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Criminalization of Cash?

Just a thought… Could cash ever become criminal?  I read an article this a few days ago and it’s not a ludicrous question.

Money has dramatically changed in my lifetime.  Many of us keep some cash in our pockets but most of our money is “out there” in some form or another in a digital world.  Do you really even know how it all works or how it is tracked? Sure you get a statement each month but so what – Bernie Madoff’s clients had statements and Jon Corzine said he didn’t lose a billion and a half bucks – he can’t find it.

In 2010 Italy banned cash transactions over 5000 euros in the name of austerity.

In 2011 Italy lowered that to 1000 euros.

In 2012 Spain banned cash payments in excess of 200 euros.

On another side, big exchanges of money such as purchasing a home or payroll are handled by direct bank to bank transfers and direct deposits.  Even micro payments are now handled digitally with things such as Square.  Paypal is now commonplace – I remember not too long ago when even this was weird – even people who used it sometimes wondered how your email could tie to your credit card or bank then magically money would move.

The next widely accepted step even beyond Square is surely is payment via cell phone – go to the store, bump your phone, payment happens, digits move.  This is all convenient but who would have an interest in being able to track every single financial transaction in your life?  Who out there would like to control this?  The answer of course is governments.   People are sovereign beings – that is they are responsible for their own governance at the individual level.  More often than not the one thing in the way of individual sovereignty is government.  Governments want to look at the world as a collective and their objectives are to try to manage overall society.  This is fine until it becomes more important than the individual where it becomes OK to steal from one individual to give to another without the consent of the first.

This doesn’t square well if you are an individual, especially if you are an individual who has the gall to believe that you are first and foremost in charge of your own governance. So what does the everlasting discussion between individual and government have to do with cash?  Given that our governments are led by people who create more problems than they solve (then campaign to get re-elected to solve the problems they created….) and need you cooperation in order to accomplish whatever it is they want to accomplish, it’s not out of the question that one day cash transactions would be illegal because cash (cold hard cash) is the last tool that allows the individual his/her own sovereignty.

Individuals are going to have to start strategizing for a future reality.  What do you do?  Where do you live? Passports?  Proxies?  It’s already started – thanks to overbearing laws, regulations, and outright theft by governments, people are looking at the world and looking for intelligent ways to deal with this.  Even back in 2009 Tim Ferris had a blog post on “How to Become Jason Bourne” and there are many sites on how to manage a world where government is too big for it’s britches.

In a world where everything is online and going online and where everything is tracked down to the I.P. address and beyond in order to discern patterns, is it that ridiculous of a premise to say that one day money will not be outlawed by cash money would be?  What would happen if that happens?  Could it evolve a private currency among like-minded individuals on a local level (your immediate community)?  Would there possibly be a private form of currency between individuals on a national or international level?  A million things I never thought would happen in my lifetime have happened just in the past five years and boldly – who can say what solutions will present themselves to sovereign individuals down the road.

Governments the world over print money and we throw around the terms millions, billions, and trillions now almost interchangeably – people become numb to it and corruption happens right in front of your eyes.  Taxpayers are bailing out governments who in turn bail out taxpayers who in turn pay taxes to send back to governments who then bailout companies and on and on.  For example, American taxpayers bail out the bankrupt FHA which in turn set rules on lending to the same taxpayers that just bailed it out.  What is happening from Greece to Italy to Spain, to Portugal to Germany to the USA and a host of countries in between is the lenders and the borrowers have become the same people.

That can’t last – at some point the volleyball hits the sand and when governments go into existential crises they do (and will do) whatever they have to in the name of self preservation.  So in an age when you don’t actually need cash to pay for something,  the last step a government can take in completely having control over an individual is to criminalize cash (in the name of convenience, obscurity, or some other innocuous stated purpose).  Fiat currencies are losing the faith of the holder and at some point we’re going to have to actually make fiat currency solid again.  And even though we might not “need” hard cash, a world without that tool of exchange would not be good.

Here’s a scene from the future if cash is criminalized  - Let’s say you’re a “problem” citizen who still thinks individual rights hold substantial weight –  On Monday you have money in the bank and on Tuesday with the push of a far away button you don’t.

