Yearly Archives: 2013

Amagi Metals to Lose Bank Account Over Accepting Bitcoin

"Precious metals purveyor Amagi Metals announced on Friday that as of mid-August, their current bank account with San Francisco headquartered Bank of the West would be closed. In the latest case of banking aversion to bitcoin, Amagi Metals stated that the basis for the account closure is the fact that Amagi Metals accepts bitcoin as a payment method, which Bank of the West views as a risk. While it is the prerogative of a bank to choose not to do business any entity based on a risk assessment, a decision to cut off a customer based on the fact that they accept a specific method of payment is unusual." Continue reading →

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The Gold Roller Coaster

"Gold is not a stock. It does not behave as a stock, and its rewards are not delivered in the manner of stocks. In watching the ups and downs of gold, this is the most important fact to remember. To be sure, some investors treat gold in the same way as a stock – trying to guess its fluctuations – selling after a rise and buying following a correction. However, gold is not like a stock, in that it does not pay dividends. It does not rise and fall based upon the performance of any company. And it is relatively finite. There can be no stock splits. Gold's true value is not as a trading commodity, but as a means to preserve wealth." Continue reading →

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Funny Money Or New Economy? Alternative Currency Raises Tax, Other Challenges

"Philadelphia isn’t the only community experimenting with this idea. Other areas, like the Berkshire area of Massachusetts, have a similar currency (theirs is called BerkShares, not to be confused with Buffett’s Berkshire). The exchange of Equal Dollars is a $2.5 million operation, according to RHD. BerkShares claims that it circulated over one million BerkShares circulated in the first nine months of operation and over 2.7 million to date (roughly pegged at $.95 U.S. per BerkShare). Ithaca HOURS, touted as the oldest local currency in the country, currently has over $100,000 in circulation." Continue reading →

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The Curiously Uncurious Ben Bernanke

"If I were chairman of the Federal Reserve and didn't understand the forces that move gold, learning about them would be near the top of my to-do list, if for no other reason than a large swath of the investment community uses gold as a barometer to evaluate how good a job I'm doing. Bernanke's clueless quote paints a stark contrast between the academic and real world. Upon observing the recent correction in the price of gold, how many asset managers do you think threw their hands up in confusion and proclaimed that no one can possibly know what's going on, so why even try?" Continue reading →

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Are You Ready for This Coming Disaster?

"Interest rates will remain at low levels for a very, very long time. The Fed will remove the stimulus in baby steps because it has no other choice. Any significant moves would send world markets into a tailspin. When the money printing finally stops, the Fed will still keep interest rates at zero for a while, just to make sure the economy can stand on its own feet. Only then – and if everything goes well – will the Fed slowly begin to hike rates. Most bubbles burst when the Fed starts to move rates above the inflation rate. As you can see in the chart above, that’s what happened in 2006. But, the Fed will only do that when inflation starts to get out of control." Continue reading →

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Prices Fuel Outrage in Brazil; ’46 New Tax Rules Per Day’

"Brazil’s street protests grew out of a popular campaign against bus fare increases. Renting an apartment in coveted areas of Rio has become more expensive than in Oslo, the capital of oil-rich Norway. Soaring prices for basic foods like tomatoes prompted parodies of President Dilma Rousseff and her economic advisers. Inflation stands at about 6.4 percent, with many in the middle class complaining that they are bearing the brunt of price increases. Companies grapple with 88 federal, state and municipal taxes, a number of which are charged directly to consumers. The Brazilian authorities issue an estimated 46 new tax rules every day." Continue reading →

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The Minimum Wage Is Cruelest To Those Who Can’t Find A Job

"U.S. youth unemployment now stands at 16 percent for 16–24 year olds, 23 percent for teens, and a shocking 40 percent for black teens. Firms that are already paying more than the federal minimum wage do so because their workers are producing more than $7.25 per hour. Moreover, if workers produce at least $12 per hour, then an increase in the minimum to $10.10 would not affect their job status—but the higher minimum wage rate could drive smaller rivals out of business or prevent new firms from entering. Hence, one should be skeptical of businesses that favor raising the minimum wage." Continue reading →

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EU plan to cut credit and debit card fees is confirmed

"Plans to cut transaction fees on debit and credit cards in the European Union have been published - but there is disagreement over the potential impact. The European Commission estimates that the EU payment market is worth 130bn euros (£112bn) but is 'fragmented and expensive'. It wants to cap 'interchange fees' to a maximum of 0.3% of a transaction. The fees involved are paid by shops and businesses to banks, every time a consumer uses his or her card. But banks argue that consumers will instead end up paying higher charges to use debit and credit cards." Continue reading →

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One-Third Of Europe’s Unemployed Are Spanish

"Spain has been in recession for seven quarters in a row and survey indicators suggest it will extend to eight. House prices continue to collapse. Government revenue to GDP is among the worst in the union. But unemployment is where Spain has its peers beat - at 6.2 million unemployed, Spain accounts for almost one-third of the entire unemployed population of Europe. With expectations that the unemployment rate will break above 28% next year and a government embroiled in scandal, Rajoy's planned address to discuss the politicial and economic situation to his nation in August may just be the catalyst for the social unrest that has laid relatively dormant for so long." Continue reading →

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CNY Challenges EUR For Second Largest Bitcoin Exchange Volume

"Since the beginning of this year, China has played an increasingly important role in the digital currency universe. After state-run CCTV ran a documentary about bitcoin in May, Chinese adoption grew dramatically. At the time it was unknown whether the interest spike would be a mere blip in bitcoin’s history or a trend that would continue into the future. Since beginning the year at just over one percent of total bitcoin trading volume, CNY trading has recently ballooned to 10% of the total market, claiming the title of second largest bitcoin trading volume for 13 out of 23 days so far in July." Continue reading →

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