United States of America v. Bitcoin: Crypto-Currency Prosecution Update
The United States has begun their attack on crypto currencies, and it is no surprise.
If you understand the Federal Reserve, or banking system at all, you know why governments depend on inflating their currencies to pay off debts they create. If you would like to learn the basics of this system, watch our online webinar, which undeniably proves this relationship.
Crypto-currencies, like Bitcoin, offer a way for the citizenry to opt out of government-created inflation. So, of course governments will not like everyone using Bitcoin. It takes away their ability to steal wealth through inflation. However, the more they fight against Bitcoin, the more the government stands to wake up the masses, and the more mainstream Bitcoin will become.
Government regulation and prosecution is also one of the factors which may effect Bitcoin’s price or adoption curve. But, as usual, the government is sprinting to catch up with technology, which is common to most areas of law: slow to adapt.
Because governments will likely see Bitcoin (or other crypto-currencies) as a threat, it is safe to say they will demonize it, and use words like “drug-dealer,” “terrorists” or other charged language in an attempt to garner popular support against it. At least, this was my prediction six months ago, when I was writing my book: Bitcoin Revolution: Ending Tyranny For Fun and Profit.
So, lets take a brief look at whats happened since then:
March 18, 2013: [“It’s not really currency, but we still want to know about it.”]
US Treasury’s Financial Crimes Enforcement Network published a report on guidelines about how to treat “virtual currencies” like Bitcoin. You can read the full report here. http://fincen.gov/statutes_regs/guidance/html/FIN-2013-G001.html?utm_source=dlvr.it&utm_medium=twitter. Basically, the US just said that money-laundering and record-keeping laws apply to people who “create” and “exchange” virtual currencies like Bitcoin. Showing that they may not completely understand the Crypto-Currency, the “creator” of Bitcoin is unknown, and Bitcoins merely come into existence by mining activity. So those who “create” Bitcoins… I guess that is up for debate.
April 25, 2013: [“We shut down your bank accounts and won’t tell you why.”]
At least two Canadian Bitcoin exchanges reported that their businesses have been disabled because Canadian banks simply shut down their accounts without citing any valid sources or authority.
May 14, 2013: [Homeland Secuirty Shuts Down Dwolla Account For Account Owner’s Failure To Tick a Box. Sounds Fair. <Insert Sarcasm>.]
US Department of Homeland Security froze bank accounts of a Dwolla and Mt. Gox user. Dwolla is an American-based medium to move money, and Mt. Gox is a Bitcoin exchange. The account owner allegedly failed to check a box in his bank account application which indicated that he would be transmitting money. He then, according to an agent's affidavit, moved US dollars to Bitcoin and back. His account was seized based on an agent's affidavit. You can read that affidavit here. These types of pre-trial seizures are a common way for the US government to destroy a business or individual without the required level of a finding of guilt “beyond a reasonable doubt” at trial, which law mandates. News on the prosecution has been light since the pre-trial seizure. However, the official court documents, which were recently (May 29, 2013) made public, reveal the reason for the entire seizure, and subsequent prosecution was because the account owner forgot to tick the right box two years ago when he opened his bank account. There will be more news on this story, I’m sure…
May 29, 2013: [Feds Save World From Online Drug Dealers Using Unconstitutional Patriot Act.]
US Feds shut down Costa-Rican based “Liberty Reserve,” another crypt-currency citing the “Patriot Act” for support. The complaint issued by the prosecutors basically said that Liberty Reserve targeted mostly illegal activities (drug dealing, money laundering, computer hacking, etc.) Five individuals have been arrested, including Liberty Reserve’s CEO, who had renounced his US Citizenship in 2011. Why did they go after Liberty Reserve and not Bitcoin? Liberty Reserve was centralized: it had a CEO, servers, and domains. Bitcoin does not.
Good News?
Recently, Canada has indicated that it will not treat Bitcoin as “funds,” therefore, it will not be regulated, and subject to anti-money laundering laws.
So that is a quick update on what governments are doing to regulate, prosecute, and destroy crytpo-currencies.
