Agreeing With Statists For The Wrong Reasons: Cryptocurrency Bans

Since shortly after its invention, cryptocurrency has had the attention of central bankers and government regulators all over the world. Without the slightest hint of self-reflection, they have repeatedly warned that Bitcoin, Litecoin, Ethereum, Ripple, and all the rest may be scams or tools to be used by terrorists, drug dealers, money launderers, and other ne’er-do-wells. Several countries have either considered cracking down on crypto exchanges or have already done so. Sometimes satire just writes itself; the fiat currencies that they create and inflate are far more commonly used in the criminal underworld, not to mention the criminal overworld that they run. Speaking of scams, currencies that lose 95 percent of their value over a century have proven quite effective at snatching the wealth out of people’s pockets without them even knowing it.

But perhaps the politicians and legacy financiers are on to something with their desire to ban cryptocurrency. Let us see how government efforts to ban crypto could actually strengthen crypto and do themselves in, and thus why one might agree with statists for the wrong reasons.

If cryptocurrencies are banned, they will not magically disappear, nor will many of the people who use them stop doing so. After all, did bans on drugs or guns ever eliminate those? Of course not; both are more common where they are banned than where they are legal but heavily regulated. Cryptocurrencies perform valuable services for people, and that which has a demand will have a supply. If this cannot happen legally, then it will happen illegally, as with any other commodity. States are good at destroying other centralized entities, but disrupting a decentralized system with no clear point of attack has never been their strong suit. Just look at how much copyrighted material is illegally available online. States cannot stop it because every time they arrest someone, seize a server, or shut down a website, dozens more pop up to replace them. So it would be with cryptocurrencies and sites that accept them. Showing such bans to be ineffective will be an important propaganda victory for crypto users, as will the very fact that it was tried. For why would the state and its central bank have to ban competitors unless their money was too inferior to compete?

To be fair, the blockchains and websites that do come under government attack may have some difficulties. Government hackers may be able to compromise a blockchain with weak cryptography or a website with weak security measures. But adversity breeds innovation, and most people who hack computers for the state have those jobs either because they lack the skill to make more money in the private sector or because the state has some criminal evidence hanging over them. The former are incompetent, while the latter have an incentive to do the minimum to stay out of trouble instead of their best work. Just as website owners appreciate script kiddies who think they can hack for the free security testing they provide, so will cryptocurrency developers come to appreciate attempts by government intelligence agencies to rewrite the blockchain. Customers, meanwhile, can thank the state for providing the electronic equivalent of a eugenics program, killing off the weak currencies and websites to make room for the strong.

On the subject of customer benefits, a ban could make cryptocurrency trading very profitable. Shutdowns and rumors of shutdowns of these venues have already caused exchange rate volatility, presenting excellent buying opportunities. Should a more concerted effort occur, cashouts by people who want to be law-abiding could provide a better opportunity for scofflaws than anything thus far. This process would get the financial establishment out of the crypto world, and much of their financial trickery with them. A more honest marketplace is a better marketplace. Meanwhile, the culture of crypto would return to its anarcho-captialist roots, as those would be the people still using it.

Again, banning something does not get rid of it; it simply goes underground into the black market, which has several important side effects. First, the amount of violence involved in a trade increases, as official means of dispute arbitration are no longer available. But the nature of blockchain technology counters this effect. That is why Silk Road was so popular; it reduced violence in the drug trade by using technology to provide peaceful means of resolving disputes over drug deals while giving users higher quality products. Second, the risk of arrest and the security measures to mitigate that risk drive up prices. This stands to make a tidy profit for those who buy crypto during the cashout before the ban and sell it on the black market afterward. Third, while the state can easily gain information concerning taxable income from legal, regulated exchanges and go after customers who do not give the taxman his cut, they will have a much harder time tracking all of the black market trades that would occur on a peer-to-peer basis in the absence of an exchange. In the words of Napoleon Bonaparte, “Never interrupt your enemy when he is making a mistake.” If Leviathan wants to cut off one of its own food sources, then by all means let it.

Another effect to consider is the migration of legal businesses. If the exchanges and merchants are banned in one country and do not want to keep operating illegally, then they will move to other countries that either want to host or lack the means to ban them. In practice, this means that the cryptocurrency economy will shift toward third-world countries without stable governments. To the extent that this has already happened, it has given people who lacked basic modern economic functionality the financial tools they need to begin improving their lives. Banning crypto in the most developed countries will help the poorest countries by sending jobs there. The resulting localization of usage would lead to cryptocurrencies being used more as money and less as technological curiosities or speculative vehicles, leading to exchange rate stabilization and greater economic security in such places. This would do more than any foreign aid program to lift third-worlders out of poverty, without any of the bribery that enriches despots and provides operational funding to war criminals.

Finally, banning crypto will motivate agorism more generally. With the official link between the fiat economy and the crypto economy severed, some people on the crypto side will end up staying there, especially if they had no success in the legacy system. Necessity is the mother of invention, and these people will have to innovate in order to survive. This has the potential to create the sort of dedicated counter-economics that can support an effective and hostile challenge to the globalist establishment. Friedrich Nietzsche once wrote, “That which is falling should also be pushed.” How much better it is when that which is falling manages to push itself. This, more than anything else, is why one should agree with statists for the wrong reasons when they seek to ban cryptocurrencies.

Book Review: Reactionary Liberty

Reactionary Liberty is a book about libertarian philosophy by Robert Taylor that approaches this and related subjects from a reactionary perspective. The book is divided into fifteen chapters, with a short introduction preceding.

Taylor begins with a four-page introduction in which he explains his motivations for writing the book. Mostly, this involves the decisive leftward shift in American libertarianism since the Ron Paul presidential campaigns of 2008 and 2012, including a notorious open letter to Paul read at the 2015 International Students for Liberty conference and Gary Johnson’s disastrous presentation in 2016. He briefly explains what is wrong with left-libertarianism and gives an outline of the structure of the book.

In the first chapter, Taylor begins with the non-aggression principle (NAP), self-ownership, and private property rights. Although Taylor notes the important distinction between just property and currently-held property, he fails to properly account for the role of conquest in determining property rights over the long term. Taylor goes on to explain the social and economic difficulties that arise without secure property rights. The failures of central planning are discussed, as are the differences between negative and positive rights. He lays out the history of natural law in Western philosophy, beginning with early Christian thinkers, continuing through Enlightenment philosophers, and culminating in Hans-Hermann Hoppe’s argumentation ethics. Taylor contrasts this with the state, which routinely violates natural law and rights. He details the many crimes of nation-states, war and debt slavery being chief among them. Taylor concludes by proposing an alternative to Marxist class theory which vilifies the state rather than the capitalist, and elevates the producer rather than the parasite.

The second chapter deals with the Austrian School perspective on the subject. Taylor takes the reader through praxeology, the action axiom, marginal utility, and the role of prices in efficiently allocating resources. Next, he explains why government and central bank interference with prices is so destructive. The section on money deals with the history of money according to the regression theorem, beginning with barter and commodity money, then progressing to precious metals and receipts for those metals. Taylor shows the reader that modern fiat currencies are a corruption of these receipts into instruments of inflation and debt slavery that facilitate unduly risky financial behavior, state largesse, and wars. In the Austrian view, these behaviors fuel the business cycle of booms and busts by distorting interest rates, which leads investors astray.

Spontaneous order and free markets are the subjects of the third chapter. Taylor begins with the economic calculation problem, the knowledge problem, and public choice theory, showing that central planning cannot succeed because it cannot calculate prices without the market and is further hampered by cynical concerns. He then covers the concept of spontaneous order, making the important and oft-overlooked observation that “there is no such thing as an unregulated market; the issue is, rather, who is doing the regulating.” These regulations take the form of trust, reputation, and freedom to dissociate, unless the state interferes by imposing its coercive regulations. Taylor frames the difference between state and market in terms of who gets profits and who suffers losses. The state privatizes profits and socializes losses, while the market does the opposite. Next, Taylor proposes the term marketization to describe the proper procedures for converting state monopolies into free-market entities, as privatization has acquired the meaning of turning over state monopolies to politically-connected oligarchs, as happened in Russia when the Soviet Union collapsed. He concludes the chapter by providing an outline of how businesses may function in a purely libertarian market while noting that the particulars can only be observed in the future, not precisely predicted in the present.

The fourth chapter offers a much-needed treatment of Cultural Marxism, a concept often (and incorrectly) dismissed by leftists as a conspiracy theory. Taylor traces its roots to the failure of political and economic Marxism in Europe after World War I, at which time Antonio Gramsci and Georg Lukacs resolved to apply Marxism to culture and use it to destroy traditional Western culture, which they faulted for the failure of communism to take root in most of the West. Taylor traces the ‘long march through the institutions’ from its beginnings in the 1930s all the way to its modern manifestations of identity politics and campus craziness. He calls on libertarians to refute Marxism’s cultural application, just as they defeated its economic application. The next section begins to do this by making the case against egalitarianism, showing it to be both impossible and self-defeating in practice. The second half of the chapter traverses more dubious ground in the form of r/K selection theory. This is an interesting analogy for attempting to understand political dynamics, but it places too much emphasis on nature instead of nurture and encourages dichotomous thinking in complex problems. That being said, it correctly suggests that some authoritarian leftists are beyond reason. The chapter ends with an explanation of the necessity of traditional social and sexual norms, as well as how and why Cultural Marxists have attacked them.

