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DGC June 2011 #43 WebMoney Connects The World WebMoney Transfer P2P CrediT seviCes DGC Digital Gold Currency Magazine Contents Publisher Mark Herpel 4 Rebel Moneby Paul Rosenberg Contributors 6 Borrowing & Lending Online with the Webmoney Debt Service Paul Rosenberg 11 GATA urges Paul to probe Fed’s gold swaps; he tells CNBC he will editor 13 For illegally withholding gold information, Fed pays GATA Mark Herpel firstname.lastname@example.org 15 GoldMoney Passes $2 Billion USD Value in Customer Holdings skype “digitalcurrency” 15 E-gold Value Access Plan Government Forfeiture Action http://www.dgcmagazine.com 16 Forfeiture Complaint Filed Against Accounts Maintained by E-gold DGC Magazine is committed Ltd, Traceable to Criminal Offenses to expanding the legal use 18 Cypherpunk’d Radio Program digital gold currency around the world. Slowly, legally 20 Liberty Dollar’s Arrogance Ends in Federal ‘Gby Rob Grayict ethically we are trying to move digital gold currency and so29 “Moneychanger” -- new Open Transactions GUI money forward into everyday business. 31 RBZ Urges Gold-Backed Zim Dollar Contact us 32 China: Gold Demand Jumps May 2011 email@example.com twitter @dgcmagazine 35 David Morgan Congratulates Governor Gary Herbert on Signing the Utah Legal Coin Act freeAdvertising firstname.lastname@example.org 37 State in the midst of preparing the third batch of gold dinar and DGCmagazine is published online once a month. silver dirham Advertisements are free to all industry businesses and relatedorcLoom Anonymous Asset Exchange companies. 40 S. 862 South Carolina General Assembly 119th Session, 2011-12 © 2008-2011 DGC Magazine All Rights Reserved 45 IRS Offshore Voluntary Disclosure Initiative (OVDI) August deadline DGC magazine 47 PorcLoom: How it Works Document ISSN 2159-791X Get Connected Free & Easy Joining the Dinar People Network is free and easy. Dinar People Network will connect you to other users of the Islamic Gold Dinar and Silver Dirham, opening doors of opportunity for both B2B and Dinar People B2C global trade and commerce. The Network also provides you with some powerful tools to NETWORK strengthen your understanding and position in a Dinar People Network is a free fast changing world economy. on-line service promoting and Network Features Include: assisting the growth of Halal currency, trade and economy. Online global directory of all members Resources for halal currency and trade By becoming a member of the News and articles on current affairs Network we can connect you to B2B and B2C real-time online market place a world of Dinar users across the globe. Viewable video and image bank Upcoming events Calendar If you would like to become a DP Monthly Magazine member of the Dinar People Live member chat Personal ‘My Page’ for every member. Network then follow the link Member groups with discussion post below and sign up today! Personal ‘Blog Page’ for every member www.56narpeople.- Issue 09 - January 2011 Important updates and info via e-mail DGC Magazine May 2011 Issue 42 § 3 Paul rosenberg r ebel Mone y t is an interesAs it turns out,theewonderfBiblical Ifact that the pevidethasilvhalfArchaeology Review included very often coin above, were actutheir March/April 2011 issue.) money; not just on the Temple moBut, this situation was hard- starts.on concluAD. (I only knowmanyrebellionsthathavevery 4 § DGC Magazine May 2011 Issue 42 stance (if millions of people wish to be ruled by a state, it’s not right of us to rip it away from them), and it is the right strategic stance. But if things ever proceed in the pattern of the American revolution, the states would have a problem: Digital currency is generally built with strong crypto; paper currency is not. Just about every serious war includes the belligerents counterfeiting each other’s currency. In modern times this is done by duplicating paper notes, but in eras past it was done by producing coins that had lots of cheap lead in them, rather than valuable silver. In both cases, massive inflation quickly issued their own curren- choose. was the result, disrupting the cy. Here is Massachusetts cur- enemy’sproductionofweapons rency from 1776, issued early Becauseofthis,therebelgroup and logistic supplies. in the American Revolutionary that is tied to their opponent’s All that said, conflict is not War: (above) money supply has nearly lost before the battles begin. The good for anyone and probably The primary reason that rebels more intelligent rebels learn not necessary in even most of create their own currency is that this quickly. the extreme cases. As it looks now, the moral peripheries monetary control is far more AND US? of the world’s Establishment of a force than many people realize. Baron Rothschild was The funny thing about the Units are waking up to the not being overly flamboyant digital currency business is evils of fiat currency and the when he said “give me control that we are unwilling rebels; virtues of honest money. over a nation’s money supply interestingly enough, a lot like Our digital gold currency is and I care not who makes their the early American rebels. laws.” Being able to manipulate None of us are trying to attack indeed rebel currency, but a money supply is a fantastic any of the OECD operators; we are moral and economic power, affecting every part of we merely wish to be left alone rebels, not physical rebels. Let’s keep praying that it never an economy. If you know in to produce and use better gets close to that. advance that the money supply money. will go up (diluting its value) or contract (concentrating its Asmuchaswecomplainabout © Copyright 2011 value), you immediately gain the state agents that attack by Paul A. Rosenberg Paul is the author of a massive advantage over our business, I’m not aware of Production Versus Plunder everyone else... and you can any of us that are particularly and other books. You can find target this advantage to help interested in attacking the his work at or hurt almost anyone you state. This is the right moral http://www.veraverba.com DGC Magazine May 2011 Issue 42 § 5 borrowing & lending online with the W ebmoney debt service WebMoney has created effortless P2P lending. http://debt.wmtransfer.com/ need a loan? Global leader WebMoney Transfer offers a robust system of online credit payments. Known as WebMoney “Credit Transactions” these payments may be used by any WM- customer to buy goods and services or to provide credit financing for other users. The terms of a loans, including the credit amount and period, are automatically fixed in the WebMoney history log for both creditor and debtor. Additionally, each transaction is monitored for a timely repayment. Set the amount and terms then find a lender. ($500 max.) See the image below. 