Wednesday, May 22, 2013

The Heavy Cross Known As The State

By, Chris Rossini

NY Times columnist Thomas Friedman travelled to Yemen, Syria and Turkey to film a documentary. Here's his big takeaway from the trip (his emphasis):
It is why you can’t come away from a journey like this without wondering not just who will rule in these countries but how will anyone rule in these countries?
Keep in mind those questions.

Friedman then goes on (wearing his usual kaleidoscope-like glasses) to lament the conditions that he found:
In Egypt, Yemen or Syria, it is common to see primary-school classes of 60 to 70 kids with one undertrained teacher, no computers and no science instruction. How are the 36 kids whose three fathers I met going to have a chance in a world where not only are robots replacing manual blue-collar workers but software is increasingly replacing routine white-collar jobs — and where some of them can’t go back to the family farm because the water and topsoil have been depleted?
He obviously sees problems (again, interpreted his own way) and comes up with a solution:
The only way for these countries to catch up is by people uniting to mobilize all their strength. It is for Sunnis, Christians and Alawites in Syria to work together; for the tribes in Yemen and Libya to work together; for the Muslim Brotherhood, Salafists and liberals in Egypt to do so as well...
But alas, Friedman spoils it with his prescription (my emphasis):
But to pull together requires trust — that intangible thing that says you can rule over me even though you come from a different tribe, sect or political party — and that is what is missing here.
Ron Paul has said many times (and his campaigns were living examples) that freedom "unites" people.

Unfortunately, Friedman's line of thinking has been the dominant idea throughout man's history, and it has done nothing but make man look like a dog constantly chasing its tail.

In America, despite our massive problems, we have had a head start on tossing those ideas aside.

For example, I can walk outside of my house right now into a shopping center and peacefully deal with other people. I don't know their religious beliefs, their ethnic backgrounds, and I really don't care. Nor do they care about mine. The critical elements involved are respect for private property, and free and voluntary exchange.

On the religious front, thanks to the separation of Church & State (in general), America has every religious group imaginable co-existing without fighting one another violently. Each religious group must use persuasion, rather than the guns of The State, to gain and keep its members.

What the Middle East needs is not to find the right ruler, but to let people associate with one another freely. Friedman's prescription is one that will keep the area mired in wars without end. If the idea is either "they" control the State and force me to live like they do, or vice-versa, then of course you'll have nothing but violent battle.

Friedman, because he worships the idea of The State cannot possibly comprehend the cause and effect involved. In his eyes, some must rule, and others have to be OK with it.

While ahead of the game globally, America must also keep moving in the direction that was started over 200 years ago. Thomas Friedman, and the droves of opinion-molders like him, must have their ideas pushed back.

Americans also carry very heavy crosses. While they are different then those carried by the people in the Middle East, the one common theme is The State.

In America, the separation of Medicine & State, Education & State, and most importantly Money & State all need to be in its future.

And perhaps someday (even further out) Americans can evolve to the point of understanding that The State itself is not necessary at all.

If, or when that occurs, the embarrassing history of man, and the disastrous idea of "you can rule over me" can finally head into the dustbin of history.


Follow @ChrisRossini

The Words That Sent the Stock Market Tumbling

Stocks closed down nearly 1 percent in a volatile session after the minutes from the last Fed policy setting meeting suggested the Fed is divided on when it may start to pull back on its monetary stimulus.

Here are the words in the FOMC minutes that sent the stock market reeling:
"A few members expressed concerns that investor expectations of the cumulative size of the asset purchase program"
---
One participant said "the Committee should start to shift any asset purchases away from MBS and toward Treasury securities"
---
"A number of participants expressed willingness to adjust the flow of purchases downward as early as the June meeting"

The market had moved higher earlier in the session when Fed Chairman Ben Bernanke reiterated that tapering bond purchases will depend on an improvement in the economic data. Specifically, he said near the close of his remarks.
Because only a healthy economy can deliver sustainably high real rates of return to savers and investors, the best way to achieve higher returns in the medium term and beyond is for the Federal Reserve--consistent with its congressional mandate--to provide policy accommodation as needed to foster maximum employment and price stability.
Those comments sent the Dow up early by over 150 points at the session highs. But then during the Q & A, Bernanke said that the Fed could decide to scale back the pace of bond purchases at one of the "next few meetings" if the economic recovery looked set to maintain forward momentum. This wobbled the market, and then the FOMC minutes were released at 2:00 PM EDT.