Decentralization is the focus of the fifth chapter. Taylor gives the reader a history lesson in the creation of Western traditions and common law through decentralized institutions after the fall of the Roman Empire. He blames centralization elsewhere in the world for preventing those peoples from enjoying the liberty and prosperity of Europeans. Turning to America, these two descriptions show the difference between what the United States was supposed to be and what it has become. As a remedy, Taylor proposes breaking up the US into at least 100 smaller territories. He concludes the chapter by praising those who have taken a strong stand for decentralization in the face of oppressive state power.

The sixth chapter attacks state power as a concept. Taylor explains how people are ruled indirectly through propaganda and mythology rather than directly by force, as the masses are sufficiently numerous and armed to defeat such an effort. He discusses the role of government schooling in indoctrinating the masses to accept such an arrangement, as well as the insufficient efforts to resist the imposition of compulsory indoctrination in the 19th century. The concept of situational Leninism comes next, followed by an overview of famous psychological experiments that demonstrate the willingness of people to obey authority toward reprehensible ends. After this, the role of language control and thought policing in maintaining authoritarian leftist control is examined. Taylor finishes the chapter with Ludwig von Mises’ concept of statolatry, in which statism becomes a sort of secular religion.

The attack continues in the next chapter, as Taylor turns to the flawed ideas of minarchism. He returns to the American example to show how limited government does not stay limited. He explains that the Constitution was not actually written to limit government, contrary to popular belief. It gave the federal government more power than it had under the Articles of Confederation, which Taylor praises in relative terms. He shows how Americans of the time were deceived, taking the reader through the tax rebellions of the 1780s-90s and the Alien and Sedition Acts. In the next section, he contrasts traditional monarchies with modern democracies, finding the former to be far less limited and more destructive due to inherent incentive structures. The chapter concludes with a strong explanation of why democracy grows the state and harms the cause of liberty.

In the eighth chapter, Taylor addresses police statism and what Samuel Francis termed ‘anarcho-tyranny’, a situation in which real crime goes unpunished while those who try to defend themselves are attacked by the state. He begins by noting the difference between a peace officer and an agent of the state. His description of several US Supreme Court cases is accurate, but misses the larger point that a coercive monopoly has no enforceable obligations because no one can enforce obligations against them, regardless of any court rulings. Taylor reviews Cultural Marxism through the lens of anarcho-tyranny, then explains some of the more obnoxious leftist behaviors in terms of Saul Alinsky’s Rules for Radicals. The successes of the alt-right are explained in terms of their willingness to use the left’s tactics against them, unlike conventional conservatives. Next, he covers the origin of modern policing in the UK and the US, then proposes a private alternative to state police forces. The last section contemplates violent resistance against the state, though not with nearly the length and depth that the topic deserves.

While the eighth chapter considers the enforcers, Chapter 9 is concerned with what they enforce. Taylor begins by illustrating just how much poorer everyone is today as a result of lost economic growth due to regulations. Next, he refutes the progressive narrative about the antebellum South and the industrial captains of the 19th century, showing the negative aspects of both to be the result of government intervention rather than its absence. He then profiles James J. Hill, a largely forgotten hero of free-market capitalism in the late 19th century. Hill’s good deeds are contrasted with those who used the state to get undue favors and suppress competition. Taylor also corrects the record on John D. Rockefeller. The following section covers the history of expanding regulations after the Civil War, through the Progressive Era, and on to the present. He accuses those who point to regulations as the cause of improvements in safety and reductions in pollution of committing the broken window fallacy and ignoring the fact that some regulations have made people less healthy. The chapter concludes with many examples of faulty regulations that do more harm than good.

The transition from voluntary mutual aid to coercive welfare statism is the subject of the tenth chapter. Taylor introduces the subject with the age-old statist question, “Without government, who would take care of the poor?” Of course, one must begin by pointing out that government does no such thing, as Taylor does. He spends the first part of the chapter educating the reader about mutual aid societies, which were common before the Progressive Era but were destroyed by government intervention into the healthcare and insurance industries. Taylor shows how the state has reduced the supply of medical care, thus increasing its cost and decreasing its availability. Unfortunately, Taylor’s approach ignores the Social Darwinist perspective that natural selection should be allowed to remove the least successful humans from the gene pool. The second half of the chapter debunks at length the myth of Scandinavian socialism.

The eleventh chapter deals with civil disobedience. Here, Taylor stumbles in the way that most libertarians do, in that he fails to understand raw power, celebrates small victories that will not occur on a large scale, and confuses the downfall of a particular regime with ending the state itself. He does this even while reciting the history of preparedness for the use of force among civil rights leaders and noting what the state has done to leaders of nonviolent resistance efforts. Taylor also manages to celebrate the effects of Western degeneracy among Middle Eastern youth. His encouragement of government agents to refuse unjust orders, leak information detailing abuses to the public, and otherwise engage in whistleblowing is more on point, though he notes the powerful incentive structure against doing so. The second half of the chapter details a plethora of private alternatives to services which have long been monopolized and/or heavily regulated by the state.

The growth of cryptocurrency and other peer-to-peer technologies is the focus of Chapter 12. Taylor provides a decent layperson’s overview of Bitcoin, then moves on to practical applications of cryptocurrency, such as funding dissidents suppressed by legacy financial networks, evading capital controls, and engaging in commercial activities forbidden by the state. Next, he covers the P2P revolution, which has greatly expanded liberty and privacy online and in the physical world. The remainder of the chapter runs through various examples of how P2P and blockchain technologies have solved problems and exposed corruption.

In the thirteenth chapter, Taylor addresses the open-borders dogma held by many libertarians. He demonstrates that open borders and forced integration are a form of the aforementioned anarcho-tyranny, with closed state borders being sub-optimal but less evil. The role of forced diversity in creating internal conflicts that lead to less liberty is considered, as is the biological phenomenon of kin selection in creating cohesive groups. Taylor makes the case that open borders are contrary to private property rights because in order to have open borders, the state must override the wishes of property owners who do not want migrants to enter. He then examines the history of US immigration policy from 1790 to the present, noting the shift in demographics admitted after 1965. The contention that the real problem is the welfare state rather than demographic shifts is rebutted both on the practical grounds of American politics and with the counterexample of European nations surviving socialism but falling into turmoil due to migrants.

The fourteenth chapter furthers the themes from Chapter 11 by discussing secession, nullification, and political migration. Taylor notes the myriad benefits of secession, but only briefly mentions the history of larger states violently suppressing such movements. Next, he covers the history of both legislative and jury nullification in opposing unjust laws. Taylor’s exploration of political migration is rather America-centric, but it can be adapted to other situations. His praise for the Free State Project comes off as overzealous, given the thoroughly leftist nature of that organization. He finishes the chapter with a concept called the Benedict Option, in which those who wish to preserve a tradition and begin a restoration retreat from the public and urban life of a degenerate culture.

The final chapter of the book is an argument against democratic government. This reads much like Hoppe’s Democracy: The God That Failed, quoting and borrowing from it extensively as Taylor explains the perverse incentive structures inherent in democracy and makes the case that monarchy has a superior incentive structure. But unlike Hoppe, Taylor contemplates physical removal as a means of achieving a libertarian social order in addition to a means of maintenance. As Taylor writes on page 283, “Economics teaches us that there is no such thing as a free lunch. But in order to achieve and maintain a libertarian social order, there will be free helicopter rides.” His defense of Augusto Pinochet’s actions in Chile and Lee Kuan Yew’s rule in Singapore as better than the alternatives is common in right-libertarian circles, but his defense of Francisco Franco goes a bit too far. Taylor ends with an exhortation to and description of a libertarian revolution, but this is, as before, too brief.

Overall, the book is good, but not great. For a book called Reactionary Liberty, it could have used more reaction in the form of lengthy explanations of traditional norms and power dynamics. Taylor seemed to lack an editor and proofreader, as some typos survived in very unfortunate places that render a few sentences absurd. A few chapters can become tedious when Taylor features a laundry list of examples. That being said, it is a strong presentation of right-libertarianism that is impeccably sourced.

Rating: 4/5

The Not-So-Current Year: 2017 In Review

Though the specific demarcation of the passage from one year into another is a rather arbitrary social construct, it does provide a useful annual period for self-examination and remembrance. Now that 2017 has entered the history books, let us take a look back at a year’s worth of essays and review the not-so-current year.

We begin, of course, with last year’s article of the same kind. Some articles in this list are sequels to articles in that list. Aside from that, we may move on.

I began 2017 by addressing a recurring story throughout the 2016 election campaign; that of Russia hacking the DNC and phishing Hillary Clinton campaign chairman John Podesta’s email system. I argued that Russia would have been justified in doing not only this, but in actually altering the election to cause Donald Trump to win. I would later use this piece as an example in a guide on how to argue more sharply in order to throw opponents out of their comfort zones. The story lingered on, so I published a sequel detailing the benefits of a Trump-Russia conspiracy. The left’s activities after the election became ridiculous, so I decided to give them some free advice.

My first list of 25 statist propaganda phrases and some concise rebuttals was a major hit, so I started planning a sequel. I had no intention of taking almost two years to compile 25 more statist propaganda phrases to refute, but better late than never, I suppose.