6 § DGC Magazine May 2011 Issue 42 http://www.sector123.com/ DGC Magazine May 2011 Issue 42 § 7 From the WebMoney site, this graphic is a nice slid- provides the software platform for the P2P loan and ing scale tool that helps lenders find borrowers. If you other various type of credit transactions. need a loan, you set the terms and see what funds are available from each individual user. If you have WeBMOney CReDIT seRvICes OFFeR money to lend and want to earn interest, you set the MAny BeneFITs. terms and wait for a borrower. Of course, there is no FDIC in Russia and it should be clear that these loans Expanding customer base are not guaranteed by any central authority.These are Offering customer financing allows e-commerce person 2 person transactions. businesses to significantly expand their customer base. Providing credit to customers also attracts In- Anyone granting a loan may also want to set an ac- ternet users that may not have a credit card or have ceptible level of identification for that borrower. not yet had the opportunity to shop online. Issuing Screening potential borrowers starts at the standard credit is the perfect financial vehicle to attract new Alias Passport level and progresses on up to the users online shoppers. providing the most disclosure -- called the Merchant Passport. Transitioning from “free” to “paid” services Customer financing can become a key transition in- Because these loans can encourage and stimulate strument for an online business that started out as a business for online retail companies, this type of “in free service but is now facing the necessity of becom- house financing” structured through WebMoney’s ing a profitable enterprise. credit services has become very popular. By offer- ing customers the ability to “buy now, pay later”, the Establishing new markets lending e-business expands its market to include all Credit helps to overcome price objections from po- interested customers regardless of their current cash tential customers. Offering that new customer a line resources. of credit generates a wider appeal and attracts new customers because the service becomes affordable to One of the most attractive reasons for making a loan a much larger consumer base. Credit can bridge the is the ability to help finance your own business cus- gap for a new product and speed up that process of tomers. Many customers want to do business at dif- building a loyal customer base. ferent times during the month but may not have the funds available. This WebMoney credit service per- Overcoming the distrust barrier mits uninterupted business through any customer’s Manypotentialcustomerspassthroughanonlinestore fund shortages. Credit payments may also help a or catalog only browsing without making a purchase. company to restock a business with additional mer- The first time buying from an online store, new cus- chandise while waiting on the clearance of other in- tomers are often unsure is their goods will even ar- coming payments such as credit cards. The ingenious rive. Credit lending helps to overcome this insecurity. WebMoney system automatically keeps track of fi- Upon receiving the ordered goods, that new customer nanced amounts, financing periods, payment history, is satisfied with that first experience, happy to re-pay and repayment of credit. the credit and generally becomes a return customer. The issuing of credit can be critical for making that Theabilityto offer this in-house credit is an exclusive first sale. By financing its own customers, an online opportunity available only to users of the WebMoney business builds a level of trust with each customer. system.This directP2Pconnectionbetween“known” The extension of credit underscores the business’s WebMoney account holders greatly simplifies the own financial stability and trustworthiness. The Web- procedure of establishing trust between a business Money credit system is used by the most reputable and its customers. and stable businesses online businesses. Please note that WebMoney does not directly partici- WebMoney’s debt service is an online tools for man- pate in the financing. The WebMoney system only aging debt relationships between members.All loans 8 § DGC Magazine May 2011 Issue 42 are denominated in WMZ which is the U.S. Dollar Credit repayment unit. Before lending funds to another user, that ac- If the loan is a good one, credit repayment should be the final part of any WebMoney credit transaction. count holder must first set a trust limit for the poten- tial borrower. Here are some details of the trust limit Loans can be repaid in part, in full, ahead of sched- which represents an offer for concluding an “Agree- ule or even at the very end of the Loan Period. All ment for the Loan of Title Units” on the these condi- debt paid back to the originating loan purse must only tions: come from the borrower’s loan purse...no third party transactions are possible. If there is not enough mon- * maximum loan amount; ey in the original purse, funds will be taken from the * maximum disbursement period; user’s other purses. * the manner of credit repayment; * daily rate of interest for funds usage; Whentheborrowerhascashreservesagain,therepay- ment of that loan is a very simple process. The bor- * purse number from which funds will be granted. rower opens up the transaction history of the WMC The addition or alteration of any of the these trust purse and selects one of the existing loans. Clicking limit terms requires a mandatory confirmation on the “Repay credit” inside this purse begins the repay- part of the borrower that he or she agrees to the terms ment process. The specified amount of WMZ is then transferred from debtor to creditor, and the amount of of repayment. that exchange is automatically adjusted in WMD and After a first loan transaction, an open trust limit re- WMC.Theactualfundsaretransferreddollars(WMZ mains in effect indefinitely for these users. The value purse) and the WMD & WMC purses keep track of of the TL is directly proportional to the number of the payments and receipts. The C & D purses provide the bookeeping element of a credit transaction. correspondents who have granted a trust limit, the amount of funds trusted to him/her, and maximum disbursement period. The trust limit value can serve If you fail to repay your debt within the specified loan as a sort of credit rating and perhaps could be used to terms under the credit transaction, WM Keeper soft- guage a level of the trustworthiness for that user. ware will render your account frozen and you loose the ability to send or receive any funds. If