and reputation that apparently have no overtly notable reported problems after 10 million transactions world wide (other than annoying the status quo), and are incredibly cheap.

Intrade shuts out American bettors …due to legal and regulatory pressures, Intrade can no longer allow US residents to participate in our real-money prediction markets… U.S. regulators on Monday sued Intrade, saying the company illegally let customers bet on options that must be traded on regulated exchanges.”

Yet, the opaque 600 trillion Over-The-Counter is mostly unregulated. Probably because this is a large arena where the “too-big-to-fail/jail” banksters operate. On the basis of the world’s 80 trillion GDP, the OTC market is levered by at least 7.5 times with almost no oversight and minimal margin.

What really works and many examples of how regulations fail, dramatically, all the time — especially when they are supposedly “needed most”.

“What about ‘national security’ and ‘social justice’?”
They are misnomers of slave drivers used to justify whims. As Martin Armstrong says, individuals adding value is what makes prosperity:

There are 2 ideas that have been responsible for killing more people than anything in history… The first was the idea that land was wealth… Adam Smith’s Wealth of Nations was a direct response to that idea showing that the true wealth of a nation was its people and its total productivity… Under this theory that landmass is power, then why did Japan reach the second largest economy with only 145,925 square miles…

…The second idea …[is]… Communism and this notion of “social justice.” Europe thought that what made American economically powerful was a single currency. They failed to see that its taxes were half of that in Europe and the regulations promoted small business formation rather than suppress it… Communism failed for it suppressed the very element that makes a country rich – the total productivity of its people.


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