The Dow Jones Industrial Average then picked up steam on the downside and closed down  80.41 points, or 0.52 percent, to close at 15307.17.

U.S. Acknowledges Killing 4 Americans in Drone Strikes

One day before President Obama is due to deliver a major speech on national security, his administration on Wednesday formally acknowledged that the United States had killed four American citizens in drone strikes in Yemen and Pakistan, reports NYT.

In a letter to Congressional leaders obtained by The New York Times, Attorney General Eric H. Holder Jr. disclosed that the administration had deliberately killed Anwar al-Awlaki, a radical Muslim cleric who was killed in a drone strike in September 2011 in Yemen.

The letter also said that the United States had killed three other Americans: Samir Khan, who was killed in the same strike; Mr. Awlaki’s son Abdulrahman al-Awlaki, who was also killed in Yemen; and Jude Mohammed, who was killed in a strike in Pakistan.


“These individuals were not specifically targeted by the United States,” Holder wrote.

The full letter is here.

REPORT: ESPN to Layoff Hundreds

By Tony Manfred

SPN is reportedly planning to fire hundreds of people for the first time since 2009.
The company is still in great shape. It's still the most valuable media property in the world. It's still crushing its competitors. And it's still printing money.
But the rumored reason behind the layoffs — the soaring cost of broadcast rights eating into the company's profit margin — is a real concern for the future of the company.
ESPN is such a monolith because it charges the highest subscription fees on cable, in addition to ad revenue. It can justify those subscription rates because it controls a massive chunk of live sports broadcasting rights — a finite commodity that is getting more and more valuable as TV audiences for other types of programming continue to fragment into smaller groups.
The broadcast rights to live sports are going up for two reasons: 1) live sports is the only thing you have to watch live in the DVR era, and 2) the rise of NBC Sports, CBS Sports Network, and Fox Sports 1 has made bidding more competitive.
In the last 24 months, ESPN has agreed to huge rights deals with a bunch of leagues and events. Some of the highlights:


Read more here.

Do You Think They Might Have a Little Price Inflation in Ghana?

Ghana's central bank raised its prime interest rate by one percentage point to 16%, today.

The official price inflation rate is 10%, but with interest rates at 16%, my guess price inflation is closer to 20%.

But Central Bank Governor Henry Kofi Wampah sure sounds like Bernanke. He has the wording down.

"On balance, the committee held the view that the risks to the inflation outlook were elevated and outweighed the risks to growth," he told a news conference following the rate hike increase.

Is this what Bernanke, or his successor, is going to sound like when serious price inflation hits the US?

Austria Turns Rat Fink

Europe moved closer to ending banking secrecy on Wednesday after Austria dropped objections to sharing data on foreign depositors and the EU focused on negotiating a similar agreement with Switzerland, reports Reuters.

"It's a bad day for tax cheats," Austrian Chancellor Werner Faymann told reporters at a meeting of EU leaders to discuss fighting tax fraud. "We will act jointly and I believe we will manage the exchange of data by the end of the year."

According to R, Luxembourg and Austria had not wanted to reveal the names of account holders to other countries and instead allow banks to withhold tax, but under pressure from their European partners both have now agreed to sign up to the code.

Rand Paul Defends Apple

Rand is pretty good here.


Charlie Shrem of BitInstant Talks Bitcoin with Perianne Boring

You don't want to miss this interview. Shrem is one of the crowd that is registering his operation as a money exchange and is attempting to bring Bitcoin into the mainstream where government can monitor it. If Bitcoin was only about this registered exchange, it wouldn't be that exciting, but it is good for the Shrems of the world to be around, to the degree that government spends time shuffling paper work with Shrem and getting the sense they are actually accomplishing something.

