03/25/2014

why are stolen European creditcards more valuable than American ?

and so more sought after

source Rand Study, see previous post

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chinese bankingsystem loses billions to unregulated online financeservices

source http://www.bloomberg.com/news/2014-03-24/china-banks-drained-by-funds-called-vampires-seek-rules.html

you should also note that China because of its very strict controls of the cash that is in the banks and what you can do with it is the main motor of the bitcoin boom and is essentially the only reason that after all the security problems and scandals with Bitcoin it still exists and has still quite a high price (compared to its start).

The reason is simple is that there is much more money in the Chinese economy that there are opportunities to invest or to set aside (without having an investigation in corruption or other real or fake charges).

It is the same problem with the enormous bubble of shadowbanking in which enterprises and cities are lending money to each other without going through the banks (in fact the political supervision). Shadowbanking has in fact increased so much in China that even international institutions have begun warning China that more regulation is necessary. Strange for a communist country to have no economic (and social) regulation but where political and presslife is regulated by hundreds of interdictions.

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03/24/2014

Luxembourg has to explain to the EU its taxfrauding system by abusing intellectual property

European Union antitrust regulators ordered Luxembourg on Monday to hand over information on its corporate tax practices as part of their investigation into tax loopholes which have allowed companies such as Starbucks and Apple to cut their tax bills.

The move by the European Commission came after Luxembourg failed to provide data on its tax rulings in 2011 and 2012, and also details about the 100 largest companies which came under its intellectual property tax regime.

 

"As Luxembourg failed to adequately answer previous requests for information, the Commission has now adopted two information injunctions ordering Luxembourg to deliver the requested information within one month," the EU executive said.
http://uk.reuters.com/article/2014/03/24/uk-eu-luxembourg...

in fact the system is that ll the subsidaries in Europe where there are higher taxes have to pay enormous royalties to the headoffice in Luxembourg (or another country with the same scheme) for being able to use the logo's and all the rest the company provides for

this way billions of dollars are shipped out of countries with a high tax rate to states like Luxembourg

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#kiev do not think that economic sanctions have no effect even if they take time

the numbers seem small but the real hard economic and financial effects are as brutal as ever

if now as a result everybody starts to see investments in Russia or from Russia as a risk which is off course the intention of Obama, than even without new stronger sanctions the effects would be exponential

Putin has said that the billionaires should come back home and invest at home and pay in Russia their taxes

a clear signal that it is time to leave or stay out of Russia - because you will lose your money any way - the question is if you want to end up in Prison in Siberia after a mock trial or not

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03/20/2014

#kiev UK sells visas to the highest bidders

Britain grants three-year “investor” visas to foreigners who invest £1m or more in government bonds. Two years later they can buy residency for £10m as long as they have held on to the bonds. Russians were granted 433 of these visas between the third quarters of 2008 and 2013, more than any other nationality. Only the Chinese came close, with 419. Dulwich is one of dozens of smart British schools and universities that have made room for the oligarchs’ children. According to the Independent Schools Council, 8.3% of private schools’ non-British pupils last year were Russian. That could mean up to £60m a year in fees. The number of Russian pupils has doubled since 2009
http://www.economist.com/news/briefing/21599408-london-ha...

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Europe will now be able - just as the US - to close and sell troubled banks during the weekend

Corien Wortmann-Kool, a lead negotiator for the parliament, said that under the new rules troubled banks could be dealt with "within a weekend" instead of the protracted process before that often undermined credibility in the EU's financial system.
http://bigstory.ap.org/article/eu-reaches-deal-banking-un...

if you want to read the chaos of such negotiations (and the poor auditing and numberkeeping and riskcalculating) in the US during the crisis of 2008  read the book 'too big to fail'  flabbergasting

hopefully they learn from that and do  not try to do it all over again

as when they launched a new currency without all the infrastructure and institutions and controls that you would need when things go wrong

it has been fixed along the way but it could have been the other way and it would have cost millions of Europeans much less trouble and hardship

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03/17/2014

already more than 700.000 bitcoins stolen by malware (at 500 dollar a piece)

But data collated by Reuters from specialist bitcoin industry websites and internet forums shows that more than 730,000 bitcoins were already missing to theft, hacking, cyber-ransom payments and other apparently criminal pursuits before Mt. Gox's collapse. That's nearly 6 percent of all bitcoins, and doesn't include dozens, possibly hundreds, of unreported cases of individuals who have lost bitcoins from their computers or online exchanges to hackers.
http://www.reuters.com/article/2014/03/14/us-bitcoin-crim...

and it is easy to write that kind of software to steal bitcoins

and the best thing that you like about it - it is anonymous - is the worst thing if you lose it - it stays anonymous

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03/13/2014

#bitcoin shit happens when nobody regulates anything

no they don't need any regulation or control

 

http://www.computerworld.com/s/article/print/9246921/Mt._Gox_kept_exchange_open_despite_knowledge_of_large_scale_theft?taxonomyName=Legal&taxonomyId=144

so this means that there was no money and thousands of non-existing bitcoins and they were hacked inside out and still they were delivering their services as if nothing happened

and they are surprised they have to go to court and they are treated like criminals - financial incompetent criminals that is

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03/12/2014

#kiev with an invasion in whole of Ukraine maybe hours or days away the flemish press speaks about .....

