Gridcoin, Proof of BOINC and the French Revolution

The french revolution was trigered by a financial crisis's, over spending by Frances royalty and all that fighting with the Brits. In the end it was a good thing and it reduced inequality, but it was a scary time. People where killed, people starved and the sanctity of the artisan, the way of life did come under fire. We owe a lot of our democratic development to France.

Going back further we had the Renaissance where the silk road and Marco Polo from Italy brought a heightened and combined culture to repressed feudal Europe over a long period of time. These social revolutions form the basis of whats good in the world.

This is all changing. With the internet and de-industrialisation in developed countries, i think that we are in the middle of a shift to something new. The question is "what is a revolution supposed to look like?"

For mellenials, Assassins Creed might come to mind. Jumping off balconies with a sabre in hand. Its all well and good to play but it's certainly not all glory when it's real. It's hard to tell whos on whos side and whose side is right, what the fighting is about and what the what the most important change is. What happened to peace and love anyway? Was the 60 and 70s a revolution? Its hard to know, but I think it's the feeling that counts. If your looking for the answer I'm pretty sure a Gridcoin guru will have a good one.

We have ddos attacks on banks, we have half a dozen new dark net silk roads in the place of the last one momentarily taken down, we have corrupt cia security officials. In the world in general we have terrorism in Paris and across the world, inequality and ongoing bailouts for banks now in the form of extended asset purchases in Europe. What once seemed quite good is all pretty messed up now and clearly deteriorating. One thing that makes sense, a shining light of goodness is the Gridcoin white list. A directory of projects approved by gridcoin users to contribute computer power to. 

In a world where money sometimes feel like its taken over an we want to fight that what can we do? “The pope says money is OK, capital is OK, but when money becomes a god, an idol, more important than man, that’s not OK - - whatever people in Wall Street think,” said Andrea Tornielli, author of “This Economy Kills,” on Francis’s thinking in a recent article. He may have a point. Some large corporations  now have power close to that of the catholic church. They have nit got the same moral compass that we are hoping for in our institutions. So often money drives companies to do socially destructive things. Somehow we need to try and make our economic system prioritise things that help the world as a whole and let us work together locally at the same time.

Gridcoin may be the answer your looking for. It uses a computer network system called BOINC. This is the largest network in the world, apart from bitcoin, but it uses computer power in a far more versatile way. Users can create useful projects requiring computer facilities and people can freely contribute to this. Projects range from cancer research to climate and earthquake monitoring, to asteroid tracking. Anyone with a computer and an internet conection can join. For doing this BOINC credit is recorded.

Traditionally BOINC credits were worth nothing more than kudos amongst scientists and computer nerds with computers catching fire in their basements, but now with Gridcoin they can be spent or converted to cash. There is a flash crypto wallet from which to save and send them, the wallet is actually sleeker than most bitcoin wallets! It's relatively easy to use even for mining, it's integrated into the wallet and can be profitable with no programming skills on a normal computer. In this way Gridcoin as can make money in itself a power for good.

For those in the know Gridcoin combines a variable proof of stake system with a proof of boinc system to manage wealth. This is how the crypto currency creates and distributes value in a fair way. It is revolutionary because it means that poeple who contribute the most good to the world as a whole end up being rewarded. Activities that may otherwise be unfunded or lost to the tragedy of commons can be upheld, like fixing global warming for example. What can be done is only limited to what we choose to put in the white list. The variable way that the POS and POB system works also helps to redistribute wealth more evenly among active members of the community.

Gridcoin can be the heart of some kind of science revolution. It things like this that can create a completely new type of world. Everyone who uses it can contribute. It's not science fiction it's the foundation for the temple of the new digital renaissance.

Container Tracking with Bitcoin

Having just moved into a new place in New Zealand which overlooks the harbour I came up with this plan for container tracking and custodianship.

Let me know if you like the idea or want to work on it?

How Public is our Public Ledger?