Donald Trump became the 45th President of the United States, which of course meant that Gary Johnson did not. I explored in detail what was wrong with Johnson’s campaign that made him not only lose, but fail to earn 5 percent of the vote against two of the least popular major-party candidates ever to seek the Presidency. Once Trump was in office, the responses to his trade policies among mainstream analysts led me to explain why many of them are politically autistic.

Book reviews have long been a part of my intellectual output, but I decided to start doing more of them in late 2016. This trend continued throughout 2017, as I read and reviewed The Invention of Russia, The Age of Jihad, In Our Own Image, Come And Take It, Against Empathy, Level Up Your Life, Islamic Exceptionalism, The Science of Selling, Closing The Courthouse Door, Open To Debate, Calculating the Cosmos, The Art of Invisibility, Libertarian Reaction, and The Euro.

Antifa grew from a nuisance that rarely affected anyone other than neo-Nazis into a serious threat to anyone who is politically right of center and/or libertarian who wishes to speak in a public venue. A comprehensive strategy to defeat them was necessary, and I was happy to provide one. Kyle Chapman grew weary of Antifa’s antics and led the effort to take up arms against them, becoming known as Based Stickman. I praised him in song. After the events of February, April, and May Day, I revised the strategy.

The Walking Dead comic series and the television show based on it contain many themes which are of interest to the student of libertarian philosophy. I explored the many ways in which Negan’s group resembles a state apparatus. The first part covers the sixth season of the show, and the second part covers the first half of the seventh season. At least three more parts will come next year.

‘No Particular Order-ism’, or the belief that libertarians should take whatever reduction in the size and scope of government they can get, has become common among the more radical members of the Libertarian Party. I explained why this approach is misguided.

White nationalist and alt-right leader Richard Spencer was present in the bar of the Marriott hotel that hosted the International Students For Liberty conference. This did not go over well with Jeffrey Tucker, who loudly denounced Spencer, after which security removed everyone from the bar. I wrote about the incident and the philosophical underpinnings of it.

Sometimes, the lens of examination is best turned inward to correct one’s own missteps. Such was the case for an article I wrote in 2014 about the nature of fake libertarianism, so I published a revision.

Theories concerning the creation, acquisition, trade, inheritance, and defense of private property form much of libertarian philosophy. The role of conquest in the determination of property rights had gone largely unexplored, so I decided to remedy the situation.

Terrorism struck in London on the anniversary of the Brussels attacks. I wrote a list of observations on the event.

I argued against more amendments to the United States Constitution, namely the Second and the Eleventh.

A chemical weapon attack occurred in Syria, which led to US intervention via a cruise missile strike. I wrote a list of observations on the event.

Keynesians and others who support fiat currency and central banking frequently claim that there is not enough gold in the world to back the quantity of currency in existence, and thus returning to gold would set off a deflationary spiral while destroying several industries that depend on gold. I debunked that claim.

On the anniversary of the Oklahoma City bombing, I applied ethical theories to the event to gain a deeper perspective of what happened and the aftermath of the event.

The primary aim of politically active libertarians is to limit and reduce the size and scope of government, as well as to eliminate as much state power as possible. I made the case that in order to do this, it may be necessary to temporarily do the opposite.

On May 8, Fritz Pendleton published an article at Social Matter in which he argued that liberty is best preserved by authority rather than anarchy. He then proceeded to launch a misguided attack against libertarianism, all while misunderstanding authority, anarchy, liberty, and the nature of a libertarian social order. I rebutted Pendleton’s case on a point-by-point basis.

Fashion trends can be a useful barometer of the health of a society. I explained how the trend of clothing that is designed to mimic the appearance of wear and work for those who think themselves above the sorts of activities that would produce these effects naturally indicates that a revolution may come soon.

Memorial Day provides an opportunity to promote statist propaganda concerning the nature of service and the provision of defense. I decided to do the opposite.

The immediate danger standard says that using force against someone who is not presenting a physical threat at the exact moment that force is used constitutes aggression, and it has become far too commonly advocated in libertarian circles. I explained why it is wrong and why it has gained prevalence.

On June 14, James Hodgkinson opened fire on several Republican members of Congress and their staffers while they were practicing for the annual Congressional Baseball Game for Charity. I wrote a list of observations on the event.

The Supreme Court ruled against the stays on Trump’s travel ban, but he missed a greater opportunity by letting them decide rather than ignoring the courts. I explained how and why.

Political rhetoric has grown increasingly heated, with violence erupting as a result. I showed how democracy is the root of this problem and how abolishing democracy is the solution.

The meme of throwing one’s political rivals out of helicopters has become popular among certain right-wing and libertarian groups in recent years. Unfortunately, people from all over the political spectrum tend to misunderstand the historical context of the meme, and thus interpret it incorrectly. I wrote an overview of this context and explained why helicopter rides may not be the best option.

I welcomed Insula Qui, the first additional writer for Zeroth Position, in July. He provided two articles to keep the site going while I was preparing for, participating in, and recovering from the Corax conference in Malta. A piece describing the problems that led to the call for net neutrality and recommending against more state inteference in the Internet came first, followed by a critique of common libertarian strategies to date. Speaking of the Corax conference, a revised version of my talk may be found here, as they own the rights to the original. A topic that came up in the talk that needed further comment is that in the discussion of proper behavior beyond the basics of libertarian theory, right-libertarians in general and libertarian reactionaries in particular will use the term ‘degeneracy,’ but they do not always properly define the term. I attempted to do so.

In the August 2 episode of the Tom Woods Show, he asserted that libertarians and fascists are completely contradictory political perspectives and could never be combined, and that when one embraces fascism, one must have relinquished one’s libertarianism, as there is no other solution that would make sense. Qui countered these assertions and delved deeper into the relationship between libertarianism and fascism than I had previously, which is not as inimical as one might think.

An alt-right rally in Charlottesville, Va. on August 11-12 turned violent, with three deaths and about 20 injuries. I wrote a list of observations on the events. In response, the large technology companies of Silicon Valley, which have become increasingly hostile to right-wing and libertarian content creators over the past decade, ramped up their censorship efforts. I proposed a novel and radical plan to deal with this problem so as to avoid public utility regulation.

I welcomed Benjamin Welton, our second additional writer, in September. I had meant to write an article about using the historical concept of outlawry to deal with violent illegal aliens myself, but time constraints led me to outsource the project. He then explored several historical examples of private military defense, finding that something novel must be created in order to defeat the state and maintain a libertarian social order.

In the wake of two major hurricanes, the usual complaints about price gouging were made yet again. I explained why price gouging is actually beneficial.

Qui wrote a piece about the limits of the applicability of libertarian philosophy, explaining that humans can fall into the categories of personhood or savagery, and that it is important to deal with each accordingly.

Catalonia held a referendum to secede from Spain and become an independent nation on October 1. This was met with force, and much hostility ensued. I wrote a list of observations on the events.

Qui examined the role of the modern concept of citizenship in advancing a particularly insidious form of totalitarianism.

On October 5, the New York Times published an opinion column by Michael Shermer in which he argued that the rule of law is a bulwark against tyranny, but guns are not. I thoroughly rebutted his arguments.

Welton explored the history of judicial corporal punishment, then made a case for restoring its use as a replacement for imprisoning lesser criminals.

The debt ceiling became a political issue again. As it incites financial panic for no good reason and hides important truths from common view, I advocated for its elimination on formalist grounds.

Capitalism and consumerism are distinct phenomena, with the latter caused by high time preference, which in turn is caused by the flaws inherent in modernity. Qui explained this at length.

I welcomed Nathan Dempsey, our third additional writer, in November. He runs a project called Liberty Minecraft, and wrote an introduction to the project.

The relationship between libertarianism and racial politics has become a controversial issue in recent years. Views on the issue run the gamut from complete opposition to imperative alliance, with nearly every conceivable position between being advocated by someone noteworthy. Many libertarians either provide the wrong answer or are afraid to address the question, so I decided to address libertarianism and support for ethnic nationalism.

Black Friday is revered by most libertarians as a celebration of free-market capitalism. I updated my explanation of why this reverence is misplaced. I weighed in on holiday shopping again due to some misguided criticism of computer programs designed to scalp popular gifts. Finally, I detailed the problems with Santa Claus.

Qui offered a message of hope in dark times by demonstrating how the socialists and anti-capitalists of today are not usually as fanatical as those that the early libertarians opposed, then offered advice on how to argue against them. He quickly followed this with an explanation of his concept of autostatism, which closely echoed one of the other presentations from the Corax conference. He then dealt with traditional views on degenerate behavior, and how a compassionate, non-enabling approach is necessary.

Due to surging exchange rates, the opening of Bitcoin futures, and the likelihood of Bitcoin exchange-traded funds in the near future, there is renewed mainstream interest in Bitcoin and other cryptocurrencies. There are benefits of cryptocurrencies which will be cheered by political outsiders to the chagrin of the establishment, and I listed eight of them.

Qui finished out the year by explaining why individualism and nationalism are not as incompatible as many people believe.

All in all, it was an interesting year full of occasions to make sharp libertarian and reactionary arguments. May 2018 bring more and better. Happy New Year!