De Standaard

de Morgen

De Financieel Economische tijd (businesspaper)

meanwhile on tiwtter and the social media you see that everybody over there is clearly getting into warmode and that the signs are becoming important enough for the diplomats to start now really getting nervous

but the readers of the flemish online press don't know because there are more important things that 200.000 russian solders readying to invade Ukraine and being able to arrive at Kiev in 2 hours while 20.000 civilean volunteers are now being modestly trained and getting guns while real troops with real guns start patrolling cities in Eastern Ukraine and so on

and we talk about ..... smog

maybe the online newsportals are filled with smog in which you can't see the real news anymore

even businessmen aren't informed as should be by there newspaper online because they should know that the Russian ruble and stock is under enormous pressure and that there the tensions for an invasions are increasing and so may be there business and financial risks ..... and our jobs

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03/11/2014

#kiev every time the ex-prez of Ukraine speaks - Russian moguls lose millions

we want more

we want more

this is from today and shows the number of rubles you get for a dollar

count this for millions or billions of rubles and the difference is enormous

so any investment you have in rubles is a risk

because anytime sometimes speaks or fires a shot.....

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03/05/2014

#kiev this is how Russia will make its own stockmarket crash totally

if they do that they have shot themselves totally dead

this senate proposal is even an incentive to get your holdings out of there before the weekend

because in Russia one day you are an Olyarch and next day you are without anything in Siberia

I think many will take the plane this weekend to London or Spain for holidays

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03/04/2014

#kiev the trouble with the rubble has only excalerated

source http://www.xe.com/currencycharts/?from=RUB&to=USD&view=1Y

this has only accelerated the downfall of the rubble

normally this sound send exports souring but with a military crisis and sanctions looming there is a big risk

it also means that they will have to pressure their wealthy to keep the money in Russia or to bring it back to Russia which is maybe not happening just because of the crisis

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hackers become very quicky very very rich by hacking vulnerable bitcoinexchange

look at the sums they earn with one simple hack in mostly very badly written code without all the resources to defend their money exchanges

as other hackers will be seeing these sums, they will also start hacking exchanges or big portefolio's

" Flexicoin a Bitcoin Bank was hacked and hackers made off with 896 bitcoin worth $614,300 (at current market price).   As the Flexicoin was a small Bitcoin bank without the resources or assets to recoup the loss, it had to shut operations from Tuesday.  Ironically, just six days ago, the company had issued a presser boasting that it was unscathed by the closure of MtGox, once the world’s largest bitcoin exchange

In a separate incident, another Bitcoin Exchange 'Poloniex' said that it had been hacked and lost 12.3 % of total bitcoins it held. In a thread on Bitcointalk, Busoni, owner of Poloniex spelt out exactly how the hackers managed to breach its security and steal the BTC. 
http://www.techworm.net/2014/03/flexicoin-bitcoin-bank-an...

a full explanation of the used method is also on the site

it is a vulnerability that is knows since the MT.gox breakdown and that apparantly hasn't been closed down by the other exchanges - just trust them yeah

the holders of Poloniex have lost 12.3% of the number of their bitcoins (so if you had 10 of them which would now be around 5000 dollar you have lost approx 500 dollar in an instant)

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#kiev after declarations like that Russians will hurry to buy dollars

aide has clearly no idea what he is talking about and is just bluffing

sorry for him but this kind of declarations in financial markets can get people panicking

oh and if you have rubels for whatever reason, what is your reason

because every day they become more risk than reason

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video : kevin Phillips (usa 1990) how the rich became rich without paying taxes


he wrote also a few very intelligent books about the demise of the middle class

he was a Republican strategist but surely doesn't sound like one anymore

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03/01/2014

the breakdown of the biggest bitcoin exchange market shows its stupidity

Losses at Mt. Gox have been put at more than $400 million, and experts say it’s not clear whether that money was stolen by criminals or somehow mishandled by the operators of the exchange. Company officials have blamed a glitch in the transaction software that, they say, allowed hackers to siphon away money undetected.