Research group "R3" recently put out a report scrutinising coloured coins or Bitcoin 2.0 developments. The detailed report expressed some quite esoteric ideas about the abilities of off-chain activities. It sounds like Flavien Charlton, of Coinprism and Colu fame, has these well under control. Complex concepts are never seem to be far from the crypto mind. I can't help but feel lie this might be a last gasp on behalf of block size debate?

Bitcoin 2.0 and sidechains or "Watermarking" are responsible in the main for cooling off the passionate XT or BIP 101 fires. That is, unless Gavin Andreson can turn it around and with that fine i highly doubt it. At the moment it is not even clear if he wants to. Digging further you discover that Mike Hearn (formerly XT) quite for a private contract. That contract being to become the leader of R3! Clearly these are some frantic moves and they are in last gasp territory. The bitcoin community is still not huge and when there's no love i guess some people just have to get paid.

With semi independent side chains to the main blockchain higher transaction volumes can easily be handled. These auxiliary apps have to check in with the bitcoin blockchain every so often but are not subject to the same decentralised lore as bitcoin itself. They are less resistant to manipulation, sometimes just due to the size of their user base, but also because many sidechains are created and maintained by centralised organisations.

Companies like NASDAQ, Bitfinex, BTCC and Kraken are using and developing these systems gain some degree of corporate control over their sidechains. This is a concern for some tinfoil hat bit coiners who have in the past been able to revel in bliss at the fact that bitcoin is fundamentally free from capitalist control. Blockstream have created a compromised here with "federated sidechains". Organisations can share control over a sidechain, in this way creating some decentralisation in a different way, using mutual benefit rather than proof of work. It is all still a compromise.

Can we have our cake and eat it with our funny hats on? Now that we are developing private blockchains tied to our public blockchain, is the face of bitcoin becoming privatised. How public is public enough?

Data size has a significant impact on how effective the public ledger can be. On the one hand we want information to be available for all and on the other average people have to be able to actually use this information in a practice way. People need to be able to get insight that is useful for them and big data can become a wash. If the blockchain is too large only corporations will be able to fully harness it, download and search times become an issue. Data can also become so global and disaggregated to be useful for local purposes.

We are talking stats here, not simply transactions. It is not yet known what kind of information may be useful on the ground in San Francisco coffee shops and for the unbanked. Micro-transactions may also drastically distort data on the global scale and impair the publics ability to participate. We already have companies like Elliptic and fiatleak.com to help us interpret bitcoin data and they are centralised in their own way. Moving forward data is obviously going to be important, but it is unclear weather we can split our data and still have the same purity. Could accessible data be just as important as fast cheap transactions.

So do we trust the bitcoin 2.0 companies and have aggregated data on the bitcoin blockchain that may or may not be more relevant and user friendly?  Can we use sidechains and federated companies for local statistics or do we band together and create guru's and super computers at our local crypto-dojo?  A combination would be ideal, but I haven't seen many club flyers.

HYPE #bitcoin #blockchain

There have been a few articles lately talking about how bitcoins hype might be diminishing. How could this be? I did some investigation and found that the opposite is true. Also somewhat unfortunately, ISIL is getting more attention than Jesus at the moment. What is bitcoins hype like? and how does that compare with the blockchain which we have been reading about so much lately? Some people have been saying that the sway of the blockchain, with its almost infinite uses, may be out weighing bitcoin in itself.  Worthy of investigation I found that for this purpose I think Google trends is a reasonable authority. #bitcoin on Facebook simply resulted in a mile long role of coinable visa card shares and comments and one ridiculous video. Lined up on this chart are the first few things that came to mind.



Notice that at its peak bitcoin had hit residual coca-cola level. Something that is a good achievement, but then Why anyone would want to google Coca-cola? You can see that ISIL has by far out paced any other grab for attention. Unfortunately reckless violence does that, Getting people to search positive things is a more honourable chore.

The list of cities where bitcoin is searched most frequently looks like the making of hypsteropolis.



Bitcoin now, has a residual level of interest about equal to that of an olive. This is up significantly on last year and the years before. The blockchain is sitting at about one tenth of that, but on a steady rise.



