> The drawback is that we also make wonderful targets for those you
> mention:

This is no in no way a justification for the crooks but: part of 
the reason for this is your own business practices.
 
> I think MOST of the privacy buffs fear the SS # requirement solely 
> for one main reason:  they want this Gold Economy to remain tax 
> free.  In the US, using a SS # means that at the end of the 
> year Big Brother will know what you did with your money.  If we 
> can overcome that stigma by utilizing the alternate forms of 
> identity verification, we may all be on to something bigger that 
> most of us have conceptualized even to this point.

This is a much more productive line of thought.  I suggest you 
extend this to excluding any form of government issued ID which
always entail dependence on and control by the government but don't
really serve your needs very well.  Find other ways!
 
> Then again, hats off to the *old days* (before my time!) when a 
> handshake meant your word, and your word meant *something*!  Perhaps 
> those days will return someday, until they do, I prefer to know 
> the man/woman on the other end of that reputable payment that 
> arrives in my office mailbox.

But you don't really know that person or *anything* about him/her.  All
you know is that some collection of documents are consistent in a way
that probably makes that person vulnerable to the government.  This is
good for the government but not really what you need.  This practice
makes you an enforcer of government domination of society.
 
Another rule from the "old days" was "know your endorser".  This was
for your own protection and should not be confused with the government
serving spying known as "know you customer".  This meant: don't take
a "check" from someone if you don't personally know their character
and how to collect from them if it turns out bad.  

You don't follow this rule.  Instead you try to rely on the government 
as an intermediary and guarantor rather than using dependable private 
means.  That's a cause of a lot of problems for you and your customers.  

Would it be practical for you to practice "know your endorser" in 
your business today?  Well, perhaps not in exactly the same way but 
you might be able to solve a lot of problems by finding a way to 
use the basic idea in your current situation.  

For instance, I presume you have established customers you do know 
and have come to trust.  You could ask new customers for a 
recommendation or guarantee from an existing, trusted customer.  This 
would mean a lot more than the imprimature of the cursed government. 

What about an "endorsement insurance company" that for a fee (paid
either by a MM or the customer) assumes the risk of transacting
business with the possessor of a certain PGP private key on the
basis of real knowledge of the owner of that key and/or how he/she
has honored past commitments.

One practice that has worked in the context of extending credit to
poor people in 3rd world countries is the following.  [I know this
is not the same thing but the problem is similar.]  Loans are only
given to individuals in groups (of 3 or more people) who mutually
guarantee each others debts.

Some non-contemporary (ie either new or old) thinking is needed 
here!!  You people are stuck in the contemporary statist mind 
set that leads only to crime and tyranny.

CCS

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