“What’s fascinating and disturbing about the bankruptcy is the size of the loss,” said Mark Williams, a former Federal Reserve official who teaches finance at Boston University. “There’s no legal recourse. There’s no financial system. . . . In essence, if a criminal gets the coin, the criminal owns the coin.”
http://www.washingtonpost.com/business/technology/mt-gox-...

one should remember that the bitcoin was first made only to make it possible to make transactions to support wikileaks - there was no grand intention to reform the moneymarket or have a new financial instrument worldwide and this means that the code and the way it was operated were also not thought through this way

secondly there were problems with the code in every part of the software at any time - and the reason is that they were maked by volunteers in their volunteer time and so they didn't go through all the security and quality tests that normally (but very seldom) corporate produced code should have gone through

thirdly after a while it was hijacked by ideological, fanatical ideological mad libertarians who thought this was the alternative money they have been dreaming about for deceniia because it didn't need a gold standard and you could use it without having to go through a bank and surely not a central bank

fourth it was taken up by investors who are investing in many things at the same time in the hope that one of their investments will bring in some very big money

fifth the media and surely the technological money bought the hype and the marketing and just reported about all the new products and tendencies and the phenomenal growth of the bitcoin forgetting all its fundamental problems (or just writing about them in the last paragraph). It wasn't untill the central banks were publishing alarming articles in the press that the financial and business fundamentals of the currency were looked at a bit more closely

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02/26/2014

hackable defrauded bitcoin platform planned to come to Europe this year

"When the “Crisis Strategy Draft” hit my inbox yesterday, I was confronted with an ethical dilemma.  I had in my possession a document which contained market moving information, and a huge potential story.  I could have sat on the document, done my behind the scenes research and broken a full-length expose days later, but I truly believed that the document looked and felt authentic, and there were mere hours before Mt. Gox was to go dark, ostensibly in part two of its four step plan in defrauding the broader bitcoin community.  To wait in disclosing this document would make me complicit in a massive potential cover-up.  

Moreover, this was not the only document that I received from my source.  I also received a 27 page business plan, written in 2014, entitled “Business Plan Europe 2014-2017”.  That document reads like a more polished investment document, and it is neutered of any references to Mt. Gox’s solvency issues.  It too looked and felt authentic."
http://two-bit-idiot.tumblr.com/post/77817993185/motives-...

luckily they went broke before descending here with all the hype in the press that would forget all the hacks and frauds that have been going on since the start of the Bitcoin

the second question is that it is now clear that there are others who were implicated with the cover-up scheme or who were already selling their bitcoins before they lose even more value

the last question is that it is time to regulate this and the the ideological fanatics who think they can replace the banks and the national banks by bitcoin are replaced by financial experts and lawyers - even if they fucked up really hard in 2007-2008

it is not the end for Bitcoin but rather a turning point

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the big twin problem of china

source

so they are more and more dependent on cheap energy and at the other side is pollution making some parts of the country and many multimillion citycenter nearly impossible to live

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02/25/2014

#bitcoin the biggest and most professional exchange didn't see for years it had lost 700.000 bitcoins worth 350 million dollars

and this is for the biggest and most professional exchange

so what about the others

it is a question of blind trust

"On Monday night, a number of leading Bitcoin companies jointly announced that Mt. Gox, the largest exchange for most of Bitcoin’s existence, was planning to file for bankruptcy after months of technological problems and what appeared to have been a major theft. A document circulating widely in the Bitcoin world said the company had lost 744,000 Bitcoins in a theft that had gone unnoticed for years. That would be about 6 percent of the 12.4 million Bitcoins in circulation
http://www.nytimes.com/2014/02/25/business/apparent-theft...

and than the bitcoin business community sends a press declaration like this

"This tragic violation of the trust of users of Mt.Gox was the result of one company’s actions and does not reflect the resilience or value of bitcoin and the digital currency industry. There are hundreds of trustworthy and responsible companies involved in bitcoin. These companies will continue to build the future of money by making bitcoin more secure and easy to use for consumers and merchants. As with any new industry, there are certain bad actors that need to be weeded out, and that is what we are seeing today.
http://arstechnica.com/business/2014/02/mt-gox-once-the-w...

but if the biggest one can't even withhold DDOS attacks, repare bugs and discover malicious theft and activity, than how can you have trust is the much smaller ones ?

You should absolutely read this document which is a leaked internal document and everything would become clear.

twitter is going wild about this

and don't overhype bitcoin either it had the last year never more than 40.000 transactions a day worldwide - this is pennies in the international financial market

source https://blockchain.info/charts/my-wallet-n-tx?timespan=1year&showDataPoints=false&daysAverageString=1&show_header=true&scale=0&address=

and only 46 people own one third of ALL bitcoins

and this is not the first time that there were problems with bitcoin - from the early beginning when it was developed to make it possible for Wikileaks to get funding when it was blocked through all the normal banking and transaction platforms there were problems with stealing, hacking and the code

they reworked the code and so on afterwards but there were always problems and this has cumulated in this

 

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the real battle between the UK and Scottish independentists is about oil

forget all the rest - if they have the oil, the have the power and the European Union will handle accordingly but if they don't they will just be another poor region having too big dreams and they will lose the vote

being able to use the pound ? if you get oil, you change to the Euro because you have the resources to do any reforms necessary

this is a very clear explanation of the different issues and possibilities

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