But here is the interesting thing, since the long overdue bubble pop, of April 10, the price of Bitcoin has steadily increased despite these attacks from government. It will be interesting to see if the government finally does manage to hurt Bitcoins growth.
Stay tuned, because it is our belief there will be more villianization of Bitcoin users to come… and more price increases of Bitcoin.
Cyprus Bank Robbery
Who's Next?
You may have already heard, but last week, Cyprus bank accounts came under direct attack by the leaders of the International Monetary Fund (IMF) and the European Central Bank (ECB). Money of private Cypriot citizens will be stolen to pay the debts of banksters who made bad investment decisions.
Cypriot banks are in the same trouble as the rest of the world's banks: they made bad loans which are now upside down. But instead of giving Cypriot banks the same free hand-outs as US, Spanish, Greek, and Italian banks got….
The global elite members of the IMF and the ECB tried somthing new.
They gave Cyprus 2 options:
1) Vote to approve a wealth tax on all bank accounts; or
2) Leave the EU.
The exact percentage of the "wealth tax" has not yet been settled, and ALL CYPRUS BANKS remain closed for the time being.
This means, that no one can get their hands on their own hard-earned money.
Just wait for news of a bank run as soon as the banks re-open. Rumor abound that the tax will be between 10-40% depending on the amount of money in your account. The more you have, of course, the higher the tax.
As an interesting twist on this set of events, Russian money accounts for approximately 25% of all the money in the banking system of Cyprus. And Russian President Vladamir Putin came out against the tax calling it, "unfair, unprofessional, and dangerous."
Russian companies and individuals have approximately $31 Billion of deposits in Cyprus, according to Moody's.
That being the case, some Russian banks and investors have offered to cover the losses in exchange for Cypriot offshore gas rights. So far, Cyprus has rejected Russian assistance, but who knows what is to come as anyone with a bank account in
Cyprus awaits their own robbery.
What's far worse is the message that this "wealth tax" sends. It says loud and clear: "Your Money Is NOT SAFE in bank accounts!"
But what's also important to note, is just because your government is not levying a "wealth tax" directly against your bank account, they are doing the exact same thing when they turn on the printing presses, and over-print your money into worthlessness.
Cypress is just a flagrant example. The real criminals are the Central Banks and Federal Reserve who take your money "secretly" through inflation. You need to protect yourself with real assets before they come after your accounts directly.
Get on board right now.
Before Its Too Late,
Jarrod Dennis
Secession
Secession
Should States be able to just Secede from our nation? Well, according to the Founding Fathers, Ron Paul, and a lot of Texans, the answer is yes. These three videos explore where the idea of secession comes from, whether it is moral or not, and why those who wish to secede are being deemed, "Un-American." Let us know what you think.
War on Drugs
America's War on Drugs: A 40 Year Failure
In the 1970s President Nixon launched an all-out attack on "Drugs." These videos explore the resources, in terms of tax dollars and human costs spent on this un-winable war. Part one uncovers how much money we've spent. Part two shows how this war has torn apart families and needlessly put people in prison for victimless crimes. Part three may make you angery when you find out that the Global Drug Commission found that this war is a joke, yet government wants to keep spending money on it. Ask your self: WHY?
Who is profiting?
Welcome to 2013
Welcome to 2013.
I am so excited about 2013, and I am writing to tell you why, and what I see coming in the very near future. If you have already invested in Gold and Silver, congratulations! You have taken one of (many) the first steps to putting yourself on the right side of the Great Wealth Transfer. Recently, the mainstream media has globbed onto a few hopeful words from the Fed that QE3 would wind down this year. That caused gold prices to drop slightly at the end of last week.
And part of being a member of Success Council, includes knowing what is going on when your gold prices fluctuates. I remember when I started investing in precious metals, I watched the prices daily to see how much money I "made" or "lost" that day. And it drove me crazy. So I decided to write this post to let you know exactly what I think is in store for 2013 (and I am still incredibly Bullish about Gold and Silver).
