By the early 1970s, as the costs of the Vietnam War and increased domestic spending accelerated inflation,‏¹ the U.S. was running a balance-of-payments deficit and a trade deficit, the first in the 20th century. The year 1970 was the crucial turning point, because foreign arbitrage of the U.S. dollar caused governmental gold coverage of the paper dollar to decline from 55% to 22%. That, in the view of neoclassical economics and the Austrian School, represented the point where holders of the U.S. dollar lost faith in the U.S. government's ability to cut its budget and trade deficits.
By 1971, the money supply had increased by 10%.‏¹ In the first six months of 1971, $22 billion in assets left the U.S.‏² In May 1971, inflation-wary West Germany was the first member country to unilaterally leave the Bretton Woods system — unwilling to devalue the Deutsche Mark in order to prop up the dollar.‏¹ In the following three months, West Germany's move strengthened its economy. Simultaneously, the dollar dropped 7.5% against the Deutsche Mark.‏¹
Due to the excess printed dollars, and the negative U.S. trade balance, other nations began demanding fulfillment of America's "promise to pay" – that is, the redemption of their dollars for gold. Switzerland redeemed $50 million of paper for gold in July.‏¹ France, in particular, repeatedly made aggressive demands, and acquired $191 million in gold, further depleting the gold reserves of the U.S.‏¹ On August 5, 1971, Congress released a report recommending devaluation of the dollar, in an effort to protect the dollar against "foreign price-gougers."‏¹ Still, on August 9, 1971, as the dollar dropped in value against European currencies, Switzerland unilaterally withdrew the Swiss franc from the Bretton Woods system.‏¹

Markets can stay irrational longer than you can stay solvent

Yes, but we can win a major battle in the arms race and gain a new territory of
freedom for several years.

Governments are good at cutting off the heads of a centrally controlled
networks like Napster, but pure P2P networks like Gnutella and Tor seem to be
holding their own.

I don't know why Satoshi decided to limit total qty of bitcoins to 21'000'000 coins. I suspect he made it to tempt early adopters with possibility to become very rich ppl. Now Bitcoin doesn't need such a trick and WE could change the plan. Bitcoin network exists due to hard work of miners and I dislike the idea to halve their reward in the nearest future. Of coz a lot of ppl will be against keeping the reward unchanged. But if these ppl r NOT miners then miners don't need to pay much attention to them. Miners r those who rule Bitcoin.

I suggest other plan. We'll know how many ppl support the idea to keep 50 BTC forever. We'll change the algo in the bitcoin client. When the time for 25 BTC reward comes we'll see which part of the network becomes the winner.

It's time for 1st Bitcoin Revolution...