Tuesday, 26 November 2013

Was the US-Iran deal all about petrodollars?

An historic agreement between Iran and the US.  There are plenty of conspiracy related economics issues to get our teeth into here.

Thought for the day "Did the deal mean that Iran agreed to all future oil sales going though in dollars to protect the dollar as the world's reserve currency?"

This is no doubt Syria related.  Some over in Saudi Arabia are going to be a little peeved.

Bitcoin backlash II "ROBBERY" - conspiracy continues

It is hard to short Bitcoin - this is a shame.  Even so, the conspiracy rolls on - or does it?  The latest attempt to destabilise the cryptocurrency is the latest robbery story.

Because it is hard to trade sophisticated shorting teams are unlikely to have got their act together to start a bear raid but planting "negative stories" is a good start.

In theory one would just have to buy a shed load of Bitcoins and then sell the lot coordinated with planted news stories to set off a stream of panic sellers and then just buy back the lot at a much cheaper price and repeat.

If you buy bitcoins and "lose them" they are gone for good.

Million-dollar robbery rocks Bitcoin exchange[network news]

 Bitcoin Internet Payment Services, a Denmark-based exchange billing itself as Europe's biggest, was robbed of bitcoins worth more than $1 million in a theft that took place over the course of the past several days.

Bitcoins are a decentralized digital currency generated by computers “mining” for the solutions to complex math problems, and authenticated on a peer-to-peer basis – not by a central banking authority. It’s the third major heist this month – about $1.4 million worth was stolen several weeks ago from an anonymous Australian who ran an online wallet service known as Inputs.io, and a Chinese exchange abruptly vanished two weeks ago, taking more than $4 million with it.

Smaller thefts, which affected consumer exchanges in the Czech Republic and Poland, have also taken place this month.
 In the latest incident, BIPS was apparently targeted by a distributed denial-of-service attack earlier this month. A follow-up attack, according to bitcoin news site Coindesk, subsequently knocked out key security systems and allowed the thieves to make off with 1,295 BTC.
In response to the incident, BIPS said in a statement that it was forced to pull the consumer payments functionality of its services off-line, and warned users that they would have to transfer any balances to a different wallet service.
 “BIPS will temporarily close down the wallet initiative to focus on real-time merchant processing business which does not include storing of Bitcoins,” the statement said, adding that BIPS will attempt to re-open its consumer wallet service with improved security measures in the future.
 BIPS customers aren’t happy with the exchange’s response to the incident. Many have taken to the Bitcointalk forums to accuse BIPS’ leadership of carelessness – and, in several cases, hinted at actual malfeasance. One user, who says he or she lost 90 BTC (about $71,000, at the time of this writing), has created an online form so that others can sign up to be part of possible legal action against BIPS.
Bitcoins, thanks to their general anonymity and lack of centralized regulation, have become popular among illegal users, who can use it as a convenient medium of exchange for illicit goods or services. Huge price spikes have driven the value of a bitcoin to more than $750, making the crypto-currency an attractive target for unscrupulous hackers.

Email Jon Gold at jgold@nww.com and follow him on Twitter at @NWWJonGold.

Thursday, 21 November 2013

Bitcoin's imminent collapse - conspiracy?

Conspiracy economics likes nothing better than a good cryptocurrency like Bitcoin but now of course now it has gone mainstream and exponential one has to look for how the collapse will happen.

To believe the US government or any government of world order cannot manipulate the currency is to be naive.  

The "buggish on bitcoin" is a good start to the beginning of the end.  Of course, the conspiracy here is that Moneyweek are "goldbugs" who have every incentive to get rich people in risky countries to buy gold to hide in a toilet rather than a cryptocurrency like bitcoin.

The point about the FED putting their vast resources into "mining" means they could mine the hell out of bitcoins to destabilise the market.  Or could they?

An amusing description of Bitcoin.  What is money after all - simply trust (backed up at times with big guns).

Why I’m ‘buggish’ on bitcoin [Moneyweek]

“What is bitcoin?” she asked.

“It’s a new virtual currency. You know, it was created by someone on the internet. You can use it to buy things.”

“Who created it?”

“Nobody knows. He is said to have been a Japanese programmer.”

“Do you have a bitcoin? Could I see it?”

“No, it only exists in cyberspace.”

“Where does it come from?”

“You have to find it in cyberspace, using a computer program, which limits the supply.”

“Oh. Well, I guess everyone with a computer is looking for them. How much is the new money worth?”

“It depends. It trades freely in cyberspace.”

“But what makes it valuable?”

“Nothing, except that people are using it. We’re going to begin using it in our business.”

“But why would a merchant trade his valuable merchandise for something that has no value?”

“Well, that’s what we do with the dollar.”

“But the government guarantees the value of the dollar. They may not always do a good job of it. But at least they stand behind it. Who’s guaranteeing the value of the bitcoin?”

“You mean, nobody knows where it came from. Nobody has ever seen it. Nobody knows what it is worth. Nobody knows where to find it. And nobody stands behind it. Seems crazy to me.”


"Self-securitization" - shadow banking's dirty secret

Zero-Hedge are good.  I particularly like the phrase "...usually involving a 20 year old evil French mastermind working for Goldman...."