8 Pressure Stock Pitches Stockbrokers at John Thomas Financial Might Use on You

BuzzFeed has obtained the “Golden Pitchbook” used by top brokers at John Thomas Financial. In its pages: How cold-calling brokers pressure prospects to buy stocks from the troubled firm.

Buzz reports:
John Thomas Financial Inc. is a brokerage house straight out of the movie Boiler Room, with brokers fueled by vending machines stocked with nothing but energy drinks and music from Rocky films blaring from speakers. Its founder, Anastasios “Tommy” Belesis, even had a role in the sequel to Wall Street.

Junior brokers cold-call prospects for up to 14 hours a day, working from a memorized script that they rehearse by screaming pitches across the room to each other before the opening bell, a former employee of the firm told Buzzfeed.

Buzzfeed obtained both that script, used by brokers of every level at the 200-employee firm, as well as another script known internally as the “Golden Pitchbook,” which is given only to a privileged few senior brokers at the firm. Considered a performance reward for top brokers, the “Golden Pitchbook” is handed down from their mentors at the firm who have also received the elusive tome, the source said.[...] here are some of the techniques outlined in the “Golden Pitchbook” used by JTF brokers.

Scenario #1: “Speak to My Wife”/Don’t Pitch the Bitch

When a potential client (prospect) told a JTF broker he wanted to speak to his wife before placing an order, the broker would offer a series of rebuttals designed to pressure the prospect to buy immediately. According to a source familiar with the firm, this method is referred to internally at JTF as “Don’t Pitch the Bitch,” a bit of industry jargon made famous in Boiler Room that discourages brokers from making sales pitches to women and implores male prospects not to involve their wives or girlfriends in stock buying decision.
“(Prospect) if you want to call me back so you can ask your wife if you can buy the stock, I will call my wife and see if I can sell you the stock, come on! You make business decisions daily without your wife.”
“Let’s face it, if you go home and tell your wife that you want to invest with a broker whom you don’t know very well, chances are you will be hit with a frying pan and spending the night on the couch. However, once she sees my brochure from the firm and a dossier that I send you in the FedEx package with a buy confirmation, what do you think she is going to say? Besides, it is a lot easier to beg for forgiveness than to ask for permission right?”
“Should I send it to your home where your wife will throw it out or to the office where you will put it by your merchant banker book that you never read either?”

Scenario #2: “Not Interested”/The Slap and Hug


Man Killed by FBI Agent Knew Tamerlan Tsarnaev

Cleaning up a few lose ends?

A man shot dead by an FBI agent overnight in Orlando knew Boston bombings suspect Tamerlan Tsarnaev and was followed by the FBI for days, a friend of the Florida man told CNN affiliate Central Florida News 13 on Wednesday.

The FBI told CNN an agent shot and killed a suspect "while conducting official duties" in Orlando, but did not elaborate.

Khasuen Taramov, who said he is a friend of the slain man, identified him as Ibragim Todashev, according to Central Florida News 13.

Todashev knew Tsarnaev a couple years ago when Todashev lived in Boston, and the FBI began questioning and following him and Taramov after the deadly April 15 Boston Marathon bombings, Taramov told Central Florida News 13.

"(Todashev) wasn't like real close friends (with Tsarnaev), but he just happened to know him," Todashev told the TV station. "... But he had no idea that they were up to something like that, like bombings and everything, you know what I mean?"

Rapp Song Puts Massachusetts Teenager Behind Bars Without Bail for Weeks -- Facing Terrorism Charges and 20 Years in Prison


Fight for the Future reports:

Meet Cameron D'Ambrosio. He's 18 and lives in a small town outside Boston. He wants to be a rapper and calls himself "Cammy Dee" in his YouTube videos.

Oh, and he's been locked up without bail for weeks -- facing terrorism charges and 20 years in prison -- all for something he posted on Facebook.