Why I Deleted My Facebook Data


I have to admit that Facebook is a pretty cool platform – you can connect with your old friends far away, see families grow, get funny jokes passed around, and see real time photos of what’s going on in the lives of your friends and family. That’s all nice but I’m not Facebook’s customer, the businesses that Facebook sells advertising to are their customers.  I don’t pay to use Facebook, if I did I would be the customer.  Instead what Facebook is depending on is the egos of their users to voluntarily pony up the almost complete database of their lives. For me “Timeline” was the final blow.

I only use Facebook as an entertaining tool to keep in touch with my close friends and family – if I don’t know you or if we were sort of acquaintances back in high school I don’t make the connection.  The settings are private, it’s not pushed to search engines, and I don’t connect there with anyone I don’t know well.   LinkedIn is a different story – I use LinkedIn as a business tool and am connected to over 1000 people there – but that’s totally different not only because I pay LinkedIn, but also because it’s an effective business tool that provides real value.

Since I’m only dealing with family and friends on Facebook do I really need to tell them what college I went to or what are my favorite books, or indicate my “likes” – they know me, they generally know my likes without me have to actually “like” it.  I generally know theirs.  We’re friends after all.  This is key because Facebook per se doesn’t care what my “likes” are, they care that their advertisers know what my “likes” are as well as what the “likes” of the network of my family and friends.

But really the finally straw for me was the map that Facebook instantly produced based on past “check-ins” I did (there were 12 of them).   This map showed every single place where I checked in on a full map of the world.  Sorry Facebook – I am not interested in the least in this feature.  Why would I be?  Here I was and with a detailed map showing where I was and a timestamp of exactly when I was there.  I had to asked myself whose for exactly whose benefit was this information?  I mean – I know where I was and I know who I was with –  but to have these steps captured and published on a map was simply a bridge to far.

Of course I fully understand I have full control of this simply by not “checking in” and so going forward I see no value in me actually checking in anywhere – if I’m there, I’m there, and I’m not really interested in feeding this information any longer to Facebook.

I did not delete my account but I did delete all of my basic data to “devolve” the profile.  I removed schools, work, quotes, books, and photos (I run a photo travelogue on WordPress where I publish anything I want anyway, if somebody wants to see them they can go there).  It’s all gone except for the raw minimum needed to maintain a Facebook account – name, birthday, and email address.  If Facebook’s advertisers would like to know about me, they can visit me on my homepage.

I wonder if I’m not the only one?  Check out this NYT article published today as well.

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Why is Greater than How or What

My whole life I’ve always been more concerned with the personal or business mission at hand rather than the tools used to get it done. There are a lot of ways to accomplish a goal but it’s far more important to understand WHY you’re going for it in the first place.

For example, in the late eighties while bored one day in college, I scribbled on a piece of paper the then population of the world (it was about 5 billion). Then I wrote down the population of the USA (then about 250 million). I divided one into the other and came up with 5%. I had an immediate realization in my late teens that 95% of everything that happens happens someplace else. That may sound funny today in our highly interconnected world, but in 1988 on the shores of Lake Erie that was a fairly big realization for a teen whose world generally went maybe 30 miles in any direction. In that time there was no global news, no web, no social media, and certainly no phone calls in multiple time zones each day. It was just three main channels on TV and news at six and eleven.

It was at that moment sitting in Buffalo, NY without ever having traveled overseas that I decided to make it my life’s professional focus to get involved in international business. That realization became my “Why” and since then everything I’ve done has orbited that rationale. A year later I was living in Rome, Italy – a decision that changed my life forever for the good.

In that vein, here is a really excellent video I recently discovered from Simon Sinek that takes a great shot at explaining what differentiates successful people or companies from all the rest. It’s an idea so simple that at first you’ll say to yourself “anyone could come up with that” – but as you’ll see and recognize, the most influential people and companies in the world own that space not because of What they do, or How they do it, but precisely Why they do it. It is the “Why” that makes you leap higher and farther. It is the “Why” that is the core energy that propels you to reach farther, motivate, inspire, and influence others, and otherwise write a much bigger story that what you do or how you do it. People don’t follow you because of what you do, they follow you because of why you do it, the underlying reason and message. They do it for themselves.