I also wanted to compare bitcoin interest with gold. silver and veganism to see if there were any correlations. No hype connections here.



In conclusion bitcoin hype is alive and kicking. Previous spikes have been pretty significant, nearly hitting a curiosity level equal to that of coca colas background noise. There is definitely no down trend, however there is still a long way to go, with vegans and olives more inquirious.  The hype cycle is clearly in its early stages, who knows where new surges will hit. These charts are a live feed.

#bitcoin #blockchain @googletrends

Bitcoin Booms and the Money Supply

Inflation and deflation are gathering an increasing part of our consciousness recently with the US Feds continual hype and delay of raising there interest rates from "near zero". Next month it is fabled that they may move it up after 7 years of at zero and fiat credit creation for longer still. It is interesting to consider what happens to the fiat (normal) money supply in the midst of a bitcoin boom?

When the bitcoin price goes up, people are buying it generally with fiat money, they are putting an increasing spend into bitcoin and in that sense the supply of fiat money is stretched (proportionally reduced) and there are deflationary forces on that fiat currency. In the first instance if most bitcoins are bought and then simply held by Americans then the USD will experience deflation. Ie: the value of the USD is forced up locally to some degree because there are not as many around to use.

This assumes that the exchanges or traders do not spend or exchange their fiat immediately. It also assumes that bitcoin are not spend as much at this time. Something that is fair in a way, considering the speed at which a boom can happen. Buyers and sellers are likely not to spend bitcoin, to hold reserves or reinvest funds in other traded things.

The current measure of inflation "the basket of goods" also does not include the bitcoin. This point however may not hold in the future. We know that bitcoin is quite different to other consumer investments. Many bitcoins are simply held and not speculated with. It also has a practical everyday use and that is spending. Bitcoins don't need to be exchanged for fiat in order to make purchases. In this way when the price goes up for holders, money or value is literally created out of thin air. The effective money supply in the bitcoin economy is increased. People selling things for bitcoin are likely to experience more sales in the period after the boom with this new money, which could lead to increased prices. In reality however the price in bitcoin of most items is pegged on the USD price and this updates in real time. So whilst prices in bitcoin experience inflationary pressure, they do not change relative to this, rather the inflationary pressure are transferred to the fiat currencies that the products are pegged or to the fiat items that are further up the supply chain. As a transaction enabler the effective fiat money supply is increased in this way.

Can these two things happen at once? It is difficult to comprehend the dynamics here but unlocking this certainly be important for the modern crypto economy or simply for making millions out of bitcoin trading. It seems we may initially we get a deflationary impact during the boom followed by inflationary once the bitcoin price has levelled out.

At the moment with a market capitalisation of $5 billion the bitcoin price has only a marginal impact on the global economy, if that. An increase in the value by a factor of 10 could potentially result in and increase in the money supply of $50 billion when people start spending their bitcoins. This is still not huge when compared with the $3.2 trillion M1 money supply in the USA. Considering booms like this have happened multiple times in the past, we may well see a global impact here in the future. In a world flush with crypto currency a complete rethink may be required. Increasing bitcoin value could boost global spending.

Crypto Scratchies Anyone?

Now we can run a lottery without a collection office. These scratches by Prypto are pretty cool, but what about the more youthful gambling type. I have fond memories of getting these for birthdays as a child. These days it feels a little irresponsible giving a kid petrol fiat scratches, but what about earth or lego coin versions? No need to cue up at the Lotto counter to have your ticket scanned. I think its a great idea. Instant gratification anyone?

http://cryptoscratchcards.com/

Essential Road Trip Gear

http://midwaycrypto.blogspot.com/2015/09/the-great-bitcoin-road-trip.html

Bitcoin and The Hunger Games

My sister, an LA stylist, writes off The Hunger Games as hollywood junk. She might be right, the last movie felt like a bit of filler and did have a distinct lack of face burn. Still I'm looking forward to the final, Mockingjay Part 2.