On May 1st, Cam was skipping school and messing around online. He posted some lyrics that included a vague reference to the Boston Marathon Bombing and called the Whitehouse a "federal house of horror." Shortly after that he was arrested and charged with Communicating a Terrorist Threat, a felony that carries 20 years in prison.

The post contained no specific threat of violence against any person or group of people, and in the context of the rest of the lyrics and Cams' rap persona, it was clearly nothing more than a metaphor. A search of Cam's house found NO evidence that he was planning any violence, but a judge still ordered him held without bail for the next 3 months, pending trial.
Tim Cushing at TechDirt writes:
The police also went to his home and seized D'Ambrosio's Xbox and laptop, but were apparently unable to find anything to indicate the teenager was anything more than a mouthy misanthrope. So, they've decided to "dig deeper into his Facebook account."

Tom Duggan, president and publisher of The Valley Patriot, dug a little deeper himself, and reported back (breathlessly) about the "horrors" he found. (All quotes are verbatim, I shit you not.)
D’Ambrosio also had disturbing photos and posts on his Facebook page including “Fuck politics, Fuck Obama and Fuck the government!!”

He also had a “disturbing satanic photo posted as well as a photo of himself on a “Wanted Poster” that reads “Wanted Dead or Alive” a quick perusal of his Facebook page shows D’Ambrosio’s unusual interest in gangs, violence and a criminal lifestyle.
Wow. It's like reading a report from Morality in Media. A teen who wants to stick it to the Man with f-bombs and exclamation points? Do tell! An "unusual" interest in gangs, violence and criminals? Does this make him more or less disturbing than a large majority of the teen population? Looking at his page, I notice D'Ambrosio also has an "unusual" interest in scantily-clad females, video games, Monsters University, puppies, "Fuck Drugs Enjoy Life," the National Guard, tattoos and Mario. And as for the whole "disturbing satanic photo" -- a.) Duggan is about 30 years too late to join the satanic panic, b.) the "photo" isn't actually a photo and c.) it's at least as comical as it is disturbing.
Cushing has a complete blow-by-blow, here.

Antiwar.com Lost Major Donors After News of FBI Monitoring Broke

In a detailed discussion of the circumstances that have resulted in Eric Garris and Justin Raimondo, both of Antiwar.com, filing a lawsuit in federal court, demanding the release of records they believe the FBI is keeping on them and the 17-year-old online magazine, it has been disclosed that when news of the monitoring broke, Antiwar.com lost several key donors.

Kelley B. Vlahos, a contributor to Antiwar.com reports that after Raimondo wrote about the FBI memo in August 2011, Antiwar.com started losing donors, and according to the lawsuit, the losses were significant for the tiny budget anti-war operation:
In October 2011, one of Antiwar.com’s major donors withdrew his financial support from Antiwar.com out of concern that the FBI would monitor him if he continued to provide, as he wished to do, financial support to Antiwar.com. Since then, three significant donors have also withdrawn financial support, citing their fear that FBI interest in Antiwar.com would lead to surveillance of the donors as a reason for withdrawing financial support. As a result, Antiwar.com has lost about $75,000 per year since 2011 in otherwise expected contributions.
Antiwar.com has posted a letter to its readers at the top of its frontpage, explaining the lawsuit:

Yesterday the ACLU filed a lawsuit on our behalf against the Federal Bureau of Investigation, demanding the receipt of records in their possession regarding surveillance of Antiwar.com, and key editorial personnel. We know they possess such records because of documents received as a result of a third party Freedom of Information Act request, subsequently published online. A memo from FBI headquarters in Washington speculates Antiwar.com and its principals are possibly "a threat to national security" engaging in a conspiracy "on behalf of a foreign power" and recommends a more thorough investigation.
We are American citizens engaged in a peaceful, constitutionally protected activity: it's what they used to call journalism. We have the right to organize and to publicize our views, and we are demanding the FBI admit what it has done, and promise to cease and desist.
We need your help in publicizing this fight for our basic constitutional right to practice independent journalism. Make your tax-deductible donation to Antiwar.com today.