you default WMC is the WebMoney Transfer title unit that is a on a loan, the only possible transactions after a default UsD/WMZ equivalent for credit transactions. This is in this frozen account is repayment. Once that loan is the C purse in the Keeper software. repaid, the account will then become active again. Credit can only be considered repaid using the C and A WMC purse is used to keep a record of received credits and for this reason, a user may only have one D purses. If a user makes a casual loan from theWMZ WMC purse and never delete it. It stands as a record purse and does not use theWMC andWMD resources for that user’s credit history. WMC title units are in the Keeper software the system does not consider technically promissory notes (obligations to transfer it a loan nor a repayment. All loans must be regis- tered through WMC/WMD purses. All trust transac- a respective number of WMZ title units by a matu- rity date) to creditors of the WMC purse owner. The tions are registered at the Paymer Service, Paymer e- number of units in theWMC purse corresponds to the checks having legal force and can be used/presented number of WMZ units that must be transferred to pay at court. off that loan. The C purse transaction history stores See tool: records of promissory notes issued to creditors. http://debt.wmtransfer.com/ChooseLoanParam1.aspx WMD is another title unit of the WebMoney Trans- fer system that is UsD/WMZ equivalent for credit For more information also see Debt Mart: transactions. The D purse is used to keep a record of http://wiki.wmtransfer.com/wiki/show/Debt+Mart received credits and like the WMC purse, a user can only have one and may never delete it. DGC Magazine May 2011 Issue 42 § 9 10 § DGC Magazine May 2011 Issue 42 GATA urges Paul to probe Fed’s gold swaps; he tells Image by Joe Rice CNBC he will May 25, 2011 address these issues at hearingsstates out of its fantastically of his subcommittee in June expensive foreign military Dear Friend of GATA& Gold: on legislation to audit the U.s.adventures, and allowing people gold reserve, and he elaborated to keep more of the fruit of their yesterday GATA Chairman Bill this afternoon in an 11-minute labor. Murphy and your secretary/ interview with CnBC. Paul told treasurer met in Washington CnBC: GATA will be providing infor- with U.s. Rep. Ron Paul, R- mation to Paul's office for pos- "I'd sort of like to see how much Texas, chairman of the House gold is actually there and wheth-ible use in interrogation of the subcomittee on Domestic Mon- Fed. etary Policy and Technology, erwe'vemadeanyagreementsto and two of his staff members. loan out our gold or sell the goyou can watch CnBC's We reviewed GATA's work and because there's a lot of questiointerview with Paul at its video the information produced by our about that. As a matter of fact,archive here: recent successful freedom-of- I'm going to have hearings on information lawsuit against the having a true audit of the gold,http://video.cnbc.com/ Federal Reserve and urged him and they're very, very resistantgallery/?video=3000024141 to press the Fed for accountabil-hat. But if the gold is all there ity, particularly in regard to itsd there are no attachments to CHRIs POWeLL, secretary/ manipulation of the gold mar- the gold, what's the big deal? Treasurer ket, its involvement with the Why shouldn't the people know GoldAnti-TrustAction U.S. gold reserve, and its secrethat it's there?" Committee Inc. gold swap arrangements, the latter admitted to GATA by Fed Paul added in the CnBC Image by Joe Rice Governor Kevin M. Warsh as interview that his broader http://www.flickr.com/photos/longest_q_ we began our litigation in 2009:objectives include getting the skeleton/ http://www.gata.org/node/8192 Fed out of central economic http://www.longestqskeleton.com/ Paul told us that he planned to planning, getting the United DGC Magazine May 2011 Issue 42 § 11 Anybody Seen Our Gold? The gold reserves of the United States have not been fully and independently audited for half a century. Now there is proof that those gold reserves and those of other Western nations are being used for The objective of this manipulation is to conceal the mismanagement of the U.S. dollar so that it might retain its function as the world’s reserve currency. But to suppress the price of gold is to disable the barometer of the international financial system so that all markets may be more easily manipulated. This manipulation has been a primary cause of the catastrophic excesses in the markets that now disastWe want to expose it and stop it. market manipulation by government is leading the world to Who are we? exempt civil rights and educational organization formed by people who re▯cognize the necessity of free markets in the monetary metals. For information ab▯out GATA, visit http://www.GATA.org 7 Villa Louisa Road, Manchester, Connecticut 06043-7541 USA CPowell@GATA.org GATA welcomes financial contributions, which are federally tax-exempt under Section 501-c-3 of the U.S. Internal Revenue Code. GATA is investment advice or an offer to buy or sell securities.be considered 12 § DGC Magazine May 2011 Issue 42 F o ri l l e g a l w l y i t h h o l d i n g g o l d i n Fo r m a t i o n F e dp a y s gata The Federal Reserve System this week paid GATA$2,870 in attorney’s fees and costs for illegally withholding a gold-related document GATA sought in its federal freedom-of-information request and lawsuit against the Fed in U.S. District Court for the District of Columbia. While the judge in the case, Ellen Segal Huvelle, allowed the Fed to withhold most of the gold-related documents GATAsought (http://www.gata.org/node/9560), the document she ordered disclosed, the minutes of a secret meeting of the G-10 Gold and Foreign Exchange Committee in April 1997, showed Western http://www.gata.org/node/9623 coordinate their gold market policies: GATA’s freedom-of-information request also elicited an admission from a member of the Fed’s Board of Governors, Kevin M. Warsh, that the Fed has gold swap arrangements with foreign banks and insists on keeping those arrangements secret: http://www.gata.org/files/GATAFedResponse-09-17-2009.pdf to keep secret, it now has been established on the official record that the Fed and likely the U.S. Treasury Department too are heavily involved in surreptitious action to suppress the gold price. Thanks to GATA, financial journalists now have plenty of documentation to pursue the story of gold price suppression: http://www.gata.org/taxonomy/term/21 All they need now is the courage to pursue it. GATA continues to approach many news organizations to urge them to pursue this story.Aletter from the Fed’s associate general