money

Bitspend, Bitcoin payment system, ceases trading after bank accounts frozen

"The bitcoin payment system, Bitspend, has been forced to stop operations after its bank accounts were frozen. Bitspend is a service that acted as a bridge between those who held cash in the form of bitcoin, and merchants who did not accept bitcoin payments. According to the firm, its banks (Chase and another unnamed bank) both told it that they regarded businesses which trade in bitcoin as 'too high risk'. The banks allegedly did this without notice. Furthermore, Chase bank has also closed the personal accounts of the firm’s owner. The company stated that it will honour orders as soon as it can, but with the current state of affairs it cannot pay its own bills." Continue reading →

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Erik Voorhees: financial independence through gold and Bitcoin

"Félix Moreno talks to Erik Voorhees about Bitcoin, gold and the nature of money. They discuss the properties that make good or bad money and how both Bitcoin and precious metals are decentralised (a plus), while fiat money systems are centrally planned. They talk about free speech, property rights and liberty, and the role that money plays in these." Continue reading →

Continue ReadingErik Voorhees: financial independence through gold and Bitcoin

Central Bank Injects Cash After China Money Rates Jump to Records

"The People’s Bank of China added 50 billion yuan ($8.2 billion) to the financial system today after a cash squeeze drove money-market rates to record highs. The sum was supplied to a single lender through 'targeted liquidity operations' and more banks were in talks to obtain financing. A PBOC press official said he was unaware of the matter. Bank of China Ltd. announced on its microblog that it made all payments on time today and has never had a capital default. A spokesman for Industrial & Commercial Bank of China Ltd. declined to comment on whether the lender received any financing from the central bank." Continue reading →

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Bitcoin In IRS Crosshairs, Says Government Report

"There is confusion whether transactions in Bitcoin should be treated as property, barter, foreign currency, or a financial instrument. How you see it can determine the tax treatment. Barter transactions may be the most logical treatment, but not everyone agrees. Besides, even without Bitcoins or other exotica, bartering transactions are inherently under-reported. And then there is tax basis. If you sell something for less than you paid, you shouldn’t have gain. That’s true in U.S. dollars or in Bitcoin. If you sell something at a garage sale, you may or may not have income. Brave new world? GAO and IRS don’t think so." Continue reading →

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Tired German bank employee naps on keyboard, transfers $293 million

"An obviously tired German bank employee fell asleep on his keyboard and accidentally transformed a minor transfer into a 222 million euro ($293 million) order, a court heard. The Hessen labour court heard that the man was supposed to transfer just 62.40 euros from a bank account belonging to a retiree, but instead 'fell asleep for an instant, while pushing onto the number 2 key on the keyboard' — making it a huge 222,222,222.22 euro order. The bank discovered the mistake shortly afterwards and corrected the error. The case was taken to court by the man’s 48-year-old colleague who was fired for letting the mistake slip through when verifying the order." Continue reading →

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U.S. charges eight hackers over alleged cyber theft of at least $15 million

"Federal prosecutors in New Jersey on Wednesday unveiled criminal charges against eight people accused of trying to steal at least $15 million from U.S. customers in an international cybercrime scheme targeting accounts at 15 financial institutions and government agencies. U.S. Attorney Paul Fishman said the conspiring hackers gained unauthorized access to computer networks, diverted customer funds to bank accounts and pre-paid debit cards and used 'cashers' to make ATM withdrawals and fraudulent purchases in Georgia, Illinois, Massachusetts, New York and elsewhere." Continue reading →

Continue ReadingU.S. charges eight hackers over alleged cyber theft of at least $15 million

Bitcoin: Internationalization’s New Best Friend

"Bitcoin makes it easy to move funds around the world and convert it into and out of fiat currencies in a very private fashion. There's nothing to declare at borders, as with cash or precious metals, since the value exists 'out there' in the Internet. All you have are the keys to access those funds when desired. And, best of all, it allows frequent travelers and permanent travelers (PTs) to build up a readily accessible 'emergency account' that can't be easily identified, let alone stolen. However, the trick to getting all these privacy benefits is to use it properly." Continue reading →

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Termites Feast On Woman’s Life Savings

"A Chinese woman almost lost her life savings recently when termites invaded a wooden drawer in which she kept a plastic bag containing 400,000 yuan: the equivalent of $65,000 U.S. dollars. It was only after the woman decided to redecorate her house in Guandong Province that she noticed the termites had dined on her nest egg. According to the Guangzhou Daily, the money was given to the woman by her children. A local bank generously scanned the remaining cash and was able to identity 340,000 yuan which means the termite's meal ultimately cost the woman roughly $9,786." Continue reading →

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This One Group of Bankers Can Help You Predict the Markets

"Fifty-eight of the world’s largest central banks are members of the Bank for International Settlements (BIS), a group that meets every two months behind closed doors in Basel, Switzerland. At their bi-monthly dinner meetings, the central bankers supposedly discuss monetary policy, the global markets and international money flows. But we don’t really know, because the meetings are private — no transcripts, no minutes and no journalists allowed. Even staff members are barred from the room. What is certain is that any major policy decisions made by any of the world’s large central banks are cleared through the BIS first. Its latest warning is a doozy." Continue reading →

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Obama Says Bernanke Has Been at Fed ‘Longer Than He Wanted’

"President Barack Obama said Federal Reserve Chairman Ben S. Bernanke has stayed in his post 'longer than he wanted,' one of the clearest signals the central bank chief will leave when his current term expires next year. 'Ben Bernanke’s done an outstanding job,' Obama said in an interview with Charlie Rose that aired yesterday on PBS, when asked about nominating him for another term subject to Senate approval. 'He’s already stayed a lot longer than he wanted or he was supposed to.'" Continue reading →

Continue ReadingObama Says Bernanke Has Been at Fed ‘Longer Than He Wanted’