Posts Tagged ‘Keiser Report:’

Bitcoin implodes and the banking crisis

January 23, 2016

The easiest way to invest in the growth of Bitcoin & the Crypto Currency Sector. — BitCoin Capital

Max Keiser lost all credibility when a few weeks ago he claimed rouble a strong currency. You could almost see Vladimir Putin pulling the strings.

Ностальжи / Nostalgia

Ностальжи / Nostalgia

This latest Keiser Report is another example of nonsense being peddled, this time on bitcoin.

Skirting over in this discussion that bitcoin has run into technical problems, mere hints of the intercine warfare between core bitcoin developers. And that is only the tip of the iceberg of the problems facing bitcoin.

Bitcoin has failed miserably as a currency.  It fails to meet the basic criteria of a currency:

  • store of value
  • unit of exchange

Bitcoin is highly volatile, it lacks utility. Where is the baker where I can use bitcoin to buy a loaf of bread?

Bitcoin has been hijacked by spivs and parasites, all out to make a fast buck. One of who was a guest on the programme.  And who was this guest? Why none other than Simon Dixon, a vulture capitalist, who co-manages a vulture  capital fund trying to make  a fast buck out of bitcoin, co-manages with none other than Max Keiser himself. If, and a very big if, the investment goes well, investors are paid, please do not laugh, in bitcoin.

We offer a unique model whereby we invest one third of all funds in mining (The process used to create new coins) that is used exclusively to pay daily dividends to investors (in Bitcoin) for as long as the mining process is profitable.

This is a great way to accumulate Bitcoins without having to get deep into the geeky part of the process.

We mine a portfolio of coins and always look for the most profitable opportunity through our algorithm. Eventually the mining process can become unprofitable, so we utilise the latest technology with mining rigs in Iceland that optimise every penny of profit and we pay the coins generated through mining out to investors until the process is no longer profitable where the costs of running the rigs exceeds the value of the coins produced.

Our goal is that if the market conditions are right, investors receive a chunk of their investment back through Bitcoin, unlike any other investment fund.

Located in Iceland as one of the few places energy costs are low enough to make bitcoin mining feasible.

Max Keiser remarkably coy about the fact he is a bitcoin millionaire, indeed a deafening silence.

And where is BitCoin Capital based? Er, the tax dodging Cayman Islands.

Invest in a Ponzi scheme, attract more investors to inflate the price, and then you get a return, only the return is in the very thing you are investing.

You could not make this up if you tried.

Someone exposing that bitcoin is heading towards a brick wall due to technical problems, is not going to go down too well with a vulture capital fund where two of the people on the programme, including one of the presenters, have  a direct vested interest.

Yes, we should be very concerned by the activity of all these players, especially the criminal banks trying to grab a piece of the action.

The New York Times article  ridiculed, was actually quite a good article on the current problems with bitcoin. That Mike Kearn working for R3, irrelevant other than it indirectly highlights one of the problems with everyone associated with bitcoin, all out to line their own pockets.

This is not the mindset to be expected of people working on an Open Source, Open Protocol project located in the collaborative commons.

This is not the mindset of Open Software, Open Protocols, where you freely contribute your time to the collaborative commons, in order that all can benefit and in turn draw from the collaborative commons.

The mindset of the bitcoin developers is the opposite to that in The GNU Manifesto.

Software illustrates the dichotomy of the free flow of information. In one corner of the ring Bill Gates, who argues:

most of you steal your software. Hardware must be paid for, but software is something to share. Who cares if the people who worked on it get paid?

In the opposing corner of the ring Richard Stallman, who argues:

If anything deserves a reward, it is social contribution. Creativity can be a social contribution, but only in so far as society is free to use the results. If programmers deserve to be rewarded for creating innovative programs, by the same token they deserve to be punished if they restrict the use of these programs. … Extracting money from users of a program by restricting their use of it is destructive because the restrictions reduce the amount and the ways that the program can be used. This reduces the amount of wealth that humanity derives from the program. When there is a deliberate choice to restrict, the harmful consequences are deliberate destruction.

Bill Gates was arguing for commercial software, Richard Stallman Open Source software.

What Richard Stallman saw, was if knowledge freely flows, we all benefit. We contributive freely to the collaborative commons, and in turn draw from the collaborative commons.

Opens Source software, for example Apache, runs the internet, powerful supercomputers run on Open Source software Linux.

Bitcoin was developed as Open Source, Open Protocol. It has failed as a currency, but it has also failed because the Bitcoin developers have failed to comprehend the basic premise that Richard Stallman outlined in The GNU Manifesto. They are funded by vulture capitalists, parasitic start ups, all who are looking for means to profit from Bitcoin.

Bitcoin was an interesting proof of concept, nothing more. Coherent noise.

The only use of bitcoin is as a quick and dirty means to transfer out of a currency, across a border.

There has been no re-branding of bitcoin as the blockchain. The blockchain is seen as useful in its own right as a means of recording transactions in digital assets, open, secure and transparent.

Mycelia to track music uses the blockchain.

What relevance the number of transactions of bitcoin, best performing currency? All this tells us is that it attracts the interests of a lot of spivs and speculators out to make a fast buck.

How many of these transactions were using bitcoin as a currency to buy goods and services?