counsel, Katherine H. Wheatley, to GATA’s lawyers, William J. Olson and John S. Miles of William J. Olson, P.C., of Vienna, Virginia here: http://www.gata.org/files/FedLetterLegalCosts.jpgr the attorneys’ fees and costs, has been posted A copy of the Fed’s check payable to GATA has been posted here: http://www.gata.org/files/FedCheckLegalCosts.jpg Of course the attorneys’ fees and costs paid to GATA by the Fed are just a small fraction of the total costs incurred by GATA in the case. To cover those costs, to explore more legal action against the Fed and other which are federally tax-deductible in the United States: http://www.gata.org/node/16 financial contributions, DGC Magazine May 2011 Issue 42 § 13 http://www.swapgold.com https://www.swapgold.com 14 § DGC Magazine January Issuee 42 E-GOLD goldMoney Passes VALUEACCESS PLAN $2 billion usd GOVERNMENT FORFEITURE v alue in Customer ACTION Holdings ongratulations to Mr. James Turk and thFOR IMMeDIATe ReLeAse C at GoldMoney.com. June 03, 2011 From the GoldMoney.com web site we can read: [Melbourne, Florida, Us] – e-gold Ltd (“eGL”) is Safeguarding over US$1.9 billion of pleased to announce an important step taken today precious metals & currencies owned by in the process it initiated to provide e-metal account 18,823 customers as of 31 May 2011. holders with access to the value in their accounts. However, in a June article for PyMnTs.com, partriginally contacted the government in 2009 of their Innovator series Briefing Room, Jamesoffered to assist it in recovering proceeds from TurktellsreadersthatGoldMoneyisnowmanagingcriminal activity believed to be engaged in by certain more than $2 Billion in customer holdings. In thatrty account holders while at the same time article, Mr. Turk states, ensuring the return of value to qualified account holders. Thisdialogueculminatedinthedevelopment of a value Access Plan (“vAP”) acceptable to eGL My crowning achievement is... Founding and the government. GoldMoney, which is growing rapidly and now safeguards over $2 billion of assets ownedPursuant to the terms of the vAP, the government 18,300 customers located in 87 countries. filedpaperstodaytoinitiatetheforfeitureofthevalue of all e-metal accounts, an important first step in the Read that great article and profile here: process of returning value to the e-metal account http://www.pymnts.com/Will-GoldMoney-s- holders who satisfy certain specified requirements. Business-Model-Have-the-Midas-Touch/ ThevAPprovides a process to facilitate the forfeiture of proceeds of criminal activity in which certain ### third-party account holders are alleged to have been engaged. The vAPalso sets forth a process to enable the return of value to e-metal account holders not alleged to have been involved in any illicit activity Illinois enacts Online Tax if they comply with eGL’s Customer Identification Program (“CIP”) requirements. The filing of today’s Law civil action marks an essential step in winding down Illinois Governor Pat Quinn signed the Main streetrent e-metal system. Fairness Act into law, requiring all online retailers with a business presence in Illinois to collect and re-ils of the vAP process will be posted on mit state sales tax for every online purchase made inbsite as they are implemented. the state. http://blog.e-gold.com/ http://www.ilga.gov/legislation/publicacts/fulltext. asp?name=096-1544 DGC Magazine May 2011 Issue 42 § 15 FORFEITURE COMPLAINT FILEDAGAINSTACCOUNTS MAINTAINED BY E-GOLD, LTD, TRACEABLE TO CRIMINAL OFFENSES FOR IMMeDIATe ReLeAse June 3, 2011 Baltimore, Maryland - A civil forfeiture complaint was filed today for the forfeiture of the value of all e-metal accounts recorded and maintained by e-gold, Ltd (eGL ), a company that was engaged in the business of exchanging traditional forms of currency for precious metals held in electronic form (“e-metals” or “e-gold”) and settling payer initiated transfers of e-metals from one customer account to another. The forfeiture was announced by United states Attorney for the District of Maryland Rod J. Rosenstein and specialAgent in Charge David Beach of the United states secret service – Washington Field Office. According to the affidavit filed in support of the forfeiture complaint, in 2008, eGL pled guilty in the District of Columbia to operating an illegal money transmitting business. As part of its plea agreement, the company agreed that the value of all of the e-metal accounts remaining on its books were subject to forfeiture and agreed to identify any customer e-metal accounts that contained funds traceable to criminal activity. The company has fully cooperated and has identified a long list of e-metal accounts containing funds traceable to criminal offenses including child pornography, credit card fraud, identity theft, investment fraud, and the sale of stolen or non-existent goods on the internet. Over $19 million has been previously seized as a result of the criminal investigation.This complaint seeks the remaining funds located in 609 accounts, estimated to be worth approximately $8.6 million. According to the affidavit, in 1996, eGL began offering e-gold as a digital currency, a medium of exchange offered over the Internet that is purportedly backed by precious metals and offers users a means of conducting the transfer of funds on-line. Digital currencies are generally marketed as offering global acceptance without the need for conversion between national currencies, and are valued at fluctuating rates tied to the price of a particular precious metal, especially gold. Digital currency is used for on-line commerce or for funds transfers between individuals for private purposes. In general, an eGL customer opened an e-gold account, and then could use the Internet to transfer the value in his or her account to any other eGL customer anonymously and instantaneously anywhere in the world. The recipient could then redeem the e-gold for any national currency. Because of the ease with which customers could purchase and transfer e-gold anonymously, outside of the confines of the traditional banking system, trading in e-gold became popular among persons looking for a way of laundering criminal proceeds and/or transferring criminal proceeds to third parties. In particular, e-gold was widely accepted as a payment mechanism for transactions involving credit card and identification fraud, high yield investment programs and other investment scams, and child exploitation. e-gold was not widely accepted by large or mainstream vendors. United statesAttorney Rod J. Rosenstein praised the U.s. secret serviceWashington and Orlando Field Offices and the sCIRs-ss Task Force for their work in the investigation. Mr. Rosenstein