Corey Petty: A Look at the Status.im ICO Token Distribution

A Look at the Status.im ICO Token Distribution

NOTE UP FRONT: I express my opinions here (at least at the end of the article). If you don’t like them and don’t have evidence to support your dislike, then go kick rocks.

MD: I definitely have evidence … and proof, so I don’t expect to be kicking rocks (or pounding sand). But I predict I’ll ultimately end up doing just that. Cognitive dissonance is the strongest force I’ve seen in human nature. It has sustained all religions and enabled new ones.

ICO (Initial Coin Offering) is a not problem when you have a “proper” MOE process. Only traders create money. They do it by making a  trading promise spanning time and space and get it certified by the process.

It initially is just a record entry with the “score keeper” doing the certification. It usually quickly gets converted to a record entry in some other trader’s ledger or as currency or coin. In the case of the latter two, there are two instances of each: (1) physical media in circulation; (2) physical media in storage.

In both cases they ideally have HULs (Hours of Unskilled Labor) as their units of measure. These are universally known to never change trading value over time and space … you always get the same size hole in the ground when you trade one HUL for a hole in the ground.

In case (1) the HULs (money) serve in small simple barter exchange transactions … like buying a candy bar. In case (2) they are totally valueless … as long as they don’t enter circulation. They can be destroyed with no impact on trade what-so-ever. That is not true of those in case (1).

In any case, for this trading promise, no money exists before the promise, nor after final delivery (or mitigation of default by interest collection of like amount). And all money is just such a promise. From this emanates the guarantee of perpetual zero inflation. Start with 0; end with zero; 0 minus 0 is zero.

Things are moving forward quite rapidly in this space; I simply don’t have time to look at all the ICOs (ya know, full time job, podcast, wife, and stuff), but this one struck me as different while also being wildly anticipated.

MD: Multiple “proper” MOE processes can co-exist simultaneously and compete. The only front they can compete on is efficiency (and thus lowest cost and interest to traders using them in money creation).

This article digs into the Status platform ICO model, how it differentiated itself from other models, and what the results were. If you aren’t sure what they do, go read about em here.

MD: I see a case where the brilliant mind has complicated a non-problem.

You might want to start by reading their recap of the ICO. Ya know, cause they wrote it.

MD: I’ll defer on that for now.

Quick Obligatory Methodology Section:

This was all done using Project Jupyter notebooks and the Pandas package. The transactions were retrieved using my Python bindings to the Etherscan.io API (tagging Matthew Tan). The methodology is very similar to my previous articles mentioned earlier, and the Jupyter notebooks of all of it can be found in a new Github repo.

MD: I ignored Python from the first time I saw it. You can’t use “white space” as a programming element. It’s a fundamental concept … one that if ignored will come back to bite you over and over and over again. And I have some experience. I created GLEE (see WithGLEE.com).

In particular, I retrieved all transactions from the SNT Crowdsale contract address from Etherscan.io, and parsed out the ones that had an error or had a value of 0 ETH, for both external and internal transactions. The values refunded by the internal transactions are removed from the corresponding external amounts when grouped together. This is my dataset. All conclusions and numbers are derived from that. I don’t do an errored transaction analysis on this one, one may come afterwards if no one else does it, but people like CodeTract have been doing an excellent job of this for other ICOs. Go check out their stuff.

MD: See how complicated things can become when you’re totally confused about the problem to begin with? Think concepts! What are the concepts? KISS!!!

I’m happy to see that others are doing analysis of this space, so we can see more of the trends developing.

Status.im ICO Summary:

The Status platform prides itself on really caring about their community, the Ethereum community, and learning from previous ICO models.

MD: A “proper” MOE process cares nothing about the “community”. It has the requirement that “all” traders and “all their money creating promises” and “all their deliveries on those promises” and “all their defaults and immediate mitigating interest collections of like amount” are “always” totally transparent to everyone in any community … whether they create the exchange media or just use it in trade or are just watching. Noting is secret at the money creation or the money destruction stage of a “proper” MOE process. All “use” of the money is perfectly confidential.

By learning from previous ICO models, I mean attempting to widely distribute your token to those who are interested in its utility in the midst of a fever-pitched, FOMO induced, and irrationally exuberated (made that one up!) investor community ready to flip your ICO for profit.

MD: Contrast this nonsense with a widely recognized “proper” MOE process concept. To help, consider a Mutual Casualty Insurance Company. It is owned by the members (the users … the traders). CLAIMs perpetually equal PREMIUMS. Any money made on investment income in the meantime goes to reduction of premiums and application to costs of operation. A “proper” MOE process is only contrasted by having no investment income … there is nothing to invest. Thus, costs have to be recovered by interest collections.

But just like a Mutual Casualty Insurance Company, there can be any number of them … competing against each other. For all intents and purposes, in the risk community, they are all the same. They differ in efficiency (lower premiums, better claims service).

Proper MOE processes have a notable difference here. The exchange rates between them are perpetually 1.000. There is free exchange between them. There is no such thing as exchange of one insurance policy for another … except in the case of re-insurance which is an internal, not external, practice.

What was their plan? Two-fold:

MD: I’m not going to comment further on this concept. It is a non-issue. With a “proper” MOE process, it never comes up. I’ll scan ahead to see if there is anything else I take issue with. It’s silly for me to nit pick details when the whole process is bogus and misguided in the first place.

  1. They created a pool of “Genesis Tokens” (SGT) to give to early contributors that clearly showed they wanted to help the platform grow, which were given out at the discretion of the core devs. This token pool corresponded to a maximum of 10% of the total token supply. After the contribution period, SGT could be converted to the ICO token (SNT) so early contributors could “get in” on the ICO token for being a contributor early. Basically, early disbursement of tokens that map to a given percentage of the total.
  2. As for the crazy investors, they implemented a soft-cap, and subsequent “Dynamic Ceilings.” What is that? Well, you should read it from the people who implemented it here like a smart person, and then frown at my shitty explanation here. My explanation of Dynamic Ceilings, just imagine that as time went on, large investments only got a portion of their investment accepted, and the rest was refunded. This was an attempt to increase the time window for smaller investors, and slowly make it more difficult for large investments to get in. The effect of this was for every transaction that got an amount kicked back, there is one regular tx and two internal txs, for example ( numbers are for illustration ):
1.) User attempts to send 100 ETH
2.) Over time, smart contract says "screw you big investor, give the little guys a chance!"
   a.) Smart contract accepts 20 ETH
   b.) Smart contract refunds 80 ETH
3.) User gets 20 ETH worth of SNT and 80 ETH refund
** Note that percentages changed as time went on.

Here are the stats I pulled from various sources, as well as my personal analysis of the transactions themselves.

  • Start Block: 3,903,900
  • End Block: 3,908,029
  • Investment Time Period: 4,129 blocks or ~17.20 hrs
  • Initial ETH Ceiling: 12M CHF (Franks, yo!)
  • Total SNT Supply: 6,804,870,174.88
  • Total ETH Contributed: 299,343.15177772392

So this one got a bit hairy when summing up investor amounts from the smart contracts. You’ll notice (you probably didn’t notice) that I’m off by ~559 ETH from the reported numbers by the smart contracts themselves. This is because of the dynamic ceilings they employed.

So my analysis got a few of these transactions mixed up when combining external and internal transactions, which make my numbers slightly off, sue me (don’t). This annoys the shit out of me, but I don’t have the time to fix what went wrong. The trends will be the same, which is the main point of this article.

Total Supply Distribution:

Below is the Status graphic from the previously linked Contribution article for your convenience.

Note that the Status Genesis Allocation is “up to 10%.” Well, they didn’t actually give all of their allocation out, so the real numbers are as follows:

Status Genesis Token Holders:  6.92894026 %
Public Contribution:          44.07105974 %
Status Core Dev:              20 %
Reserved for Future:          29 %

Public Contributor Investment Distribution:

The remainder of this article is discussing that ~44% piece, specifically on how much of the total supply these investors control, and their distribution. In other words, we’d like to see how well the ICO did in “spreading their seed,” if you will. Were they premature like the majority of highly popular ICOs, or did they pace themselves well despite the crazy excitement?