Tuesday, May 21, 2013

BLEG: Google Chrome Crashing Problem

On my new Windows 8 computer, Google chrome is crashing on me every 10 minutes or so. I think it is related to when I visit a web page that has Flash on it, but I am not sure.

I have re-installed both Google chrome and Shockwave, but the problem persists.

I use this computer strictly for blogging and don't go to unusual sites, pretty much the same sites I go to everyday. I have Norton installed at it isn't indicating any viruses.

Any ideas out there on how to resolve the problem?

Top IRS Official Will Invoke the Fifth Amendment in Congressional Hearing

More high antioxidant snacks, please!

The Los Angeles Times reported Tuesday afternoon that Lois Lerner, who heads up the Internal Revenue Service's tax-exempt division, plans to invoke the Fifth Amendment to the U.S. Constitution in a hearing Wednesday before the House Committee on Oversight and Government Affairs.

Lerner's defense lawyer, William W. Taylor III, wrote to the committee on Tuesday that his client would refuse to answer questions related to what she knew about the extra levels of scrutiny applied to conservative nonprofit organizations that applied for tax-exempt status beginning in 2010.

The Desk Phone’s “Time Has Come and Gone.”

By Mark Milian

Like most of his colleagues at Evernote Corp., Amitabh Handa no longer partakes in the morning ritual of wading through voicemails when he arrives at work. The reason is simple: He has no desk phone.
Of the 285 employees at the productivity-software maker based in Redwood City, California, just seven have landlines, most of them for customer support. So Handa uses an iPhone as his sole device.

It's a similar situation at Facebook with its staff of about 4,900, and at Google, which gives smartphones -- mostly Androids, of course -- to the majority of its 53,000 workers. At Box, a maker of cloud-storage software, employees recently received iPad Minis for checking e-mail and making business calls via Skype.

Silicon Valley companies big and small are pulling the plug on desk phones in favor of mobile devices. While consumers have been cutting the cord for years, businesses are joining the trend at an accelerating rate thanks to the increasing capabilities of mobile devices, which make it easier for workers to be productive and stay connected from any location at all hours.[...]

The desk phone’s “time has come and gone,” said Phil Libin, Evernote’s co-founder and chief executive officer. “It’s just a big distraction.” For those who must conduct a phone call, Evernote is planning to install phone booths where employees can have conversations that won’t disrupt their colleagues, he said.

“They probably won’t have phones in them,” Libin said. “We definitely don’t want to encourage phone use.”

Read the full story here.

Super Bowl L Headed to the SF Bay Area; My Forecast, Years in Advance

 Super Bowl 50, in February 2016, will be in the San Francisco Bay Area, the NFL announced today.

Team owners voted for the 49ers' new stadium, Levi's Stadium, as host for the game. The facility, in Santa Clara, Calif., is scheduled to open for the 2014 season.

My forecast: It will rain. February is the middle of the rainy season in the San Francisco area. This year was unusually dry, but there are years when it rains everyday in February. You heard it here first, rain for Super Bowl L.

ACLU Sues the FBI on Antiwar.com’s Behalf


The editors of Antiwar.com have known for some time that the FBI has had an eye on them. Naturally enough, they used the Freedom of Information Act to request bureau’s files on them and their organization—but the FBI hasn’t been forthcoming. Now the ACLU has filed suit to force the bureau to divulge the extent of its snooping on anti-interventionist journalists. As Kelley Vlahos reports:
According to the suit, the ACLU has made several futile attempts to obtain the FBI files since a reader alerted [Antiwar.com editors] Garris and Raimondo to this lengthy FBI memo in 2011. The details in question begin at page 62 of the heavily redacted 94-page document. It’s clear from these documents, the suit alleges, that the FBI has files on Garris and Raimondo, and at one point the FBI agent writing the April 30, 2004 memo on Antiwar.com recommends further monitoring of the website in the form of opening a “preliminary investigation …to determine if [redaction] are engaging in, or have engaged in, activities which constitute a threat to national security.”
“On one hand it seemed almost funny that we would be considered a threat to national security, but it’s very scary, because what we are engaging in is free speech, and free speech by ordinary citizens and journalists is now being considered a threat to national security and they don’t have to prove it because the government has the ability to suppress information and not disclose any of their activities – as witnessed with what is going on now at the AP and other things,” said Garris.
“The government’s attitude is they want to know all, but they want the public to know as little as possible.”
That’s the crux of the matter.