It is the social concept in the story which I think is inspired. I wonder what Suzanne Collins, author of the original books would think of bitcoin and the prospect of some kind of crypto hyper-community culture in the future. She might find it quite scary.

Mokingjay portrays a world 'Pan America' where districts are enslaved in a communistic way by 'The Capital', a large flamboyant but morally ambivalent city of the future. Though the people of The Capital are rich, money and transactions never seem to feature in their daily lives. Something I think most of us would appreciate.

Could these directors, fluffers and 'Game Makers' be collecting their credits via dogerain? Maybe, you never know what might happen looking at the news and the terrible events in Paris, there is some risk that the world could turn into a kind of Hunger Games like hell. There's got to be a way to make a better world than this. I'll be looking for ideas at the theatre. Hopefully it has a bit more fire than part one.

Digital Jeasus

Ten Comandments of the #DigitalJeasus to be reviewed and updated via democratic forum.

1. All preachers shall BOINC and read code

2. Respect the genisus block and rejoice in consensus

3. Be weary of centralisation

4. Hold faith in math (BEDMAS, SOHCAHTOA and Cryptographic splurg)

5. Let there be freedom and equality for all

6. Peace one Earth, Dual via Teken

7. Yoda speak we will

8. Relax, meditate and enjoy life and non-digital stuff especially

9. There is no one #DigitalJeasus

10. Everyone can be a dogeillionare

The Great Bitcoin Road Trip!

Today is the first day of my Great Bitcoin Road Trip. I've got a van, my girl friends agreed to sleep in it and we're on our way across europe for the next five weeks. Starting in Oxford ive got a few things planned, but alot more not. Maybe we'll end up in Nepal? Who knows what might happen, but I'm looking forward to spending some bits and spreading the word! This graphed up van makes it feel edgy. I'll be posting updates here.

...The van feels pretty out of place in old values Oxford. Unfortunately Wicked campers wouldnt accept bitcoin when i asked, somethjng that I think could be fixed with a little pear pressure. We did get takeaways and deliveries from almost every shop on Cowley Rd though using takeways.com, Milikas is especially good. We discovered the meaning of "spotting" in the uk and now we are off the the continent in search of warmer weather with our tails between our legs. SeeWeeYesYa next stop Fontainebleau forest.

...It turns out its pretty hard writing when you're on a bitcoin budget and living out of a van with only one power supply and no wifi.  I'm resorting to pen and paper from now on. Note to others make sure you have multiple charge points, ideally one of those solar chargers and a wifi dongle with a big charge block would be a bonus. Also moble internet contracts don't work in Germany, but you can get a new sim there for 10 euros. Fontainebleau was great, I love the square chestnut trees. I collected a box of chestnuts and the camp ground we stayed at, hardly had to move out of my tripod seat there were so many. Apparently the Brits eat them. You never know when you might go hungry in this situation.

...In Bordeaux, there are not many shops accepting bitcoin to be found though there is a funny internet cafe selling food. I find it's hard to communicate with someone about bitcoin when you can barely grasp a fraction of their language. Lots of cool graph and history. If the people can drop their home currencies and adopt the euro in such a short space of time then surely crypto-currency doesn't need to be to large of a step. It does seem like France could be a key area in adoption of crypto-currency. A a cultural hub and center of protest the public can really grasp complex social issues and it shows in their history. They really love to protest too. On the way through Paris (the best city in the world) the motor way was blocked by a motor cycle and scooter protest. Could this happen with bitcoin? Fashionable guys stand on the medians and smoke cigarettes as scooters pull wheelies.

Actual van in Barcelona

...We freedom camped at the beach on the French west coast last night. Now on to San Sebastian in "Espania". There is a really cool, but run down, theme park at the top of the hill here overlooking the bay and the city. Imagine the possibilities of a group funded Bitcoin theme park there, it might be a bargain.

