regime uncertainty

Bitcoin: Getting Down to Virtual Currency Basics

"At many credit unions, the apparent upshot of the regulatory signals is confusion. 'The guidance is not straightforward. It is incredibly confusing,' said one credit union CEO who asked for anonymity on the advice of legal counsel. He added that, according to his analysis, there also would be a substantial staff burden in complying with regulatory requirements imposed on a credit union classified as a money transmitter under FinCEN, and he is unsure the costs to process Bitcoin transactions are worth the benefits. 'You have to decide if it is worth it to adhere to the regulations and for us, right now, the answer is no,' he said. But he insisted that door could open if the Bitcoin demand surfaced." Continue reading →

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The Attack on U.S. Property Rights Continues

"If Mayor McLaughlin delivers on her threat, banks will view mortgage lending in Richmond as a riskier investment. As a result, banks will make it harder to get loans in Richmond by requiring higher down payments to minimize the risk of the mortgage going underwater. They will also likely demand higher interest rates to compensate for the increased risk of lending in that market. According to Wells Fargo, Newark (NJ), North Las Vegas, El Monte (CA), and Seattle are all considering similar plans. Taken together, they will further contribute to the decline in the security of property rights in the United States and further jeopardize our economic prosperity." Continue reading →

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Lavabit’s Owner Appeals Secret Surveillance Order That Shuttered Site

"The owner of the encrypted email company Lavabit has formally appealed the secret surveillance order that led him to defiantly shutter the site last month. But the details of the case were immediately placed under seal in the 4th Circuit Court of Appeals, records show. The Texas-based email service shut down on August 8, blaming a court battle it had been fighting, and losing, in secret. In a statement announcing the closure, and in subsequent interviews, Lavabit owner Ladar Levison complained that he’s prevented from revealing exactly what the government asked him to do, or who it was targeting." Continue reading →

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Feds will continue to jail pot dealers ‘in all states’

"The White House has pledged to continue to jail those who traffick in marijuana or sell it to minors — even in two US states where its recreational use is now legal. Deputy Attorney General James Cole defended the federal decision not to challenge new laws legalizing marijuana in Colorado and Washington states. Cole pledged that in addition to blocking cannabis cultivation and distribution, US authorities would work to prevent the export of marijuana to places where the substance is still illegal, 'whether the state has legalized it or not.' And he added that Justice Department officials 'reserve the right… to challenge the state laws at a later time.'" Continue reading →

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The “Domestic Terrorist” You Can Call a Hero

"Bernard von NotHaus has been the called the Rosa Parks of the alternative money movement. More than 10 years ago, he had this idea that he would make his own money — not the fake stuff we are used to, but the real stuff made of actual silver. The feds raided him in in 2006. In 2007, the government outright stole 2 tons of coins from him, many of them featuring an image of Ron Paul, plus 500 silver coins and 50 gold coins. They threw him in jail and dragged his name through the mud many times. The government labeled him a 'domestic terrorist.' Yet — and this is what amazed me — he still hasn’t been sentenced. He walks around as free as you or me." Continue reading →

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Belgium’s finance minister has no objection to bitcoin

"Minister of finance Koen Geens responded to a parliamentary question about bitcoin, commenting that he wouldn’t see the Belgian National bank having any objection to bitcoin, and stating that for the moment its use is limited to a handful of traders. Geens reportedly added that although privacy and anonymity were a big part of bitcoin, there was no indication that the cryptocurrency is used on a large scale for money laundering. Any exchange of large amounts of bitcoin would be detected by the financial control systems, he argued. Germany made its own advances in this area last month, when its own finance ministry officially recognized bitcoin as private money." Continue reading →

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Hong Kong Wrong [2006]

"Though a colony of socialist Britain, Hong Kong followed a laissez-faire capitalist policy, thanks largely to a British civil servant, John Cowperthwaite. Assigned to handle Hong Kong's financial affairs in 1945, Cowperthwaite was so famously laissez-faire that he refused to collect economic statistics for fear this would only give government officials an excuse for more meddling. The results of his policy were remarkable. At the end of World War II, Hong Kong was a dirt-poor island with a per-capita income about one-quarter that of Britain's. By 1997, when sovereignty was transferred to China, its per-capita income was roughly equal to that of the departing colonial power." Continue reading →

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Abolish All Government Economic Data Collection

"Government data collection gives an impression that the state is the overseer of the economy, and it provides an opening for central planners to meddle with the marketplace. Opportunities abound for the Paul Krugman's of the world to put together 'models,' and to prescribe 'policies' based on them. The marketplace needs to be freed from these meddlers. If companies or entrepreneurs desire economic data, let them pay for it (with their own money) in the market. Let private companies gather up the data, and have their reputation hang on its accuracy. Government worries not about its reputation. It lies constantly." Continue reading →

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Washington State issues how-to regs on growing, selling marijuana

"The details announced this week include the number of shops that will be able to sell pot around the state (334, with locations based on population), the number of shops or growing facilities that a single business can operate (three per individual or corporation), the size of marijuana 'grows' (30,000 square feet, or about three-quarters of an acre), the kinds of security systems that must be in place (alarms and video surveillance), and how far such shops must be from schools, parks, and other places where children may gather (1,000 yards). In all, according to the Washington State Liquor Control Board, the overall harvest for next year will be capped at 40 metric tons." Continue reading →

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Jack Lew: Debt Ceiling Drama To Return in October

"Oh, debt ceiling battles… what wonderful political theater you are. The next battle is coming this fall, although no one seems quite sure when. Regardless, it will have an impact on markets, as before, and could send gold shooting skyward. Both parties are expected to dig their trenches even deeper this time… making the fireworks even more explosive than usual. Since the gridlock in Congress seems unlikely to change, expect this to become a new annual national pastime… something like D.C.’s version of the Super Bowl. Get out your popcorn… and don’t forget to keep an eye on gold prices. Remember this chart." Continue reading →

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