"Federal agencies will attempt to regulate Bitcoin, according to the Mercatus Center's Jerry Brito. Given that regulation simply cannot control the new currency, the question is whether that regulation will foster its growth or relegate it to illicit uses." Continue reading →
"The top U.S. anti-money-laundering regulator on Monday told a Bitcoin trade group that exchanges for the virtual currency must follow the same rules as established financial institutions, highlighting the government's efforts to keep tabs on a small but growing segment of the financial world. The Treasury Department's Financial Crimes Enforcement Network, or Fincen,hosted the Bitcoin Foundation and other regulators and law-enforcement officials as the sides grapple with the rise of virtual currencies. Such digital money isn't backed by a central government and often, as with Bitcoin, isn't controlled by any central entity." Continue reading →
"The U.S. government took the latest step toward regulating virtual currencies on Monday as representatives from the Bitcoin Foundation met behind closed doors with federal officials in Washington. Attendees say the meeting was cordial, with regulators listening carefully as Bitcoin advocates warned that excessive regulation could drive innovation in virtual currencies overseas. Nearly a dozen high-level agencies were in attendance, including the Justice Department, the Federal Bureau of Investigation, the Department of Homeland Security, the Internal Revenue Service, the Secret Service and the Financial Crimes and Enforcement Division (FinCEN) of Treasury, which convened the discussion." Continue reading →
"How will home builders react if the Fed decides their investments are bubbly and restricts their credit? How will bankers who followed all the rules feel when the Fed decrees their actions a 'systemic' threat? How will financial entrepreneurs in the shadow banking system, peer-to-peer lending innovators, etc., feel when the Fed quashes their efforts to compete with banks? Will not all of these people call their lobbyists, congressmen and administration contacts, and demand change? Will not people who profit from Fed interventions do the same? Willy-nilly financial dirigisme will inevitably lead to politicization, cronyism, a sclerotic, uncompetitive financial system and political oversight." Continue reading →
"An industry group, the Cloud Security Alliance said last month that 10 percent of its non-US members have cancelled a contract with a US-based cloud provider, and 56 percent said they were less likely to use an American company. A separate report this month by the Information Technology & Innovation Foundation, or ITIF, a Washington think tank, said US cloud providers stand to lose $22 billion to $35 billion over the next three years due to revelations about the so-called PRISM program. Daniel Castro, author of the report, says a loss of trust in US tech firms could lead to 'protectionist' measures that hurt the fast-growing cloud sector." Continue reading →
"More than half the doctors are now working for hospitals and other institutions, rather than in private practice. Hospitals are using their new doctor employees to get more money out of Medicare. The other major unintended consequence is the boost to consumer-directed health care. The cheapest plans are going to have deductibles of $5,000 or more. Millions of patients are going to be buying care with their own money, rather than with a third-party payer’s money. Accenture predicts the number of walk-in clinics is going to double in the next few years. They are doing what the ACOs are unlikely to do: lowering costs, increasing quality, and improving access to care." Continue reading →
"To the extent that prices are prevented from rising, it will create enhanced rationing by waiting. And almost anything patients and doctors to do circumvent the cost of waiting will also add to the money cost of care. For example, an increasing number of primary care doctors are becoming concierge doctors. For a fee of about $2,000 a year, patients get same day or next day appointments, more time with the physician and someone who acts as their agent in dealing with other parts of a complex heath care system. Yet physicians who become concierge doctors typically replace a practice that sees about 2,500 patients with one that sees only about 500." Continue reading →
"Instead of the traditional wing-like mirror jutting out into the air, the Model X used small video cameras built into the doors with display cameras on the inside. This drastically improved the aerodynamics of the Model X, but also broke Federal safety regulations. While Federal regulations requiring the addition of back-up cameras to cars was slated to go into effect this year, lawmakers have pushed that law back to 2015. That means Tesla has time to lobby lawmakers to rewrite the law to allow for the option of eliminating side mirrors and replacing them with video cameras. Some estimates say that by just getting rid of side mirrors, aerodynamics could improve as much as 5% overall." Continue reading →
"Belarus will not allow confectionery manufactured by Roshen to cross its territory. That’s after the Russian sanitary services banned the confectioners products after the toxic hydrocarbon benzopyrene was found in Roshen milk chocolate. Roshen could stand to lose $200mn from the ‘chocolate war’ with Russia according to Oleksandr Sokolov, director of analytics at Pro-Consulting talking to Ukrinform. Kazakhstan, the third party to the Customs Union with Russia and Belarus, has so far not found any signs of benzopyrene in Roshen products. On Saturday Tajikistan said it had found no impurity in Roshen confectionary products imported into the country." Continue reading →
"The common core curriculum mandates a common core system of exams. Most students will flunk these exams. This is inevitable. The results in New York are the canary in the coal mine. The failure rate was 69%. Blacks and Hispanics failed at an 84% rate. Parents are up in arms. The common core curriculum will not redeem the public schools. It will instead expose the public schools as utter failures. This will not be tolerated by local politicians, who take the heat for the failures in public schools. They will demand that the educrats turn down the heat. The tests are in the first stage of a roll-back. The Obama Administration is blaming the sequestration." Continue reading →