Zaragoza, Barcelona, Nice, Monaco, Lake Garda to Verona we swam in the waters and guzzled the wine. We stayed in Lido in "Venicia" which I think is a good choice. Our friend hooked us up with some secure parking. He also provides a bed and breakfast service in genuine Italian style. I think bitcoin could be a very safe way for punters to accept digital payment on there boats. Then Austria to Lindau to "Koln" in "Deutchland" the leaves started falling off the trees. using our Airbitz wallets to locate vendors nearby. Saw some great churches and castles. What about bitcoin donations in Cathedrals? Comes in handy when patrons run out of change. I was totally impressed by my girlfriend who had no trouble sleeping in the van after it had been slept in for too many days in a row and finding innovative ways to make due without an ensuite.

Amsterdam is one of my favourite cities. I love the "let it be" attitude. We had a great night out on the town and stumbled upon there halloween parade, which unknowing of the date was especially freaky. i was to shy to ask the window girls if they would accept bitcoin. The next day we moved on to Brussels with its guided cafe square, and misty Luxemburge with its ancient viaduct. We finished our trip in beautiful Milly and Barbizon in the French countryside where a little hotel room at the quaint Budget Inn was thoroughly appreciated and the service was decidedly unbudget in Uk terms, you could say "bushay". The food at La Boheme didn't fail to impress as did the laughing and good times with my pigeon French.

It's such a great cultural experience of exploring the which us pioneers once lived. We used our euro denominated ANX card at the petrol stations and digital self service terminals in McDonalds when we just can't face our "sivous plays" and "danke shurns". Many transactions were done in plain old euros and we did drop a few old fashion coins into the toll road funnel. But who's a purest anyway. Watch out for the Apple GPS though as it is particularly keen on tolls and those roads do tend to be less of an adventure. Digital currency operation for gates and tole roads would be great. Big ticket items like accommodation and return airfares to New Zealand which we could purchase online using sites like cheapair.com.

By the end of the four weeks I'm all out of my budgeted bitcoins and the price is on the rise again. Go figure! Though I probably haven't preached bitcoin and crypto-currency as much as I originally intended I have seen so many new opportunities along the way. Europe is just so beautiful, how many newbies you recruit, I think is beside the point. It's been the best trip ever. I'm so stoked I got to represent the good life in an crazy van with a "B" on the bumper, leaving a trail of QR codes in our wake.

The Press said QE Infinity, and the People said MARSCOIN

Scenes from Neal Stephensens Snow Crash seem to be less far fetched given the breaking news this week. Vindications for people radicals on both the far left and right, crypto junkies and environmentalists a like.

We had rumours that rogue CIA are still chasing a 300,000 BTC stash from the original Silk road. A post published by none other than "Variety Jones" a key figure and on-going fugitive named in the Ross Ubrich case shows this in detail, adding to the two CIA and DEA officers already convicted of fraud and blackmail, basically  shifty law enforcement.

The gulf stream has stopped! Scientists can confirm that cold water from the north pole is no longer citculating as it has fir thousands of years. Its called the cold spot and it brings up plots from popular apocalypse movies,  trigering a domino effect on the worlds climate. It could be a cold long winter for Britain this year. Al the whilst VW is busted for manipulating the co2 ratings of their cars. After failing to raise interest rates for 7 years the US fed said they want the government to start spending and that there could be QE infinity and zero interest rates forever. Something many people had been predicting and a case for crypto currency.

This may all seem like poetic justice for counterculture this week with but I'm not sure what the cereal shop raid in London is about. Anarchists raid hipsters, what's going on? I feel like I need a poon and a hyper board to get out of here.

The one thing in this weeks storm that is remotely holcim is finding water on Mars! On that note as cryptocultureologist im going to look away from the tabloids buy a bit of marscoin  and see what happens next.

Bankers AML Tie Will Become Their Noose

China, and Bitcoin as a Hedge Against Volatility

Prime Interest news said bitcoin needs to be boring before people will start to believe its money in 2013. At the time that was hard to see happening with all the anti establishment techno utopian ideas and skyrocketing prices. But now, after a crash, banks are all jumping on board, see the list of supporters at chain.com, it's become a crypto anarchists twist of fate. It's beginning to seem like almost all major banks are getting involved in something they once dismissed, taking the "if you can't beat em join em" approach. With the recent so called Chinese crash investors have almost nowhere else left to turn.