Eight Politically Incorrect Benefits of Cryptocurrency

Due to surging exchange rates in the past few months, the opening of Bitcoin futures, and the likelihood of Bitcoin exchange-traded funds in the near future, there is renewed mainstream interest in Bitcoin and other cryptocurrencies. Mainstream investors tend to be attracted to the profit potential, portfolio diversification, and technological curiosities of cryptocurrency. But there are other benefits of cryptocurrencies which may scare away the average investor. Let us consider eight activities which can be performed with or aided by Bitcoin and its alternatives that will be cheered by political outsiders to the chagrin of the establishment.

1. Tax Evasion

Charles Stross famously complained that Bitcoin

“looks like it was designed as a weapon intended to damage central banking and money issuing banks, with a Libertarian political agenda in mind—to damage states ability to collect tax and monitor their citizens’ financial transactions.”

The problem is that he views this as a negative. From a moral standpoint, taxation is armed robbery, slavery, racketeering, trespassing, communicating threats, receiving stolen money, and conspiracy to commit the aforementioned crimes. If anyone dared to challenge the state’s monopoly on tax collection, they could face any of these criminal charges. By doing business in cryptocurrencies and taking additional steps to protect one’s identity (Bitcoin is pseudonymous rather than anonymous, though other cryptocurrencies are fully anonymous), one can keep part or all of one’s income and stored wealth away from Leviathan’s watchful eye. Establishment politicians and pundits will decry tax evasion as immoral. But as Murray Rothbard writes,

“Just as no one is morally required to answer a robber truthfully when he asks if there are any valuables in one’s house, so no one can be morally required to answer truthfully similar questions asked by the State, e.g., when filling out income tax returns.”[1]

The weapon of cryptocurrency is thus more of a shield than a sword, though it may be employed in an offensive posture (see #8).

2. Agorism

One way to reduce the size and scope of the state is to starve it of funds. Agorism is a strategy introduced by Samuel Konkin for reducing and eventually eliminating state power by expanding the size and scope of gray and black markets. As more people rely on the informal economy to a greater extent, they will develop a culture of resistance against state power while depriving governments of revenue by keeping their taxable income out of official records. This will incense people who believe that the state is necessary for the provision of essential services such as military defense and legal systems, but those services could be performed by private entities if they were not forcibly stopped from doing so by state monopolies. It will also worry those who believe that governments must take care of the poor and down-trodden, but private charity is quite capable of solving the problem, especially with tax burdens removed.

3. Undermining Prohibition

From the beginning of the original Silk Road, cryptocurrency has played a role in helping people to obtain goods and services that are prohibited by state laws. Though that site was shuttered by government intervention, this had more to do with the incompetence of Ross Ulbricht than with any inherent flaw in Silk Road or Bitcoin. Since then, many other sites have been created to serve the same purpose. This is a terrifying prospect for drug warriors and gun control advocates, who believe that strict laws against the sale of such goods are necessary to keep communities safe. But the available evidence suggests that state bans only raise the prices of banned goods while increasing the violence involved in their trade. Thankfully, online black markets will continue to undermine prohibitionist policies while reducing the amount of violence involved in both law enforcement and black market disputes.

4. Circumventing Child Labor Laws

Most developed countries prohibit children under a certain age from working. Proponents of child labor legislation believe that it is necessary to protect children from exploitation and lack of education. However, in most places where child labor is still prevalent, it is better than the alternatives of lackluster schooling, child prostitution, or starvation. In more developed countries, child labor laws prevent children from earning income, learning useful trade skills, building a work ethic, and avoiding indoctrination by the state. Cryptocurrencies provide a framework to allow people to hire and pay children outside of official channels (see #2), while smart contracts on a cryptocurrency blockchain can prevent wage theft and other exploitation.

5. Circumventing Capital Controls

In many countries, there are laws that forbid carrying more than a certain amount of money or goods out of the country. Such laws are easy to enforce when currencies are centralized in a specific country, and when money and goods must take physical form, as precious metals and cash do. But cryptocurrencies are not particular to any physical location and do not require a physical form. This allows a person to trade one’s fiat currency or precious metal in one country for cryptocurrency, travel to another country, and either sell the cryptocurrency for fiat currency or precious metal in the other country or use the cryptocurrency directly. Economic protectionists may argue that this weakens the economy of the nation that experiences capital flight, but capital flight would not be occurring if the nation experiencing it had a more responsible government that was not creating adverse economic conditions.

6. Financing Disapproved Activism

Political dissidents and the causes they support are frequently rejected by the legacy financial system. Banks, credit cards, Paypal, and other money handlers have a long history of closing accounts and denying service to people and groups that oppose the current power structure with sufficient ardency and effectiveness. This occurs partly because these companies tend to be controlled by virtue-signaling members of the establishment, and partly because government regulators can make business difficult or impossible for companies that refuse to crack down on dissidents. If there were no other options, then the establishment would be able to effectively eliminate its opposition by starving them out. But ever since Wikileaks came to depend on Bitcoin donations for funding, cryptocurrencies have provided an alternative financial system that allows activists to make a living, engage in commerce, and perform their activism despite the disapproval of ruling elites.

7. Thwarting Monetary Policy

Ever since Keynesian economics became prevalent among policymakers, central bankers have sought to manipulate interest rates and the money supply to stimulate the economy. But in practice, this only distorts the economy further, encouraging those with capital to make malinvestments. True to the Austrian business cycle theory, this forms yet another economic bubble that then breaks, after which misguided commentators blame markets and call for yet more intervention. Over the long term, central banks also destroy the purchasing power of a currency, with the US dollar losing 96 percent of its value since the Federal Reserve was formed in 1913. In order to continue to function, central banks must have a critical mass of economic transactions occur in the currency that they manipulate. Should enough people make the switch away from state-backed fiat currencies, monetary policy will lose its effectiveness. Cryptocurrencies threaten this critical mass by offering an alternative to people who wish to opt out of the scam of central banking and own an asset that appreciates over time.

8. Assassination Markets

Perhaps the most controversial application for cryptocurrencies is known as a death pool or an assassination market. First theorized by Tim May and fleshed out by Jim Bell in the 1990s, assassination markets predict the date on which a particular person will die and provide payment to those who guess correctly. This incentivizes an assassin to bet on a certain date and kill the person on that date. The original proposal was made long before cryptocurrencies were invented, and thus called for the use of anonymous remailers. Cryptocurrencies render remailers obsolete, as they better serve the purpose of compensating the assassin without leaving evidence that law enforcement can use to discover the identity of the assassin and/or the crowdfunders. The goal is to increase the level of occupational hazard for being a politician or minion thereof to such an extent that the benefits of wielding state power are no longer worth the cost. The theoretical result is that if politicians, central bankers, enforcers, and other such people suddenly become frequent targets of assassination, then these occupations will cease to exist due to a lack of interest in assuming such roles. Although the establishment will only ever view such an approach as murderous, and cryptocurrency enthusiasts are deeply divided over the concept, there will almost certainly be many attempts to create assassination markets in the coming years.

References:

  1. Rothbard, Murray (1982). The Ethics of Liberty. Humanities Press. p. 183

Book Review: The Art Of Invisibility

The Art of Invisibility is a book about methods of maintaining privacy and anonymity in an age of surveillance by American hacker and cybersecurity analyst Kevin Mitnick. The book gives advice on every aspect of modern technology which could expose one to nosy neighbors, identity thieves, law enforcement, and other sources of unwanted attention. The book is divided into sixteen chapters which advise the reader about various measures that can be taken to improve security.

The introduction begins with the revelations made about the NSA’s activities by Edward Snowden, then discusses the information that is publicly available about most people with very little searching required. The first chapter is about password security and security questions. Tips are given for choosing a strong password, using a password manager, creating answers for security questions, and using multi-factor authentication. The second and third chapters cover surveillance of email and phones. Mitnick covers the concepts of metadata, encryption, and social engineering. He explains how the Tor browser and MAC addresses work. He discusses several current and historic methods of wiretapping phone conversations and pinpointing the location of a phone, then explains how a burner phone may be used to obtain some privacy.

Chapter 4 is about the functionality and use of encryption to thwart eavesdroppers. This is discussed in the context of text messages, cell phones, and computers, each of which is remarkably vulnerable without it. The next chapter begins with the Sarbanes-Oxley Act, which is now being used to prosecute anyone who deletes browser history that federal prosecutors wish preserved. Mitnick makes the obvious recommendation of not collecting such history in the first place, then instructs the reader on how to do so. He then discusses how Internet browsers track a user’s location and how this may be countered. The chapter concludes with the dangers of connecting devices and cloud storage.

The sixth chapter details various tactics that websites use to track users, such as scripts, single-pixel images, cookies, and toolbars, then offers advice for stopping them. The chapter ends with a basic overview of Bitcoin for overcoming some current legitimate uses for tracking. The dangers of sharing an Internet connection make up the seventh and eighth chapters. Mitnick teaches the reader how to set up an Internet connection that is difficult for malicious users to find and use. Next, he discusses several cases in which webcams were used to spy on people, including underage students. The phenomenon of ransomware, in which a user’s files are encrypted by malware and can only be decrypted by paying an extortionist, concludes Chapter 7. After this comes the pitfalls of public computers and Wi-Fi connections. Lessons on avoiding man-in-the-middle attacks, using virtual private networks, resetting one’s MAC address, and more are found in the eighth chapter.