Pay particular attention to the last two minutes which really nails it.

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Experiencing Music as a Musician, Part 5

I like a lot of different styles of music but there is something across different types of music that always wins me over and that’s music that is “dense”. Dense music would be music that has several different layers of different things going on at the same time.  You can come across this I think mostly in rock and jazz.  I’d like to give three examples of what I mean from three completely different styles of music.

Rush – Secret Touch

For some I can completely understand where this might seem like just a wall of noise, but that’s just it – it IS a wall of noise and it’s organized chaos. It’s amazing that three guys can write and play music like this. From the bluesy groove at the beginning it launches off a cliff straight into 4th gear with the 1-2, 1-2-1-2, 1-2-1-2, 1-2-1,2,3,4 – 1,2,3,4 push. Then to be able to melodically sing over this sort of playing is a superhuman feat. At 3:27 the song breaks into the mid-part to 3:55 and then at 4:09 it grooves on a guitar run over a punch bass and kick drum all over 4/4. Listen for the guitar playing the melody over all of this. At 6:23 it starts the trippy groove to the outro and fade. This is what I mean about “dense” – all this stuff is going on at the same time and overlapping into a single piece. Dissect it and you have pieces, blend it and you have a piece of work. It’s like cooking – you add in all the ingredients and layer them in – same thing happens in some kinds of music. Just kick back and let’s this performance take you for a ride.

Now check this one out….

Incognito – Expresso Madureira

Just a funky funky groove cover of the Banda Black Rio track. It’s starts of with a fat guitar chord progression and solid 4/4 kick beat and immediately layers in the horn section. Listen to all the elements separately if you can isolate them with your year. Focus on just the hi-hat for instance, or the keys, or just the bass groove. Then around 2:10 hear how they punch the horns with the kick drum. At 2:32 the band settles into a slick groove where they feature the keyboard solo but the bass and drummer also take short pops at solos underneath the keyboard player who’s going off. The band build this section to a crescendo and releases the tension at 3:55 (check out the drum fills here). Then at 4:30 the trombone takes over and brings the song to full party scale. There are reasons why music makes you feel the way you feel – whether it’s a groove, or major 7th versus a 9th – you don’t even have to know what those are to understand that changing one small thing changes the whole palette of the song – and you’re reaction to it. Bands work on this stuff for live gigs because it makes a difference. If you know how to do it you can take an audience for a ride.

And finally…

Pat Metheny – Third Wind

This piece is really a three-part tune stung together. For any Metheny fan this is a classic from one of the most defining periods of time from the group. If you listen to the piece you’ll hear the first part sets the tone with a Brasilian infused back beat and the main hook melody that builds up to the soaring guitar lick at 1:50 and the band doesn’t miss a beat. From there check out how the solo goes blues over the piano comping. The band takes it to 3:25 where they break it down to what sounds like a afro-brasilian tribal thing – it’s got a little trance like groove happening where then the whole band takes turns throwing in their individual little bits – beats, melodies, color, texture – it’s all in there. At 5:20 the set the stage for part 3 with a hook that almost sounds like it’s telling you a story. At 5:51 it transitions to the final section.

Check out the underlying beat holding it all together. At around 6:13 the guitar comes back in with the theme that the rest of the band responds to. When I say “dense” this is a great example of dense music – there are about 5 different things going on in here at this point between rhythm and lead. At 7:22 it takes off into the phenomenal (again) organized chaos that it addictive if you’re a performing musician. The freedom to freestyle jam in the middle of a tune like this while keeping it all moving forward is one of the coolest places to be as a musician.

By the end of this song I dare you to not be able to hum the final hook for the rest of the day.

If you want to enjoy parts 1-4 of this theme – visit this link.

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Misdirected Arrows

Having just seen last year all of the occupy demonstrations, my wish for the new year is that more people worldwide, and especially in the USA, will realize that the economic problems we are seeing in the world stem not from Capitalism but from Government and government intervention in what should be free markets.

While I get the beef the occupiers have, I have it too (anger at crony business for example), but so many people have their anger focused on the wrong place.  It is ignorance in the most caring sense of the word.