People who pay no attention to economics will know that everything is volatile at the moment. Commodities are behaving strangely. Remember when oil was over $100 a barrel. Gold, a traditional hedge against stocks, has dropped. Stocks around the world have collapsed, not just in China. Most investments they are down on the year and fiat currencies are all over the place. Its far from plain sailing and soon someone's going to fall off the ship.

Bitcoin and the value of other major crypto currencies have conversely settled into an even rhythm. The value of a bit is the same as it was a year ago. bitcoin has found an new base at $230. like the $105 floor of 2013 and the $5 of 2012. Crypto investors are beginning to find peace. Volatility ounce touted as a downfall of the currency, is clearly reducing. We can hear the birds singing in the trees.

Now the Yuan drops, now the Yen, Japans credit rating is was downgraded! The US fail to raise their zero interest rate for the 7th year in a row and the world stock market continues to decline. Seriously where the hell would you put your money if you had any? And the pressure is on if you're one of those mega one percent'ers driving a Maserati in China.

Commodity prices are finally starting to show signs of recovery. However they rely on the Chinese economy for demand and victim to the claws of the short sell, becoming the global default. These cycles and this market psychology seem far from over. What will the bots do? If you're doing business internationally and if you're actually making stuff then these are trying times. Irregularities in commodity prices seem less severe when compared to bitcoin. However charts on useful things like gold and silver start to make more sense when measured against bitcoin. This combined with easy international transfers make for an ideal tool for factories in China selling widgets direct to the world. Maybe the mathematical ether of crypto is the only way to escape.

We are seeing that bitcoin as money become plain and much less socially loaded. Banks getting hold of it will exaggerate this phenomenon That's a win win for holders and early adopters, exciting news for people who are interested in fintech. Its and it does feel like a moral compromise for the "currency of the people". The opportunity for social change and to change the way value impacts our lives with bitcoin is at risk, but the price of the currency is not, it's a Catch 22. There is a circular logic to adoption and mainstreaming, but hopefully it is something cured with time. Crypto currency seems less crazy to our friends against this backdrop.

What the media may have drummed into us is changing. At the moment bitcoin is providing order and direction. Ironically, its computer nerds and crypto anarchists now hold the keys one of the most constant parts of the world economy. Whilst the market crashes in an illogical heap, the bitcoin is unphased. You can feel relaxed with a bitcoin in your pocket. It's a nice little hedge against the global finance complex.

Unlimited Debt "Grebt"

We've all seen the new's, it's pretty undeniable that the economy and the world are out of control, but how do we understand it? Its been happening for decades. People say the same thing about climate change and I think the situations are similar in that it's spiraling out of control. Its a tragedy of the commons, debt is at its core and its rooted in a lack of government transparency. Sounds like the same old story, but these are all things crypto currency is designed to avoid.

With stock prices tumbling our governments considering jumping in to prop them up. This will create even more debt. Where do we stop? It's not like we are getting the money from countries or people that have spare. Every country is now in debt as well as most people. Its never been as global as this. Mars isn't going to give us a loan. Countries can compete with each other and argue about who's allowed the most debt and who's not, but the only back bone is public opinion.

The truth is there is no agreed upper limit to how much debt can be created. This is how debt is becoming unlimited.

So called wealthy countries actually have tend to have more debt than poor countries, even on a per capita basis. Japan is at 240% and the majority of countries are carrying debt. Chile is the only major country that is in significant positive territory. green is a little deceptive on this chart as countries with debt are still shown green, also notice that countries that have actually defaulted are now shown in green eg Russia and Argentina.

Government debt as percentage of GDP globally (September 2012)

Time magazine is now describing a complex "government quality" perception as an indicator. Based on this we tell poorer countries they need to rain in their debt or risk being down graded by the bad name gang, moodies or the poor standard or bitch. This is what we are saying to Greece right now, notice that they are dark red.

