Now that Tradehill is bankrupt due to chargebacks and Mt. Gox is freezing accounts left and right because they have decided that they are going to punish the thieves they have identified by seizing their money, we are back to square one: how to turn dollars into bitcoins?

Basically what this comes down to a problem of the world police (ie bankers, as embodied by the fed) tracking and controlling monetary transfers. Note that Iran has recently been locked out of SWIFT, the international money transfer clearing house. Such organizations are supposed to be politically neutral, but obviously this is not the case.

Let's be frank about the goals of the new world state. The controllers want to:

   (1) identify you, preferably by DNA
   (2) know where you live, so they can arrest you easily if they need to
   (3) decide whether you are a good or bad person (a complex decision requiring a lot of data)
   (4) take away all your money and belongings if you are "bad"

So, we are not talking about a free world where the state protects citizens from each other. We are talking about an oppressive world where the state decides whether you are good or bad and tries to control every aspect of your life and behavior regardless of how it might affect other people. Control starts with your money. That Mt. Gox is requiring ID is a fundamental breach of the whole basis of the bitcoin system which is to remain anonymous. Mt. Gox is essentially no different than any bank which is doing the same thing: trying to control you by controlling your money.

How can we re-assert freedom? The answer is clear: control our own money ownership and transfers.

Bitcoin is only part of the solution. We now have an anonymous scrip system that can substitute for money. What we need is a way to convert money (tradable commodities with intrinsic worth) back and forth from the anonymous scrip system. To do this we need an anonymous peer-to-peer network that facilitates buying and selling of goods, commodities and securities. In other words we basically need a way to anonymize banking and commodity dealing.

This would not be necessary if banks were open, unregulated businesses, but since 1934 this has not been the case in the United States. Banks are now essentially an arm of the state, required to collaborate with the state in their police work. This control extends to the tiniest detail. For example, US banks are required to record the identity of anyone, including social security number, holding a safe deposit box at the bank.

The only way out of this is to create anonymous, peer-to-peer software allowing private individuals to act as bankers and commodity dealers. By doing this we can create a free banking system, and thereby freedom from the emerging world state.