Former Miss America Considering Run Against Mitch McConnell



Heather French Henry, a 2000 Miss America titleholder and wife of former Kentucky Lt. Gov. Steve Henry (D), is contemplating launching a challenge to Senate Minority Leader Mitch McConnell (R-Ky.) and has been contacted by officeholders in the state urging her to run, reports the Hill.


"I'm not saying no yet, but I'm not saying yes," she told The Hill on Tuesday.

A Michelle Bachmann-Inspired Romance Novel

The publisher, Badlands Unlimited, reports:
Inspired by the life of Tea Party leader and Republican Congresswoman Michele Bachmann, Fires of Siberia is an old-fashioned bodice ripper romance that brings the heat for the 2013 summer beach reading season. Presidential candidate Danielle Powers, full of firebrand pluck and red state sex appeal, has the country in a tizzy. But on an international tour to beef up her foreign policy experience, disaster ensues—her plane explodes over Siberia. Miraculously, Danielle survives, along with one other passenger—a mysterious stranger named Steadman Bass. Trapped in a wilderness of snow and ice, the two begin a journey that pushes Danielle to the brink. There she must confront her deepest self and choose between civilization and a wild, primitive ecstasy. All the while, Steadman harbors a terrible secret that threatens to destroy them both.

Don't Forget This: Vitamins That Cost Pennies a Day Seen Delaying Dementia

A cheap regimen of vitamins in use for decades is seen by scientists as a way to delay the start of Alzheimer’s disease and dementia, a goal that prescription drugs have failed to achieve.

Drugmakers including Bristol-Myers Squibb Co., Pfizer Inc. (PFE) and Eli Lilly & Co. (LLY) have spent billions of dollars on ineffective therapies in a so-far fruitless effort to come up with a treatment for dementia and Alzheimer’s. 
Now, in the latest of a steady drumbeat of research that suggests diet, exercise and socializing remain patients’ best hope, a study published today in the Proceedings of the National Academy of Sciences shows that vitamins B6 and B12 combined with folic acid slowed atrophy of gray matter in brain areas affected by Alzheimer’s disease.

The Future of Bitcoin

Having had a bit (pun intended) of time to decompress from the Bitcoin 2013 conference that I attended  in San Jose this past weekend. Here is my current thinking on Bitcoin and how that thinking evolved over the conference.

Going into the conference I thought the major problem for Bitcoin (and other crypto currencies) was the exchange point between fiat currencies and Bitcoin. My view was that as long as the government can control these points of exchange, and associated bank accounts, that Bitcoin could not get much passed being a dark underground virtual currency. My belief seemed to be buttressed by the recent seizing by the Department of Homeland Security of the funds held in US accounts by leading Bitcoin dealer, Mt Gox. My view was that if the government can control the exchange points and shut them down, then it would be game over for mass use of Bitcoin.

After spending some time at the conference, however, I realized that there were a number of dealers about to launch, who were going through the painstaking and expensive process of registering in the US as money exchange dealers.

At this point, I thought to myself, "Okay, registered exchanges will survive, but they won't offer any of the significant (though not foolproof) anonymity that Bitcoin itself offers." In other words, if you have to register with  name, DOB and SS#, then there is limited use for Bitcoin. It's almost just like a bank account, though with fluctuating value.

When I learned that the Bitcoin Foundation was about to hire a lobbyist in Washington D.C. and a staff of lawyers, I thought to myself that nothing good could can come of that. That it is negotiating with the devil and that it will mean even more restrictions on Bitcoin.

