Indeed, extreme libertarianism can lead to anarchy.  I figured that out
decades ago after voting Libertarian in multiple general elections.  A
healthy civilization must have reasonable regulations and the rule of law.
The 64 zillion dollar question is, what is reasonable?  Of course, from a
total libertarian perspective, people should be able to use the drugs of
their choice so the bitcoin system simply provided a libertarian solution to
heroin sellers and buyers.

Chris   

 

 

From: [email protected]
[mailto:[email protected]] On Behalf Of [email protected]
Sent: Monday, October 07, 2013 10:33 AM
To: [email protected]
Cc: [email protected]
Subject: [RC] Libertarian philosophy behind major Web black market (snicker,
snicker) :-)

 

 

 

 

 

 

Daily Dot

 

How Libertarian philosophy drove the Web's

largest black market

 

By Aaron Sankin <http://www.dailydot.com/authors/aaron-sankin/>  on October
04, 2013 Email
<mailto:[email protected]?subject=How%20libertarian%20philosophy%20drove%
20the%20Web%27s%20biggest%20black%20market>  

As far as massive criminal enterprises go, political agendas typically come
in a distant second to amassing large amounts of cash. 

But when it came to online black market drug marketplace the Silk Road—whose
alleged mastermind, 29-year old Ross Ulbricht,
<http://www.dailydot.com/crime/fbi-investigation-dread-pirate-roberts-silk-r
oad/> was arrested in San Francisco on Tuesday morning—its status as an
online haven supposedly outside the reach of sovereign governments made it a
cause célèbre in some radical libertarian circles.

In looking at Ulbricht’s own
<http://www.dailydot.com/lifestyle/dread-pirate-roberts-silk-road-facebook-l
inkedin-youtube/> online footprint, the portrait emerges of a
techno-libertarian who turned his vision for the world’s foremost drug
marketplace into an economic force that apparently earned him over $72
million in commissions. 

In a short manifesto posted on
<http://www.linkedin.com/profile/view?id=8155844&authType=NAME_SEARCH&authTo
ken=qSk_&locale=en_US&srchid=445369741380728571181&srchindex=1&srchtotal=1&t
rk=vsrp_people_res_name&trkInfo=VSRPsearchId%3A445369741380728571181%2CVSRPt
argetId%3A8155844%2CVSRPcmpt%3Aprimary> his LinkedIn page, Ulbricht wrote
about the lofty goals he hoped to accomplish, presumably using the Silk Road
for the betterment of all humanity:

I want to use economic theory as a means to abolish the use of coercion and
agression [sic] amongst mankind. Just as slavery has been abolished most
everywhere, I believe violence, coercion and all forms of force by one
person over another can come to an end. The most widespread and systemic use
of force is amongst institutions and governments, so this is my current
point of effort. The best way to change a government is to change the minds
of the governed, however. To that end, I am creating an economic simulation
to give people a first-hand experience of what it would be like to live in a
world without the systemic use of force.

 

Ulbricht, who allegedly went by the pseudonym “Dread Pirate Roberts,” was
apparently a fan of the libertarian Ludwig von Mises Institute, which bills
itself as “the research and educational center of classical liberalism,
libertarian political theory, and the Austrian School of economics.” 

Founded in the early 1980s after one of its co-founders split with the
politically powerful right-leaning Cato Institute, the Mises Institute’s
namesake is a Ukraine-born philosopher whose magnum opus
<http://en.wikipedia.org/wiki/Human_Action> Human Action is considered an
influential document among the Austrian, laissez-faire school of economists.


Much like novelist Ayn Rand, Mises has amassed a sizeable following of
American libertarians. In a  <http://mises.org/journals/jls/21_4/21_4_3.pdf>
letter to Rand praising her landmark novel Atlas Shrugged, Mises wrote, “You
have the courage to tell the masses what no politician told them: you are
inferior and all the improvements in your conditions which you simply take
for granted you owe to the effort of men who are better than you.”

According to a sworn deposition by FBI Special Agent Christopher Tarbell
contained in the Department of Justice’s criminal complaint against
Ulbricht, Ulbricht allegedly included a link to Mises Institute's website in
his email signatures and regularly posted about the Institute’s work on the
Silk Road’s forums. 

On his YouTube profile, Ulbricht favorited
<http://www.youtube.com/watch?v=V0_Jd_MzGCw&list=PL9CB8F6707945DD95> an
hour-long lecture by Mises Institute scholar Robert P. Murphy advocating for
the privatization of the United States’ legal system through the removal of
government-operated civil and criminal courts in favor of an ecosystem of
competing arbitration firms.

A representative from the Mises Institute acknowledged that Ulbricht
requested information about the organization in 2008, but declined to go
into more detail and refused to make any other representatives from the
Institute available for comment.  

Interestingly, while Roberts expressed his enthusiasm for the Mises
Institute, the think tank  <http://mises.org/daily/6401/> hasn’t exactly
been bullish on Bitcoin—the anonymous, electronic currency that served as
Silk Road’s chosen medium of exchange. 