The current article gives a good if not well presented description of the ability of central banks to create money out of thin air and then trade it with other banks who are doing something similar.

None of this debt is backed with anything.  A salutatory tale.

Solution?  Stay tuned.

The Unspoken, Festering Secret At The Heart Of Shadow Banking: "Self-Securitization" ... With Central Banks [Zero-hedge]

By now everyone has heard of securitization: the process whereby banks take risky assets on their books, package, tranche them, and then re-sell them to yield chasing fiduciaries of widows and orphans. The conversion process can be nebulous, usually involving a 20 year-old evil French mastermind working for Goldman, and a billionaire hedge fund manager, who select the worthless securities put into the weakest tranche, just so the abovementioned two parties can short it while misrepresenting their conflicts of interest, and make a boatload of money when the whole securitized structure implodes. The process usually takes place "off balance sheet" via Special Purpose Vehicles so it is completely unregulated, and as such allows massive leverage.

According to many, the hidden leverage embedded in the securitization pipeline is what catalyzed the 2008 near-death experience of the financial markets.

All of this is well-known to most. 

What however is certainly not known, because until a few days ago the concept did not technicall exist, is what emerged deep from the bowels of the FSB's 2013 "Global Shadow Banking report", and what is barely even defined anywhere in popular literature, which thus we have defined as the "unspoken, festering secret at the heart of shadow banking." 

Presenting self-securitization.

What is "self-securitization"? Go ahead and Google it: there doesn't exist any technical definition of this heretofore unheard of phrase.

"Revolution" according the Telegraph

Revolution cannot be too far away if the Telegraph is blogging about it.  I like Ambrose Evans-Pritchard for some reason.

Of course the Russell Brand rant has got some impressive publicity in support of a revolution based on little fundamental understanding of pretty much anything.  With Paxman playing the straight man well the beards are on the march.

This article looks at Gini coefficients - inequality is high and rising.  This might explain why the rich in China and Russia and buying as much gold and bitcoins as they can get their digital hands on although only one of these asset classes is rising exponentially and it is not shiny.

There is talk of revolution in the air [Telegraph]

 Pre-revolutionary grievances are simmering in half the world, openly in France and Italy, less openly in Russia and China


Tuesday, 5 November 2013

"Next economic catastrophe approaches"

At "conspiracy economics" we like nothing better than a good "we are all doomed story".  We are here to document these stories for only then, once doom has descended, will be be able to look back (assuming the Internet survives the said doom-event), and tally the winners and losers in the economic prediction game.

Kingsworldnews are particularly good at this.  At the moment it is generally QE and tapering related.

There are serious economic issues at stake here.  Can we really just continue to print money without debasing the currency?  Perhaps debasing the currency is exactly what is being attempted?  Inflating away the Wests debts with a quick bout of hyperinflation.  Who loses?  Creditor nations?  Who wins, debtor nations.

Best way to survive?  Hold assets and not cash.  Who is a prime suspect?  Yep, Gold and Bitcoins.  Here we are again.  Who has a nice advert placed within this post?  Yep, "Cayden resources" who are...... a gold mining company. 

The article is worth reading.  Jumping to the conclusions.......

World Reaches Tipping Point as Next Catastrophe Approaches [outside link]

 The reason why all of this so incredibly important is that everything is now in place for another crisis as we approach the February debt ceiling limit.  As a consequence, it is extremely critical that investors understand that they should absolutely not be holding dollars or Treasury paper.  They are incredibly overvalued and therefore they will be the ultimate losers here.  Physical gold and silver are the place to be, and can continue to be picked up at prices that reflect severe undervaluation.
Just before Nixon closed the “Gold Window” in the 1971 dollar crisis, Treasury Secretary John Connolly, speaking to the world, said "The dollar is our currency, but your problem.”  To paraphrase him today, he could be saying “Treasury paper is our debt, but your problem.”

Monday, 4 November 2013

Who are the "white dragon society"?

For NWO fans out there the White Dragon Society will occasionally pop up on your screens.  But what and who are they?  Look no further.  My bold.

Expanding into the universe sounds like a good plan given the lack of space back down here on earth.

Note, the white dragon society raises the immortal terms "free energy" - that is a post for another day.

Be interesting to know how one becomes meritocratically selected to be part of the agency.

White Dragon Society [outside link]

The White Dragon Society proposes using humanity’s savings to end war, end poverty and stop environmental destruction. After that, humanity can be set on a path of exponential expansion into the universe. Our savings and our future planning can be devoted to such attainable goals as increased longevity, improved human abilities, free energy, the creation of new eco-systems, the expansion of life in all its forms and anything else scientifically possible and morally permissible that we can dream of.

The White Dragon Foundation has been set up in order to attain these goals. It will carry them out by means of a meritocratically staffed international economic planning agency.

There are indications coming from all over that the Old World Order is waging an all out offensive on all fronts in order to maintain its grip on global power.

The world now faces a clear choice between the genocidal, racist religious fanatics who want to murder 5 billion people and a group that wants to end poverty, end war, stop environmental destruction and start a Golden Age.

Quote of the day

"The central irony of financial crisis is that while it is caused by too much confidence, too much borrowing and lending and too much spending, it can only be resolved with more confidence, more borrowing and lending, and more spending." (Larry Summers, October 24th 2011) [Reuters]