Thursday, June 27, 2013

The new enemy of the Government

Bitcoin is the new enemy of the Government.

Banking regulators in California, New York and Virginia in recent weeks have issued warnings to virtual-currency exchanges and other companies that deal with bitcoin that they could be closed down if their activities run afoul of state money-transmission laws.

The US Treasury will insist that virtual currencies comply with anti-money-laundering laws.

US Financial Crimes Enforcement Network issues guidance on virtual currencies, suggesting Bitcoin
exchanges are in for greater scrutiny.

FinCEN’s reg ulations define currency (also referred to as “real” currency) as “the coin and paper money of the United States or of any other country that [i] is designated as legal tender and that [ii] circulates and [iii] is customarily used and accepted as a medium of exchange in the
country of issuance.” 

In contrast to real currency, “virtual” currency is a medium of exchange that operates like a currency in some environments, but does not have all the attributes of real currency. In particular, virtual currency does not have legal tender status in any jurisdiction.

This guidance addresses “convertible” virtual currency. This type of virtual currency either has an equivalent value in real currency, or acts as a substitute for real currency.

Wednesday, June 26, 2013

Why every quarter U.S. GDP Growth Is Revised Down?

Why every quarter U.S. GDP Growth Is Revised Down?

Because downward revisions are more common than upward revisions. 

Because consumer spending is  more than two-thirds of the U.S. economy  and government controls about 40 percent of consumer spending.

Tuesday, June 25, 2013

Why entitlements will not fail?

Why entitlements will not fail?

Because everybody feels that we have a right or a claim to something.

Because they are payments made directly to individuals.

Because the federal government wants to be legally obligated to make payments.

Because they make up the major part of the federal budget.

Because the government assistance to individuals is mandated by law and by need.

Because everybody wants the right to a particular privilege.

Because an individual qualifies simply by virtue of his or her circumstances.

Because the mayority of the people does not believe the idea that everything  should be obtained through effort.

Monday, June 24, 2013

Why America is not Europe?

Why America is not Europe?

Because America has CME Group Inc. (Chicago Mercantile Exchange), the world's largest futures exchange company; the world's leading and most diverse  derivatives marketplace; the place  where the world comes to manage risk.

Sunday, June 23, 2013

Why central banks cannot stabilize financial markets?

Overburdened central banks cannot stabilize financial markets without governments reforming economies and banking systems.

Central banks are out of control, they have persistent policy problems; they do not have the independence to determine the best way of achieving its policy goals; they cannot solve economic problems; they are unable and unwilling of dealing with a bubble economy.

Saturday, June 22, 2013

Why Mt.Gox, the world's largest bitcoin trading exchange, has halted withdrawals of customer funds in U.S. dollars?

Why Mt.Gox, the world's largest bitcoin trading exchange,  has halted withdrawals of customer  funds in U.S. dollars?

Because the Tokyo-based exchange is the only FED concern nowadays.

Wednesday, June 19, 2013

Life's greatest pleasure?

 Life's greatest pleasure?

Rowing (sport)