The second half of the book opens with examples of photo metadata being used to locate people, then tells how to delete such information and prevent it from being created. Mitnick then gives advice on how to get unwanted photographs of oneself removed from websites, though it may not always work. The dangers of posting sensitive personal information on social media or otherwise sharing it with strangers is discussed. The extent to which corporations track commentary on social media is detailed through examples of students found publicly discussing standardized test material. The absurdity of minors facing criminal charges for possessing nude photos of themselves is used to illustrate the potential dangers of Instagram and Snapchat. The chapter finishes with privacy problems that can come from using dating sites and mobile apps.

Mobile device tracking is the subject of the tenth chapter. Mitnick writes about the third-party accessibility of information recorded by fitness-tracking devices as well as the trackability of people through the GPS features of their devices. He also shares an interesting episode of social engineering combined with tracking in which he surprised a careless driver who almost killed him with a stern warning supposedly from the DMV. The use of drones and facial recognition to erode privacy come later in the chapter, along with some prototypical countermeasures. The next two chapters detail how cars and home appliances can be used to track people, then show people how to turn off many of these features. Doing so will deprive users of some convenience, but that is the general cost of privacy and anonymity.

Chapter 13 applies the information discussed in previous chapters to the workplace. The insecurity of copiers, printers, and other such office appliances is highlighted so as to warn readers not to use them for any purpose that one would not want one’s employer or any hacker to see. Videoconferencing and remote file storage systems are covered in the last part of the chapter, with advice given for increasing security on them. The fourteenth chapter details the myriad ways in which government agents violate privacy and interfere with private electronics and communications, then advises readers on how to protect themselves while being aware of the laws in various countries. Also included here are the privacy concerns with hotel keys, supermarket cards, and airline boarding passes should they fall into the wrong hands.

The fifteenth chapter is mostly about the arrest of Ross Ulbricht, describing the mistakes that led to his capture. Devices that masks geolocation, and could thus have hidden Ulbricht from law enforcement had they existed in 2013, are mentioned. The final chapter lays out a step-by-step guide to achieving as much anonymity online as possible.

From beginning to end, Mitnick shares a wealth of information with just the right amount of personal anecdotes and other stories to keep the reader engaged. The Art of Invisibility is an excellent reference that deserves a place on the bookshelf of all who care about online privacy and personal security until enough time passes to render the information within obsolete, which may be on the order of decades.

Rating: 4.5/5

How To Rein In Censorious Technology Giants

Over the past decade, the large technology companies of Silicon Valley have transitioned from a mindset of attempting to make government censorship impossible to a mindset of attempting to make government censorship unnecessary. Those with views which are in opposition to the progressive narrative have increasingly found their posts removed and accounts suspended on the social media platforms created by these companies. Though this is not a new problem, it has escalated since the firing of James Damore from Google and the unrest in Charlottesville. Those who are not part of the progressive movement, such as conservatives, libertarians, reactionaries, and the alt-right are increasingly finding themselves shut out of open discourse online, having to either signal compliance with the left or risk being de-platformed on the most popular social media sites. Though the alt-right has borne the brunt of this so far, it is unlikely to stop there, as the contemporary left does not value discourse in the same way as their classical liberal predecessors. There are several proposed responses to this situation, but none of them are likely to effectively deal with the problem. Let us examine these to discover their shortcomings, then craft a novel response that is more likely to succeed.

The Mainstream Libertarian Response

In the mainstream libertarian view, the large size of Google, Facebook, Twitter, Apple, GoDaddy, Paypal, and others are astonishing success stories of free-market capitalism. They tend to view these technology companies as private businesses whose owners should be able to freely choose with whom they will associate or not associate. Indeed, many libertarians view ostracism as a nearly universal positive, working to reward preferred behavior while punishing dispreferred behavior. If these companies behave improperly, mainstream libertarians believe that the market will punish them by elevating an alternative to prominence.

Though ostracism on the basis of behavior is nothing new, the crowdsourcing power of the Internet has transformed it into a political weapon that can be used to ruin people unjustly. Moreover, it is capable of dividing an entire society along ideological lines. When reasoned discourse is shut down and unpopular viewpoints are suppressed by howling irrational cyber-mobs, those who are de-platformed are likely to have their internal victim narratives confirmed, radicalizing them further. This may serve as a precursor to a novel type of civil war, one which arises when the heated rhetoric that is naturally produced as a byproduct of democracy escalates into political violence and there is no peaceful outlet to reduce tensions before they consume the entire society.

In a free market, censorious behavior from the largest companies would be of little concern. As John Gilmore, co-founder of the Electronic Frontier Foundation, said, “The Internet interprets censorship as damage and routes around it.” But it is also true that those in positions of power view checks, balances, and competition as damage and seek to route around them. Technology giants accomplish this partly by lobbying governments to regulate their industries in a manner that they can capture, as any other large companies would. But they have another weapon which can be even more potent: they can use their platforms to keep their upstart competitors out of search results and application stores. This can keep their competitors from gaining the brand recognition necessary to build the user base to become successful social media platforms. This was less of a problem in the early days of social media when turnover of the most popular sites was higher, but the near-monopolies of the largest companies are no longer as vulnerable.

The Conservative/Alt-Right Responses

In the view increasingly expressed by conservatives and alt-rightists, the Internet is an essential aspect of life in the 21st century, and the technology companies that deny people access to the most popular social media platforms, domain hosting services, and payment processors are curtailing both the civil liberties and economic opportunities of those people. The largest technology companies are effective monopolies, in that these firms are the only sellers of products and services that have no close substitutes. In response, they call for the state to regulate these companies as public utilities, much as they do to providers of electricity, water, and natural gas. This line of thinking also leads to support among these people for net neutrality regulations. Some argue that government regulation is even more necessary in this case, as the network effects and first-mover advantages of the largest technology firms mean that a competitor cannot provide the same quality of service even if there are no significant barriers to entry into the business of creating social media platforms, search engines, and payment processors.

However, treating social media as a public utility is likely to cause more problems than it solves. When governments began regulating other industries, innovation in those industries slowed. The companies which were nearly monopolistic either remained so or became real monopolies, as competition became even more difficult. Freezing current troublesome companies in place as major players rather than allowing upstarts to displace them is an undesirable outcome. This is exacerbated by the fact that public utility regulations are just as vulnerable to regulatory capture as any other regulations. It is also strange to equate losing social media presence with losing access to goods and services like clean water or garbage disposal, as one can live a healthy life without access to social media. Furthermore, the cost of regulation is likely to be high, and the regulated businesses will pass this cost onto their customers.

A Radical Proposal

To summarize the above responses, the mainstream libertarian would do too little while the conservative or alt-rightist would do too much. What is needed is an approach that can stop the censorious technology giants from abusing the power they have accumulated without causing the innovation-stifling and monopoly-calcifying effects of government regulation. This approach should use state power in a manner which does not expand said power beyond its current size and scope, but will solve the problem with minimum malign interference in the economy. Fortunately, there is a simple and powerful solution which may be explained in a straightforward manner.

To begin, let us note that all of these technology giants are incorporated companies. A corporation is a legal fiction created by the state to shield business owners from full financial liability and ease the enforcement of laws upon those businesses. It is impossible to create a corporation without involving the state, as attempting to do so without registering the corporation with a government will have no effect. The closest one could come would be to negotiate recognition of a business entity with limited liability with each customer of that business, but this would not be identical to a state-recognized corporation in terms of its interaction with the state. Two results directly follow from this. First, registering a corporation amounts to participation in a government program. Second, state-recognized corporations are not truly private businesses, but public-private partnerships in which the state provides limited liability through its monopoly on courts and the private business fulfills its purpose, whatever it may be.

In order to participate in a government program, a person or other entity is supposed to be in compliance with government laws. In the United States, the highest law with which a state-recognized corporation should be in compliance for this purpose is the Constitution. The Constitution contains a number of provisions which are supposed to limit the conduct of government, including provisions to protect freedom of speech, freedom of the press, freedom of assembly, security against unreasonable search and seizure, and due process, among other rights. Because state-recognized corporations are public-private partnerships, they should be held to the same limitations on their conduct.

Thus, we arrive at an approach that meets the conditions described above. The technology giants that are currently engaging in censorious activities against viewpoints that they find disagreeable should be approached by the state and given two choices. Their first option is to begin respecting the aforementioned rights in accordance with the above argument and stop their censorious behavior. Their second option is to forfeit their corporate charters and right to do business as a corporation in the United States. This means that they would lose access to all government contracts, loans, and grants, could not be bailed out by taxpayers if their businesses falter, could not receive property taken through eminent domain, and the personal assets of everyone in the company would be available for paying civil damages. In other words, the leadership of the technology giants would have to choose whether to contribute to a more open marketplace of ideas or to become free-market businesses, either of which would be an improvement upon the current state of affairs. Even the hint that such a proposal is being considered by high-ranking federal officials would have the technology giants rushing to behave better, and could accomplish the same results as public utility regulation with far less threat to innovation.

Now let us apply the test described above,

“This approach should use state power in a manner which does not expand said power beyond its current size and scope, but will solve the problem with minimum malign interference in the economy.”

Currently, the federal government enforces anti-discrimination laws on bases other than those involving the people being de-platformed by the technology giants. This proposal implicitly adds the basis of political ideology to race, gender, age, sexual orientation, and other currently protected categories. While this may appear to be an increase in scope, it would actually work to level out some of the discrepancies caused by protecting only the aforementioned categories. In order to evade constitutional restrictions, the federal government typically uses carrots rather than sticks to gain compliance from state government and large corporations, in the form of only awarding federal funding to compliant entities. Here, strings attached to continued recognition of corporate charters takes the place of strings attached to funds, but the overall methodology is unchanged.