MD: This is not an issue with a “proper” MOE process. There are no investors. There is no control. There is just federation of the process (like franchising of a restaurant when the franchisor … think PayPal without a linkage to banks … dictates operations and standards and otherwise has no interest).

With a “proper” MOE process, “all” franchisees must exhibit perfect transparency and thus exhibit perpetual perfect balance between the supply and demand for the money they certify. This means real time monitoring for defaults with immediate mitigation by interest collections of like amount.

Each unique address was summed up, giving its total contribution, and then placed into an “investor bin” that corresponds to how big of an investor they are. These bins are broken up by orders of magnitude of ETH, i.e.:

Investment (ETH):         Bin:
-----------------------------------
0 - 1                     0
1 - 10                    1
10 - 100                  2
100 - 1,000               3
1,000 - 10,000            4
10,000 - 100,000          5

Important Note: These value percentages are relative to the TOTAL SNT SUPPLY, which shows what type of investor has what control over the entire Status platform. Also, it should be noted that these numbers are only good for showing the distribution at the moment the ICO ended. More on this later. Here is the table of investors:

MD: I really can’t believe this much work has gone into a concept that is so easily dispelled as total nonsense. No wonder the cognitive dissonance is so strong.

and the plot:

  • click the pic to blow it up
  • click the link below to bring up an interactive version
Interactive Link: https://plot.ly/~CoreyPetty/195/percentage-vs-investor-group/

We can see from the numbers that smaller amount investors have significantly more control of the token supply than previous ICOs that I’ve analyzed. This is a significant pullback from the trend of very few people controlling the vast majority of tokens, albeit the trend still exists.

It should also be noted that this does not take into account the extra ~7% of token holders that are early contributors to the platform.

Response Edit, thank you Nick Johnson and David Henderson:

A few responses reminded me to point out that a unique address is not indicative of an individual, and such assumptions should not be made. I have discussed this in my TokenCard article, and did not include such a discussion. I guess it is prudent to say something.

MD: This does imply an issue that a “proper” MOE process has. At the money creation point, no trader is anonymous, no trader has more than one identity, no two traders have the same identity, and all traders are individuals … partnerships, corporations and governments need not apply. Common AAA principles (Authentication, Authorization, and Accounting) are strictly adhered to throughout.

Due to the way the ICO was structured, the savvy investor was incentivized to break up his desired large contribution amount into many smaller addresses, and spamming them into the ICO to try and see what sticks. If enough of this happens, then you basically sybil (not quite sybil, but you get it) the ICO into a DoS situation, which is what we saw. I don’t have enough data to say how much of the network congestion was due to this, maybe someone else will do a sweet analysis of that.

MD: With a “proper” MOE process there are no investors … savvy or otherwise. And there are no incentives. It’s all about trade and traders (like you and me). Further, there is no “time value of money”. Inflation is guaranteed to be zero. Thus, the cherished factor (1+i)^n is 1.000 for all “n” (“i” being always zero). Gamers in finance will need to find other work

There are some indicators that this was not the entire case, which you can read about in my response to Nick Johnson below, if you’re interested. There is another simple plot in there, for the people who just want eye candy.

Ultra Massive Exoneration Time! (a.k.a. opinions section)

People are hating on Status for various reasons, which are mainly driven from garbage understanding of how the Ethereum network works, and misplacing blame.

MD: You’re going to get that when you have a totally bogus concept with brains and no experience at the helm. KISS is unknown to them.

It was clear the fervor was there. They were aware of it, and managed to raise a bunch money while still allowing “the little guys” en masse. You can’t really argue with that… look at the distribution.

MD: Ponzi had no trouble getting takers either. Heck, his scheme was doubling their money in two to three months. And none took their money out. They couldn’t afford to. It was destined to double again in two to three months.

This is a good time for me to introduce the definition of a capitalist and the proof:

Definition: A Capitalist is two years and an elite privilege.

Proof: Give a person a privilege of starting a bank with $1M. They can then create 10x that in money which they lend to traders at a 4% spread. That gives them 40% per year return. It doubles their money in less than two years. They take back their $1M and let the other $1M which they made ride forever after (or for their remaining 28 year career). 30 years later they can cash out at $24,000M … and for 28 of those years they had no skin in the game at all!

What’s not to love about capitalism … if you have the privilege!

You’re not going to have capitalism (or its alter-ego, communism) if you institute a “proper” MOE process.

So I believe that Status took steps in the right direction of both allowing smaller investors to contribute to an ICO, as well as being sure of putting tokens directly into the people that contributed early. This allowed people who actually helped build the system also take advantage of the ICO craze that is clearly going on. Full disclosure, I received SGT tokens for early contributions, which made me personally not inclined to participate in the ICO. I would predict that other SGT holders also felt this way, thus removing our would be transactions into the clusterfuck that was the contribution period.

MD: More full disclosure required. What did you give for those SGT tokens? Here again, you have issues that only exist because you’re working with a bogus concept!

The Dynamics Ceiling approach worked to keep a constant supply of incoming transactions of lower value over a longer period of time. The network congestion that people blame Status for is not their fault, unless you can blame them for building something MANY people wanted to contribute to.

MD: I’m an atheist but “OH MY GOD!!!” “Dynamics Ceiling? KISS!!!!

I talk at length about these network congestion issues raised from the ICO craze with MyEtherWallet’s Taylor one of my recent podcasts, take a listen:

Just as a side calculation:

MD: Why in the world would anyone listen if they know what a “proper” MOE process is … let alone if one was in actual operation? Would you listen?

Of all the transactions that tried to participate, the smart contract refunded 111,161 attempts for a total of 347,154 ETH.Status refunded back more ETH than they raised.

 

I’m not sure you can call that “greedy.”

MD: A “proper” MOE process only has one opportunity for greed by the franchisee (and none by the trader … and there are no investors). He can load interest collections with exorbitant costs. But then he wouldn’t be competitive with the other franchisees. No one would come to his store. With a “proper” MOE process, “all” traders enjoy zero inflation … and responsible traders (those who never default) have zero interest load … unless they go to a greedy franchisee … which of course they never would. You have to be smart to be responsible.


Holla at ya Boi!

I do this because I’m curious, and feel this type of information is lacking. We need to keep an eye on “where the money comes from” as we build this community out.

MD: You “need to come to your senses”. Grasp the concepts of a “proper” MOE process and it should be impossible for you to give this nonsense another thought … period.

As always, come listen to The Bitcoin Podcast and BlockChannel to hear me talk to people in the space about what they’re doing. Our slacks (TBP and BlockChannel) are always welcome to the community as well. I’m always present in them to talk.

MD: You think they would tolerate having their Money Delusion shattered? People this sharp are masters at their own cognitive dissonance. Look how many really smart religious leaders there are. Follow the money in all cases.

If you don’t like slack, hit me up on twitter at @corpetty or email me at petty.btc@gmail.com

Throw me some duckets of you like what I’m doing, and have some to spare. The donations definitely help me stay motivated to do these:

MD: Duckets? Amazing. English has abandoned me in one short lifetime!

Cafe Hayek: the “art of association”

Quotation of the Day…

by Don Boudreaux on August 24, 2017

in Civil Society, Complexity & Emergence, Myths and Fallacies

… is from page 353 of my GMU Econ colleague Chris Coyne’s excellent 2011 paper “Constitutions and crisis” (typo corrected):

The notion of the “art of association” can be traced back to Tocqueville, who noted America’s robust civil society that consists of an array of social associations and networks.  These associations and networks were not the result of government design or legislation, but instead evolved through the ingenuity of self-reliant citizens acting entrepreneurially.

