Tag Archives | Economy

Fragmentation of Bitcoin Community Begins after the Collapse of Mt. Gox and Secondmarket’s Wall Street Exchange Proposal

bitcoin wall streetvia chycho

A few comments regarding Bitcoin and the recent developments with Mt. Gox (2, 3, 4, 5, 6, 7, 8, 9) and the announcement that SecondMarket is stepping into the game and planning to launch the “first New York-based Bitcoin exchange” (emphasis added):

“SecondMarket CEO Barry Silbert says that he’s modeling it after the early days of The IntercontinentalExchange (ICE), and that he hopes to have a set of founding members in place by the end of March (i.e., a ‘seat’ model). These members are expected to include Wall Street banks and well-funded Bitcoin startups (think Circle and Coinbase). Non-member firms or individuals would not be allowed to trade — at least at the outset — but likely could do business via the member firms.

When Wall Street insiders announce that they are joining your game, but not allowing you to play on their field, which is what is implied with “Non-member firms or individuals would not be allowed to trade”, one should be concerned that the fundamental rules of the game may be changing, but, unfortunately, with fear running rampant within the Bitcoin community due to the collapse of Mt.

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The One Percent Is Hogging so Much of Our Income That It’s Holding the Economy Back

meanlifeAre the rich intentionally trying to make the rest of us poor, thus preserving their own power?  Anthony W. Orlando writes at Informed Comment:

We all know that inequality has been rising and the average American household has been suffering. There is a myth that says all this suffering is necessary, that extreme inequality is the by-product of a rapidly growing economy—or worse, that it’s a good thing because it motivates everyone to work hard and climb the long ladder to the One Percent.

Even a brief glance at the historical record reveals just how perverted this hypothesis is.

For one thing, the economy has not been growing rapidly since inequality started climbing. From 1950 to 1980, “real gross domestic product (GDP)”—the output of the economy, adjusted for inflation—grew by 3.8 percent per year. From 1980 to 2010, it grew by 2.7 percent per year. (Since then, it’s been even worse.)

So income inequality hasn’t been “growth-enhancing” at all.

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America: Afraid of Shadows in the Dark While Ignoring the Elephants in the Room

via chycho
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What baffles the mind about the United States of America is that many of its citizens have been conditioned to fear shadows in the dark while ignoring the elephants in the room.

I. Homelessness and Bankruptcies

For example, in the last few years anti-homelessness laws have been passed across the United States, some going as far as making it illegal to feed the homeless. As if that wasn’t enough, to deal with America’s homelessness problem (2), some government representatives have turned to violence:

“Remarkably, this vigilante isn’t just some random Hawaiian, but five-term State Rep. Tom Brower (D).

“Noting that he’s ‘disgusted’ with homeless people, Brower told the Honolulu Star-Advertiser about his own personal brand of ‘justice’: ‘If I see shopping carts that I can’t identify, I will destroy them so they can’t be pushed on the streets.’ Brower has waged this campaign for two weeks, estimating that he’s smashed about 30 shopping carts in the process.

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The Bitcoin Bubble, Or Is It? Two Charts, Historical Price Movement, and the Conspiracy

via chycho

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I wish I wasn’t making this post and I hope I’m wrong. I love the concept of Bitcoin and the prospect of the decentralization of power brought about by the introduction of “an open source peer-to-peer electronic money and payment network” and the inevitable collapse of fiat currencies that are controlled by central banks which are in the business of transferring wealth from main street to Wall Street.

I’ve been tracking bitcoin for almost three years, since it was trading for less than a dollar. I even mined it a little a couple of years ago and recommended friends to buy them. Now that bitcoin has breached $1,200 and counting, would I still be giving it a buy recommendation? Absolutely not. Would I be recommending friends to keep most of their bitcoins at these valuations? Absolutely not. I would be telling them to sell almost all of their holdings, letting 1% ride.

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Black Friday Isn’t Even the Best Day to Get a “Deal”

dawn_of_the_dead_1978_404_303_photos121This won’t be news to most disinfonauts, but here are some details you can share with your less informed friends and family.  Tiffany Hsu writes at the Los Angeles Times:

As the hardiest of shoppers prepare for the annual Black Friday consumption frenzy, many are convinced it’s their one shot at a great deal.

But “that’s not even close to the truth,” said Matthew Ong, senior retail analyst at online personal finance company NerdWallet Inc. Bargain hunters can — and, in some cases, should — avoid the Black Friday weekend crush, several experts said. Many characterize the shopping bonanza as an expertly marketed ploy to capitalize on shoppers’ fear of missing out. By dangling a small batch of irresistible savings, stores land hordes of hopeful shoppers all scheming to score the retail version of Willy Wonka’s golden ticket. Yet only a tiny percentage of customers end up with the most desirable deals.
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