The occupy crowd (and the population in general) should not be upset at Capitalism or at the too easily contrived “fat cats”, they should go to the source of the problem which is Government.

Markets naturally self-regulate.  Why?  Because Buyers and Suppliers of anything have to both agree before any product or service can be bought or sold.  If one or the other cheats, lies, or otherwise doesn’t offer value they will naturally be eliminated or otherwise ignored.   The good and the bad word gets out.

The minute an outside party to the transaction gets involved and alters the relationship (screws with the free market) it is no longer a free market but a manipulated market.  Look around – do you not see Government intervention and manipulation in markets almost everywhere?  Housing, Health Care, Food, Labor, Stocks, Banking and on and on.

Look at the United States – we have a Constitution, a founding document of the nation that sets forth not what the Federal Government can do but rather what it cannot do.  This is somewhat unique to the USA and what has up until now set the USA apart from the rest of the world by levels of degrees when it comes to economic productivity.  The first job of the government is to protect your liberty, life, and property rights, and the first job of the President is to defend the Constitution.  We have a Congress that passes laws that regularly interfere  with your liberty and property rights and a current President that routinely tramples on the Constitution.

The problems we’re seeing in the USA and in many parts of the world are not stemming from Capitalism – on the contrary – its the lack of Capitalism that is pushing everything down.  When Capitalism flows freely the markets would take care of themselves.  If Government would get out of the way of interfering in markets so many of the nations economic issues would naturally resolve themselves.  Resolving economic issues leads to resolving many social issues.

Do you really need a far-away Federal bureaucrat deciding for you what you should buy, when, and for how much?  If you support this sort of a world, maybe there are a few countries for you where you could relocate, but the Constitution in the United States lays out the terms and conditions of the country.  It is clear that many people also confuse the role of the Federal government with the role of the States (ex. Dept of Education).  So many people lose their minds when you say we should get rid of the Federal Dept of Education – but think about it, what business does the government have being in the business of educating children?  That is not a role of the Federal government.  (As a side note, if you think about it again, you’ll realize why the Federal government like to have a hand in education.)

So while nobody like crony capitalism (hardly a free marketplace either), the occupy Wall Street Crowd and most Liberal Democrat voters have their arrows and frustrations pointed in the wrong place.  They should really take a clearer look at from where these problems stem and if they want to occupy something they ought to direct their energy at voting out people in the Federal government that are creating the policies.   The Federal government is the entity creating the problems then coming forth with “solutions” for the problems they create.  Enough – just vote out the wrong people and do your best to vote in the right people.  When you elect people like Barney Frank, Chris Dodd, Chuck Schumer, Harry Reid, Dick Durbin, Barack Obama, and the like, you get what we have now.  I’ll even throw in George W. Bush because he too abandoned free market principle as she said “to save the free market“.

So in this theme, spend 15 minutes checking out the above insightful video from Peter Schiff who went down to one of the occupy protests to see if he could have a dialogue with the people there.  You can see in the video that the crowd wants to just spout out quick slogans or blame zillionaires for making too much money, but Schiff sympathizes with them, calmly shoots straight with them, and shows them that their anger really needs to be put squarely on Washington DC and the politicians who create policies that do not let markets self regulate.  He is fair in his analysis and I hope here in 2012, in what is easily the most critical election year of your lifetime, more people everywhere understand that free Capitalism is the solution, not more Government.

Remember that at least in the USA the government governs at the consent of the governed.  How many Americans no longer consent to the current state of the Federal government and will vote out the wrong people this year?

Video from Reason.tv

Return to Rome, Day 3 Final Day

Now over jet lag I there was something I really wanted to do this morning and that was to get up super early and see Rome before the city really woke up – and it was Sunday which made it even extra quiet. At 6:15 am I was the first one in the hotel breakfast bar with the daily cornetto e caffe’ and the morning paper. I had time to think about where I wanted to go first and decided to get over to the Castello Sant’Angelo when it first opened.