MD: Yeh … like they didn’t have taverns before then? Sheeeesssssh.

 Associations stand between the government and the market.  They allow people to come together and solve common problems without relying on government.  In doing so, they serve as a check on government power because private individuals do not become overly reliant on government to solve the problems they face.  The emergence of a robust civil society is only possible when people’s right to free association is established and protected.  Where this right exists, people can invest in establishing social associations and networks, which can potentially play a crucial role in the wake of crises.

MD: Put more simply, if the solution to any issues is found to be government, well, you’re still looking for a solution.

DBx: Society is not government.  And while reasonable people can and do disagree over the degree to which government is necessary to a thriving society, indisputably false is the notion that society is created by government and is sustained only by the detailed directions – or, more accurately, detailed diktats – of government.

MD: Government is instituted by money changers. Society is just the fodder … the feedstock … the slaves … the putty in the hands of the money changers and government is what they institute to discipline that fodder. Religion is another form of that discipline.

Unfortunately, the creationist-engineering mindset is dominant in the general public and even more so in the ranks of social scientists.

MD: “Social scientist”:  The ultimate oxymoron.

Even among economists, who are the least likely of all social scientists to fall for the social-creationist myth, the social-creationist myth seems to me to be gaining ground.

MD: Since fully 96% of the worlds population is religious, it’s ridiculous to suppose economists only exist among the remaining 4%.

Were it not so laden with danger, it would be amusing to witness the typical professor who so often, with one breath, sneers at those who deny that the orderly complexity of the natural world is the result of unplanned evolution, and, with the next breath, cheers those who deny that the orderly complexity of the social world is the result of unplanned evolution.

MD: Delusion, oxymoron, myths, religion, self deception … you name it … human beings are the epitome of it all.

Deviant Investor: What Could Upset Markets?

What Could Upset Markets?

Guest Post from Clint Siegner, Money Metals Exchange

Investors have been well-trained in complacency. They have spent the past few years watching markets shrug off momentous geopolitical events – each more quickly than the last. Brexit’s impact faded within days. Trump’s election faded within hours.

MD: Notice how this is focused on “markets?” It’s never focused on traders (like you and me) … it’s focused on the gamblers and the gamers. Geopolitical events have almost no impact on real traders (those actually promising things and delivering). They just impact the highly leveraged gamers … who call themselves capitalists.

Stocks traded at all-time highs this summer and volatility made all-time lows. That is the set-up as we head into the fall…

MD: Stocks are about large collectives. If we had a proper MOE process we would still have stocks. A trader like you and me cannot make a promise to create an automobile company and create money to deliver on that promise. However, as all these companies start very small, a proper MOE process does allow the seed to be planted and grow. The gaming of our corrupt (so-called capitalist) system makes it difficult for small companies to compete with corporations.

Almost nobody seems nervous. In this age of central planning and highly artificial markets, it is hard to tell when this period of strange market serenity will end. But vigilant investors should have a few ideas. The next few months are going to challenge the status quo.

MD: The central planning and artificial markets are enabled by our “improper” MOE process. They are enabled by the nonsense they call capitalism. Capitalism is easily defined as “two years with a large dose of elite privilege”.

President Trump Is Under Siege

MD: And should be. He is just one of “them.” He has still not mentioned WTC7. But he is not being called on it. He is “not” under siege in reality.

It has been clear from the beginning of his term that President Donald Trump has very few supporters in Washington DC.

MD: Nonsense. This is all provably theater … like the Harlem Globe Trotters and the Washington Generals.

Democrats and progressives naturally oppose him. Deep staters have been working hard to undermine the administration. And you don’t need enemies when you have “friends” like John McCain, Mitch McConnell and Paul Ryan in the Republican led Congress.

MD: But one thing you can say about all the combatants you enumerate: NONE have mentioned WTC7.

Turmoil in Trump’s administration escalated last week. The president disbanded two separate business councils following the defection of high profile CEOs who disagreed with Trump’s response to events in Charlottesville, Virginia.

MD: And look at Erdogen in Turkey. This kind of turmoil enables these actors to reinvent themselves on a whole different stage. It’s all false flags. Israel is the master of this deception.

On Friday, Americans learned Steve Bannon, Trump’s Chief Strategist, was kicked out of the White House. That will cost Trump some support from his core constituency, who favored Bannon.

MD: As 15,000 newly minted morons (i.e. those disgusted with what they think are Trump’s opponents) show up to support him in Arizona. It’s “all” theater!

The president is already taking flack from supporters such as Ann Coulter. Bannon’s ouster leaves the President with an inner circle which is completely dominated by Wall Street insiders (with a history of supporting Democrats – such as Gary Cohn, Steve Mnuchin, and Dina Powell) and Pentagon brass.

MD: And Ann Coulter is a religious nutcase … who is occasionally right about things. I will guarantee you … she doesn’t know what money is.

Should a good portion of Trump’s voters stop backing the president, he’ll be in real trouble. And markets will start pricing that in.

MD: Oh really? He’s in there for four years. He can do enormous damage to us and benefit them  (i.e. rearrange things for the occupiers of our country). Look at George W. Bush. A third grader would have made a better top administrator … and he got two terms. What’s surprising is his dad only got one term. They really don’t like the disruption caused when they change their current “Meadowlark Lemon”.

Conflict with North Korea Possible, Even Likely

MD: Right. If that’s what they choose. They got it in Afghanistan, and poppies were their only interest there. If they can take out Qaddafi and Hussein (who they put in), they can take out Kim.

North Korean dictator Kim Jong-un ramped up the rhetoric again late last week in response to planned military drills conducted by South Korea and the U.S. Should the North Koreans test fire another missile, the U.S. may well respond with force.

MD: What’s theater without a crescendo occasionally? You have to create the emotion to hold the audience.

The generals advising the President appear to be succeeding in the effort to persuade him to get more aggressive. Steve Bannon’s departure signals that Trump has heard enough counsel for a less interventionist foreign policy.

The former Chief Strategist was one of few voices for restraint in the White House.

Bannon’s views with regards to North Korea in particular seem to be part of what put him at odds with the president. In an interview with the American Prospect, released just days before his ouster, Bannon said;

“There’s no military solution here; they got us. Until somebody solves the part of the equation that shows me that 10 million people in Seoul don’t die in the first 30 minutes from conventional weapons, I don’t know what you’re talking about.”

MD: Bannon may not have been on the full inside track yet. We will find that “Kim” is one of “them” too … or can be taken out with ease.

In recent days, fears over a confrontation with North Korea have seeped into the markets. If actual warfare breaks out, investors can expect a much bigger reaction.

MD: There has not been a single war in my lifetime that was a “real” fight among people. They were all just theater with “them” moving “us” (the pawns … the cannon fodder) about the board. In the end, it was “them”, not “us” who won the spoils … regardless of the side you’re looking at. And we’ve been at war with someone my entire 70+ year life … and actually all the way back to Knox who got his standing army within six months of the formation of this ridiculous union.

Republican Leaders Angle for Debt Ceiling Increase

MD: Governments (all of them) are sustained totally by counterfeiting. They make trading promises … and then roll them over when they don’t deliver. That’s default. Not mitigated immediately by interest collections, that’s counterfeiting … that results in inflation.

The money changers collect tribute on that debt (which is just money created by a deadbeat trader … not loans from money changers) … and all that tribute (they call it interest) comes from taxes. They have to keep track of the counterfeiting number so they can tell us what our tribute needs to be. Otherwise, if you’re just counterfeiting, why keep track of how much counterfeiting you’ve done?

The Republican leadership in Washington DC wants to increase the borrowing limit, quietly and without fanfare. However, they may not be able to betray rank and file Republican voters and get away with it this time.

MD: Dreamer. They always get their minimum wage increases. They always get their debt ceiling increases. They always get their wars. They even always get their government shutdowns rolled back and no government worker loses anything … ever … unless they blow the whistle … then they lose everything.

