Moment Of Truth For The Federal Reserve

Fed Q.E = collapse in fiat confidence = adoption driver for the new blockchain based bitcoin decentralised economy.
A planned economy is not a free market. Have no illusions. We are taught that we live in a ‘democratic’ world whilst the reality couldn’t be more communist in nature! Is now our Soviet moment?
http://www.thelastamericanvagabond.com/business/economy/moment-truth-federal-reserve/

Fed President Admits: [We’re Shitting Ourselves!]

James Bullard, St. Louis Fed President, is the latest old banker to ring an alarm bell of sorts stating in a fairly emotionally charged use of words that new inventions, such as blockchain technology, cryptocurrencies and ICOs, might “eviscerate” big banks if regulators do not do something about it.
Referring to Dodd-Frank, he said “we are fighting the last war,” before adding that growing competition from fintechs has become the “number one issue.” He says:
“We need to speed up our consideration of the fintech issues and think harder about what is the regulatory environment that is going to be appropriate. I think we have been complacent so far.
That is the battleground for the next ten years. It is not the same as the battleground for the previous ten years.”

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Why Blockchain Technology Will Eat The World.

Why we will win the War

OR – Why Jim Rickards is Wrong!

“Bitcoin is doomed to fail” the neigh sayers …neigh.

Some critics might admit that yes Blockchain technology does look set to completely disrupt the status quo but they just cant get rid of that nagging feeling that current prices are bound to crash. For one major reason:

Governments and Central Banks (the Elites & the Bureaucrats they protect and who grow fat off the public nipple), don’t like competition.

Of course they are correct.

Open source, P2P, decentralised exchange between ourselves, without their ‘help’ is a huge threat to them. In fact it spells the end for their privileged existence.

At first they laughed at Bitcoin, if they knew what it was. However as the market cap grew bigger, and bigger, with no signs of slowing down they have been forced to take notice. It takes a little while to wrap your head around the significance of the Technology. First you notice Bitcoin, then you learn about Blockchain, then you start to gain an insight into the things it could be capable of.

They can now see the ‘threat’ looming larger. And they are not going to take it lying down.

The price, relative to gold say, indicates that Bitcoin is now well into bubble territory and when Governments crack down on this threat to the system, the bubble will pop and the price will …drop!
And crack down they will.

This fear seems to be based on sound reasoning and is one of the factors holding back the mass adoption of crypto currencies. When governments act the price drops as investors panic. Look at the effect of the recent China crack down.

However it doesn’t last. As more people gain an understanding of the technology behind Bitcoin, the internet itself and of emerging technologies which will play a role they will see how these ‘attacks’ will ultimately fail. Investors will return.

Big Brother is Loosing It’s Grip So What Can They Do About It?

So, the Decentralised Blockchain is coming for them. It’s a huge threat. What can they do about it then?

First, they will attack directly. Some Governments are already taking this approach with outright bans. Like the music industries crack down on Napster this will not work. Yes Napster no longer exists but cut the head off the snake and thousands more sharing platforms were spawned. Better and stronger.

Plus anything Governments try to ban doesn’t stop people from doing it anyway. Prohibition usually tends to backfire completely.

Then, they will attempt to hijack it. Like the Roman Empire re-branding itself as the ‘Holy’ Roman Empire. If you can’t beat em join em. It will be for our own safety of course.

The problem will be criminals, tax cheats and terrorists. People just can’t be trusted. The solution will be a Centralised Blockchain. The approved version – which they can monitor and control. Which they can use to fleece us so it’s business as usual.

In fact the publics fervour for this new tech will play right into their hands and allow the speedier introduction of many 1984 type controls over the population. Humans will be the asset on the Blockchain.

In the case of digital currency, the supply will not be finite like Bitcoin. They will need a way to inflate the supply in order to continue their ponzi scheme.

So how can they achieve the Takeover?

“Blockchain depends on critical infrastructure. I.S.P’s, servers, telco networks, the banking system and the power grid, all subject to government control”. – Jim Rickards

If criminalising it wont work, and ‘The People’ refuse to adopt their approved versions I think that attacking that “critical infrastructure” in various ways is the only real weapon they can deploy. I can’t imagine anything else. So let me address it point by point to illustrate why that will not work either.

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Japanese Banks ..to Launch J-Coin, a Digital Currency to Kill Off Cash

By Michael Rielly – MIT Technology Review
At the moment, some 70 percent of all financial transactions in Japan use cash—a far higher amount than occurs in most developed countries, where cash has been on the decline for some time now. Relying so heavily on hard currency exacts costs in the form of transaction and handling fees, as well as the expenses associated with moving all those notes and coins around. Cash transactions are also easier to hide from regulators, and India, for example, cited shutting down the black market as one reason it decided to push aggressively towards digital money.

