From: "Roger Voss" 
Subject: SNET: FW: Y2K problem -- prelude to "new hyper-fiat money" system
Date: 4 Mar 1998 15:38:28 -0500
To: "SNETNEWS" 


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A couple of the attachments are thoughts by Ed Yourdon on the looming Y2K
issue. It would be great to see an Ed Yourdon article on Gold-Eagle. Perhaps
he would write one for you.

I've become convinced that this is the one issue that all the gold
commentators and analyst need to factor into their prognosis of future
trends (gold and otherwise).

I also see the current interplay between Clinton and Congress over the
proposed scrapping and replacement of the federal income tax code (the
morning headlines in the business section of my newspaper) with a totally
new system as being an evidence of the Y2K issue surfacing.

Congress has been briefed on Y2K with regard to the dire circumstances it
holds for most of the major federal agencies. This is especially so for the
IRS being the revenue raiser for the government. It is the most high profile
agency with respect to the Y2K issue (next probably comes the various
defense departments and their various critical weapons systems for our
national defense). Beyond national defense considerations comes all the rest
of the federal agencies that implement our massive socialist welfare state
disbursement system.

I believe that Congress is thus trying to do the responsible thing. That is,
they realize that the IRS Y2K problems are, pragmatically speaking,
unfixable at this late juncture. Therefore they are now suddenly embracing
these previously "fringe right-wing proposals" to scrap the current
IRS-centric tax code and replace it with either a flat tax or a national
sales tax -- nicely side-stepping the Y2K problem (well, at least with
regard to the matter of revenue collection). They are going about this in a
way so as not to raise the association in the public and media's mind to the
looming IRS Y2K problem. The last thing those that live off of government
largess (the skimming and shake down of tax payers) would want to do is set
off any panic by being too public about the dire emergency of Y2K -- nor
would they want tax payers to get the idea they can engage in massive
non-compliance come year 2000.

Now what is Clinton's perspective on this? The last thing he wants is for
the government to take such a responsible step. Clinton's interest is to see
maximum societal chaos result from the Y2K issue. (No one will be able to
blame him for being the cause of the problem -- he'll just happen to be the
president that was on watch when this disaster strikes our civilization.) He
is the sitting president. He wields the unconstitutional War Powers
executive order privilege that FDR bluffed out of Congress in '33. He can
declare a national emergency for any reason as a result of the 1933
amendments made to the previous 1917 Trading With the Enemy Act. And he has
the federal agency FEMA and a host of executive orders that have been
established for the event of dealing with a national emergency that will
enable him to establish a "Clintonian dictatorship". Forget about a
presidential election being held in Nov. 2000. He would probably even go so
far as to suspend Congress from meeting. And of course -- no more Mr.
Kenneth Starr and scandal investigations! All flushed away by the hand wave
of a megalomaniac man that will effectively have become a dictator by what
to him is happy circumstance. (You have to admit that Clinton does enjoy a
rather devilish never ending run of luck.)

Also, in my own item posted on Gold-Eagle editorials, "Some Thoughts on the
War on Gold", I made a notable point about how the obliteration of physical
cash will be the next major financial innovation we see coming from the
Federal Reserve banking cartel cabal. Y2K is definitely a situation that
will be able to trigger the financial crisis that will provide the pretext
to accomplish this. I expect the MasterCard/Visa SET Mark (Secure Electronic
Transfer) standard -- as implemented on smartcards, internet commerce, etc.
-- will be what replaces our current federal reserve note fiat money system
(the exchange of an out-moded fiat money system for a more modern hyper-fiat
money system). The major cartel banks will be ready to handle the SET Mark
smartcard money system. Smaller banks that have become sunk due to the Y2K
situation will be absorbed (and their customers will be gratefully rescued).
The financial system of civilization will become massively centralized even
by comparison to what exist now. It may even reach a level of uniformity
across the globe. (Consider the absorption of Asian banking interest that
has taken place during the Asian financial crisis -- the consolidation is
well underway already. Some of the banks doing the absorbing had
representatives present at the creation of the Federal Reserve banking
cartel scheme on Jekyll Island way back in 1913.).

At first there will be a trickle of the people in the know about Y2K that
begin pulling their money out of banks. Then in 1999 the public at large
will start to get spooked, triggering the herd to make a run on the banks.
The government will swiftly step in and declare a bank holiday ala March
1933 to halt the bank runs. (Of course the fact that there is very little
physical cash to cover all the fiat money that exist is an automatic
limiting factor on how much of a bank run can be sustained. If there is no
more cash money to give customers then that's that.)

Coming out the other side of the bank holiday we are going to have to reopen
bank accounts based on the SET Mark smartcard money system and we'll all be
required to accept and have on us at all times a national ID card (it may
not be at first, but eventually the money smartcard and the national ID
smartcard will be merged into a single universal purpose smartcard). We will
not be able to get a job without this ID card. The federal legislation for
this was sneaked in as part of immigration reform legislation in 1996. Pilot
programs are already underway with some employers where they are using
special federal govt. issued scanners to verify SSNs of prospective new
employees against a centralized databank national identification system
(refer to "On the Day I Die" attachment).

Now you understand what the MasterCard advertising slogan "the future of
money" really means. They are referring to their SET Mark standards for a
completely digital money system. The "Mark" refers to the branding insignia
that every SET Mark compliant entity must visibly bear. If your web site
accepts SET Mark transactions then you must display the SET Mark, which will
indicate to the public that you are SET compliant. Used to in the software
industry these were called branding logos, insignias, icons, etc. MasterCard
is the first one to come along and refer to this type of standards symbol by
the very peculiar terminology of "Mark". When SET Mark eventually replaces
the current FRN money system, you won't be able to buy or sell without the
"Mark".

Scan the web page at http://www-stl.mastercard.com/set/timeline2.html to get
an idea of how globally universal this form (SET) of money is going to be.
In other words, its deployment in other countries is happening faster than
in the US.

This SET 1.0 announcement press release uses the term "SET Mark".
MasterCard's current web page on SET now uses the term "Shop Smart! decal"
instead of "SET Mark". Evidently they wised up and realized the dark
connotations the term "SET Mark" holds for many people.
http://www-stl.mastercard.com/press/970602a.html

In short, the Y2K issue will be an agent and a pretext to herald in a truly
Big Brother totalitarian society where we will be reduced to utter abject
slavery. But that is always the end goal of abandoning the gold standard.
The Roman emperors of a millennium and half ago were no different in their
aims when debasing the Roman money system. Human nature is the only constant
across time.

Cheers,
RogerV
email:rogerv@sttl.uswest.net

P.S. The only remaining issue about the SET Mark smartcard is whether its
cryptographic authentication approach will be the primitive PIN approach
that current magnetic stripe ATM and debit cards use, or whether it will use
some sort of biometric authentication. In my opinion, the injectable glass
encapsulated RF transponder chip would be the most robust, trouble free, and
cheapest system on a mass scale. You're probably familiar with these as
they've been in use for about a decade for tagging livestock and pets. If
they go with injectable RF transponder tagging approach then the SET Mark
will take on a very literal connotation. The question is: how many of us are
going to be willing to line up to accept our "Mark" in order to participate
in this new money system? Most people probably will meekly submit. No doubt
there will also be dissenters. We'll probably see rules of engagement
against these dissenters that will make the Randy Weaver episode look like a
Sunday afternoon picnic by comparison -- because as far as the regime is
concerned these people aren't going to be just mere political dissenters,
but rogue outlaws that are defying and menacing the state (or the "greater
public good").



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