Conservatives in Congress look ready to revolt, leaving leadership in the awkward position of having to seek compromise with Democrats.

MD: Oh please. Someone introduce this moron to Abe Saperstein!

The problem is that Democrats are looking for any chance to thwart Trump and Republicans.

It’s unlikely we’ll see a fight over the debt ceiling which is big enough, and protracted enough, to have significant implications for markets. Past battles over the debt ceiling have been for show. In the end, Congress has never missed an opportunity to hike the borrowing limit – big government Republicans and big government Democrats always find common ground.

MD: The fact that they can just continually increase the debt ceiling is proof, that tactic (which somehow got by “them”) has been neutered. Iterative secession. This thing is broken beyond repair.

However, the polarization in Washington DC is unprecedented. It might even lead to a genuine stalemate this time around.

MD: “Unprecedented” is a grossly overused word. When it comes to Washington DC nothing is unprecedented. Over the nearly 300 years time they’ve been fleecing us, they have tried everything … several times over.

Wildcard: Russia Hacking Story May Implode on Democrats & Fake News Media

 

Democratic leadership and their friends in media bet the farm on convincing Americans that Trump colluded with Vladamir Putin to subvert last Fall’s presidential election. They have been telling the world that Putin stole damaging, confidential party emails and coordinated with the Trump campaign to release them at the most opportune time – just before the people voted in November.

MD: The theme continues. Does Siegner really believe there are different forces competing here. I’ll cease comments on this fake competition for the rest of the article. Siegner is clueless about the tactic it seems.

Wikileaks founder Julian Assange says he can demonstrate unequivocally that the Russians are not the source of the leaked information. Last week, Republican Congressman Dana Rohrabacher met with Assange to discuss the matter and agreed to share the details with President Trump.

Investors should get ready for some significant developments to be announced soon.

MD: They’re already ready … those really inside elites  anyway Remember, they’re driving this bus. They’re chomping at the bit for the windfall they are about to create.

It will be bad news for the Democrat Party and its legacy media allies if their Russia narrative falls apart. Particularly if it turns out whistle blowers from inside the Democratic National Committee were the source of the embarrassing leaks. Party leaders do not want Americans to turn their focus to scandals such as the DNC’s effort to undermine Bernie Sanders or CNN feeding debate questions to Hillary Clinton.

If, as some on the right have speculated, the murder of Seth Rich is related to the leaks it could turn the political left upside down. That would shake Wall Street as well as Washington DC.

Clint Siegner is a Director at Money Metals Exchange, the national precious metals company named 2015 “Dealer of the Year” in the United States by an independent global ratings group. A graduate of Linfield College in Oregon, Siegner puts his experience in business management along with his passion for personal liberty, limited government, and honest money into the development of Money Metals’ brand and reach. This includes writing extensively on the bullion markets and their intersection with policy and world affairs.

Cafe Hayek: Varieties of “Anti-Government”

Varieties of “Anti-Government”

by Don Boudreaux on August 22, 2017

in Philosophy of Freedom

Prompted by the recent violence in Charlottesville, in my latest column in the Pittsburgh Tribune-Review I highlight some differences that ought to be kept in mind when using, or encountering, the term “anti-government.

MD: Right away it gets scary. He is getting his thinking published. He is part of the “propaganda” arm of government. I think he writes about government’s use of “force”. Propaganda is government’s go-to tool. It only resorts to force when the polls show the effectiveness of the propaganda is not sufficient. By my poll (only 17 out of 298 people I’ve personally polled know anything about WTC7 falling down), the propaganda … and suppression of information … is working just splendidly.

A slice:

A libertarian’s – a Jeffersonian’s – “anti-government” stance reflects mainly a strong presumption against using force to direct peaceful people’s affairs.

MD: Why not leave people to direct their own affairs? Why is a government solution to issues (which always proves to be the least effective choice) always proposed first to the exclusion of all others? In my space it wouldn’t be that way. Iterative secession.

The libertarian objects first and foremost not to particular policies of a large and constitutionally unconstrained government, but to its very existence.

MD: Two issues: What does “constitutionally constrained” mean when that document is blatantly flawed … note it has no buy/sell agreement? What is “government” when it is openly occupied by our enemies … witness the mysterious collapse of WTC7? And an issue probably not covered herein: why is any level of government involved in directing anything that the level above it can deal with … the individual being at the top. Virtually 100% of what every level of government deals with today can be handled at the level just above it.

Even if such a government were today to behave in no ways that the libertarian finds objectionable, he remains opposed to it, understanding that such power is destined to be abused.

MD: So he’s saying libertarians are opposed to the camel getting his head under the tent. I wonder if he gets into why the camels want into the tent in the first place. And whose camel is it?

Of course, the libertarian is indeed “anti” many specific government policies – tariffs, subsidies, minimum wages, occupational licensing, K-12 schools’ funding and operations. This “anti-government” stance reflects no prejudice against an ethnic group, no favoritism for a culture or way of life. It reflects prejudice only against using power to secure special privileges, favoritism only for maximum scope to live, work and play as individuals peacefully choose. It is, in short, a pro-individual-liberty policy.

MD: So if governments didn’t use power to do these things, libertarians would be ok with it? If you’re pro-individual-liberty, why is there any government at all? Why isn’t everyone “pro-individual-liberty”? And why must those of us who are have to be in the same space with those who think there is a place for government. Read the Federalist Papers and at the same time read the Anti-Federalist papers.

The founding children surmised that if the states were left as separate entities their differences would result in fighting and wars. So their solution was to force them into the same space instead of letting them have their separate spaces in which to go about their separate ways. Now really? What kind of thinking is that???

Iterative secession. We took the wrong fork in the road when we formed the union. We must go back and try the other fork. This one has proven itself not to work … and globalization initiatives are proving the problem to be chronic.

Cafe Hayek: No Monopsony in the Market for Low-Skilled Labor

MD: All economists confuse the “proper” Medium of Exchange” process with some kind of manipulation of the economy.  That’s just what they think their job is … their focus is … their expertise is … their destiny is. And they are all flat out wrong.

Money simply enables traders to effect their trading promises over time and space. Trading “is” the economy and trading over time and space is a huge part of trading (simple barter exchange in the here-and-now being the rest … unless you consider government counterfeiting) … and it is the only instance where money is created. Money is just the record of these in-process trading promises. It doesn’t exist before the promise nor after delivery for any instance of a trading promise spanning time and space. Thus, it cannot and will not inflate or deflate. And it is always in free supply. No economist needed!

If a trader (and we are all traders … with different levels of responsible behavior) can see clear to delivering on a promise over time and space, he does so of his own volition. He is free to create money to carry out his promise. If he fails (defaults), the orphaned money is reclaimed immediately by an interest collection of like amount.

Manipulation of the money process is “always” counterproductive. It should never be allowed … and with a “proper” MOE process, it cannot be accommodated … so “is” never allowed. Let’s see what kind of manipulation is being studied in this instance.

The article:

My Mercatus Center colleague Jayme Lemke (who earned her PhD in economics from George Mason University) published last year in the journal Public Choice a very nice piece of research titled “Interjurisdictional competition and the Married Women’s Property Acts.”  (This article won the 2017 Gordon Tullock Prize.)

MD: Georg Mason University is a “hotbed” for Mises Monkery. It is kind of the USA abby for the religion.

In this article, Jayme explains the timing during the 19th century of U.S. states modernizing their property law – specifically, modernizing this law to enable married women to own, use, and alienate property no differently than could men and unmarried women.  This timing, Jayme shows, is explained by the intensity with which state leaders wished to increase their states’ populations.  A state whose leaders could personally enjoy some significant gains if that state’s population increased was more likely to modernize its property law than a state whose leaders stood to gain less from a population increase.  (My summary here of Jayme’s thesis and of her principal finding do not do justice to her paper.  Do read it yourself.  It’s excellent.)