The idea for J-Coin is that it would sit alongside the Japanese yen, exchanged at a one-to-one rate, and be offered as a free service. In return, the banks that operate it would get detailed data on how people use it ..that will indeed make people easier to track).
https://www.technologyreview.com/the-download/608963/japanese-banks-are-planning-to-launch-j-coin-a-digital-currency-meant-to-kill/

The Global Elite’s Crackdown on Bitcoin

By James Rickards-Daily Reckoning.
Many advocates of bitcoin and other cryptocurrencies have a naïve belief that their digital assets are ‘beyond the reach of governments’, ‘cannot be traced’, and ‘cannot be frozen or seized’. But it’s really not true.

..using bitcoin on the dark web is a haven for criminals, arms dealers, tax evaders, and state enemies of the US. How long will it be before the US joins the effort to shut down, interdict and disrupt bitcoin message traffic on the dark web and the bitcoin exchanges themselves? ..Governments enjoy a monopoly on money creation and they’re not about to surrender that monopoly to cryptocurrencies like bitcoin.

..Governments don’t want to kill it; they want to control it..They seek to do so using powers of regulation, taxation, investigation, and, ultimately, more coercive powers, including arrest and imprisonment of individuals who refuse to obey government mandates with regard to blockchain.

..the blockchain depends on critical infrastructure, including servers, telecommunications networks, the banking system and the power grid, all of which are subject to government control, ..That’s the back door governments will use to regulate and control the blockchain. ..If the power grid goes down for whatever reason ..good luck accessing your bitcoins. Bitcoin may have made you a millionaire on paper. But what good does it do if you can’t access it when you need it most?
https://www.dailyreckoning.com.au/global-elites-crackdown-bitcoin/2017/09/26/

India’s Central Bank Plans to Digitize Rupee-“Not Comfortable” with Decentralized Cryptos

The RBI is looking into creating a fiat cryptocurrency to replace the Indian rupee according to its executive director Sudarshan Sen, Economic Times reported. “Right now, we have a group of people who are looking at fiat cryptocurrencies. Something that is an alternative to the Indian rupee, so to speak. We are looking at that closely,” Sen said at the India Fintech Day conference. He further expressed that the country was not comfortable with Cryptocurrencies that were decentralized… “As regards non-fiat cryptocurrencies, I think we are not comfortable,” Sen said, adding “Bitcoins for example. That’s a private cryptocurrency.”

..The government of India has previously announced its “Cashless India” initiative, a vision to transform the country into a digitally-empowered society and knowledge economy. Some predict India’s digital economy will reach $1 trillion by 2022, from $270 billion today. A key component of this forward-thinking vision includes the India Stack, an ongoing project to create a unified platform to bring India’s population, banks and payment providers into the digital age.

Earlier this month Coinivore reported the Institute for Development and Research in Banking Technology (IDRBT), founded in the 1990s by the Reserve Bank of India (RBI), is seeking to create a spectrum of banking-related services on top of the new proposed blockchain technology. Historically India has embraced going digital more than any other country and we may see India being the first country to do so. In November of last year, Prime Minister Narendra Modi pushed for withdrawing the Indian rupee bank notes. Modi later double-down on his plan, calling for India to embrace digital money a month later. Then the Indian government went on to begin amending legislation to further those plans. With the director of India’s central bank coming out speaking about digitizing the Rupee plans are moving forward in India to fully make a digitized economy a reality.
https://nexusnewsfeed.com/article/geopolitics/fiat-cryptocurrency-india-s-central-bank-plans-to-digitize-the-rupee/

R.I.P. US Dollar

By Jim Rickards – The Daily Reckoning.

The Death of the Dollar has been a long-time prediction of mine…Let’s dig in to what’s going on.

  • R.I.P. US dollar

In my 2014 book, The Death of Money, I laid out the case for the demise of the US dollar as the world’s leading reserve currency, and its replacement with one of two leading contenders – gold or the IMF’s special drawing rights, SDRs.

I expected this process to begin gradually and then accelerate to a sudden climax and possible monetary chaos.

Now in 2017, my forecast is playing out even faster than I expected…

This article describes how China, Russia, and Iran are coordinating a new international monetary order that does not involve US dollars.

It has several parts, which together spell dollar doom.

The first part is that China will buy oil from Russia and Iran in exchange for yuan.

The yuan is not a major reserve currency so it’s not an especially attractive asset for Russia or Iran to hold. China solves that problem by offering to convert yuan into gold on a spot basis on the Shanghai gold exchange.

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Have the Banks Had Their Kodak Moment?

 

By Ryan Dinse – Money Morning.