thanked Assistant United statesAttorney stefan Cassella, who is handling the civil forfeiture for the government. FOR FURTHeR InFORMATIOn COnTACT AUsAvICKIe e. LeDUC or MARCIAMURPHy at 410-209-4885 http://www.usdoj.gov/usao/md 16 § DGC Magazine May 2011 Issue 42 http://www.wmtransfer.com http://www.webmoney.ru DDGC MaagazineMpri2011 Isuee41 § 177 Cypherpunk’d Radio Program AgoristRadio http://agoristradio.com/ Your host Hiro White explores the second realm of digital cash and more. Daily broadcasts from 11am - 12pm and podcasts are always available. Here is an awesome new radio talk program detailing some of today’s best alternative payment systems. This information and insight is not available anywhere ▯else on the Internet. Drop by and you can hear to original software developers discussing the ▯idea’s behind their creations. Cypherpunkd Episode 028: “Truledger:AnAnonymous Digitally Signed General Ledger and Trading System” – Intro and Walkthrough – Bill St. Clair Bill st. Claire of the great http://billstclair.com/blog/ and author of the TruledgerAnonymous Digitally signed General Ledger and Trading system joins us for an Intro to the system and a walkthrough where we cover many aspect of the system. We discuss the client software, the servers. Digital signatures, Coupons, destruction of account history. Lisp, multiplatform binaries, the future for iphone and android. How to run a Client, a Multi-user client and more. very informative and interesting. http://agoristradio.com/?p=350 Cypherpunkd Episode 038: “Voucher-Safe P2PDigital Cash – Problems it Solves, Problems it does Not” – Justin of Voucher-Safe Justin from voucher-safe is back to discuss some Problems that voucher-safe is out to solve, and some things that it has no interest in solving, namely the “better money” problem. Listen in to hear what Justin has to say about this.Also discussed are some early history of pre-internet days when the feds cracked down on an early barter network that exchanged warehouse receipts… Interesting stories… http://agoristradio.com/?p=433 Cypherpunkd Episode 025: “Intro to Community Currencies: Mutal Credit, LETS, Timebanks, Software, Solutions, Legal Issues and the Future” - Matthew Slater Community Currency engineer Mathew slater joins us to tell us about his Mutual Credit system. some history and how Mutual Credit differs from LeTs and Timebanks. His Drupal Module for Mutual Credit and the Community Forge project to provide a complete “Community-in-a-Box” system for users, messaging, forums, and an integrated community currency system. We cover some of the legal issues some of these systems are facing due to competition with traditional bankster/government monopolies. http://agoristradio.com/?p=338 Cypherpunkd Episode 015: “Bitcoin Mania Part 2” - The BitcoinAPI – mids Cypherpunk mids is back in black to show us how to fill up our piggy-banks using the BitcoinAPI. We discussed how to access theAPI using XMLRPC-JsOn and via the command line. What a best practice would be for programming a “shopping cart” or in/out exchange system to a hypothetical Poker Gambling website accepting Bitcoin. mids also gave some bitcoin factoids and rumors at the end of the show. http://agoristradio.com/?p=263 Cypherpunkd Episode 013: “Loom for Geeks Part 2 - The Loom GridAPI” - Patrick Chkoreff Patrick joins us again to give us the low down on the Loom GridAPI. We go over how one would use theAPI to create a shopping cart. To create a sweep system to clear out temporary locations used in the public facing cart. ssL/TLs connection checking with the backend. Test code in perl to see how theAPI works. How to do atomic transactions with many moves/api calls.Any programmer listening to this will have a very clear way to integrate loom into any payment gateway, shopping cart, market system, anything that would need to accept Loom payments Into, Out from, or Inside of the Loom system. http://agoristradio.com/?p=249 18 § DGC Magazine May 2011 Issue 42 DGC Magazine May 2011 Issue 42 § 19 http://www.goldmoney.com liberty dollar’s arrogance ends in feder al ‘guilty’ v erdict by rob gray on what I learned was the justification for the raid. A title like that requires a LOT I read and re-read the court docs and warrants to of explanation and background. gain as much perspective on why the government was cracking down on the Liberty Dollar. When I First, let me say that it does not please me tjoined the project as a Regional Currency Officer, I (or publish) this article. I’m not an “I told lobbied hard to see several components changed to so” kinda guy, and I do not derive pleasure fravoid continued interference from the government. seeing others struggle, fail, run into bad lucWhen it became clear that my suggestions fell on short of happiness in any capacity. In fact, Ideaf ears, I left. concerned that my opinion may make the appeal for Bernard von nothaus that much more difficuWhen I started the American Open Currency (not to mention a future trial). But as I moniStandard, 3 basic principles were established to wires and read the various opinion articles flavoid trouble: around the ‘net, I fear more for the fate of thehonest money movement and our mission than the pionee• create medallions that don’t look anything like that helped bring it all together. In fact, I thicoins produced by the government (past or time that Bernard starts to take some responsibilpresent) for his actions. • do not denominate the coins in DOLLARs, or use phrases or symbols used on legal tender I see daily stories about how the government is coins ($, “In God We Trust” or any variation planning to use the Liberty Dollar trial to crack down on competing currencies. Obviously, as the executive Director of theAmerican Open Currency standard, I took quite an interest in all of the events that transpired between the ’07 raid and now, and was veRy concerned about how the result would affect groups like us. Given the history between me and Bernard, I was surprised to see my name show up on the list of witnesses for the defense. second,kindlynotethatIhadthefortuneoflearning abouttheLibertyDollarbecauseofthe’07raid,and had a unique opportunity to implement from the very beginning solutions and modifications based 20 § DGC Magazine May 2011 Issue 42 Count on the fastest exchanger with good rates and the best customer sup▯port. Ibadan Head Office Lagos Main Office Suite 34, Damin Plaza, Chemist Bus-Stop, Ground Floor, Gbemisola House, (Block 2), Ring Road, Ibadan Plot 24B, Isheri Road, Omole, Oyo State, Nigeria Ikeja, Lagos, Nigeria International Callers: +234-803-348-1702 , +234-802-286-3054 http://www.rawgoldnigeria.com DGC Magazine May 2011 Issue 42 § 21 thereof) conspiracy. I