By the middle of the weekend, however, I began to see how the registered exchanges and the Bitcoin Foundation could  provide good cover for Bitcoin. If the government is happy with exchanges that are being registered and the Bitcoin Foundation provides a distraction for the government, by which I mean, congressmen and  regulators think that an agreement with the Foundation is an agreement with the Bitcoin community, than that could all be to the good. As I learned at the conference, the Bitcoin community is far, far bigger than, and there is much more to them, than regulated money exchanges and that if the registered exchanges and the Bitcoin Foundation distract the government and keep it from focus on the entire BTC community, than all the better.

As Tuur Demeester said to me, Bitcoin has a thousand heads. That doesn't mean that Bitcoin will survive a battle with the government, but it will be a battle. Expect some casualties. CEO Alan Safahi of Zip Zap told me, there will be some lawsuits, some scams and some arrests.

But just as there is an above ground group that wants to deal with government regulations, there is an underground group that has no plans to do so. One exchange developer told me he doesn't have the money to register as a money exchange, but plans to launch his exchange anyway. There were even wilder schemes that I dare not go into in print about. Let's just say there are some very creative and aggressive people in the community.

That said, there is some big money pouring into the crypto currency world. Peter Theil recently put $2 million into BitPay. Google Ventures has put money into another platform/crypto currency, Ripple. I also got wind of a global multi-billionaire, who wants to keep his name and his investment secret, but who has put money into a Bitcoin company.

It is this BIG money, above ground money, that may keep the regulators from shutting down BTC completely. And if it is not shutdown completely, the nature of Bitcoin is such that the underground BTC world will continue to develop methods and systems for all sorts of exciting things. It will be a cat and mouse game. But the mice here are very smart. They are thinking of all methods possible to make a government shut down of Bitcoin very difficult. This means, of course, that they want to see as many users adopt BTC as possible, but their thinking goes beyond that.

I heard one speaker tell a large audience that they should make their charitable donations in bitcoins. His argument was that if the government tried to shut BTC down in the future and charitable organizations were receiving some of their donations in BTC that they would likely then object to the government shutting down BTC. Like I said, they are thinking all angles. The government at present may have the ability to shutdown the entirety of Bitcoin, but as it becomes more used in mainstream transactions, the more difficult it will be politically to do so.

One EPJ reader asked me at the conference if I had changed my mind about Bitcoin and now consider it a money. My answer was that I still don't. It still doesn't have the liquidity that a medium of exchange has. That is, you still can't walk into every store and use bitcoins to buy something, but that is changing and at some point you may be able to do that and that would make it money. But I must hedge even here, about BTC has the crypto currency likely to emerge. BTC has a major advantage to being first in a sector, most of the developers are working on BTC, but that doesn't mean it will end up top dog if a crypto currency succeeds.

Remember, in the early days, we all used AOL email and AOL search and then came along Google and gmail, which changed things a lot. BTC may come out the winner or it may be another of the crypto currencies out there. Ripple's XRD looks very interesting to me. It is surrounded by very smart people, has money and it has that investment from Google Ventures.

In short, at this stage the government is a significant threat, but it is a threat that likely doesn't understand the beast it is dealing with. It is very possible they won't understand the moves they need to make to shut the crypto currency world down. If they don't, and use of crypto currency grows, then long term we may end up with a currency that, unlike the Fed's fiat dollars, can't be inflated at will.

If a crypto currency emerges as a popular medium of exchange. It could in a way become the crypto world's answer to gold, a currency that climbs in value against depreciating currencies, such as the dollar, but a currency that may be even easier to transport and hide then gold. Indeed, as one attendee explained to me, crypto currency does not have to take any physical form at all. If you remember your passcode in your brain, you can pass any border check point without a customs agent detecting the wealth you have with you.

