Mainstream News

Insatiable appetite for gold fuels India’s smuggling industry

"Indian gold smugglers are adopting the methods of drug couriers to sidestep a government crackdown on imports of the precious metal, stashing gold in imported vehicles and even using mules who swallow nuggets to try to get them past airport security. Stung by rules imposed this year to cut a high trade deficit and a record duty on imports, dealers and individual customers are fanning out across Asia to buy gold and sneak it back into the country. Sri Lanka, Thailand and Singapore are the latest hotspots as authorities crack down on travellers from Dubai, the traditional source of smuggled gold." Continue reading →

Continue ReadingInsatiable appetite for gold fuels India’s smuggling industry

Debt hits 200-year high; IMF warns of ‘savings tax’ and mass write-offs

"Much of the Western world will require defaults, a savings tax and higher inflation to clear the way for recovery as debt levels reach a 200-year high, according to a new report by the International Monetary Fund. The IMF working paper said debt burdens in developed nations have become extreme by any historical measure and will require a wave of haircuts, either negotiated 1930s-style write-offs or the standard mix of measures used by the IMF in its 'toolkit' for emerging market blow-ups. Financial repression can take many forms, including capital controls, interest rate caps or the force-feeding of government debt to captive pension funds and insurance companies." Continue reading →

Continue ReadingDebt hits 200-year high; IMF warns of ‘savings tax’ and mass write-offs

ED officials raided two bitcoin trading firm in Ahmedabad

"Days after the RBI issued a cautionary note regarding the use of popular virtual currency Bitcoin, Enforcement Directorate officials here raided two companies running Bitcoin transactions in India. ED officials told ET that on Thursday raids were conducted on the offices of rBitco.in and buysellbitco.in. This is India's first bitcoin raid and second globally after FBI conducted the raid in October, they said. As per the sources, the owners of the both the bitcoin trading firm would be booked under FEMA Act initially. However, after detail investigation of the data collected, if any havala transaction or criminal nature transaction is detected then they would be booked under the appropriate Act." Continue reading →

Continue ReadingED officials raided two bitcoin trading firm in Ahmedabad

Paul Krugman Is Wrong: Bitcoin Isn’t Evil, But Monetary ‘Stimulus’ Is

"Krugman asserts that bitcoin is evil because it is a 'weapon intended to damage central banking' and makes it harder for states to tax and monitor people. He gets it exactly backwards. A weapon is a tool used to attack someone. But bitcoin users aren’t attacking anyone; they are avoiding an attack. As the tax burden grows heavier, and surveillance intrudes more deeply, it’s reasonable for people to seek shelter. They just want to protect themselves." Continue reading →

Continue ReadingPaul Krugman Is Wrong: Bitcoin Isn’t Evil, But Monetary ‘Stimulus’ Is

Bitcoin exchanges shut shop in India

"BuySellBitCo.in CEO Mahin Gupta refused to comment on what would happen to the investment that went into BuySellBitCo.in. However, the exchange’s website pointed out that it was suspending operations until a clearer operating framework could be found. 'Post the RBI circular, we are suspending buy and sell operations. This is being done to protect the interests of our customers and in no way is a reflection of Bitcoin’s true potential or price,' the trading platform said. Another trading platform, INBRTC, claimed that the 'only option now was to suspend services until further arrangements could be made.'" Continue reading →

Continue ReadingBitcoin exchanges shut shop in India

India Central Bank warns against Bitcoin use

"The Reserve Bank of India, on Tuesday, warned the public against the use of virtual currencies such as Bitcoin, pointing out that users expose themselves to potential financial, legal and security related risks. The public advisory comes after the borderless digital currency has begun to gain widespread acceptance in India, despite poor Internet penetration and a natural scepticism to assets not backed by tangible entities such as land. In its list of potential risks, the apex bank highlights problems such as losses arising out of hacking, no sources of customer recourse and the general financial volatility surrounding Bitcoins." Continue reading →

Continue ReadingIndia Central Bank warns against Bitcoin use

Belgian card payment network crashes two days after record usage

"Belgium’s card payment network failed on Monday night, leaving millions of Belgians unable to pay at stores or to withdraw cash from ATMs and self-service terminals inside banks. Atos subsidiary Worldline, operator of Belgium’s Bancontact-Mister Cash payment network, reported on its website that it was difficult for cardholders throughout the country to make payments or withdrawals from around 4 p.m. local time on Monday. Local media reported long lines to make cardless withdrawals at bank counters. Worldline put its business continuity plan into effect, and payment traffic began to recover from 5.15 p.m., returning to near-normal levels from 6.30 p.m., the company said in a statement." Continue reading →

Continue ReadingBelgian card payment network crashes two days after record usage

Belgian card payment network crashes two days after record usage

"Belgium’s card payment network failed on Monday night, leaving millions of Belgians unable to pay at stores or to withdraw cash from ATMs and self-service terminals inside banks. Atos subsidiary Worldline, operator of Belgium’s Bancontact-Mister Cash payment network, reported on its website that it was difficult for cardholders throughout the country to make payments or withdrawals from around 4 p.m. local time on Monday. Local media reported long lines to make cardless withdrawals at bank counters. Worldline put its business continuity plan into effect, and payment traffic began to recover from 5.15 p.m., returning to near-normal levels from 6.30 p.m., the company said in a statement." Continue reading →

Continue ReadingBelgian card payment network crashes two days after record usage

Why Gordon Brown sold Britain’s gold at a knock-down price [2012]

"When Brown decided to dispose of almost 400 tonnes of gold between 1999 and 2002, he did two distinctly odd things. First, he broke with convention and announced the sale well in advance, giving the market notice that it was shortly to be flooded and forcing down the spot price. This was apparently done in the interests of 'open government', but had the effect of sending the spot price of gold to a 20-year low, as implied by basic supply and demand theory. Second, the Treasury elected to sell its gold via auction, which frequently achieved a lower price than the equivalent fix price. It seemed almost as if the Treasury was trying to achieve the lowest price possible for the public’s gold. It was." Continue reading →

Continue ReadingWhy Gordon Brown sold Britain’s gold at a knock-down price [2012]

S&P: Britain’s euroscepticism a major factor in EU’s loss of triple-A rating

"Britain’s political debate over the future of its EU membership and the Prime Minister’s promise of European referendum in 2017 were cited as important factors in the uncertainty surrounding the Union’s future. 'The UK has recently passed a bill calling for a referendum on continued EU membership, which is the first time in the EU's history that a sitting government has proposed such a step,' said the S&P statement. 'Although this potential plebiscite is set for 2017, the UK general elections are expected in 2015 and we expect EU membership to be a key debate.' Cuts to the EU budget earlier this year, for the first time in its 56 years history, are regarded as a major risk." Continue reading →

Continue ReadingS&P: Britain’s euroscepticism a major factor in EU’s loss of triple-A rating