As for malign interference in the economy, the latter option may appear to be so, but it is not upon closer scrutiny. First, no rational person in a leadership position at a technology giant would choose it due to the enormous risks involved in running such a large business without the legal shield of a corporation. Second, if any technology giants did choose the latter option, the change of ending state-recognized corporations in favor of government independence and full responsibility would be a beneficial move toward a more free-market economy.

Objections

Such a novel and radical approach is certain to meet objections, so let us attempt to anticipate and deal with some likely criticisms. First, there is the potential for technology giants based in the United States to balk at this dilemma and respond by leaving the United States for more favorable conditions elsewhere. Though this may be extremely disruptive in the short term, it would remove the canopy that is blocking the sunlight needed by the seedlings that seek to grow and replace the technology giants. The end result would almost certainly be both a more open and a more free market in the long term. But this is an unlikely result, as they would not wish to lose such a large and wealthy customer base as the American people.

Second, such a move would certainly be challenged in court, and the Supreme Court may see fit to rule against it. If this happens, then nothing will be lost and awareness of the need to appoint justices who are more friendly to the anti-censorship cause will be raised. It would also provide a strong President with a chance to ignore the Supreme Court and force the issue, especially if public opinion is against the side of the technology giants. The dominance of the judiciary in the American system is a longstanding problem, and any opportunity to challenge its power is a welcome development.

Third, there is the claim that this proposal is more about open markets than free markets. This claim is not without merit, but the current market conditions are neither open nor free. Working toward free markets is the primary economic objective of libertarian philosophy, but in the meantime, an open unfree market is superior to a closed unfree market. It is important not to fall into the trap of political autism by doing nothing until an ideal libertarian textbook solution hopefully comes along, which may not happen.

Finally, one may wonder why the issue cannot be left up to the market. In the long term, the market is essential for solving the problem posed by the technology giants. But although this is necessary, it is not sufficient for dealing with the immediate problem at hand. Through their current market share and their abuse of the power that said market share provides them, the technology giants are making the market unfree. Like it or not, the state is the weapon currently in play, and unless it is going to be eliminated in the near future, its power will either be used to favor the established companies or their upstart competition.

Conclusion

The technology giants have managed to acquire an unprecedented amount of power over the lives of people all over the world. As Frank Herbert observed, “Power attracts pathological personalities. It is not that power corrupts but that it is magnetic to the corruptible.” If the leadership of these companies decide that they wish to silence someone and ruin their finances for whatever reason, it is within their capabilities to do so. Some may cheer because such a fate is currently befalling the alt-right. But what they do to Christopher Cantwell and The Daily Stormer today, they can and will do to anyone they dislike in the near future. Unless the technology giants are reined in, they will provoke the state into regulating their industries as public utilities, which will set back innovation by decades. The mere threat of the above proposal is capable of not only stopping their censorious behavior, but of opening the markets enough for private competitors to free them.

The Curious Case of Net Neutrality

Everyone please welcome Insula Qui, our first additional writer at Zeroth Position.

Last week, many libertarians came out in support of a major government program. This would seem odd to many onlookers, as libertarians are supposed to believe in free markets and their efficient allocation of resources, but this issue has divided libertarians like few others. This program is net neutrality, and even anarcho-capitalists have managed to justify supporting it on some occasions, although that is much rarer.

To explain the problems within the concept of and support of net neutrality, a working definition is required. In essence, the point of the regulation that assures the net will stay neutral is to ensure an egalitarian allocation of bandwidth among people and websites. This means that no Internet service provider (ISP) should be able to charge extra for access to certain websites or discriminate when it comes to the Internet in any other way. This seems good and necessary at first glance, but even a cursory examination defeats this. Net neutrality was adopted in 2015, which means that for most of the existence of the Internet, there was no need for any legislation. Yet this legislation was created, not because any ISPs were being unfair, and not because ISPs were considering being unfair. The only reason why net neutrality was created and subsequently passed was to ensure that the Internet would stay the same as it always had been. It turns out that we apparently require massive legislative efforts to ensure that absolutely nothing would change.

The Past Is Prologue

To understand why this debacle started, we must examine the origin of the troubles. The legal procedures were initiated by the situation that was going on between Netflix and different ISPs. The entire spectacle may be summarized as follows: Netflix was using so much data that it was getting slower. That was the entire problem that Netflix had with the ISPs, and that was the start of the entire legislative progress to instate net neutrality. (What was going on was slightly more complicated, but that was the gist of their complaint.) Various streaming services were growing larger on the Internet, so the ISPs were faced with a lot of bandwidth consumption on a continuous basis. With streaming, it is impossible to load the entirety of the data quickly because there is so much of it, meaning that the bandwidth is constantly and intensely used. Since streaming was so popular, there was bandwidth constantly in use and since bandwidth is a limited resource, the streaming sites were getting slower, which was reflected in their bottom line. Because the streaming sites were getting so popular and using gigantic amounts of data and bandwidth, they could not expand more without getting slower and thus expanding less.

This was a problem created by streaming platforms that mostly affected said platforms. ISPs would lose some profitability, but they would still keep most of their profits if they handled streaming more slowly. Most sites without streaming would be affected much less, as they did not need this continuous stream of data and the few thousandths of seconds by which they would have been slower would have gone unnoticed. Netflix and other streaming sites were unable to fix the problem on their end; they already use every compression mechanism possible to optimize their storage and streaming capability without compromising the quality so much that the experience is reduced. Thus, the streaming sites were completely at the mercy of the ISPs to fix this problem. The heroic ISPs rushed in to help the streaming sites, offering to build new infrastructure and give the streaming sites priority in the use of that infrastructure. There was one caveat; the streaming sites would have had to pay for it, which would have caused a drop in their profits, which would have eventually made them increase streaming prices to remain sustainable. Because even the smallest increase would scare off marginal users, this was not in the self-interest of the streaming sites.

Therefore, the streaming sites started advocating net neutrality, claiming that being charged to fix the problem that they caused for themselves was somehow discriminatory to the freedom of the Internet. They also claimed that the ISPs were throttling access to their sites, and that because they could not expect the ISPs to build their infrastructure for them meant that ISPs were planning to turn the Internet into something unfree. In their view, the way to increase freedom with respect to the Internet is obviously to give the government giant amounts of legislative control over it. Because of the appealing notions that the little guy should not be discriminated against by the big scary ISPs, and that the ISPs should not make certain websites into subscription services, a large Internet bandwagon took shape. Almost every large platform took the side of net neutrality, for the sake of fairness and freedom, of course. Even people who constantly tout their knowledge in basic economics were extremely happy that the state could ensure that the ISPs would not discriminate against information that they dislike or try to rent seek on their monopoly.

Statist Problems and Market Solutions

Having described the frankly ridiculous situation, we must look at the problems within this approach, of which there are several. First, there has never been any reason to suspect that any ISP would move to a subscription service model or that they would artificially restrict information they dislike. This has never been actualized and has never been a close concern; it is based on conjecture on par with the implication that warlords would take over without the state. Second, bandwidth is a finite resource; there is not infinite Internet service to go around. This can be improved greatly with increased infrastructure, but this is not cost effective to the ISP.

To fix this, two steps may be taken. Bandwidth could be restricted in one area so others can get more bandwidth, or the company that needs more bandwidth should pay for additional infrastructure, both of which violate net neutrality. This is, in essence, a problem of trying to redistribute bandwidth from the smallest users to the largest users. When bandwidth needs to be equitably arranged, the people who use the least bandwidth would need to use even less to subsidize the people who use more bandwidth. The bandwidth for a neutral use could not come from anywhere else. This is somehow supposed to protect the little guys and make sure that the Internet is accessible for everyone.

The next problem is that this prevents selective Internet access for people who use the Internet for very specific purposes. If one needs to allocate one’s bandwidth to some very certain areas and does not care about the rest and is fine with that being slow, one could very well have the ISP provide a service of throttling certain sites and increasing the speed of others. And these are just the problems when we assume that net neutrality is really supposed to provide for a neutral net.

In reality, it has been the case that giving control over services to the government is generally a bad idea; more often than not, the state abuses all powers it has and creates as many powers as it thinks it should have. Thus we may understand how it could be that having the FCC in control of determining even more in the way of how ISPs act may not be the best idea. It may be that increased regulation would do even more harm to any new ISP that would try to attempt to provide this service. This all is compounded by the fact that the entirety of the problem of monopoly in the provision of the Internet is caused by the government in the first place.

It is not as though the Internet is a natural monopoly; no matter what many would have us believe, natural monopolies do not exist; just the optimal size of firms differs. However, when an industry is over-regulated, it will become less competitive as the barrier to entry into that industry is increased. It happens to be that the Internet is one of the most regulated industries.

There are huge issues with providing cables; thousands of people whose approval is needed, dozens of restrictions and last mile rules, etc. The government has a firm grasp on the net no matter what. This is best exemplified with the legal issues Google Fiber has been having when trying to establish themselves as a competitor to the current oligopoly. A company as powerful as Google has been unable to establish themselves in the market due to legal issues, as cost is certainly not a problem for them if they think they will outcompete the existing systems. Without this state-imposed oligopoly, there would be no problems with competition within the Internet. The optimal size of firms is probably much smaller than the firms which exist now. The market would do its job, the provision of the Internet would be decentralized in its construction, and quality would increase while prices fall.

