Dorion Mode

September 15, 2021

How many bezzles in a bezzle ?

Filed under: Oeconomica — Robinson Dorion @ 21:05

The title of this article is informed by the Trilema article which disambiguates USD The bezzle USD and the tide USD which notes the etymology of the bezzle is from "The Great Crash 1929" by J. K. Galbraith. As I explained in Simple Steps Part 3, from February 2012-January 2014 I worked for what they called Euro Pacific Bank1, but being a virtual fiat bank, the thing was actually a small leaf a long branch of the fee simple bezzle that traces its roots to socialism.

Talk as he might about sound money and freedom, this entity shell owned funded and marketed by Peter Schiff simply did and does2 the bidding of the state and nothing more that matters. It's an abuse of language to claim he owned the thing, even if all or the majority of share certificates3 bore his name4. For he did not possess the sole power to destroy whatever good might've been be present.

To cut to the chase, this bezzle didn't own anything, it didn't custody anything, any assets it claimed to possess were owed to it by some other entity up the tree. To this day, they claim (archived) their margins are not derived from lending, or proprietary trading, but how did it actually work ? Could clients deposit and withdraw cash5 ? No. Could clients deposit and withdraw physical gold and silver ? No6. Could clients receive shares directly registered in their name for such companies that support direct registration7 ? No. If you're thinking this is starting to smell like the infamous Cheese Shop Cleese entered and eventually had to leave a doughnut hole in the head of its keeper, you get the whiff, or lack thereof as it were.

So, if it didn't have any assets or client assets in its possession and also didn't do any lending, how can it work ? It can't, it's a contradiction. The shell exists with accounts at bigger banks or government owned entities, but I repeat myself. It was lending on an overnight basis all the funds it owed to clients to the entities with which it held accounts. The bigger entities in possession of the funds could do what they will with them, i.e. lend, and Euro Pacific was essentially an unsecured creditor thereof and in turn, the clients were unsecured creditors of Euro Pacific.

Since, much like the cheese shop isn't contaminated with cheese, Euro Pacific was not contaminated with tide USD or physical paper issued by any other state8, all these virtual bezzle bucks were "held" in an account in the name of Euro Pacific with one or many Correspondent Bezzles. This is all digital money on a ledger hosted on the server nominally in the custody of said correspondent bezzle9. A bezzle becomes a correspondent when they have what's called a direct relationship or account with the central bezzle. It's not enough to have a "Banking License" framed on the wall to operate as a bezzle bank, even if they've colored inside all the lines. What you need is either to be a correspondent or have an account with a correspondent, or else you can't send and receive wires. And if you're not taking cash and you can't receive wires, the term for what the business is is proper fucked.

This centralized structure inherently had pressure points the bankrupt people's republics of demoncratic10 socialisms push when smaller jurisdictions with nominally strong privacy laws functioned as an escape valve of the bezzle. It's why, with FATCA and CRS, smaller jurisdictions changed "their" laws at the threat of being painted with the gray and black water colors, or being put on the lists as they call it, and bezzle bucks left for the Delewares and Wyomings because while USG might make non-USG governments share all the dataz, it doesn't participate in exchange, it's a one way flow to the ultimate winding up.

The first correspondent account Euro Pacific had was CommerzBank, Germany's second largest bezzle behind Duetsch11. Despite Euro Pacific doing its darnedest to anticipate and comply with every whim of Commerz, sometime in 2014 it's account was closed. Not because anything Euro Pacific did, "dindu nothin", but because Commerz closed all its accounts in the Caribbean region because by that time they already had more compliance drones than bankers and they were brushing up on a threshold in the USD volume that would've required them to hire even more compliance drones. Euro Pacific had set up a correspondent account with the National Bank of Canada prior to losing the Commerz account, but it scraped by for a while without a way to send or receive USD. I was long gone by then, but this lack of ownership was a major reason I left. I concluded I was selling clients on a false sense of security, wrapped in the legal fiction. The principle remains the same for the securities and precious metals accounts, but while were here, let's detail those too.

Euro Pacific's security trading platform was Saxo Bank with Euro Pacific paint, called a "white label". Essentially, Euro Pacific had an omnibus account at this Danish bezzle and clients had sub-accounts accounting for the issues they were owed. The shares were custodied via the Depository Trust Corporation (DTC) and registered in, "the street name of the dealer", that is, in the name of Saxo because while Euro Pacific had various licenses to market securities, it wasn't big enough to have the securities registered in their name. Street name registration grew as a) governments forced non-professional investors into stocks and bonds via "deferred taxation schemes", e.g. 401k, b) the purchasing power of money eroded via the bezzle's unyielding inflation campaign and c) said inflationary policies created asset bubbles and market volatility leading to short term speculation by professional and non-professional traders squeezing out investment. Thus, to scale to the mass mob, it's cheaper from a bookkeeping perspective12 for stock brokers to put their name on the label of the share certificate, whether it be physical or digital, and pass the ownership rights to the client. That is, any dividends or interest disbursed were credited to the client's account and the client was permitted to cast any voting rights the shares carried. Apparently these rights have continued to endure to the present, but it's unclear how long that shall last. What investors interested in direct registration of shares are after is a way to retain their ownership and rights as shareholders independent of the solvency of the broker they bought the shares from. Euro Pacific didn't accommodate such clients.