On the way over there by foot you get to pass all the cafes that are starting to open up and you only hear the church bells overhead, the hushed voices from the street and the sound of all of the cucchiaini (little espresso spoons) stirring the shots in the tazzine.  I had a few hours before the Castello even opened so I walked down passed Piazza Cavour, crossed the Tiber and made my way down Via di Panico toward the Pantheon.  I wanted to go back and check out the famous Cafe di San Eustachio.  I practically had Rome to myself for two hours that morning – when I arrived to the Piazza del Pantheon was completely empty except for a couple of pigeons and some garbage men.  It must be odd to be a garbage man in Rome because it’s like working in a living museum – I bet they don’t even look twice anymore.  I hope I’m wrong because these garbage men have the best route in the world if you think about it.

Noodling my way through the backstreets of this are back over toward the Tiber to cross the bridge in front of Castello Sant’ Angelo. When I arrived I made my way straight to the top terrace.  Amazingly no one else came up there for 30 minutes and it was only me on the top terrace of the Castello with a 360 degree view of Rome spread out before me.  On this trip I was interested in collecting a few very specific views of the city that I had never had before to see if I could take in the lay of the land from a new perspective.  I will say that this terrace is a must-visit terrace for anyone going to Rome because it perfectly lays out how St. Peter’s is positioned sort of perpendicularly to the rest of the city.

I spent about 40 minutes up on the roof of the Castello before coming back down at about 10am and making my way back to the hotel.  I was fried.  I had been going non stop for two days on foot in Rome and realized after being up a 6am and crossing Rome again on foot before 10am that I needed to catch at least 2 more hours of sleep.  On the way back the city was now much more alive (even though there was a lazy aire about the place).  I stopped off at a small bar in Piazza Cavour for a Prosciutto Schiacciata sandwich that was the best you could ever imagine.  Schiacciata means “flattened” and this is a classic stand-up food in Italy.  Here’s the difference between eating a sandwich in the USA and one in Italy.  In the USA people want to cram as much stuff into the sandwich as possible – ham, turkey, cheese, roast beef, olives, peppers, and on and on….  In Italy they zero in on the one main ingredient of the sandwich whatever it is (in this case prosciutto) and you dive into it and really taste THE ingredient your supposed to taste instead of a mish-mash of 7 or 8 things.  In Italy food is really and truly about essence.  It’s zen.

While sitting at the bar a couple of guys came in for un caffe’.  It’s amazing to watch this simple act of walking into a bar and making the smallest of coffees last long enough to have a meaningful conversation.  It’s like watching a ritual – walk up to the bar, order the shots, turn the cup, stir in the sugar, swirl it around, kick it back, talk.  Repeat until coffee is gone and you lick out the stained sugar crystal and head out the door.

After a much needed two hour power nap and a fresh shower I was juiced for the rest of the day.  This afternoon I wanted to go hit up the top of the Monumento Nazionale a Vittorio Emanuele II.  Not that I really cared about the monument because generally speaking I could care less about these sort of things – what I was after was the view from the top which in 20 years I don’t think has been accessible.  The city of Rome had apparently changed this because I saw people the day before strolling on top of it.  Heading back through Piazza di Popolo I stopped off at the Police and Military exposition that took over the whole piazza.  All of these different modes of Italian law enforcement transportation were on display from an old Fiat 500 to a helicopter to a what else? …  a police Lamborghini.  I mean come on – imagine you’re speeding down the Italian highway and you’re pulled over by a cop driving a Lamborghini, that’s not even a fair fight.  Only in Italy would they even dream of painting up a Lamborghini as a cop car, and it was real (and the seemingly big hit of the open air expo).

Today was the hottest of the three days and there is a trick in Italy when walking in the city that holds in the heat – just find a church and go inside for a few minutes.  Churches are always chilled and have an odd quality of air in them that brings down your temperature a few notches before you head out again.  Walking down Via del Corso and looping between the left and the right sides of the side streets, I made the time to go back to Piazza di Spagna because when you’re in Rome this is a sort of must-do .  This is probably THE iconic locale in Rome that people think of when they think of Rome and it was looking good.  The steps were as usual full of backpackers and hippies, but it’s still fun to go hang out there for a little while and take in the scene.

Rome was full of street performers doing their thing including these four guys that just spent the day sitting on the street in these silver masks collecting money.  It’s kind of an odd way to make money and usually I think people give money to street performers that actually DO something – but the shot was too funny not to take.