The Best Jobs That Don't Require A College Degree


According to CareerCast:

1. Web Developer
Median Salary: $75,660
Projected Increase In Jobs Through 2020 (BLS): +22%


2. Communications Equipment Mechanic
Median Salary: $54,710
Projected Increase In Jobs Through 2020 (BLS): +15%


3 .Electrician
Median Salary: $48,250
Projected Increase In Jobs Through 2020 (BLS): +23%


4. Paralegal Assistant
Median Salary: $46,680
Projected Increase In Jobs Through 2020 (BLS): +18%


5. Plumber
Median Salary: $46,660
Projected Increase In Jobs Through 2020 (BLS): +26%
(Mayor Bloomberg's favorite)


6. Industrial Machine Repairer
Median Salary: $44,160
Projected Increase In Jobs Through 2020 (BLS): +19%


7. Glazier
Median Salary: $36,640
Projected Increase In Jobs Through 2020 (BLS): +42%


8. Automobile Body Repairer
Median Salary: $34,660
Projected Increase In Jobs Through 2020 (BLS): +17%


9. Administrative/Executive Assistant
Median Salary: $34,660
Projected Increase In Jobs Through 2020 (BLS): +12%


10. Bookkeeper
Median Salary: $34,040
Projected Increase In Jobs Through 2020 (BLS): +14%


11. Pest Control Worker
Median Salary: $30,340
Projected Increase In Jobs Through 2020 (BLS): +24%


12. Skin Care Specialist
Median Salary: $28,920
Projected Increase In Jobs Through 2020 (BLS): +25%


13. Receptionist
Median Salary: $ 25,240
Projected Increase In Jobs Through 2020 (BLS): +24%


14. Hair Stylist
Median Salary: $22,500
Projected Increase In Jobs Through 2020 (BLS): +14%

(ht HuffPo)













Not a Good Sign for the US Stock Market....

Especially given that money supply (M2) growth is slowing. Earnings estimates are declining, while stocks soar.



(Chart via Not_Jim_Cramer)

U.S. Economic Confidence Reaches Five-Year Weekly High

The Gallup Economic Confidence Index rose to -5 last week from -11 the prior week. The index has never been positive since Gallup began Daily tracking of economic confidence in January 2008. Confidence means consumers are more willing to spend money, which eventually increases price inflation pressures.

Intense Oklahoma Tornado Footage

The second half of this clip gives you a real sense of the tornado coming at the storm hunters.



(Via TalkingPointsMemo)

Gasoline Prices to Hit Highest for a Memorial Day Weekend in Two Years

Gasoline prices at the pump have been climbing for 15 days in a row, and motorists this Memorial Day likely face the highest prices for the holiday since 2011, according to AAA.


The average price for a gallon of regular gasoline was $3.65 on Monday, according to AAA’s Daily Fuel Gauge Report. That was the highest national average since March 26. It’s also up from $3.579 a week ago.

AAA expects the average price to rise over the next few days leading up to Memorial Day, pointing out that the average price on Memorial Day last year was $3.64 and the average for that day in 2011 was $3.79.


Other statistics from AAA (via MarketWatch):

–Gasoline prices saw the largest weekly increase since February – up 7.4 cents per gallon over the previous week.

–Eight states are paying an average of more than $4 a gallon, including Alaska and California.

–Motorists in parts of the Midwest have seen prices spike at rates not seen since Hurricane Katrina

Serious Revolving Door Move (Hedge Fund Edition)


Hedge fund billionaire Paul Tudor Jones has hired one of the International Monetary Fund’s most senior officials, reports FT.

Lorenzo Giorgianni, the deputy head of the IMF’s policy department (!!), will join Jones’s Tudor Investment Corporation in October according to FT.

This is serious stuff. IMF and World Bank people have access to all kinds of insider data about money flows and where money is placed. Just in casual conversations with IMF and World Bank people, I have learned all kinds of very valuable information. I know for example that Slovenia is most likely the next country to experience a financial crisis, because a senior guy at one of these organizations, who has seen the numbers, told me.

I can't imagine all the things I would learn by having a senior IMF or World Bank employee on my payroll. Especially from the policy department!!

Meanwhile Giorgianni has issued this statement:
I look forward to joining Tudor and complementing my experience in policy making by deepening my understanding of financial markets. I am following a protracted cooling-off period during which I have no access to confidential information and no involvement in any work that could give rise to a conflict of interest.

Yeah right, any work at the IMF is a conflict of interest work relative to the investment world.

Giorgianni will be chief economist for emerging markets at Tudor.