MD: The state (and the money changers that institute it) are notorious for co-opting the trading process … for their own self interest. In trading there is no gender. It is human specific in the animal kingdom, but other than that, all traders are equal (until the money changers … and the states … and the leaders they institute dictate otherwise).

One of the passages in Jayme’s paper that I found to be especially interesting and germane is the following on pages 302-303:

“[O]ne of the practices first implemented by [Massachusetts textile-mill owner Francis Cabot] Lowell and later copied by other industrialists was the active recruitment of young women.  Lowell would pay recruiters to go out into the rural areas of Massachusetts, New Hampshire, and Vermont to find female workers….  The model developed by Lowell came to be copied by aspiring industrialists across the Northeast, and beyond.”

MD: And if he could have recruited dogs or pigs or horses to be productive in his mills he would have done that. When you need to expand your labor force, you pull out all the stops. When you have the luxury of picking and choosing your labor force, you impose all the stops you think are appropriate. And it seems to be a male/female thing. Women creating enterprises have a tendency to employ women over men. And it is a race thing. Proprietors from India operating convenience stores seem to exclusively use Indians to run their stores. This isn’t rocket science. It’s about ease and predictability of control.

More than 150 years ago – when transportation and communication were primitive by the standards of the early 21st century – competition nevertheless drove industrialists to spend significant resources to recruit, from distant places, low-skilled workers.  If profit-hungry industrialists went to such lengths in mid-19th-century America to locate and hire workers from jobs (then, mostly on farms) that paid those workers less than they could earn working for the recruiting industrialists, what sound reason is there to suppose that employers of low-skilled workers in America today generally possess anything that can, without laughing, be called “monopsony power” of such workers?  Answer: none.

MD: But that’s only half the story. Those workers left the farms because the industrialists offered them a better life than they had on the farm. But most of the industrial managers didn’t have to be scrupulous … so they were not scrupulous. Once they had control of those transplanted workers, they took advantage of them … because they could. That just seems to be human nature. The farmers did the same thing with their hired hands (in some cases making them total slaves).

Those who assert the existence of such monopsony power do so either because they mistakenly believe that such power exists whenever any employer faces a supply of labor that is less than perfectly elastic (that is, whenever an employer would quickly lose all of his workers of a given sort if that employer cut the pay of those workers by as little as one cent per hour), or because they ignore the active efforts of employers to find and recruit low-skilled workers.

MD: Well duh! That’s called a mature market. The grocery business has been running on razor thin margins for decades … as has the oil business.

Low-skilled worker Jones currently in job X need not himself have much gumption or stomach for actively searching out new and better employment if employers offering better-paying jobs Y and Z take steps actively to recruit Jones and other such workers.  And employers have every incentive to do such recruiting if and when there are pools of workers who are currently paid less than the value of those workers’ marginal products were those workers instead employed by the recruiting employers.

MD: When it comes to workers … and also to money, the HUL (Hour of Unskilled Labor) becomes the proper unit of measure. It never changes over time and space. It always trades for the same size hole in the ground.

And when it comes to labor, that’s as low as the scale goes … it doesn’t really ever become less than unskilled (unless you consider the case where they hire the handicapped … and supplement their lower than unskilled worth with government subsidies). Once you reach the HUL lower limit (or force it with something like a minimum wage adjustment), you move into the realm of the robot. Automation removes the need for human labor in that task altogether.

Economists seem to want to turn that which is natural into something they can manipulate … to make it rocket science. Interestingly, economists, like artists (excepting a tiny number of rock stars) work outside the domain of supply and demand. They cannot command the prices they charge for their services without government and corporate subsidies. They just aren’t needed in society. Unfortunately, when they are engaged, they become complete counterproductive and manipulative pests. They are all pulling in different directions at the same time … with greater and greater diligence and noise. Show any science that is pulling in all possible different directions as is the claimed science of economics … and politics for that matter. They are not science.

Deviant Investor: Total Eclipse of Sense

The Deviant Investor

A Non-Traditional Perspective

MD: Hmmm. “A Non-Traditional Perspective” … this from the guy who will not let my posts pass his moderation … because they are “unorthodox”. Go figure.

My creation of this website and blog at least partially resulted from his (and other goldbugs and Mises Monks) defensive maneuvers.

Let’s see what pearls of wisdom his non-traditional perspective brings us. We certainly won’t expect to be disappointed when he links his wisdom to an event that is mathematically predictable over the whole span of time we have had the math … and into the foreseeable future.

Total Eclipse of Sense

The eclipse of the sun occurs today. The silver moon covers the golden sun, plunging a small portion of the United States into darkness for a few minutes. Perhaps it is time to do a sanity check.

Investors Business Daily: “U.S. Has 3.5 Million More Registered Voters Than Live Adults

We blame the Russians but the election fraudsters are us.

Blame the Russians!

Zero Hedge: “Only in California…

“According to a statement from Western United Dairymen CEO, Anja Raudabaugh, California’s Air Resources Board wants to regulate animal methane emissions even though it admits there is no known method for achieving the type of reduction sought by SB 1383.”

(Legislation to regulate cow and sheep flatulence – how charming!)

MD: We need to regulate those people’s exhaling. After all, it is CO2 … that deadly greenhouse gas. It can be done by inhibiting their inhaling. Enter SB 1383A stage left.

A new proposal: SB-219 blasts a deeper hole into common sense regarding the use of pronouns, gender choice, gender identity, bathrooms, transgender and more. What will be considered “normal” in five years on the left coast?

MD: Hopefully it will be sovereignty. But that’s much too much to even dream for.

Now in California! Perhaps coming to your state soon?

MD: If we’re talking about secession, I sure hope so.

Thanks to the Federal Reserve policies, commercial fractional reserve banking and U.S. government spending, prices have risen for decades.

MD: Fractional reserve banking hasn’t cause that. That’s just enabled the money changers to leverage their self given privilege by 10x … making them become capitalists in just two years and allowing them to then take “their” money off the table … and in 30 years, multiply what they let ride by 12,000 times. No … the price changes caused by the unbalance between supply and demand for the money itself comes straight from the government … their continual rollovers which are defaults not met by interest collections of like amount. It’s called counterfeiting. All the taxes go to the money changers in the form of tribute (interest) they demand … for doing absolutely nothing! But then, they instituted the government didn’t they. What should we expect?

However we are assured there is almost no consumer price inflation.

MD: There can’t be if you’re going to have COLA’s in your pension formulas. That’s suicide when you can’t stop the counterfeiting. The only thing you can resort to is the “thumb on the scale” trick .. and that’s exactly what they’re doing. Based on my SS check year over year, inflation has been 0.27%. Based on the cost of my rib eye steaks, it’s been about 27%.

One of the mandates of the Fed is “stable prices.” Hmmmm!

MD: And of course we here at MD know that  a “proper” MOE process employees cares nothing about prices, employment, balance of trade, or anything else. It has no monetary policy. It has no reserves. It functions just like the over-speed governor on your lawnmower … through negative feedback correction (mitigated defaults immediately with interest collections of like amount). It is totally objective and can’t be manipulated at all.

Socialism:

Global warming: Do you think the politicians would have supported the global warming story if they could not tax greenhouse gases? The worry in the 1970s was global cooling. That story died because there is no way to tax the global cooling story or make a profit from it.

MD: No. That’s also why marijuana will soon become the national flower.

 

****************************************

 

The reality that is worth understanding:

Time for a sanity check. Gold or paper? Results or promises? Face reality or blame Russia?

Gary Christenson

MD: Actually, a pretty good effort this time by the clueless Gary Christenson.