Libertarians Against Cyber-Liberty

However, this does not seem to be a priority to many people, as most claim that we must regulate companies to solve problems that regulation created in the first place. To them, the only way to combat problems caused by the government is with an increase of government control in that area, the problems caused by this control need to be fixed by additional government control, and so on.

Unfortunately, it seems as though many libertarians, instead of sticking to their free market principles and trying to solve the problem that government regulation caused in the market of providing the Internet, are apathetic about this original regulation. It is almost as if these libertarians think that if the government was more involved in the market, then the market would be more free. This is not Internet-libertarianism, but Internet-communism. What else can one call the desire to redistribute bandwidth equally among all by the force of the state?

The Benefits of a Trump-Russia Conspiracy

One of the most prominent news stories of the early days of the Trump presidency is the alleged conspiracy between officials in the Trump administration and members of the Russian government to help him get elected. The allegations that Russian intelligence agents interfered in the 2016 election are not going away, despite a lack of clear evidence for such claims. Relationships between senior administration officials and Moscow have come under intensified scrutiny in recent weeks, following Trump’s firing of FBI Director James Comey, who was investigating such connections. But so far, what collusion is known to have occurred did not violate any laws.

As expected, the political and pundit classes are divided along ideological lines. Democrats and establishment Republicans are determined to find a scandal, while Trump supporters insist that this is a conspiracy theory and witch hunt. As usual, the sharpest argument on the issue is going unexplored by the chattering classes: that such a conspiracy, if it has occurred, would be beneficial. Therefore, let us consider the positive results that would occur if a conspiracy between Trump’s campaign and/or administration and the Russian government is proven, as well as the benefits of such collusion.

Un-Intelligence Agencies

If investigators find an improper connection between Trump and Russia, it will thoroughly discredit all of the US government’s intelligence agencies. A foreign power managing to successfully conspire with a presidential candidate in order to install someone who owes them favors at best and is their puppet at worst is exactly the kind of event that those agencies are supposed to prevent. A failure of that magnitude would signal that the leading positions in the US government are vulnerable not only to foreign interference, but to a hostile takeover by agents of a foreign government by means of a Manchurian candidate. Should this be the case, it would be clear for all to see that the government in general and the office of the Presidency in particular are too powerful.

To fail to prevent a declining second-rate power like Russia from altering the outcome of an election should finish off the American people’s trust in these agencies. Their trust has already been diminished by the revelations of Edward Snowden and the general failure of these agencies to do much besides entrap ‘terrorists’ of their own manufacturing, so such a spectacular failure might be the last straw. In a world where centralized statist means of security are increasingly ineffective and decentralized private alternatives are necessary, such a revelation could provide the impetus for a complete rethinking of the provision of security.

Preventing War

As the quote frequently misattributed to Lenin goes, “The best way to control the opposition is to lead it ourselves.” If Trump is compromised by Russian influence, as the conspiracy theorists claim, then war between the United States and Russia becomes pointless from a Russian perspective. Why engage in hostilities with a nation when one has influence over its leadership, but not enough influence to overcome the disparity in military capability? More progress can be made from their position by working with a friendly American president who is compromised by them.

In the world today, there is no greater potential threat to American and Russian citizens than a war between their governments, as each side has nuclear weapons and the great advantage that the United States enjoys in conventional military firepower would encourage Russia to escalate to a nuclear exchange. Of the two major presidential candidates, Clinton was the most bellicose toward Russia and its client state in Syria, and her interventionist position on the Syrian Civil War had great potential to bring American and Russian forces into direct conflict with each other. In the estimation of a competent Russian policymaker, it was in the best interest of Russian citizens (and everyone else, for that matter) for Russia to interfere in the US presidential election to help Trump win, especially by means that would create a sense of reciprocation once Trump is in office. Given the stakes involved, increasing cooperation between the United States and Russia is more important than the means used in so doing.

Delegitimizing The System

Those who hope for the accusations against Trump to be true may not appreciate the logical conclusions of the result they anticipate. If Donald Trump, why not anyone else? If the Presidency, why not any other office? If 2016, why not any other election year? Such a scandal would call into question the democratic process in the United States at every level. Senators, governors, mayors, county commissioners, and all of the rest would be at least as suspect, if not more so. Though such offices lack the power of the Presidency, the resources needed to infiltrate and commandeer such offices are far fewer. These offices could be used to accomplish particular foreign policy goals of Russia, China, or another rival power, such as hampering the construction of a military base in a particular state or blocking funding for anti-ICBM defense systems. Given the power that state and local governments have over the daily lives of citizens, a few solid plants in key positions could do significant damage.

If the process for selecting politicians is compromised, then the laws they pass and policies they enact are compromised a fortiori. The chaos injected into American political life by this realization is scarcely imaginable. Reams of legislation and regulation would need to be examined and possibly invalidated on the grounds that they were not properly ratified. Politicians and judges would be scrambling to figure out the correct precedent to set for dealing with such an event. Should they be in error (and they likely would be), their perceived legitimacy would be greatly diminished. Leaving dubiously passed laws and regulations in place would taint the perceived validity of the whole United States Code and federal regulations, while examining them all would take entirely too much time. The third option of eliminating many of these policies would provide a rare opportunity to repeal a large amount of burdensome legislation and regulation.

Additionally, all of the appointments the politicians have made would come into question, from department heads all the way up to Supreme Court justices. This would call all of their decisions into question as well. When someone points out that these politicians and judges have a conflict of interest because they themselves might be compromised by foreign influence, the American people might even get to witness a Mexican standoff of “Are You A Soviet Spy?” between government officials, which would be thoroughly entertaining, if nothing else.

Should Congress try to impeach Trump over a revelation that his election was compromised by Russia, it is likely that he would respond by declassifying and speaking about all of the underhanded means that they have used to bribe their way into their House and Senate seats, as well as any other scandals in which they might be involved. The American people would suddenly learn that the system is far more hopelessly corrupt than they ever imagined. Tu quoque may be a logical fallacy, but it has tremendous moral and emotional weight. If Trump went down, he could take many members of Congress with him when the 2018 midterm elections come.

Though everyone in the establishment would consider these events to be unthinkably dangerous, for libertarians this chain of events would be nothing short of glorious. Though it might endanger Americans in the short term to have such a government failure, it would provide an excellent opportunity for market actors to step in and provide more effective services. The loss of faith in democracy would allow for more libertarian forms of governance to be considered with less public hostility.

Conclusion

Regardless of the actual facts of the case, a conspiracy between the Trump campaign and the Russian government would be beneficial to Americans on multiple counts. The aftermath of such a revelation is impossible to predict, but no one could reasonably conclude that more statism is the answer. Thus, let us hope that the conspiracy theorists are correct. Such a sharp line of argumentation has gone completely unexplored by the establishment media, and one may speculate that this is due to a combination of their role as propagandists for the US government, a lack of insightful boldness, and the damning implications of such reasoning for the status quo political arrangement.

Strategy Against Antifa: 2nd Edition

Three months ago, I released a list of eighteen tactics that could be used to defeat the communist terror group known as Antifa. Several confrontations between Antifa and anti-communist activists have occurred since the list was published, and there are lessons to be learned from each case. Some of the suggestions in the list have been implemented to excellent effect, while others have gone unused. Predictably, those which involve private citizens tend to be in the former group while those that exclusively involve the state tend to be in the latter group. This should make clear that the deep state does not mind Antifa at best and is in league with them at worst. Ideas which were not on the list have also been responsible for success against Antifa. As any empirical hypothesis is subject to revision as a result of new theories and empirical evidence, let us do this now in order to create a second edition of strategy against Antifa.

1. Stop giving in to their demands. When a behavior is rewarded, those who engage in that behavior will do so more frequently, and other people will emulate that behavior in search of their own reward. Because public universities and other speaking venues continue to kowtow to pressure, it is necessary to take both action against them and counter-action to Antifa. The state has yet to make the funding of taxpayer-supported institutions contingent on defying efforts to silence speech in such venues, so direct action is required. Alumni of these universities and customers of other venues should announce boycotts in order to deny them funding directly. When official events are cancelled, unofficial events should be held anyway in the same place or a nearby place, which is already being done to excellent effect. Finally, if the far-left is going to attempt to silence anyone they perceive as being rightist, then the far-right should respond in kind against anyone they perceive to be leftist. After all, turnabout is fair play.

2. Fight fire with fire. When a behavior is punished, those who engage in that behavior will do so less frequently, and other people will avoid emulating that behavior for fear of being punished themselves. Where Antifa members continue to assault people and destroy property, it is because they face far too little defensive violence in response to their aggression. Fortunately, this has changed in many places. The rank-and-file police do not typically wish to stand down, but are ordered to in many cases because their commanders are sympathetic to Antifa. The bright side of this is that it has encouraged right-wing citizens to take to the streets in order to defend against Antifa themselves. The formation of the Fraternal Order of Alt-Knights (FOAK) is a sign of progress on this point. This will build confidence in people to be more self-reliant for their security needs rather than dependent on the state. As predicted in the first edition, Antifa members have shown themselves to be physically weak and lacking in combat experience, needing superior numbers or weapons to win a skirmish.