do not believe at one point the • do not suggest, condone or tolerate the prosecution was able to prove their case on any of spending or circulation of the medallions the charges. I’ve been to court a few times, and anywhere other than our own private I’ve experienced myself that the jury has a strange MarketPlace, where business owners tendency of filling in the blanks themselves when it knowingly and willingly accept the barter comes to connecting the courtroom drama with the tokens as a private form of trade charges. For me, it usually goes like this: To date, theAmerican Open Currency standard, our “Ladies and gentlemen of the jury, the partners, affiliates and supporters enjoy the freedom prosecution charges me with violating section to carry on our trade with no issues. now, that’s xxx.yy of the Texas Transportation Code. If I certainly not to say that they won’t kick in my door, were the prosecutor, I would have actually read take my property and leave me wondering what I you what that section of the code says. On the didwrong. It’salsonottosaythattheywon’tdream other hand, the judge will not even allow me to up some statute or code in the future, branding our enter that section of code as evidence, probably version of honest money ‘illegal’ and dragging us due to the fact that if you read the code, word for through the mud in a similar fashion. I will never word, a reader would quickly reach a common underestimate the federal government’s ability to conclusion that section xxx.yy does not apply get things done when they’re on a mission. so, I’m under the present conditions.” not arrogant to the point of delusion. so even though the charge was made for counter- When Bernard’s guilty verdict was returned, I was feiting, fraud, aiding and abetting and conspiracy, I halfheart-brokenandhalfpissed-off. Bernardknew see little or no reference to when, where or how the that his trial meant a lot to me and the AOCs, and prosecution proved Bernard actually violated the yethefailedtocallonmeasawitness. Infact,ofhis “law”. There are a lot of components to a charge: originally scheduled list of nearly a hundred expert proving the defendant is the person in question, witnesses, only a handful ended up testifying; some proving that the defendant had a method and op- had schedule conflicts, while others, like myself, portunity to commit the crime, and that he/she did were not called upon to take the stand. Maybe so with willful intent. It’s a little more complicat- Bernard thought our history and my opinion of his ed than just “this is what we think the person did strategy would be more negative to his defense than wrong, do you agree?” I don’t believe the prosecu- positive, or maybe he thought the case was a sure tion proved their case. win for him and it wasn’t necessary to drag it out any longer. either way, I was disappointed to not setting aside the issues of fraud, aiding and abetting have a chance to affect the outcome. and conspiracy, the majority of the case focused on counterfeiting as regarded by Us Code Title 18 Within a day, my email and voicemail inboxes were section 486: flooded with requests to learn of my response to the verdict. AndnowthatI’vehadampletimetocollect “Whoever, except as authorized by law, makes my thoughts and develop an opinion, I’ve decided it or utters or passes, or attempts to utter or pass, important to share my insight to [hopefully] get the any coins of gold or silver or other metal, or discussion back on track and maintain confidence alloys of metals, intended for use as current in alternative and complementary currencies. And money, whether in the resemblance of coins of with that, here we go… the United States or of foreign countries, or of original design, shall be fined under this title Liberty Dollar Trial (in a nutshell)…  or imprisoned not more than five years, or both.” – USMint.gov Website Bernard von nothaus was charged with counterfeiting, fraud, aiding and abetting and Most people think of counterfeiting as the act of 22 § DGC Magazine May 2011 Issue 42 http://www.centregold.ca DGC Magazine May 2011 Issue 42 § 23 making “fake” money. However, consider for a Bernard’s actions in those 2 scenes were done in moment that it’s perfectly legal to create an exact a spirit of honesty, education or even maybe just replica of past or current coinage, so long as the a simple miscommunication. From my evaluation, word “COPy” or “RePLICA” is clearly marked on it sure looked as if a Liberty Dollar was passed to theduplicate. Manymintsentirebusinessoperations an unsuspecting business manager that accepted it revolve around the process of creating copies of thinking it was something else. Us currency. While I’m certainly not suggesting it is ok to fire up your color ink-jet printer and now, take in to consideration the face value of a make copies of twenty-dollar bills with the word silver Liberty Dollar at the time of video’s release: “COPy” on it, the point is that 486/18 includes a $10. It’s safe to assume that the actual footage was requirement of intending or using the replication as filmed some time before the Learning Channel clip “current money”. aired (January 8th, 2004). During the entire year of 2003, the price of silver neveR passed $6 per Much of the trial focused evenly on two things: ounce. I think it’s also safe to say that the clip was filmed some time in 2003, though I can’t know for • the design of the Liberty Dollar, which was sure. now ask yourself this question: if you were accused of sharing many common elements handedasilverLibertyDollar,accidentallymistook with existing “current money” it for “current money”, took it to the bank to deposit • the circulation of the Liberty Dollar, which was only to discover that it wasn’t “real money”, and accused of being intended to circulate alongside then subsequently learned that it is worth worth less (and in competition of) “current money” than 60% of what you expected…how would you feel? Would you be grateful that you had physical Although 486/18 doesn’t actually require the silver in your hands, or would you be bummed that Liberty Dollar medallions to be similar to that of you can’t take it to the bank and use it to pay for Us coins to be in violation, it sounds like it must be your raw materials? used intentionally and specifically used as current money. And although Us Code does not define Unfortunately, it doesn’t stop there. Long after “currentmoney”,thegovernmentmakesitclearthat Bernard and I parted ways in early 2008 because “current money”, “legal tender”, and “coin” are all of our philosophical and structural differences, and common terms for government-issued “money”. long after Bernard had an opportunity