Economy

Russian lawmaker seeks to ban US dollar, predicts 2017 collapse

"To protect Russians against the 'collapsing US debt pyramid', a Russian legislator has filed a draft bill to ban circulation of the currency in Russia. Once a Moscow mayoral hopeful, Mikhail Degtyarev, 32, likens the US dollar to a worldwide ponzi scheme which he says is scheduled to end in 2017. The bill would impose a ban on dollars within a year of its passage, and any private citizen holding accounts in dollars would either need to spend the money or convert it to another currency. There is no proposed ban on the euro, British pound, yen, or yuan. If one doesn’t exchange or transfer dollars within a year, the dollars will be seized by officials, and reimbursed in rubles within 30 calendar days." Continue reading →

Continue ReadingRussian lawmaker seeks to ban US dollar, predicts 2017 collapse

Bitcoin Companies and Entrepreneurs Can’t Get Bank Accounts

"The Bitcoin banking casualty list is a long one: popular Bitcoin – USD exchanges Bitfloor and BitInstant, in New York; Tradehill, in California; and Bitbox, in Michigan, have been out of commission for months. All had registered as money exchangers with the Department of Treasury’s FinCen. Mobile Bitcoin payment company Coinapult moved from Colorado to Panama to avoid the 'murky, unpredictable, and onerous' regulatory environment in the U.S.. Capital One even shut down the merchant account for Mulligan Mint, a commemorative coin maker, when it started making physical Bitcoin silver coins; the business was not in fact dealing with Bitcoins, just making fake models of them." Continue reading →

Continue ReadingBitcoin Companies and Entrepreneurs Can’t Get Bank Accounts

Bitcoin Companies and Entrepreneurs Can’t Get Bank Accounts

"The Bitcoin banking casualty list is a long one: popular Bitcoin – USD exchanges Bitfloor and BitInstant, in New York; Tradehill, in California; and Bitbox, in Michigan, have been out of commission for months. All had registered as money exchangers with the Department of Treasury’s FinCen. Mobile Bitcoin payment company Coinapult moved from Colorado to Panama to avoid the 'murky, unpredictable, and onerous' regulatory environment in the U.S.. Capital One even shut down the merchant account for Mulligan Mint, a commemorative coin maker, when it started making physical Bitcoin silver coins; the business was not in fact dealing with Bitcoins, just making fake models of them." Continue reading →

Continue ReadingBitcoin Companies and Entrepreneurs Can’t Get Bank Accounts

Savers boosting bitcoin demand in China, exchange says

"A co-founder of China’s biggest bitcoin exchange on Friday said there were 'boundless opportunities' for the digital currency in the country because of the Chinese saving ethic. 'The main reason why bitcoin has become big in China is because Chinese people are savers, and more people are seeing bitcoin as a way to store and invest their money,' Linke Yang, vice-president of BTC China, told reporters on the sidelines of a conference in Singapore. 'There are boundless opportunities for BTC China and bitcoin in the next five years, you never know with the way the internet develops,' Yang said through an interpreter." Continue reading →

Continue ReadingSavers boosting bitcoin demand in China, exchange says

The strangest bull market ever

"This bull market is really odd. The Dow and S&P 500 are near all-time highs. The Nasdaq is inching closer to 4,000 for the first time since the tech bubble did its best weasel impersonation and popped in 2000. Twitter (TWTR) surged on its first day of trading, despite the fact that it is not yet profitable. Snapchat has reportedly turned down offers to sell out to Facebook (FB) for $3 billion. This is a company that is not even generating sales yet. How are all those hot 'pre-revenue' Internet companies from 15 years ago doing? Are they still monetizing eyeballs? It looks like bears remain in hibernation and the bulls are ... wait for the Rage Against the Machine reference ... still on parade." Continue reading →

Continue ReadingThe strangest bull market ever

What Janet Yellen Will Host and Why

"During her confirmation process, Yellen will give a spirited defense not only of money printing but of her own moral probity and will be clear that she views her life as one sanctified by public service. Whether she has devoted her life to a ruinous enterprise will not be discussed. Certainly the larger game will not be revealed. But hidden behind the policy discussions and concern over employment is the surety that Yellen will start her term by continuing to print vast gouts of money. This money will find its way into the stock market just as intended, continuing to create mountainous stock market averages and then eventually an equity mania." Continue reading →

Continue ReadingWhat Janet Yellen Will Host and Why

Yellen Signals Continued QE Undeterred by Bubble Risk

"'I don’t see evidence at this point, in major sectors of asset prices, misalignments,' she said during her confirmation hearing to be the next Fed chairman. 'Although there is limited evidence of reach for yield, we don’t see a broad buildup in leverage, where the development of risks that I think at this stage poses a risk to financial stability.' Yellen signaled her determination to use bond buying to strengthen the economy and drive down the nation’s 7.3% unemployment rate. As benchmark U.S. stock indexes rose to records, she sought to dispel concerns from senators that the central bank’s policy is pumping up the values of equities and housing to an extent that jeopardizes market stability." Continue reading →

Continue ReadingYellen Signals Continued QE Undeterred by Bubble Risk

The UK Recovery that Isn’t … the Market Recovery that Is

"What central bankers do is print money – digitally these days – and then transfer those digits to financial firms. Now the money finds its way into the financial economy, including, most importantly, the bond and stock markets. Once the money has swelled the financial markets, the 'real' economy should benefit. And then once companies are feeling better about a 'recovery' they will finally start to hire. This convoluted chain of events is simply illogical. It would be much simpler just to GIVE people money if central bankers really wanted stimulate job growth and create prosperity. But that's not what is happening because the object of central banking is to create money and maintain control of it." Continue reading →

Continue ReadingThe UK Recovery that Isn’t … the Market Recovery that Is

C.I.A. Collecting Data on International Money Transfers, Officials Say

"The Central Intelligence Agency is secretly collecting bulk records of international money transfers handled by companies like Western Union — including transactions into and out of the United States — under the same law that the National Security Agency uses for its huge database of Americans’ phone records, according to current and former government officials. Several officials also said more than one other bulk collection program has yet to come to light. 'The intelligence community collects bulk data in a number of different ways under multiple authorities,' one intelligence official said. Orders for business records from the surveillance court generally prohibit recipients from talking about them." Continue reading →

Continue ReadingC.I.A. Collecting Data on International Money Transfers, Officials Say

Bitcoin Transcends Novelty Status

"We live in a world of fiat currencies subject to monetary adjustments or downright manipulations that many of us have no say in. Frequently, the decisions that are made for us negatively impact the very foundation that we've worked so hard to build. Bitcoin is a known quantity in a world full of unknowns. It travels globally without the processing fees of PayPal, Western Union or the banking industries. In fact, the current banking systems' loss of processing fees is both a boon to Bitcoin business as well as the reason for the most vocal arguments against it. After all, JP Morgan has to recoup the $8 billion they've received in regulatory fines over the last two years somehow, right?" Continue reading →

Continue ReadingBitcoin Transcends Novelty Status