Fintech is coming…

And the banks are in big trouble. Especially Australia’s big four.

I’m going to put some facts on the table. Then I’ll explain why the big four Aussie banks might have already lost the fintech war to come.
But first, let me briefly recount Kodak’s tale of woe, and explain why it’s so relevant today.

You see, it all stemmed from one moment. The invention of the digital camera. And what’s worse, they invented it!
Founded in 1878, Eastman Kodak [NASDAQ:KODK] was once a global technology powerhouse. Big, dominant, unassailable. The Apple Corp. [NASDAQ:AAPL] of its day.

It had retail film developing locations all over the world, and employed over 145,000 people.
Like me, you might remember the old days of taking photos on holiday, then taking the film to get developed when you got home.
The results were often surprising. My Nana always managed to cut the head off my Dad, her son-in-law.  No one was ever sure if it was deliberate or not…

Anyway, with the benefits of digital clear, the Japanese companies took over the camera revolution. This spelled the end for Kodak as we knew it.
It still exists today, but is a shadow of its former self, and was even in Chapter 11 bankruptcy in 2012.

Why didn’t Kodak just switch to selling the very product they invented, digital cameras?

It seems easy in hindsight, but you have to remember this: they made fat profits from the old way of doing things.
They had thousands of branches around the world making regular profits from the development of film. They owned 90% of the film market.
What CEO in their right mind would be brave enough to turn off that lucrative tap?

By the time Kodak realised the digital camera revolution was happening with or without them (and they were losing film sales rapidly), it was too late to change course.

Decline of Film 13-09-17 Source: HBS.org

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The War on the US Dollar Could Crash Stocks

By Jim Rickards – The Daily Reckoning.

Over the last couple of years I’ve been all over TV…from Fox News to CNBC, CNN and Bloomberg.

I’ve been telling our fellow private investors all over the world, the US to the UK to Australia, that the financial global elite is planning to issue their own globalist currency called special drawing rights, or SDRs.

And that those elites would use this new currency to replace the US dollar as the global reserve currency.

I’ve even written about this extensively in my best-selling books The Road to Ruin and The New Case for Gold.

I’m sure some people in the mainstream media think I’m out of line — but the United Nations and the International Monetary Fund (IMF) have both confirmed this plan to replace the US dollar is real.

I’ve made this warning many times, but it seems to be falling on deaf ears. That’s why I’m writing directly to you.

Here’s an example that the US dollar is under attack, right in front of our eyes:

The UN said we need ‘a new global reserve system…that no longer relies on the United States dollar as the single major reserve currency.’

And the IMF admitted they want to make ‘the special drawing right (SDR) the principal reserve asset in the [International Monetary System].’

More recently, the IMF advanced their plan by helping private institutions, such as the UK’s Standard Chartered Bank, issue bonds in SDRs.

Although our mainstream media ignored this major event, the UK media reported:

This is all happening.

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Why China Won’t Ban ICOs Forever

By Shae Russell – Markets & Money.

The government is currently on a witch-hunt for your cash. It started late last year when the government accused criminals of using $100 notes for nefarious purposes. The Reserve Bank of Australia then went a step further, claiming that criminals were more likely to use the $50 note…

Once the finger was firmly pointed at the crooks, the public discussions began: Just how much do we really need cash anyway?

The Australian Tax Office (ATO) and the Treasury department are currently ramping up their investigations into the cash economy. The government calls it the ‘Black Economy Taskforce’. The objection? Apparently, ‘sniffing out all those thieving tradies hoarding $50 and $100 notes they never paid tax on’…

Having been married to a tradie for a decade, I can tell you right now that they aren’t hoarding anywhere near the cash the government thinks. About half a dozen slabs of beer as payment for doing a job maybe…

But the Black Economy Taskforce isn’t really about uncovering lost tax revenue. It’s all part of the ruse. Seeking out lost government income plays on taxpayers’ outrage that anyone would dodge their civic duty.

No, it’s not about lost revenue at all. It is about making sure your opinion is swayed to slowly resent cash.

That way, when, say, your $100 note is whacked with an expiry date, you won’t mind so much.

At least that’s the plan from Michael Andrew, who heads the Black Economy Taskforce. He reckons that if nanochips were planted into our highest-denomination note, they’d know how many were being ‘hoarded’. Or what you might call savings…

The incentive for the expiry date however is that it would force you to spend before the note becomes worthless.

You can’t be turned against cash, until you don’t trust it. And once you don’t trust it, it’s easy to wage public war on it.

But Australia isn’t alone in this. China has started its own witch-hunt, under the same guise of ‘protecting the people’…

China targets ICOs

On Monday, word filtered through markets that the Chinese government had declared all initial coin offerings (ICOs) illegal.

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