Bitcoin may work as a vehicle for the nefarious activities of spivs and speculators, as a currency it has been a complete and utter failure.

As a currency, the Brixton Pound is more of a success story than bitcoin. But then the Brixton Pound has not attracted the activities of spivs and speculators out to make a fast buck. It is used as a local currency, to buy goods and services within the local Brixton economy.

Bitcoin fails the basic requirements of a  currency:

  • store of value
  • unit of exchange

Yes, there is a problem with the banks, lax regulation, they should have been broken up, casino banking split from retail banking, but that is an entirely separate issue, a side show and a distraction from the problems facing bitcoin.

In PostCapitalism, Paul Mason exposes the criminal activities of the bankers. He also shows that all the conditions are in place for yet another banking crisis, only this time there is no money to bail out the banks, and if there was there would be riots in the streets.

It is a moot point, that with the exception of Iceland, no bankers have gone to prison.

Clearly the banks have woken up to the fact that a functioning Bitcoin 2.0 would pose a real threat.  The nearest we have to Bitcoin 2.0 is faircoin.

Keiser Report: Why Not Basic Income?

January 1, 2016

Keiser Report is rapidly losing all credibility.

Syriza may have won the elections January 2015, then again in the summer, the people said no to the EU in a referendum, but Syriza is definitely not running the country.

Where in January last year there was hope, now there is despair. Syriza signed a surrender document. They may be the government, but since their surrender, it is the EU calling the shots, Syriza is a puppet government of the EU. EU has people in every ministry and is micromanaging Greece.

There may have been 100,000 bankers who have lost their jobs, there may well be finance technology lurking in the shadows, death star apps, but they have not lost their jobs due to bitcoin.

Bitcoin is a niche, nothing more. Speculation and volatility has rendered useless as a  currency. The cost of mining bitcoins, puts it in the realms of the rich, the energy required to mine, makes it unacceptable.

Faircoin, which can be seen as BitCoin 2.0, attempts to address some of the problems associated with bitcoin.

Basic Income is an idea whose time has come.

In the very near future, millions of jobs will disappear, ether to vanish altogether or to be replaced by robots.

There is much work is society that needs doing, but no money to pay for it.

We have high unemployment, a parasitical non-productive bureaucracy to deal with the unemployed.

We have people doing mind-numbing work, working for a living.

Cash is what links idle hands to work.

Several basic income schemes have been trialled,  Holland has experimented, Finland and Switzerland are considering implementation.

Floating rouble and progressive nationalism

December 31, 2015

The first half of the programme garbage (crude pro-Russian propaganda), the second half little better.

The reason the Russian Central bank has hiked interest rate to 17%, is to try and help the rouble that is in free fall. A sign of failure, not success.

Try talking to Russians in Cyprus, ask them about the buying power of the rouble.

Biblio Globus, a Russian tour company, a trail of unpaid debts.

Oil prices have collapsed, because of a glut of oil, collapsing world economy, and post-COP21, a move away from fossil fuels.

Money is cheap for the rich, not the poor. The rich are pouring money into silly projects like Uber.

Uber offers no technological innovation, it is a cowboy outfit offering unfair competition to a legitimate taxi sector.

EU is a malignant, undemocratic entity that should be smashed. The euro an unmitigated disaster.

The year closes, having seen the rouble go into free fall, oil at record low, Russian economy collapsing.

When Max Keiser peddles this level of crap, he loses all credibility. You can almost see Valdimir Putin pulling his strings.

Keiser Report: Russell Brand talks revolution with Max and Stacy

July 8, 2014

In this episode of the Keiser Report, Max Keiser and Stacy Herbert are joined in the first half by Russell Brand to talk about the austerity headlines. They chat about the UK government’s expanding debt and growing deficit, despite the alleged austerity and GDP expanding thanks to heroin addiction and prostitution. Russell learns about the water cannons bought for use against anti-austerity protests which the government itself will stoke. Finally, they talk about the people revolting as they must do when the social contract has been broken: and crypto currencies are one of the most visible revolts. In the second half, Max interviews Russell Brand further about his independent media outlet – The Trews; they discuss revolution and spiritual journeys.

If one person has what one person wants, and the other has the money to buy, a financial transaction takes place. Both parties are happy. If we aggregate all such transactions, we get GDP, and it thus follows (as conventional wisdom would have us believe), as GDP rises, we must all be better off. Only it is not so. We could have, as we had with the winter floods, a major catastrophe, the cost of clean up will be reflected in GDP. If we include drug dealing, more heroin addicts, GDP goes up.

Up until the 1950s, 1960s, material wealth rose, sense of well being rose. Post-1960s, material wealth continued to rise but sense of well being did not. We are now seeing a flat-lining of GDP, zero growth, a transfer of wealth from the poor to the rich.

Talking to many people, I find dissatisfaction with the political system, a strong distrust of politicians and revolution in the air. Police must be picking up same intelligence, hence the desire for water cannon. But, you do not need water cannon, rubber bullets, riot police, for happy people.

Why did the 50,000 who marched against austerity, occupation of Vodafone, occupation of Boots, somehow slip the attention of the mainstream media? Could it be because it may give people ideas, encourage others?

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