News

The Bitcoin revolution could change government

"All governments, including ours, and especially the US’s, use the 9/11 terrorist attacks in 2001 as an excuse for reversing gains in human liberty achieved over many decades of struggle. In the name of fighting terrorism and other 'organised crime', jurisdictions, banks and companies that used to respect privacy must now reveal all. Under what the Constitutional Court called 'draconian' powers, anyone’s assets can be seized by unbridled bureaucrats. Bitcoin enables ordinary people to fight back, to avoid and evade snooping governments, which enact, use and abuse laws that allow them, without due process, to investigate, tax, control and seize privately owned assets." Continue reading →

Continue ReadingThe Bitcoin revolution could change government

Attempts To Eliminate Cash Are More Than A Privacy Disaster

"Politicians are suggesting that cash should be gradually replaced by credit card transactions and direct bank transactions, making every single movement of money trackable, seizable, and reversable. This is not just a privacy disaster, it’s also a resilience disaster. I had the privilege of having a long conversation with the Chief Security Officer of one of the larger European banks, and he told me the outcome was a given – there will always be some kind of cash. Whether it’s issued by a central bank is completely beside the point; if central-bank cash isn’t readily available, people will create a way to trade between them without involving a third party." Continue reading →

Continue ReadingAttempts To Eliminate Cash Are More Than A Privacy Disaster

Bank Calls Customer Over Detected Bitcoin Transactions

"Sean Percival today wrote about how he received a phone call from his bank, because 'they detected Bitcoin related transactions,' and they asked him if it was for personal use or business. And, no, it wasn't because of some concern about fraud. Percival clarified that it was just about Bitcoin, and said they wanted to know about 'a spike in activity' with merchants like Coinbase. He later confirmed that it was not even from the fraud department. Percival does not name the bank, other than to say that it's 'one of the biggies.' It will be interesting to see if this becomes a regular thing, and whether or not it'll become yet another path for government officials to try to track Bitcoin usage." Continue reading →

Continue ReadingBank Calls Customer Over Detected Bitcoin Transactions

Swedish bank freezes customer’s account after she sells 5 bitcoins

"Swedbank recently froze a customer’s account after it found out about her selling five bitcoins on a digital currency marketplace. Bröms Hopkins went on to say she was particularly frustrated that the bank didn’t try to contact her before freezing her account. 'Then a guy from the bank called me. He didn’t say it in so many words, but in between the lines he advised me against doing business in bitcoins because of its anonymity. After his call I felt a bit like a criminal,' she said. The bank reopened Bröms Hopkins’ account 15 days after they imposed the freeze." Continue reading →

Continue ReadingSwedish bank freezes customer’s account after she sells 5 bitcoins

Mastercard Hates Bitcoins

"The new boss in charge of giving out a MasterCard licenses has no intention of allowing the brand or any bank that does private label cards to use Bitcoins. In fact, he nearly bragged to me about killing the BitInstant deal with a U.S. bank for the first planned $BTC card this year. Stephen Ruch, the heavyset MasterCard executive, is just a year into his job with the company, and while he monitors the Bitcoin space he told me he is still under the impression it’s one big Ponzi scheme. [..] His biggest fear was it would 'hurt the MasterCard' brand." Continue reading →

Continue ReadingMastercard Hates Bitcoins

Why McDonald’s Killed the Dollar Menu—in 1 Chart

"The sad news that McDonald's is ending its Dollar Menu after eleven years reflects a simple truth: You can't make any money selling burgers for $1, any more. The fact that the Dollar Menu has lasted this long might make you think fast-food prices have lagged behind other items, in real terms. But the price of beef and other staples has been turbulent. With some help from the inflation pros at BLS, I graphed this chart of 'fast food' inflation (technically 'limited service meals and snacks') versus all food for home consumption and core inflation minus housing, which is different from the more commonly used core inflation, but subtracts housing's recent boom." Continue reading →

Continue ReadingWhy McDonald’s Killed the Dollar Menu—in 1 Chart

Spain’s jobless now relying on pensioners to survive

"After a career spent repairing trains, Francisco Marcos Gallego once thought he and his wife would end their days in comfort. Instead they are struggling to support their unemployed son and his children. The couple must use their combined monthly pension of 1,300 euros ($1,760) to help feed their son Miguel, 49, who has been out of full time work since 2009, and the teenaged children who still live with him. Still suffering the effects of the economic slump triggered by the collapse of a property boom in 2008, more and more Spanish families are relying on their retired parents to survive as their unemployment checks run out and mortgage bills pile up." Continue reading →

Continue ReadingSpain’s jobless now relying on pensioners to survive

Plans for Political Union Unravel in Europe

"Advocates of tighter integration believe that the euro zone needs to go further by borrowing elements from the American system of federalism. Many proposals reflect a belief that the euro zone needs to partially mimic the U.S., where the dollar works well across all states partly because of budgets, bonds, financial oversight and depositor protection at the national level. Over the past year, however, the political winds have shifted. Interviews with more than a dozen officials across Europe reveal how plans for deeper integration have run aground as financial markets have calmed and mistrust has simmered between power centers including Berlin, Brussels and Paris." Continue reading →

Continue ReadingPlans for Political Union Unravel in Europe

Marc Faber: Bond Burglars to Bring Bears Out of Hibernation

"The probability that we have embarked on permanent asset purchases by the Fed is very high (until QE99 — or at least until the system breaks down, as just outlined). To Mr. Bernanke’s credit, and to be fair to him, I need to point out that his economic sophism is shared by most central bankers around the world. We can see that the global monetary base has exploded more than fourfold since 2003. These universally common monetary policies are, of course, applauded by fund managers, bankers and the investment community, all of which benefit (including myself) from rising asset prices." Continue reading →

Continue ReadingMarc Faber: Bond Burglars to Bring Bears Out of Hibernation

Alan Greenspan Sees ‘Double Digit’ Inflation Ahead

"Alan Greenspan, the former Federal Reserve chairman, has largely avoided public comment on the Fed’s efforts to stimulate the economy, but he has said enough to make it clear that he is not a fan. It’s been a long time since anyone accurately predicted higher inflation. Instead, inflation has sagged to the lowest levels on record. But here’s why Mr. Greenspan is worried. Each time the Fed buys a bond, it pays the bank that sells the bond by creating money and putting it into an account that the bank keeps at the Fed. Mr. Greenspan’s inflation prediction is based on his estimation of the consequences as that money flows out into the economy." Continue reading →

Continue ReadingAlan Greenspan Sees ‘Double Digit’ Inflation Ahead