A 2011 post on the Institute’s website entitled “
<http://archive.mises.org/17294/a-clear-concise-look-at-bitcoin/> A Clear
Concise Look At Bitcoin,” signaled the currency’s volatility, along with
“the Silk Road folks signaling their willingness to work with ‘authorities’
if necessary,” as reasons to be skeptical—adding, “Caveat emptor” (“buyer
beware”).

Another article published on the site a few months later, after a dramatic
crash in the currency’s value, expressed support for, at the very least, the
theoretical underpinnings behind Bitcoin. 

“Any libertarian has to have some sympathy for any effort to create an
alternative currency, and the state has narrowed the options so much that we
can fully expect a long series of nonviable projects to emerge in the
future,” read the blog post. “It is part of the terrible struggle of our
times to find ways of living free in an age of government omnipotence.”

In
<http://www.forbes.com/sites/andygreenberg/2013/08/14/an-interview-with-a-di
gital-drug-lord-the-silk-roads-dread-pirate-roberts-qa/> an August interview
with Forbes, Dread Pirate Roberts insisted anonymization services like Tor
and Bitcoin not only made Silk Road possible but also have the potential to
remake human interaction for the better. “This will return the power of
communication back to the people and with Bitcoin giving people control over
their money and trade again, we’re talking about the potential for a
monumental shift in the power structure of the world,” he said.

But the morailty behind the  the Silk Road looks a lot more complicated when
you consider which specific items Roberts, who allegedly maintained tight
control over virtually every aspect of the site, prohibited from being sold
on the marketplace.

According to the criminal complaint, in August of 2011, Roberts announced
the creation of a new section of the site titled "forgeries," where people
could buy and sell fake government documents such as IDs and passports—the
FBI claims Ulbricht even
<http://www.dailydot.com/crime/fbi-investigation-dread-pirate-roberts-silk-r
oad/> purchased them himself. However, private documents such as receipts
and university diplomas were strictly prohibited. 

In a sense, private documents like receipts or diplomas are written evidence
of legal contracts. The importance of contracts between consenting
individuals is a crucial tenet of libertarian thought and an issue the Mises
Institute has examined in detail on
<http://mises.org/journals/jls/17_2/17_2_2.pdf> multiple
<http://mises.org/rothbard/ethics/nineteen.asp> occasions. In a
libertarian-minded, small-government state, it’s the prevalence of these
types of contracts that keep a civilized society from slipping into anarchy.
In the lecture Ulbricht favorited on YouTube, Mises scholar Robert Murphy’s
argument about privatizing the judicial system only works—even in the
abstract—if private contracts are universally honored. 

As such, if Ulbricht is indeed the Dread Pirate Roberts and  he viewed the
Silk Road as a fundamentally moral undertaking, it isn’t actually all that
surprising he chose to draw the line regarding forged documents along the
public-private divide.

It wasn’t only the Silk Road’s alleged mastermind who viewed the marketplace
as something more noble than a relatively safe avenue for trafficking in
illegal narcotics. On  <http://www.reddit.com/r/silkroad> Reddit’s
r/SilkRoad forum, a user going by the handle InfraViole7 wrote a post
calling the Silk Road’s closure, “a loss for the general good of human,
regardless if you are pro illegal drugs or not."

The SR was not doing anything morally wrong, rather the opposite. Think
about it. Druggies and producers will always find a way to trade drugs. The
SR made it possible to trade the drugs with less to no intermediaries,
directly from producer to consumer. As we all know, the dealing process is
the whole reason why the world has to deal with all type of war related to
drugs, for an example in Mexico. From a moral standpoint, what the SR have
done is to prevent war, gang related crime etc. which is a really good
thing.

Another Reddit user, Libertas_SR, wrote a post
<http://www.reddit.com/r/silkroadmeta/comments/1no8bz/supporting_the_cause/>
soliciting donations for Ulbricht’s defense. “We are all sad to see SR get
shut down, but it is also a sad day for the person that provided us with
this amazing community,” wrote Libertas_SR. “He has a very long battle ahead
of him and the least we can do is support him, and I am providing the means
to do that.”

Ulbricht stands accused of conspiracy to commit narcotics trafficking,
hiring one Silk Road user to kill another Silk Road user for threatening to
expose confidential information about the site, computer hacking and money
laundering.

In an ironic twist, authorities told the San Francisco Chronicle that, as of
June, Ulbricht was
<http://www.sfgate.com/news/article/Alleged-online-drug-kingpin-arrested-at-
SF-library-4863306.php> living with a friend on Hickory Street in San
Francisco’s Hayes Valley neighborhood and, on at least one occasion, managed
the site from an Internet cafe on nearby Laguna Street from which he
administered the Silk Road website. Momy Tobi’s Revolution Cafe & Art Bar,
the Internet cafe located a block away from the intersection of Hickory and
Laguna streets, is communist-themed. 

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