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Read more about the article Interview with finance guru, entrepreneur Jeff Berwick

Interview with finance guru, entrepreneur Jeff Berwick

"I personally save a percentage of the profits of all my Bitcoin revenue I receive with no plans to sell. I have been offering every product that my companies offer for Bitcoin for three years now so I have been constantly squirreling away bitcoins. We have sold passports, offshore bank accounts and corporations, newsletter subscriptions to TDV and even condos that I offer through my company in Acapulco, AcaCondos and rentals at my hotel in Acapulco, Las Torres Gemelas Private Suites for bitcoins and as I stated my strategy is to keep a large percentage of my profit on those transactions in Bitcoin." Continue reading →

Continue ReadingInterview with finance guru, entrepreneur Jeff Berwick

European central banks mull bolder moves to prevent low inflation

"Asked what tools the ECB has remaining, Mr. Liikanen, who has headed Finland’s central bank since 2004 and is on the ECB’s 24-member governing council, cited a negative deposit rate as well as additional loans to banks and asset purchases. Bundesbank President Jens Weidmann didn’t rule out large-scale asset purchases, known as quantitative easing. Mr. Liikanen also said it was an option for the ECB and wouldn’t run afoul of rules prohibiting the central bank from financing governments. The Federal Reserve and Bank of Japan have aggressively used the policy to keep inflation from falling too low." Continue reading →

Continue ReadingEuropean central banks mull bolder moves to prevent low inflation

Cheap Printing vs. Expensive Drilling

"Yellen explained that the Fed helps people secure employment 'by influencing interest rates.' She followed, 'Although we work through financial markets, our goal is to help Main Street, not Wall Street.' Her predecessor used the same rhetoric in 2012. 'This is a Main Street policy. Many people own stocks directly or indirectly. The issue here is whether or not improving asset prices generally will make people more willing to spend.' Oil, unlike the Fed’s fiat dollars, can’t be created out of nothing. And, job or no job, people are driving. Mrs. Yellen tells crowds, Don’t worry be happy, your job will be printed anytime now. Let’s just say, for those with a job to go to, getting there will not be getting easier." Continue reading →

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Alleged Silk Road founder: If Bitcoin isn’t money, how did I launder it?

"Ross Ulbricht, who stands accused of running the Silk Road black market under the name 'Dread Pirate Roberts,' says that new federal bitcoin laws make the charges against him invalid. In a filing over the weekend, Ulbricht's lawyers defended him against charges of hacking, narcotics trafficking, operating a criminal conspiracy, and money laundering. The first three charges, his lawyers argue, are 'unconstitutionally broad' and can't be applied to the normal operation of a website, even one whose business is illegal goods. And the last charge, they say, makes no sense if there isn't actual money involved — a possibility implied by a recent IRS decision." Continue reading →

Continue ReadingAlleged Silk Road founder: If Bitcoin isn’t money, how did I launder it?

Bitcoin Prices Whipsawed by Looming China Crackdown

"While the PBOC doesn't appear ready to ban Bitcoin outright, they appear determined to drive it out of the Chinese banking system. The Chinese government apparently was concerned over investor speculation in the digital currency, and in particular in the use of Bitcoin to move money outside the country. Once people started using Bitcoin to bypass China's strict capital controls, the government almost had no choice but to cut it off from the banking system. For China's Bitcoin exchanges, which include BTC China and OKCoin, the news is bad but not necessarily fatal. But longer term, this is just another pebble in the stream." Continue reading →

Continue ReadingBitcoin Prices Whipsawed by Looming China Crackdown

Colombia Stops Short of Bitcoin Ban, Bars Banks From Industry

"Despite reports that the SFC could enact harsh restrictions on bitcoin – one report suggested it would go so far as to ban bitcoin transactions altogether, the SFC issued what amounted to a boilerplate warning to consumers, and blocked financial institutions from holding, investing in or brokering bitcoin transactions. The release indicated that bitcoin fails to meet the definition of a currency according to the criteria set forth by the International Monetary Fund (IMF), as it is not backed by a central bank. Further, the SFC reiterated that digital currencies can be used for illicit means, including money laundering and terrorist financing." Continue reading →

Continue ReadingColombia Stops Short of Bitcoin Ban, Bars Banks From Industry

Argentina inches toward economic crisis, again

"Inflation is accelerating and projected to hit 40% in 2014, according to Sergio Berensztein, director of Poliarquía Consultores. Unofficial estimates put the inflation rate at above 25% in 2013, much higher than the official government rate of 10.9% — a figure few believe, Berensztein says. A study from consultancy Estudio Bein estimates inflation has eroded wages nearly 10% over the past four months. The Argentine peso was devalued nearly 20% in January, further diminishing purchasing power and making imported items more expensive. Moody's downgraded Argentina's sovereign rating March 17 to Caa1, seven levels below investment grade status, Bloomberg reported." Continue reading →

Continue ReadingArgentina inches toward economic crisis, again

Western banking regulations could be ‘mutually destructive’: IMF

"Western governments have put in place banking regulations that could be 'mutually destructive' and undermine efforts to prevent bust banks from costing taxpayers billions of pounds, according to a report by the International Monetary Fund. Policymakers representing the world's biggest financial centres have failed to make the banking sector stand on its own feet by ending implicit subsidies and co-ordinating rescue plans when multinational banks go bust, the Washington-based lender of last resort said. Subsidies to the banking sector in some countries are as high as they were before the crash, amounting to $590bn (£355bn), with the eurozone the worst affected." Continue reading →

Continue ReadingWestern banking regulations could be ‘mutually destructive’: IMF

Federal Bank VP: Bitcoin Threat Means Banks Must ‘Adapt or Die’

"On 31st March, the Federal Reserve Bank of St. Louis – one of the 12 Federal Reserve banks – held a talk on bitcoin from a banking and economic viewpoint. The session, entitled ‘Bitcoin and Beyond: The Possibilities and the Pitfalls of Virtual Currencies’, was presented by economist David Andolfatto, who is Vice President at the bank and a professor at Simon Fraser University. Andolfatto is sure that, ultimately, new systems will upend the monetary hierarchy of today – eventually forcing substantial changes within the banking and payments industry." Continue reading →

Continue ReadingFederal Bank VP: Bitcoin Threat Means Banks Must ‘Adapt or Die’

Canadian Government to Divest ‘MintChip’ Digital Currency Program

"The Canadian government has announced that it will end its MintChip electronic payment system, and that it will look to sell the business to the private sector. Announced in 2012, MintChip was not a digital currency akin to bitcoin, but rather a digital payment mechanism meant to function as an electronic cash that could be transferred between users. MintChip used a silicon chip with a unique ID as a store of value, which was then to be sent to brokers who would trade them to consumers and businesses. Users could embed MintChip devices onto USB sticks, wallets, laptops and tablets, or store their digital cash with a third-party service provider." Continue reading →

Continue ReadingCanadian Government to Divest ‘MintChip’ Digital Currency Program