to consider my perspective on building a barter marketplace Is the Liberty Dollar design confusing? I think so. made exclusively of merchants that knowingly and Is it possible that it can be mistaken for “current willfullyaccepttheprivatevoluntarybartercurrency, money”? Probably. Can something be done to Bernard gave an interview with Gary Franchi on the prevent this? yes, and that’s part of what theAOCs RealityReport. Take a look at the clip here: requires for participation. see video: hhttp://blip.tv/realityreport/rr-25- special-edition-bernard-von-nothaus-in-studio- But the problem is not that, and I think this is liberty-dollar-2789860 why the case turned out as it did. Take a look at the following video of Bernard on the Learning Pay close attention around 25:00 in the interview Channel, with a perfect opportunity to show Liberty (especially 25:50). Bragging that more Liberty Dollar to the world. DollarsarespentatWalMartthananyotherbusiness see video: http://youtu.be/eyGDvUb8MjA is not a smart move. It’s highly unlikely that the employee accepting payment at the cash register is Pay close attention to the clip from 5:23 to 6:04. set aware that the Liberty Dollar is a private currency aside for a moment your desires of an accountable that it is not legal tender and can not be deposited government,balancedbudget,respectforindividual at the bank. With all this spending at WalMart, is it rights and everything else you can’t stand about possible that someone has lost his or her job from big (or any) government. Then, ask yourself if this oversight? That doesn’t seem to encompass the 24 § DGC Magazine May 2011 Issue 42 spirit of our mission at all. I will always be grateful of Bernard von notHaus’ bravery in creating the Liberty Dollar and drawing Barter is not illegal. Community Currencies are not so much attention to the issue of the nation’s money illegal. Minting gold, silver or copper medallions is supply.Withouthim,there’sagoodchancetheAOCs not illegal. But fraud is fraud.you can dress it up in wouldn’t exist and would have not accomplished so as much patriotic cloaking and justification as you much in so little time. like, but the net result is still the same: deception is immoral, and the jurors in this trial decided that a “You can always tell who the pioneers are: crime was committed. they’re the ones with the arrows sticking out of their backs.” Bartering, community currencies and minting medallionswerenotontrialinthiscase.noprecedent However, I believe it’s critical that Bernard take was set regarding these concepts. It remains the responsibility for his actions, and not paint this sameasitdidbeforethetrial,andbeforetheLiberty as another example of big government crushing Dollar was created: perfectly legal and lawful in an anything that looks like competition. We have environmentwherebothpartiesparticipatewillingly enough examples of that already and don’t need to and knowingly. The outcome of the trial does not manufacture more. But, it is critical for us to hold change the course of action for the American Open each other accountable to the same standards that Currencystandard.Infact,itactuallymakesmefeel we expect our government to follow. There are a better about what we’re doing and how we’re doing few bad apples in the freedom movement, and it it. After studying the trial notes, it’s apparent to me is not appropriate to ignore immoral or unethical that the government can not and will not attempt a behaviorsimplytoavoiddrawingnegativeattention case against the AOCs, at least not using the same to our causes. arguments from the Liberty Dollar trial. http://www.metropipe.net DGC Magazine May 2011 Issue 42 § 25 As I wrap up this article and evaluate if it reachedse. I will work diligently its goal, I contemplate whether it’s best to stay quiethey’ve done for the to help frame what’s really at stake in the case of thepic, and if you’d likeI Liberty Dollar. In the freedom movement, not oneve just let me know where of us is perfect. Quite often we make mistakes, ande. every once in a while we infringe on the rights of orlyingisavalidmethodtobringpeopletothetruth.ceptionmerican Open Currency Was the Liberty Dollar created to deceive people into honest money? I don’t think so. I think that.com/liberty-dollars- Bernard believes he is doing good for his country,l-guilty-verdict/ merchants’handsisvaluableforallparties.Lookingin at the “price” of silver now, it’s quite certain that over time he is, in fact, probably right. to lead our country out of darkness. I’m all forys creating fun and unique methods to help introduce our concepts and mission, lrkee c o m m e n d s Realm project discussed in previous posts. People and choosing what’s right when it’s introducedering through a positive and honest medium. Anything o r else is usually shallow, short-lived and followed closely by resentment and dJsa m e. fsa y e d In the meantime, I wish the best for Bernard and the in m u r d e r f o r h i r e c a s e A jury has recommended the death penalty for e-bullion’s former operator James Fayed in the murder of his wife Pamela. Fayed was convicted two weeks ago of murder and conspiracy to commit murder. Prosecutors are now seeking the death penalty in the case. 26 § DGC Magazine May 2011 Issue 42 GoldMoney iPhone APPlicAtion http://www.concentricsky.com/products/ip- hone/goldmoney/ Buy or Sell GoldMoney From Anywhere DGC Magazine May 2011 Issue 42 § 27 http://www.anglofareast.com 28 § DGC Magazine May 2011 Issue 42 “Moneychanger” -- new open Transactions gui! Hi all, It’s your buddy, Fellow Traveler. I do have some big news for you guys! GRAPHICALUSER INTERFACE Being too impatient to wait around for anyone else to write an Open Transactions client GUI, **I went ahead myself and PAID someone to do it.