Cafe Hayek: Assumptions of Right

Quotation of the Day…

by Don Boudreaux on August 21, 2017

… is from page 359 of the late Paul Heyne‘s insightful 1981 article “Measures of Wealth and Assumptions of Right: An Inquiry” as it is reprinted in the 2008 collection of Heyne’s writings, “Are Economists Basically Immoral?” and Other Essays on Economics, Ethics, and Religion (Geoffrey Brennan and A.M.C. Waterman, eds.) (footnote deleted):

MD: Notice how the Mises Monks never just cite an article and not its author. As in this case, there is always hyperbole … e.g. Paul Hayne’s “insightful” article. This is a Mises Monk marker.

 

Marxists have long complained that conventional economic analysis takes for granted the existing system of property rights.  The charge is fundamentally correct.

MD: Let’s see if he exposes the alternative to this? Hint: No he doesn’t.

Am I likely to paint a house that isn’t mine? Am I likely to build a house on property that isn’t mine?

 

Offers to supply goods and efforts to purchase goods always depend upon people’s expectations of what they can and may do under specific contemplated circumstances.  What a person may do expresses, in the broadest sense, that person’s property rights.

MD: Remember … a right is a defended claim. Here we have an implicit claim and no defense suggested. Do we really think we have a right being talked about here?

In order to predict, explain, or even talk intelligibly about those patterns and instances of social interaction that we call “the economy,” we must begin with people’s expectations, that is, their property rights.

MD: Why do they see the economy as a “social” interaction? If everything was an automat, would it still be a social economy? An economy is about trade. There is nothing social about trade in most cases. The purpose of advertising is to socialize it … but that’s not an attribute … it’s just a tactic

 

DBx: To avoid possible misunderstanding, I would have slightly reworded the final sentence of this quotation to read: “In order to predict, explain, or even talk intelligibly about those patterns and instances of social interaction that we call “the economy,” we must begin with people’s legitimate expectations – namely, those expectations that are widely shared and agreed to throughout the community – that is, their property rights.”

MD: Ah … now you talk about a great Misesian improvement. Add more words and say even less.

Heyne’s point is profound and important.  Obviously, we cannot possibly distinguish illegitimate coercion against others from the legitimate exercise or defense of one’s rights until we know in sufficient detail the property-rights arrangement.

MD: Which will be found in a spaghetti of conflicting laws, rather than a simple statement of principle … like the golden rule.

If I break the window of a house at 123 Elm St. and then enter, you cannot know from this physical act if I am burgling the house (and hence, violating someone’s property right) or entering the house with the permission of the homeowner (namely, in this example, myself who locked myself out of this house that I own).

What is less obvious, but no less important, is the fact that property rights boil down to shared expectations.

MD: And of course “principles” are shared expectations. Laws are not.

In modern America (as in most modern societies) ownership of a house includes the widely shared expectation that in all but extreme circumstances – for example, when the house is engulfed in fire – the right to decide who may enter the house is reserved to the homeowner.  Ultimately, this right rests on widely shared expectations.  If I, a modern American, move to some community in which the widely shared expectation is that anyone who wishes may enter unannounced into any house in that community, with or without the permission of the owner or occupants, and by whatever means, then no right of mine is violated if some stranger breaks into my house.

MD: And can we picture any collection of people who would see this behavior as adhering to the golden rule? Actually we can. Most utopian societal communal failures see things this way.

Expectations, being what they are, can be affected by the formal legal and legislative codes, but expectations can also diverge from these codes.

MD: Which makes those codes pretty worthless, doesn’t it … especially when we get 40,000+ new ones every year.

(An example of such a divergence is the fact that in some U.S. states – I think, for instance, in Massachusetts – it remains an ‘on-the-books’ criminal offense for two adults who aren’t married to each other to have consensual sex with each other.  Yet community expectations now no longer regard such activities to be unlawful.)  Expectations change more frequently (especially in open societies) than does the formal law and the legislative codes, and expectations are always more nuanced and ‘granular’ than articulated legal rules or legislative commands can possibly be.

MD: But if were about principles rather than laws, the golden rule principle would easily address this … i.e. it’s only the business of the two people involved.

At bottom, a society’s laws are its widely shared expectations about how individuals may and may not act toward each others’ persons and toward the material things, as well as the symbols and markers, that individuals possess and use as they conduct their affairs both individually and in groups.

MD: A misstatement. Its principles, not its laws, are the widely shared expectations. Its laws are a hopelessly flawed attempt to nail down the jello which is those principles. As I’ve stated before, it would take an unlimited number of laws to nail down the principle of the golden rule.

(By the way, do watch the 1997 movie, The Castle.)

Cafe Hayek: Political scope?

MD: Anyone who has read Ludwig von Mises has found him to just largely be a double talker. He goes on and on and on bouncing off the walls, losing sight of his subject, and just rambling. And when he does assert something, it makes no sense at all. It’s like a fractel … or pealing an onion. You can keep dissecting it, but as you do you just keep seeing the same thing … and if your fortunate it ends like an onion pealing exercise … with nothing. If you’re not fortunate it goes on without end … and becomes the Mises Monks’ religion

This is particularly evident when his subject is (or is thought to be) money. He goes into all kinds of nonsense about prices and what motivates people to trade … and then to trade again (the margins). And none of it has anything to do with money … what it is … why it is … and how it is.

As I read this “comment of the day” I’m left with the same feeling … but this time the subject is politics … whatever that is.  What do you think?

by Don Boudreaux on August 20, 2017

 

… is from page 75 of my late Nobel laureate colleague James Buchanan’s 1986 paper “Notes on Politics as Process,” as this paper is reprinted in James M. Buchanan, Politics as Public Choice (2000), which is volume 13 of the Collected Works of James M. Buchanan:

Politics that is confined to a few and well-defined tasks cannot be seriously predatory.

The American founders seemed to recognize this simple truth.  Modern political scholars do not.

MD: I read it over and over and over … and it says nothing … absolutely nothing! Maybe we need more context. In the case of Mises, we never do. More context never helps.

Cafe Hayek: Jeff Miron on Statues

MD: We here at Money Delusions have strong opinions on government (it is an admission of failure of principles and cooperation). The responsibility for a thing called Monetary Policy is immediately claimed by governments once they are instituted by the money changers to have just that power … to manipulate money and thus control trade … to enable their farming operation which they call the “business cycle”.

As a tactic, governments have on-going propaganda campaigns. They are like religions in that respect. They just last as long as religions … and are more numerous. Part of that propaganda campaign is to elevate their operatives to super-human status. This is almost always done posthumously.  And we see the technique on a daily basis at Cafe Hayek as these Mises Monks try to protect the sainthood of their operatives.  Boudreaux is in the process currently of securing sainthood for an operative named Jim Baldwin (whose confusions Boudreaux shares and wants to have immortalized).

Let’s review this article to see if they can see the delusions involved … and what the principle should be.

Jeff Miron on Statues

by Don Boudreaux on August 19, 2017

in Current Affairs

I post in full – and I agree in full:

Why should a city, state, or federal government put statues in public parks?

MD: Consider the principle of “all” government. Government is the last resort for dealing with issues that no level of cooperation above it can deal with itself … at the top being the individual. Government is stark evidence of cooperation’s failure to deal with the issue … i.e. problem still looking for a proper solution.

Take something as simple as recording of deeds and other legal documents. This is the role of the county clerk. With their green eye shades they maintain the books of indexes into boxes on top of boxes full of contract documents retained for public inspection. It is the process they have for facilitating  “transparency” to protect claims. The principle here is that if everyone can see the claim at any time … and for all time, then that in and of itself with defend the claim. And this is largely true. Unfortunately government has been an inept way of addressing this need. Countless such records have predictably been destroyed with the inevitable fire and water destruction of courthouses.

The government solution has failed from the get-go. In the particular case of “real property”, a private solution is found in the invention of “title insurance”. Here, a private industry has relegated the role of the county clerk as the first step (a public step) in a private process (title company real property record search). And in that process, the “transparency” principle is not even obtained. The title company’s records are not open to the public. It’s not a very cooperative solution is it!