Walking all the way down to the end of Via del Corso I made it to Piazza Venezia and onto the Monumento Nazionale a Vittorio Emanuele II.  It was pretty cool to be able to finally walk up on the wedding cake (it looks like a wedding cake) and around back to the elevator to go up to the top.  The funny thing was the guy that had the unenviable job of working the elevator.  He was telling us that he had the world’s worst job – all day long all he does is stand on his feet and ride the elevator up and down for hours on end and with no air conditioning.  He told us “questo e’ un lavoraccio” (this is a shitty job).  Once on top I have to say the views were amazing and it gave me a vantage point of Rome I had never seen before.

After hitting the roof I ended up at the cafe on the backside of the monument.  It’s actually on the monument and has a setting you can’t believe facing the Roman forum and Colosseum.  The patio was full of Romans all taking their apertifs of Caffe Shakerato and Aperols.  Just as a side note… click here to see how a shakerato is prepared – they’re great in the summer.

The thing you notice however these days in Italy with the Euro is you always feel like you’re burning through cash – and I’ve come to the conclusion that it is because you actually are burning through cash.  When you buy something small – say a cappuccino, it’s 3 Euro – you pay with a 10 Euro note and you get back only coins.  You buy something for 11 Euro, you pay with a 20 Euro note, you get back only coins.  By the end of the day you’re walking around with no cash but a pocket full of coins.  Even though the coins are worth the same as the cash, you feel like you’re wiped out every day because Italy (Europe) consumes your cash money  It’s sounds funny but it is real.  The Italian and the Europeans blow through cash from just daily living.

After a visit along the Roman Forum and Coloseum I was ready to hit the hotel for a shower and a break.

Later that night I met up for dinner with a third old friend in Rome, Selena who I had not seen in over 20 years.  She works for perhaps the most famous Italian jewelry company and is in charge of throwing all the parties for the whales to come and buy high-priced jewelry and watches.  She was telling me they have a budget of something like $2 million just to through parties all over Europe and they fly in big time customers into places like Monte Carlo for their six and seven figure spending jaunts.  It’s the full 007 treatment – boats, hotels, casinos, privilege.  She has a killer Rolodex of who to call across Europe for special events but she’s bored – says she’s been doing it for so many years now and working in Italy may seem glamorous but there are a lot of politics in Italy – it’s hard to grow a career and even harder to get paid well.

Then she was telling me about Italian men.  She says that Italian men want mother-wives to take care of them like bambini and that in reality Italian men talk the talk but don’t walk the walk.  She was telling me that by and large Italian men in Italy start all kinds of business ideas but don’t finish most of them because in the end they want the sure thing – the “busta paga” (monthly stipend).  Over dinner of Cacio e Pepe and Carbonara (two insanely rich but simple Roman pastas) she was also telling me that the Socialists in Europe are ruining Europe – from Italy to Spain to Belgium she is living in the real world of what happens when countries elect Socialists into power.  The quality of life for the very people the Socialists claim to want to help goes so far down they cannot even recover, and the people who vote in the Socialists just buy into the promises without ever understanding the consequences of what really happens.  I get the sense that many Italians are frustrated to no end with the Italian government and the Euro.  They miss the 80′s and 90′s when life in Italy was more frizzante.

On the flight out of Rome the next morning up to Frankfurt, Alitalia only had men serving as hosts, from the guy waiting for us at the front door of the plane with his sunglasses and folded arms, to the four guys serving on board (all tanned) and with names like Stefano, Gian Luca, and Antonio that served biscotti with the question “dolci o salati?” (sweet or salty?).  On the flight it was a nonstop promotion for the new Alfa Romeo Giuletta from a guy who looked like a bald soccer player who couldn’t emphasize enough how cool the curves on this car were as he drove along the mountain switchbacks of some seaside Italian village.   Next to me were two Germans who had no flair at all.  It was clear that I was leaving the land of loose and heading into the land of the stiff.  The whole body language changes when you move from Italy to Germany, and it only serves to confirm what I already knew – do Germany for business and leave Italy for fun.

Day 2 is here.

Day 1 is here

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