** I call the new GUI: “M O n e y C H A n G e R”...and I hope you like it! software and sCReensHOTs are here, including jar file and Java source code: https://github.com/FellowTraveler/Moneychanger/wiki The main purpose of Moneychanger is to provide a working GUI implementation against the OTAPI, to serve as a model for the other developers out there who are building actual OT software (yes they are out there now), and who need to see how theAPI is actually used in a working model. (Actual end-user GUIs may have entirely different interfaces than Moneychanger, depending on their purpose.) GNU LICENSE RELAXED To celebrate the release of Moneychanger, I’ve decided to LOOsenTHe GnU LICense a little bit…The OT- Lib and OT-API (what most developers will actually use) are now under the less-restrictive LAGPLv3 license. The practical result of this is that if you are only using the OTAPI in your own software, then you don’t have to release your OWn source code as open source -- only any improvements made to OT itself. (This is just like the LGPL license. LAGPL is the AGPL, but with LGPL-style relaxed permissions.) The purpose of this is to make the OT-API available to all the developers who otherwise wouldn’t have been able to use it, based on the prior requirement to open source their own code, which has now been relaxed. POTENTIAL I recently did a radio interview about Open-Transactions onAgoristRadio, you can listen to it here, in two parts: http://agoristradio.com/?p=234 http://agoristradio.com/?p=246 I think this interview does well in describing the system and what it can do--and its potential. speaking of po- tential, I think there’s a lot of milage to be gained from integration with BITCOIn, which is what I plan to do next. Part 2 of the interview really focuses more on Bitcoin and OT integration. Think about it: ==> Bitcoin gives OT: A universal “glue” between servers, a network of existing exchangers, and a pub- licly-auditable reserve currency that cannot be confiscated or shut down. ==> OT gives Bitcoin: Untraceable cash, instant finality of settlement, and convertibility in-and-out of other currencies, on OT Markets. Open Transactions now has a new class, OTDB::storage, which will soon be used to refactor ALL storage in OT. storage does a couple of nifty things... --- If you subclass OTDB::storage and implement 4 methods, you can quickly and easily have Any sTORAGe you want (database, filesystem, etc.) --- I made it so you can even do that through theAPI. so for example you could create your own Java storage class and then tell OT to use for all of its local storage. --- you can now create multiple storage contexts, each with its own folder (or “location” if not on the filesystem). This brings us much closer to having multiple users within the same instance of theAPI. (For those webmasters out there building for OT...) --- The new storage class also supports swappable PACKeRs. so for example, OT already supports MsgPack AnD the Google Protobuf libraries. Which one would you like to pack with? It’s just a switch you set when you create the storage context. --- This means it is just as easy to add a new packer, as it is to add a new storage device. If we wanted to start packing with JsOn, or if we wanted to start encrypting everything before it is packed, etc, those things are now within the realm of possibility. to be continued on page 46. DGC Magazine May 2011 Issue 42 § 29 30 § DGC Magazine May 2011 Issue 42 NOTE TO SELF: RBZ urges Even the Zimbabwe gold-backed Gov knows the US Dollar is crashing Zim dollar :-0 15/05/2011.newzimbabwe.com/ he central bank says the country must T consider adopting a gold-backed “We need to re-think our gold-mining strategy, our gold-liberalisatioand Zimbabwean dollar warning that the US marketing strategies as a country. The world greenback’s days as the world’s reserve needs to and will most certainly move to a currency are numbered. gold standard and Zimbabwe must lead the way.” Government ditched the Zimbabwe dollar in 2oo9 after it had been rendered worthlesGono said the inflationary effects of United record inflation levels and adopted multStates’ deficit financing of its budget was foreign currencies with the US dollar, tlikely to impact other countries to leading South African Rand and the Botswana beinto a resistance of the green back as a base the most widely used. currency. Finance minister Tendai Biti says the co“The events of the 2oo8 Global Financial needs at least six months import cover aCrisisdemandanewapproachtoselfreliance sustainabletrack-recordofeconomicgrowth,and a stable mineral-backed currency and to inflation stability and above 6o percentme, Gold has proven over the years that it is capacity utilisation in industry before a stable and most desired precious metal,” dollar can be brought back into circulatGono said. However central bank chief, Dr Gideon Gono said the country should consider adoptin“Zimbabwe is sitting on trillions worth gold-backed currency. of gold-reserves and it is time we start thinking outside the box, for our survival and “There is a need for us to begin thinking seriously and urgently about introducing aosperity.” http://www.newzimbabwe.com/business-5127- Gold-backed Zimbabwe currency which willRBZ+urges+gold-backed+Zim+dollar/business.aspx notonlystablebutinternationallyacceptable,” he said in an interview with state media. DGC Magazine May 2011 Issue 42 § 31 China: Gold Demand Jumps May 2011 Mainland China’s private demand to Buy Gold just keeps trending higher... “IN THE competition for growing Chinese disposable incomes, gold is very quickly losing market share,” said a London-based analyst in 2004. Hardly has gold or China looked back since, saysAdrianAsh at Bullionvault... China is now 10 years into opening up its gold market – half as long as India. But since nabbing the no.2 spot in terms of private demand in 2005, it’s only grown hungrier for gold bullion, despite becoming the world’s no.1 mining-producer nation, too. How much hungrier? Courtesy of the data-fest buried in today’s new Gold Demand Trends from our friends at the World Gold Council... • Just like in 6 of the previous 7 years, Chinese new year 2011 marked a new quarterly record for private gold demand in mainland China; 32 § DGC Magazine May 2011 Issue 42 • In each of the last 3 years, the third if not third-and-then-fourth quarters went onto set new all-time highs again; • On the new stats, the Chinese new year saw private mainland demand to Buy Gold equal 0.71% of GDP in the first quarter. That still lags India’s huge 2.65% allocation for 2010 as a whole, but compares with 0.47% in Q1 2010; • In grams per capita, both Indian and mainland Chinese Q1 demand were equal to fully one-half of 2009 demand; • As our chart shows, an increasing volume of China’s increasing savings is being devoted to gold. yes, the Q1 figure over-states it, because the Chinese new year marks very heavy demand. But it’s plain that substitution for other, more “sophisticated” savings mechanisms hasn’t just failed to grow; it’s gone into reverse. That’s the first rush from Bullionvault’s reading anyway. Whether you’re long, short or indifferent, it’s worth reading the WGC’s new report for yourself. Because anyone looking to defend their purchasing power long- term cannot ignore the way emergingAsia is storing an ever bigger chunk of its fast-growing savings. source: http://goldnews.bullionvault.com/china_gold_051920114 ADRIANASH, 19 MAy ‘11 AdrianAshrunstheresearchdeskatBullionvault,theworld’sno.1goldownershipandtradingservice.For
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