When you see a government solution addressing any issue, you know implicitly that the issue is still not being addressed properly. On inspection you will find that “all” government involvement can be eliminated by resorting to principles rather than laws. Laws are just an attempt to nail down the jello of misunderstood issues that are easily handled with principles and transparency … the most obvious one being the golden rule. As a thought experiment, think of the number of laws you need to nail down the principle of the golden rule. Hint: Infinite … and with 40,000+ new laws every year, they are crowding that the estimate … and that is a trait of all valid principles … the number of laws required to nail them down approaches infinity.

So back to the question: “Why should a city, state, or federal government put statues in public parks? “.

What’s the principle? First comes “what is it a statue of?”. If it’s of a duck or an elk, it’s no big deal. But in most cases it is of a person. And the purpose of that statue is for the memory of that person to live after their death. And it almost never works. In less than a generation, the significance of the person depicted in the statue is forgotten totally … all that is left, as a crutch, is the plaque.

The “real” purpose is give credibility to the people who share that person’s belief. It is to get people working for (or members of the same club as)  the statue builder to think that if they behave, work for less than they’re worth, exhibit blind loyalty, etc., they too will be immortalized in marble or bronze. It is an attempt by the organization building the statue to gain “stature” for that organization. It’s just that simple. It’s a tactic.

Most statues are of government workers. Most government buildings are named after government workers. Many streets are named after government workers. And who are the least capable workers among us … and make the biggest messes of the biggest things? Right … government workers. So go figure.

Doing so addresses no plausible market failure, while using taxpayers funds and, as demonstrated tragically over the past few weeks, generates controversy, polarization, and violence. Thus governments should take down all statues, regardless of their political implications.

MD:  First, most of these statues are not constructed with taxpayers funds. But they are placed on “so-called” public property. Now that we know the principle involved … giving recognition to one to garner loyalty and discipline of many, we see that the statues should never have gone up as a public symbol at all … and they are just one form of recognition and sainthood that is unprincipled … it is a tactic of a faction.

But taking them down makes a larger public statement than the statues themselves. That statement is that in an instant of time, one cooperative collection of people can disassemble what another cooperative collection of people constructed years, decades, even centuries before. For sure, they shouldn’t be able to do that more capriciously than the original initiative was done.

And what do you do when the statue was constructed privately on private property and then given over to the public? A principle should be adopted going forward that self recognition has no place in government and should not be tolerated moving forward. Of course, not tolerating government at all going forward nips that issue in the bud doesn’t it.

This is not “erasing” history but instead leaving it where it belongs, in the hands of private actors and mechanisms.

MD: Putting up statues is the first step in “distorting” history. It is a tactic … just like writing a biography … or worse, an auto-biography. The principle is that such self-aggrandizement requires no public support and should not get public support.

Historians, textbook authors, universities, learned societies, the History Channel, and many other individuals and organizations can all present their own views of history and battle for the hearts and minds of the public.

MD: All those sources just enumerated are instances of “historic revision”. It is an expected principle and by the golden rule should not be inhibited … but it should not be publicly purveyed either! In most cases it is a symbol of one government prevailing over another government … when neither government should have been allowed to exist in the first place.

Government statues are government putting its thumb on the scale, which is one step down the slippery slope of thought control.

MD: It is a tactic … and one that should be eschewed … as should be government. Look for another solution when government is proposed to deal with a cooperative issue. Such proposals should be viewed as “dead on arrival”

Brilliant, and wise.

MD: Obvious!

The Daily Bell: Empowered Individuals: Genocide and Poverty Hasn’t Beat Cambodians

MD: At Money Delusions, we have no delusions about money at all. And its our experience with money delusions propagated by others that gives us the skill to identify delusions in other areas. This article is just such an instance. Why do people tolerate genocide and poverty? And how do you say Cambodians beat it? How did Pol Pot come to be anyway? How do people become subjected to that nonsense when they just want to be left alone? Let’s see what we will see.Not to spoil the ending … but it’s not by leaving these people alone … it’s by indoctrinating them differently. My god is better than your god. Sheeeeessssshhhhh

STAFF NEWS & ANALYSIS
Empowered Individuals: Genocide and Poverty Hasn’t Beat Cambodians
By Michael Demas – August 18, 2017

Man Kind is leading the way in modern education.

MD: Every time I see a statement like this I test it with “who’s the runner up?”. But then, what “kind” other than “man kind” is even in the running? What a great attention grabber that line is! But “modern” … that seals it.

No, that isn’t some lofty but empty phrase about humanity. This guy’s name is actually Man Kind. He runs a program in Cambodia that does more than educate.

MD: Caught me! Did you know if I tried to tell Facebook I was enrolling under the name Man Kind it would refuse me? It would refuse you too. But Facebook is a higher authority. I wonder if this guy is enrolled.

The schooling instills the drive to do something meaningful. The education empowers youth to take ownership of their life circumstances. If they don’t like the situation into which they were born, Man Kind will help them realize they can change it.

MD: All it should really do is teach the fundamentals necessary to learn.  Learn to read … then write and spell … to do math. In short … learn to learn and learn to want to learn. That’s it. Then sit down and read the encyclopedias. You’ll get 10x what public education will give you (except putting prophylactics on bananas) in 1/3rd of the time. Wikipedia is your friend.

In the rural communities of Cambodia, social mobility isn’t at the forefront of many people’s minds. There are few opportunities to seize, particularly without access to meaningful education.

MD: Why should social mobility be on anyone’s minds. Why should there be anywhere to mobile to? Because the money changers have dictated it. It’s part of their farming operation … their farm system.

More often than not, hardworking rural families are resigned to their socioeconomic foothold. Despite this sad reality, there are individuals hard at work to raise their communities beyond their modest means.

MD: And more often than not, those chasing the brass ring finally settle down to a rural setting … with no socioeconomic drive at all. Go figure!

As you read this, there works a small group of industrious Cambodians who are improving their community. The Human-Resource Development and Language Foundation (HDLF) is a local grassroots NGO. They teach English and IT classes while incorporating motivational and character-building exercises.

MD: Foundations and NGOs … contaminating a theater near you.

Man Kind is the local community member who leads the organization. Their methods educate the local community in a practical way. They also provide opportunities for higher learning and employment, all at a minimal cost to clients.

There is climbing demand for English classes, especially in these rural areas, but a severe lack of investment. As of 2014 the Cambodian government spends 1.9% of its GDP on education. There is a shortage of teachers, and most split their time between teaching at public institutions and private schools.

MD: Why English? The Brits are the most corrupt society the world has ever experienced (Israel being a close second). What if the NGO went to London and gave of themselves to teach the Brits Cambodian?

They can’t sustain themselves on a public teacher’s salary alone. Most rural areas can’t readily offer the opportunity for a secondary income. The result is that most teachers do not just prefer, but need to work in urban areas to continue providing their valuable service.

MD: History is replete with biographies of great men and women who grew up on the desolate Great Plains of the USA … and attended single room school houses with one teacher for all grades.

 

How Did We Get Here?

There are several reasons for Cambodia’s severe lack of development. It would be remiss not to mention the brutal communist rule of the Khmer Rouge during the mid to late seventies. Pol Pot, wanted to fundamentally restructure Cambodia. He ushered in a collectivized “utopian” agrarian society in the mid to late 1970s.

The Khmer Rouge deported all foreign nationals and ordered a mass exodus from all cities. They pushed the population into the countryside. They abolished money, private property, and executed anyone who was a perceived threat to the state.

MD: So how did they get the power and leverage to do that?

This largely included intellectuals, politicians, doctors, and teachers. The Khmer Rouge even considered eyeglasses a sign of former oppression.

The Khmer Rouge starved the population as they forced them to do laborious farm work under harsh conditions. Their utopian dream turned into a genocide. It wasn’t until the party collapsed, and the Vietnamese occupied Cambodia, that the madness subsided.

