regime uncertainty

More Jawboning from Australia’s Central Bank

"RBA Governor Glenn Stevens proceeded from characterizing the level of the exchange rate as 'uncomfortably high' to noting 'that foreign-exchange intervention can, judiciously used in the right circumstances, be effective and useful.' That latter observation was particularly noteworthy because, according to The Wall Street Journal, a currency intervention has essentially been verboten in the decades since Australia shifted to a floating exchange rate in 1983. He closed his remarks on this particular topic with an even more overt statement: 'Nonetheless, we think that investors are under-estimating the likelihood of a significant fall in the Australian dollar at some point.'" Continue reading →

Continue ReadingMore Jawboning from Australia’s Central Bank

Fed Prepares to Maintain Record Balance Sheet for Years

"Federal Reserve officials, concerned that selling bonds from their $4.3 trillion portfolio could crush the U.S. recovery, are preparing to keep their balance sheet close to record levels for years. Central bankers are stepping back from a three-year-old strategy for an exit from the unprecedented easing they deployed to battle the worst recession since the Great Depression. The Fed is testing new tools that would allow it to keep a large balance sheet even after it raises short-term interest rates, a step policy makers anticipate taking next year. They would use these tools to drain excess reserves temporarily from the banking system." Continue reading →

Continue ReadingFed Prepares to Maintain Record Balance Sheet for Years

U.S. Regulators Mull Yanking Access To USD As Punishment For Banks

"BNP Paribas is expected to plead guilty in the coming weeks to charges that it processed payments for companies and countries that were subject to United States sanctions. BNP Paribas is also expected to pay financial penalties of about $8 billion, which would leave a sizable, though manageable, dent on its balance sheet. Despite those potential punishments, some regulators want to do more. Specifically, Benjamin M. Lawsky, New York State’s top financial regulator, is considering whether to temporarily suspend BNP Paribas’s ability to process dollar payments, according to people briefed on the settlement talks." Continue reading →

Continue ReadingU.S. Regulators Mull Yanking Access To USD As Punishment For Banks

FinCEN: Cloud Mining, Escrow Services Aren’t Money Transmitters

"The US Financial Crimes Enforcement Network (FinCEN) has issued new rulings indicating that digital currency-related cloud mining and escrow services should not be considered money transmitters. The two releases came via what appear to be responses to requests from businesses seeking to better understand FinCEN’s policies. FinCEN, the bureau of the US treasury that collects and analyzes financial transactions, has previously released influential decisions regarding how consumer bitcoin miners and bitcoin investors should be regulated under money transmission laws." Continue reading →

Continue ReadingFinCEN: Cloud Mining, Escrow Services Aren’t Money Transmitters

Federal Reserve’s Bitcoin Policy Begins to Take Shape

"On Friday, May 9th, 2014, the Federal Advisory Council and Board of Governors of the Federal Reserve met for their quarterly meeting in Washington D.C. This meeting was historically held in secrecy until Bloomberg News 'won' a Freedom of Information Act request requiring the Fed to make the meetings minutes available to the public. The Fed is pro Bitcoin regulation: 'Regulation is advisable; considerations include protecting consumers, addressing illicit use, and avoiding Balkanization.' In this regards they recommend, 'Regulatory oversight to ensure that exchanges invest in appropriate cyber and other security measures. This includes fully secure storage of Bitcoin wallets.'" Continue reading →

Continue ReadingFederal Reserve’s Bitcoin Policy Begins to Take Shape

Federal Reserve’s Bitcoin Policy Begins to Take Shape

"On Friday, May 9th, 2014, the Federal Advisory Council and Board of Governors of the Federal Reserve met for their quarterly meeting in Washington D.C. This meeting was historically held in secrecy until Bloomberg News 'won' a Freedom of Information Act request requiring the Fed to make the meetings minutes available to the public. The Fed is pro Bitcoin regulation: 'Regulation is advisable; considerations include protecting consumers, addressing illicit use, and avoiding Balkanization.' In this regards they recommend, 'Regulatory oversight to ensure that exchanges invest in appropriate cyber and other security measures. This includes fully secure storage of Bitcoin wallets.'" Continue reading →

Continue ReadingFederal Reserve’s Bitcoin Policy Begins to Take Shape

Why Are Bond Yields Falling as Stocks Rally?

"One of the most striking features of 2014 has been falling Treasury yields in the wake of the Fed’s tapering of QE. The standard theory goes that, as the Fed withdraws support for longer-dated bonds, bond prices will drop (as demand falls) and yields (which move inversely to prices) will rise. So much for standard theory… In addition to the divergence between large caps and small caps (which we wrote about here and here), the divergence between falling bond yields and rising large-cap stock prices is another sign that the rally in the S&P 500 and the Dow may not be as strong as some believe." Continue reading →

Continue ReadingWhy Are Bond Yields Falling as Stocks Rally?

Gold Smuggling in India Spikes 446% in Last 12 Months

"As per the report, Directorate of Revenue Intelligence (DRI) had filed 40 gold smuggling cases in the last year whereas it has increased to 148 cases in the past 12 months. The aggregate value of the seized illegal gold from 464 people in 2013-14 is estimated at Rs 245 crore. Most of the gold smugglers are arrested from the nation’s international airports. The customs officials at the Indira Gandhi International Airport said that they have nabbed 353 kg of gold worth at Rs 90 crore in this current financial year whereas it was 20-25 kg of gold in the last year. India had witnessed a dangerous increase of CAD to $88.2 billion which is about 4.7% of the country’s GDP in the year 2012-2013." Continue reading →

Continue ReadingGold Smuggling in India Spikes 446% in Last 12 Months

The DOJ’s “Operation Choke Point” Has Driven 30 Industries To Bitcoin

"The DOJ is targeting 30 high-risk industries, as labeled by the Federal Deposit Insurance Corporation (FDIC) in 2011. BitPay has proven to be an incredible ally to the porn industry and has led Bitcoin’s charge into the high chargeback industry. Porn.com and now Verotel both accept Bitcoin using bitpay; both are able to charge lower fees without the risk of chargeback. OKCupid has been using Bitcoin for over a year now… Almost as long as the DOJ has been unintentionally pushing these industries towards Bitcoin. Every industry in the world can benefit from Bitcoin Blockchain technology; it’s just that these 30 have been given a forceful push by the government." Continue reading →

Continue ReadingThe DOJ’s “Operation Choke Point” Has Driven 30 Industries To Bitcoin

Wendy McElroy: First They Came For The Porn Stars…

"The Department of Justice (DOJ) program is called Operation Choke Point. The choke point is America's payment infrastructure through which an estimated $5 trillion in consumer purchases flow each year; more than eight million merchants use it to process credit and debit card payments. The DOJ is targeting banks and payment companies, such as PayPal, with a tsunami of subpoenas and other expensive legal demands. The demands go away if the institutions refuse to do business with people whose activities are deemed 'objectionable' although they are legal. The DOJ is imposing its own moral criteria on who can participate in the market place." Continue reading →

Continue ReadingWendy McElroy: First They Came For The Porn Stars…