Whats stops countries from getting more debt is interest rates. Greece now have to pay 11% for its money where Japan and the USA pay next to nothing. I know i would take out that 0% loan, but paying rates like 11% it really hurts. You have to make smart choices for it to be worthwhile but when you're paying 0% like in japan and the EU, debt becomes irrelevant and unlimited.

You can just go get a plane, pop the ejector seat and watch it crash whilst smoking a cigar in your golden parachute.

Its totally unfair at the moment. The developed world pretend to be the hero "Whenever there's a problem we can just patch it with debt" No big deal for us, its free anyway. Based on the false assumption of our reputation for creditworthiness. The psychology of it is simple.

Why should Americans and Japanese people have to suffer to pay back their debts when the Russians and Argentinians have defaulted on theirs and are doing ok now?

The problem is we know these debt patches don't help us in the long term. At some stage you get worthless money. Over the last 50 years when the world left the gold standard, we have become reliant on dept to boost the economy it has worked but we are finding less and less real gains. Debt eventually stops working, like a drug. At any moment, perceptions can change. Reputation is transient and comparative.

When rates go to zero its very easy to for countries to get leveraged out of control. Credit worthiness is now comparative. We are talking about who is the least bad credit. We are looking now at accepting more debt in developed countries in order to support the stock market after the latest crash. At some point everyone will have what's perceived as to much debt and the lights come on. People will no longer accept it at all as payment.

Bitcoin is not based on debt creation or deception. This is why people are backing crypto currencies in general in the long term. this is seen in the markets during volatile times in the market. If bitcoin is perceived as a safer haven than bonds then government debt rates go up.

This week the EU approved Greece's €86-billion bailout program. Greece having already missed payments dates on payments to the IMF and other creditors was saved by the bell. Curiously however Greece credit rating has gone up.

That's like giving someone who can't pay their debt with out a job in site, a new loan for a third time and then upgrading their credit. It's nice but it doesn't happen in this world.

Below is a chart showing the definitions of credit ratings from agencies in the band relevant to Greece.

		B+	An obligor is MORE VULNERABLE than the obligors rated 'BB', but the obligor currently has the capacity to meet its financial commitments. Adverse business, financial, or economic conditions will likely impair the obligor's capacity or willingness to meet its financial commitments.
		B
		B−
		CCC	An obligor is CURRENTLY VULNERABLE, and is dependent upon favourable business, financial, and economic conditions to meet its financial commitments.
		CC	An obligor is CURRENTLY HIGHLY-VULNERABLE.
		C	The obligor is CURRENTLY HIGHLY-VULNERABLE to nonpayment. May be used where a bankruptcy petition has been filed.
		D	An obligor has failed to pay one or more of its financial obligations (rated or unrated) when it became due.

 
Greece was upgraded from CC to CCC. However the country has actually missed payment dates. Isn't that D? The workings of the rating agencies are mysterious. It's not working like the ratings we get when we forget to pay our credit card bills.

Reserve requirements when lending to countries with rating AA- and above are 0%. This means developed countries can get as much money as they like as debt can be created for them with 0% reserves. The only thing holding that back is interest rates, now we talked about how these where also zero. this is where the you really start to see how unlimited it is.

I'll create as much debt as you like, with 0% reserves backing it up, give it to you and charge no interest for it, just as long as you do the same for me.

Greece in a way is catching onto this concept. given dept is unlimited and they are part of the most powerful AAA rated EU , why would they hold back on spending? The austerity is meaningless, however at some stage the current unlimited dept system will dissolve itself as more and more people realise what it is and take advantage of it.

With dept continuing to grow above 2008 crash levels, we need to rethink our method of tackling the issue. I'm not asking people to buy bitcoin or litecoin. I'm just asking people to think about what fiat is and what debt has become. The debt concept however though it seems complicated is much more simple when you take a step back. Just call it "Grebt".

 

Government grebt as percentage of GDP globally (September 2012)