3. Stop discouraging defensive violence. The maintenance of liberty requires the ability to bring overwhelming defensive violence to bear against aggressors. While some people in libertarian and right-wing circles are still decrying the use of force against Antifa, the victory at Berkeley and the stalemates at Berkeley, Pikeville, Ky. and New Orleans show that defensive violence as well as the possibility thereof is an effective deterrent.

4. Hire private security. Since the sucker punch against Richard Spencer on January 20 in Washington, DC, most high-profile libertarian and right-wing personalities have hired private security to protect them at protests and other speaking engagements. Though this has not completely stopped Antifa from assaulting people, no personnel who have had bodyguards have been successfully attacked. This turn of events should continue.

5. Go after members of Antifa by going after their employers. This is a favorite tactic of Antifa in particular and social justice warriors in general. They will accuse a person of racism, sexism, or some other form of bigotry, often with no regard for merit, then contact their employers to get them in trouble. Their intention is to shame employers into firing their political rivals, or to disrupt businesses that refuse to bow to their pressure. Because they routinely do this to people, they have no right to complain when it is done to them. This could be a useful measure when Antifa members can be identified and are found to have employment rather than to be living on government handouts, though it has not had much success thus far.

6. Parody their websites and other online presences. The first edition recommended hacking Antifa’s websites and other online presences. This has been done to some extent, but a more effective measure has emerged. There are now many parody websites and accounts that falsely represent themselves as Antifa while actually mocking them. The most effective aspect of this is that it can be nearly impossible to distinguish fake Antifa from real Antifa, and this needs to be weaponized in furtherance of the next tactic.

7. Infiltrate Antifa to gather intelligence and spread misinformation within. This is standard procedure for government agencies in taking down a criminal organization. The extent to which such operations are underway, if at all, are not publicly known. This needs to be done so that Antifa’s efforts can be blunted and its key personalities arrested. Additionally, Antifa can be baited into actions which will make them look more foolish than they already are, get them arrested, or both.

8. Call them what they are: rioters and terrorists, not protesters. The establishment media frequently refers to Antifa as protesters, regardless of their conduct. As Confucius said, “The beginning of wisdom is to call things by their proper names.” We must hold the lying press to account and correct the record whenever and wherever possible. Antifa are not mere protesters; they are rioters and terrorists. A few establishment media personalities are beginning to come around on this point, but much more work is needed.

9. Remove and/or punish police commanders who give stand-down orders against Antifa. For the state to monopolize law and order within its territory is a travesty. For it to monopolize these services and then refuse to provide them is far worse. Anyone who is in command of police officers who are supposed to defend the public against Antifa’s crimes and tells those officers to stand down is not only in dereliction of duty, but is actively aiding the enemy. These administrators must be removed, and ideally, subjected to criminal charges as well. A small amount of progress has been made on the conduct of police commanders, but only out of necessity on the part of said commanders. For instance, the reason that Berkeley police started enforcing bans on masks after the April 15 battle is probably that the mayor, who has ties to Antifa, did not want to see another battle lost by Antifa. Thus, the situation was de-escalated by the Berkeley police. Other police departments in less leftist communities did not wish to see similar street battles in their communities and took similar measures. No police commanders, mayors, or other such officials have yet been removed or punished, and it is necessary to push for this to happen.

10. Declare Antifa a domestic terrorist organization. The simplest definition of terrorism that covers all instances of it is that it is the use of violence, threats, fear, and intimidation against innocent people for the purpose of achieving political or social goals. Antifa operates by these methods, has various local chapters throughout the United States, and is organized, so the label of domestic terrorist organization clearly fits. This would allow for federal funding to be allocated specifically for combating Antifa, as well as the involvement of the Department of Homeland Security, the Joint Terrorism Task Force, and other such agencies. The Trump administration’s lethargy in taking this step may be attributed to deep state influence or to an unwillingness to anger the left to the extent that such a measure would.

11. Unmask Antifa members. Where this has been done, the result has been a nearly complete shutdown of Antifa terrorism. Where this has not been done, their violence has continued. It is important that this be done everywhere. Although investigators in 4chan’s /pol/ community have successfully identified Antifa members even though they were masked, such work could be made unnecessary by strict enforcement of mask bans. Mask bans have resulted in Antifa members being arrested for refusing to either leave protests or remove their masks, and this has effectively disrupted some of their activities. Furthermore, any anti-communists who can lay hands upon masked Antifa members should pull off their masks, record their faces, and expose their identities.

12. Charge rioters with felonies. This has already happened to many rioters from the presidential inauguration, but felony rioting charges against Antifa and similar groups need to become more widespread. Lengthy prison terms and hefty fines will discourage people from involvement with Antifa while sidelining current activists and confiscating funds which would otherwise be used by Antifa. Ideally, such fines would be payable into a fund that would reimburse private property owners for damages caused by Antifa members. Little has been done on this point since the first edition, which is unfortunate because it would impose costs that would scare off the average misguided youth in Antifa.

13-15. Charge anyone who aids Antifa in any way, freeze their funds, and send illegal aliens involved with them to Guantanamo Bay. Because Antifa has yet to be declared a terrorist organization, there has necessarily been no implementation of these measures. These measures must therefore be tabled unless and until action occurs on tactic #10.

16. Eliminate gun-free zones. The vast majority of Antifa activity has occurred in gun-free zones or places in which carrying rights are restricted to some degree. By eliminating gun-free zones, the state can ensure that more citizens are capable of defending themselves from aggressors like Antifa. This will also lessen the burden on government security forces. The peaceful nature of the demonstrations in Pikeville on April 29 showed the importance of this measure. The police presence between the two was credited for this in the establishment media, but the real reason for peace was that both Antifa and the alt-right showed up with firearms, resulting in peace through mutually assured destruction. Like most measures involving the state, almost no progress has been made on this front.

17. Privatize public property. An underlying problem of which the surge in left-wing political violence is a symptom is the existence of state-occupied property. No one truly owns such property because no person exercises exclusive control over it. This leaves it open not only to use by groups of people who are at cross purposes with each other, but to an occupation by one group for the purpose of denying access to another group. If all property were privately owned, then it would be clear that whenever Antifa attempt to shut down a venue by occupying the premises, they are trespassing. This would make physically removing them a less ambiguous matter. This is unlikely to occur in the near future, but many problems would be solved if it did.

18. Find more support staff. No group of warriors can succeed without support staff backing them up. There are networks of attorneys to help Antifa with their legal troubles, medics to tend to their injuries at rallies, volunteers and paid activists who harass employers and speaking venues. Anti-communists are currently at a disadvantage in all of these categories. It is thus necessary to organize and recruit people to fill these roles in order to support activists in the field and undo the damage done by those who threaten employers and speaking venues on behalf of Antifa.

19. Get more funding. Everything that is worth doing in the world requires capital, even for enemies of liberty who reject capitalism. Antifa has funding from wealthy donors who support their causes, along with grassroots crowdfunding. Anti-communist efforts are relatively weak in this department, so it is necessary to both increase crowdfunding efforts and seek out libertarian and/or right-wing billionaire patrons who can see the danger that communist rioters pose to their well-being.

20. Above all, stop trying to be better than the enemy and focus on defeating the enemy. There is no need to alter strategy, virtue signal, or make any other effort to be better than Antifa. That they are violent criminals and we seek to defend against them means that we already are better than them. Let us do what is necessary to defeat Antifa, as detailed in the previous measures, and leave worries about improving ourselves until after this is done. Remember, this is a war, and in war, nothing is more honorable than victory.

Book Review: Come And Take It

Come And Take It is a book about 3D printing of firearms and the implications thereof by American entrepreneur Cody Wilson. The book details Wilson’s experiences over nine months in 2012-13 when he decided to leave law school and figure out how to use a 3D printer to make a functional plastic handgun. It also conveys his thoughts on political events of the time, such as the re-election of President Barack Obama and the Sandy Hook school shooting.

The story of Wilson’s entrepreneurship is not so different from many others; he must decide whether to make his venture be for-profit or non-profit, decide whether to work for the state or the people, figure out how and where to get funding for his operations, find the right people to work with, wrestle with the impulse to continue his schooling versus working on his entrepreneurial idea, and deal with legal challenges and roadblocks thrown his way by established interests. What sets it apart is the unique nature of his work.

Wilson’s story takes some interesting turns, such as trips to Europe and California where he meets with everyone from left-wing anarchists in the Occupy movement to a club of neoreactionaries led by Mencius Moldbug. This shows that the project to allow everyone to be armed regardless of government laws on the matter changes the political calculus across the entire spectrum, thus making him a person of interest to people of a wide range of political views.

The book is a valiant effort in creative writing and storytelling, but its subtitle of “The Gun Printer’s Guide to Thinking Free” is rather misplaced. It is not so much a guide for someone else to follow as an example which future entrepreneurs may study in order to adapt proper elements thereof for their own projects. The technical details that one might hope for in such a book are only partially present, though we may fault the US Department of State for that, as Wilson tried to include details of the production procedure for his plastic handgun but was forced to redact the material with large black blocks in the final chapter.

In a strange way, the book feels both long and short. Though it is just over 300 pages, it takes much less time to read than most books of that size. Come And Take It offers an interesting look into the mind and experiences of a true game-changer in the world of technology and self-defense, though the reader who is looking for thorough details on 3D printed weapons or a general manifesto on liberty must look elsewhere.

Rating: 3.5/5