In this episode of Bitcoin Study Sessions, the hosts discuss "The Satoshi Papers: Reflections on Political Economy After Bitcoin," edited by Natalie Smolenski and David Hughes, focusing on the introduction and its call for a re-evaluation of the principles underlying the United States in light of Bitcoin's emergence.
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Summary:
The episode begins by introducing "The Satoshi Papers," an anthology edited by Natalie Smolenski and David Hughes, which aims to spark a new conversation about the United States and its foundational principles in the context of Bitcoin. The introduction questions the current state of the nation, asking if it still embodies rule by the people and what projects now unite its citizens. The authors propose the idea of a refounding based on new principles, drawing a parallel to the Federalist Papers and the debates during America's founding. The anthology shares common assumptions that individual freedom and privacy are essential, power should be limited, human coordination should be bottom-up, and technology drives human progress.
The hosts delve into the historical deviation from the founders' vision of limited government, noting the shift from a state with no power, money, or army to one with bureaucratic rule, income tax, and constant warfare. They identify the "banker revolution" as the union of those controlling money with those controlling the state, facilitated by financial surveillance and states of exception. This revolution began in the 1970s with the rise of the military-industrial complex, the suspension of the Bretton Woods Agreement, and legislation like the Bank Secrecy Act, which expanded financial surveillance.
The discussion highlights the perversity of legislation aimed at restricting financial surveillance, as exceptions within these laws often expand governmental power. The authors argue that the Constitution is already the limit, and these laws effectively overrule it. The result of the banker revolution is a return to pre-revolution assumptions about the state versus the individual, characterized by more surveillance, war, and bureaucratic control. Bitcoin is presented as a potential solution, disrupting the banker revolution by harnessing human incentives to promote an alternative system, making the financial system visible through its open-source nature, and expanding our horizons about what is possible.
The hosts contemplate the assumptions shared by the essays, particularly regarding individual freedom, limited power, bottom-up coordination, and technological progress. They contrast these principles with the Chinese model, which prioritizes technology but lacks the individual-centric approach. The conversation also touches on the hypocrisy of legislation with misleading titles, such as the Bank Secrecy Act, and the erosion of trust due to the third-party exception in privacy rights. The hosts emphasize that there is no return from understanding how much power the nation state has over money and also talk about what the alternative would be. They also contemplate the nature of self responsibility and what is needed in that aspect.
