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1.) The second chapter in 'Money Dethroned - A Journey through Ashes' details the monetary system introduced by John Law to France. It's highly relevant both when it comes to our failing fiat currencies and to #Bitcoin. It's about tinkerlust.

10.) Read more about the conclusion of Law's monetary tinkering in the book. When an economy is in trouble, the central planners always make things worse, tinkering with the money, and can from such an all-reaching vehicle unleash further destruction.

3.) France's millenia old silver coin system was in practice abolished and replaced with silver backed paper. The backing initially stood at 25% silver, but deteriorated later. The other 75% consisted of failing government bonds, booked at nominal value.

5.) Propaganda was readily available, promising riches for settlers. Hardships were underestimated, as is evident in writings by one such settler:

7.) Very quickly did an already despotic France devolve into harsher authoritarianism, where any gold and silver within the State's reach were confiscated in one sad way or another. Informants were employed excessively.

6.) So when enough silver from Louisiana never materialized, while Company investors moved to sell insanely valued shares for paper and convert it to the silver it represented, Law realized that he had to defend his new monetary system at any cost.

9.) Law's paper money, celebrated by all initially, had by over issuance abused holders. Prices increased, resulting in strict price laws. Honest bakers are recorded as being fined and publicly humiliated after selling bread above the cost of production.

It's like he made a bad fork of The Art of War: "Always give your enemies a heads up"

4.) Law's paper money was first a success, trading at a premium. Meanwhile, Law took over the burdensome West India Company, and drafted plans to merge it and his new Bank to boost future silver reserves. Convicts and prostitutes were married and sent west

If this is Q-Anon, I don't even want to know what a C-Anon is:

2.) France had been through wars, and so had amassed large debts. Under such conditions, a monetary system is ripe for capture and tinkering by economically illiterate vultures, such as Kelton and her MMT disciples. John Law was such a vulture.

8.) No threats and tinkering could increase the specie reserves at the Bank enough. The State's crimes caused people to revolt and illegally distribute revolutionary posters in the thousands. One, likely referring to a massacre of Protestants in 1572, read

Gandalf, in a letter to Sauron:

"You will see the attack soon. The play is made. It's a Mountain of work, but will spell your Doom."

11.) Read more in the book. You will never want to entrust monetary management to the State again.

https://www.amazon.com/Money-Dethroned-Journey-through-Ashes-ebook/dp/B08R3ZJQ1K/

6.) Weakened by systemic inflation, both the Jin and the Song fell to the Mongols, who took to money printing with fervor after converting the native notes to their own at 50:1.

10.) After a death toll in the millions, and after putting an end to the Heavenly Kingdom's anti-demon policies of burning women alive, the paper money fell in disuse.

Paper inflation would soon return to China, because it is a cycle which never ends.

3.) After the Tang dynasty mismanaged its economy by banning silk money and embracing paper, it was succeeded by many smaller states consolidating into the Song dynasty. Free market policies ushered an Industrial Revolution, 700 years before Europe.

8.) These Ming notes hyperinflated as well. By 1400, depreciation stood at 97%, and then 99.7%. So much for the supposed superiority of the State's death threat notes.

Between 1500 and 1800, the Chinese seems mostly to have kept away from paper money.

2.) These 'paper money' scams may be said to have been born under the Qin book burner and authoritarian Shih Huang Ti. The emperor slaughtered his innocent and rare white stag for the purpose of leather note money production.

7.) When the Ming threw off the Mongol yoke, they did it with the help of their own paper. On some Ming notes, death threats were inscribed to bring terror to anyone daring to value them less than the copper coins they nominally represented.

5.) By 1107, one type of Song note traded at 90% discount. When that one was replaced, the new one soon traded at a 90% discount as well. When war with the Jin in the north commenced, the paper currencies of both nations imploded.

9.) When the Taiping Rebellion broke out in the 1850's, the Chinese State deemed it necessary to vigorously take to paper again. It waged Total War against the theocratic Heavenly Kingdom's Hong Xiuquan, a self-proclaimed younger brother of Jesus Christ.

1.) The first chapter of 'Money Dethroned - A Journey through Ashes', details the many Chinese attempts at paper money. They all failed.

4.) That came to an end with inflationist Wang Anshi (still celebrated by the Chinese Communist Party). Wang embraced paper and cut redeemability, resulting in the first ever recorded hyperinflation. Jurchen steppe tribes could conquer most of the realm.

There is a race going on between capital production and capital consumption. Which way, economic man?

Civilization, or the Long Unmaking.

Imagine a large number of channels frozen, their balances never to become liquid again. Or large scale theft due to LN contract bugs (see hacked DeFi/DAO contracts).

The anti-ASIC stance is futile as well, what is the alternative? Benevolent central planning of anti-ASIC forks every 6 months, while hoping the planners have no prior hidden investments in whatever technical specs are chosen?

Oof, some to unpack here. The potential disastrous pitfall of LN is not any credit-nature, since the contracts are "trustless". No, it is a systemic risk of widespread failure due to software bugs in an adversarial environment.

3.) I am proud to release the book in 2020 - a year that made it abundantly clear the central planners of currencies worldwide don't know what they are doing, and in which the looming shadow of systemic currency failures has grown for each passing day.

2.) It's part of the series on historical monies, yet can be read as standalone. The reader meets not dry recounts of history, but delves into firsthand accounts of long gone writers resisting the monetary tinkering and subsequent implosions of those days.