MD: Something has to be left out of this story. What attracted the Khmer Rouge to the Khmer Rouge in the first place? They must have had some competitive solution to a wide spread problem at the time to pull this off. What was it? Was capitalism and empire building stealing them blind? That is “usually” the case … and the writers of this kind of propaganda leave that part out.

Yet still, the atrocities continued well into Vietnam’s occupation. Between 1.7 and 2 million people died, roughly a quarter of the population at the time. Nearly an entire generation was eradicated, and the culture all but torn from its roots. Cambodia needed to begin its development efforts anew.

MD: Again, how do you get some people to turn on others like that? How do you completely eradicate the principle of the golden rule … and why would you want to do that?

A Reason To Move On

MD: Every time I read a phrase like that, it tells me it’s  time for “revenge”; that revenge is justified and imminent; and the perps are on the ropes.

This is where HDLF provides some genuine hope.

MD: Hope for whom? The perps?

The NGO incorporates Dr. Madenjit Singh’s internationally recognized ‘Science of Language’ holistic training program.

MD: Any time you see this kind of hyperbole, their credentials are shallow to non-existent. Educators use such rhetoric … because they have no basis in fact to fall back on. They are totally incestuous.

During the day, local teachers volunteer to teach basic English to primary school students. In the evening, they go over more advanced courses with teenage students, who attend these classes after their traditional education in a public school. These intermediate students learn by reading stories and speaking about motivational topics.

MD: What? After their public school education? Well then eliminate the public school education. Is this like the bible school I had to go to as a kid for indoctrination?

The main idea is to teach these kids how to identify their habits, goals, aspirations, and inspiration. They do this in English, and stand up to present their own understanding of these stories to the whole class. They focus on identifying negativity in their lives and how to overcome a fatalistic mindset.This improves their Englishs

MD: Again, why English? That makes as much sense as teaching them Yiddish!

This improves their English comprehension, but also shifts their fundamental view of the world. It may not sound conventional by western standards. But it can provide life changing empowerment to students who never understood the individual’s ability to improve their own life.

MD: Ah … “shifts their view of the world”. This is brainwashing … plain and simple … in the open as if it was respectable. By a people (these NGOs) who have never known what money is and to this very day think there is such a thing as democracy with more than 50 people involved. This is BS … Beyond Silly. Maybe these people need to go back and read the history of our indoctrination of the indigenous US people. It’s a pitiful piece of history … with an even more pitiful current result.

Students who are faithful to this program emit a palpable sense of confidence. Teachers, as well as the international volunteers, feel the change.

MD: Like Clinton “felt your pain”?

“The energy here is very powerful,” says Program Director Juan Antuna Ros. “The moment you enter the school, you’re surrounded by all this eagerness to learn. It’s infectious… new students see the older students speaking English comfortably with international volunteers and that motivates them to keep studying and build up their confidence.”

MD: What? Why? Why doesn’t that eagerness exist in the public schools? What kind of coolade are they giving these kids?

To break the cycle of poverty, the key is to make adults and children alike realize that the cycle does not have to apply to them. They harbor a powerful freedom that waits to be realized.

MD: If you want to break the cycle, break the reproductive cycle. I would like to break the reproductive cycle of the elite in the USA (and the tribe that predominates it). Maybe I can form an NGO to get that done. It’s easy to illustrate and document the un-level playing field they have forced the rest of us on to.

“Someone who’s not educated is basically limited. It’s almost as if they’re walking through life with a blindfold on. They’re easily led astray, used and manipulated for other people’s agenda, usually people with a better education and greater access to resources.”

MD: Tell that to Gene Amdahl, or Philo Farnsworth … or Ezra Pound!

The curriculum implements this holistic perspective shift by asking students very subjective questions about their personal mentalities. This model demands a reader’s interactivity. There is no memorizing vocabulary by rote repetition. The students here must be active in analyzing their own personal lives using English. In this way, their English lessons don’t just cover the basics of the language, but the framework for their own personal success.

MD: Brainwashing … 101. Same thing other practitioners engage in. Plus the others teach a skill … making bomb vests that fit properly and comfortably.

Consider the implications. Let’s imagine you spend your days helping your family on the farm. You do manual labor using the same age-old methods passed down through the generations. Your neighbors, friends, and community all do the same thing, all without any opportunity or reason to improve their situation.

MD: Right. Join our society and you could become part of an entire new generation with large thumbs … from playing games on their iPads; totally sexually confused; fearing global warming and their own shadows;  and incapable of changing a tire.

Then, all of a sudden, you begin to study a language, which helps you understand that you are the master of your own destiny. A door has been opened. To walk through, you must keep learning and engage in the principles you’re studying. Incorporating this life-changing and transmittable enthusiasm is what keeps this school running.

MD: And you no longer have a chance of being the master of the destiny you are leaving. And since there will be no-one there to protect a claim to that destiny, it will flow to these wonderful people teaching you this wonderful new language … the most clumsy language ever evolved by man … beginning with roots among the most treacherous empire builders ever experienced by mankind. What’s not to love here. If you want to gain some perspective, read the contemporaneous Anti-Federalist Papers (written by farmers who had a clue)  in lock step with your reading of the Federalist Papers (written by the money changers who now enslave you by taking 3/4ths of the fruits of your labor … you the most free of all the people ever on the globe.) I’d say “give me a break” … but I make my own breaks. You should try it.

Where The Road Leads

Education alone is not the answer to a region defined by poverty. The ultimate goal is being able to provide tangible opportunities to a better-educated community. HDLF has recently teamed up with the Malaysian government’s Volunteering for International Professionals (VIP) Fellowship Programme.

MD: What makes these people poor? At the beginning of the formation of the USA very few had education (and those that did created the mess we know as the United States and its unbelievably flawed Constitution … that doesn’t even include a buy/sell agreement). These people weren’t any poorer or richer than the Cambodians … but most of the educated ones sure are (more poor) … even those perpetually reaching for the brass rings. They are the most impoverished of all.

The partnership aims to provide a 4-month fellowship for international professionals to apply their expertise in a local context. The goal here is to create career pathways and provide support services that allow graduates to access relevant job opportunities and build a meaningful career with English as the foundation.

MD: Follow the money.

HDLF also has mechanisms for trainees to become teachers. In fact, one of its trainees actually taught English to his own childhood teacher. Students see the clear and evident trajectory that their studies materialize. The teachers are the perfect examples, as they seek more than just a paycheck. They realize that the path to a brighter future is a delicate opportunity. If they can provide the necessary skill set, these kids will excel in their higher learning and get a decent job to provide for themselves and their families.

Right now, HDLF is building a new school down the road from its current location. The classes are in such high demand that the students for the new school are already being instructed in a temporary learning center near the construction site. With 3 classrooms and an IT center underway, the future looks bright for this NGO.

This large undertaking has opened the door for international volunteers to come and be a part of this good cause. Their presence has helped expedite the construction while keeping costs low. It provides an opportunity for the students to learn and talk with native English speakers.

Each day that passes is another day closer to building Man Kind’s new facility for higher learning.

“My great grandparents, my grandparents, my parents, all of them were farmers. But now, I can start to change the story of my life. So I ask my students, if I can do it, why can’t you?”

MD: Is that an open insult to farmers? I guarantee you, if we ever manage iterative secession (and I certainly hope we do), I don’t want you in my space. I would much rather have these farmers in my space.

His students regularly attend his classes, so many that there is almost a lack of seats. Despite the sweltering heat or the torrential rain, they attend class and study with fervor and intention.

“I work long hours, but I never feel tired, because I can see the smiling faces of our kids. They begin to feel confidence. They tell themselves, ‘yes, I can do it, I can learn. I can be anybody I want.’ That’s the best feeling of my life.”

MD: What a pitiful life that must be for you.