The gold scheme at Euro Pacific was a fast food offering for those who "just wants to" feel like they have gold offshore, which upon examination was the shiniest and loudest of the leper's bells I originally chose to ignore. Goldbugs had been pounding the table about the importance of possession since before I was born, "if you don't hold it, you don't own it and if you don't hold it at least make sure it's allocated," is a paraphrasing the mantra. In Euro Pacific's case, they offered unallocated gold storage via the Government of Western Australia owned Perth Mint and with chewing gum and hair pins tacked on the whiz-bang technology of a prepaid debit card13. Despite Peter Schiff making his name for correctly pointing out various ratings agencies were marking junk mortgage backed securities AAA doubleplus good prior to the chickens coming home to roost in 2008, he parlayed his credit into peddling Pert Mint Certificates and later gold backed debit cards owned and operated by the thieves write large down under with the rationalization they have a good credit rating from the same ratings agencies. Now, in my time working for Euro Pacific I didn't hear of the rabid dog biting anyone. On the other hand, I never found an independent verification said mint was above the board and not running a fractional reserve. That being said, reports of how the Aussie's are handling the wuflu panicdemic certainly do not bode well for either their future economic prospects nor current or future protections of private property rights.

How many bezzles is that ? More than a handful, but more importantly once you find yourself in a bezzle, what matters isn't how many there are, but how you're going to extract yourself.

So then, in January 2014, after just under two years, I left the bezzle for Bitcoin. I, for one, don't characterize this as leaving banking, even if I've not been employed by any licensed bank since. It's simply that my reasoning lead me to conclude state controlled banking is a cancer on the human race and Bitcoin is an independent monetary system that, while experimental, at least has a chance to rid the world of socialism. Thus, I've ignored any draw from the Bloomberg terminal and focused my attention instead on the learning the Linux terminal and the cultural and technological means of enforcing ownership of the computing environment in which Bitcoin exists. Furthermore, I don't hold any grudges to actual bankers or financial professionals generally. Facilitating relationships between debtors and creditors is and always will be needed perhaps more than any other profession. While the "Fed put" has pretty much killed hedge funds, the best tool I know of to short central banks and the idiocracy they engender is Bitcoin.

  1. referred to as Euro Pacific here following []
  2. While I'm pretty sure the thing "works" today as it did when I worked for it, I'll use the past tense throughout because I don't actually know how it "works" today and don't really care to find out either. It's dead in the water as far as I'm concerned, even if all the blood has yet to leak out of it or the maggots have yet to consume all the flesh. []
  3. They started as St. Vincent and the Grenadines shares, now I understand they're Puerto Rican shares, what's the over-under on when they'll be Miami shares ? Heh. []
  4. and Social Security number, amirite ? Even if his late father did pen The Greatest Con, I'd not be surprised in the least if he's registered. For having a key in the WoT, he did not. []
  5. The etymology of cash is :

    "1590s, "money box;" also "money in hand, coin," from French caisse "money box" (16c.), from Provencal caissa or Italian cassa, from Latin capsa "box"; originally the money box, but by 18c. the secondary sense of the money in it became sole meaning.

    In my book, when I hear someone say, "I have cash in the bank," it signals to me that they've bought into the socialist propaganda. No, you don't have cash in the bank. You may have given your cash to the department of the state self-styled as a bank and expect to get the same amount out on demand, i.e. they owe you cash ; but no, you don't have it and it's not likely they do either considering they've likely lent out 80 to 90 cents for every dollar you gave them. []

  6. They could at least take delivery of physical metals, but these were always sourced on demand from a dealer in the US with the actual goods. []
  7. Yes, certain clients/prospects asked for this. []
  8. Except perhaps the printed license framed and installed on the wall and AML forms, or course. []
  9. I say nominally here because it's more likely than not said server is running the Windows virus on top of an Intel chip with the Management Engine. Therefore, it's not likely accurate to say said banks own those machines in the proper usage of ownership linked above. []
  10. Not misspelled. []
  11. Which they've unsuccessfully tried to merge over the years as part of the ongoing goal, as James A. Donald put it, "being to wind up the network into a single too big to fail entity". Note : the Trilema article quoting it is well worth the read as well. []
  12. "Plus, people who want shares registered in their own name are probably misogynist, racists, climate denying, antivax, antiscience, terrorist thought criminals anyways, so maybe we should freeze accounts for anyone who asks until they prove to us that they're not ?" said no one in particular, but simulating their rationale for keks. []
  13. I.e. you had to sell the gold via your online account and then transfer the bezzle bucks on the card if you wanted to spend it. []

3 Comments »

  1. Re footnote 7 ("Yes, certain clients/prospects asked for this.") - arguably a natural, if rarer/rarest, question to ask, really. Ever followed up with these clients/prospects otherwise?

    Comment by Diana Coman — September 20, 2021 @ 07:22

  2. Yeah, it's a good question to ask, especially with "system" leveraged past its eyeballs.

    I followed up with a couple. Unfortunately, I threw the baby out with the bathwater a bit. For one, I respected the contract I signed that said 5 year non-compete (really, they're going to take me to court in St. Vincent ?) ; for two, improving, but still poor relationship skills/sense of self lead to failure to personalize those relationships to a greater extent.

    Comment by Robinson Dorion — September 22, 2021 @ 20:16

  3. [...] etc. [20:20] dorion: alright, thanks. Day changed to 2021-09-15 [21:13] dorion: manual feedbot : http://dorion-mode.com/2021/09/how-many-bezzles-in-a-bezzle/ Day changed to [...]

    Pingback by #jwrd Logs for Sep 2021 « Fixpoint — September 22, 2021 @ 20:36

RSS feed for comments on this post. TrackBack URL

Leave a comment

Powered by WordPress