crypto currencies

Central Banks Looking at Creating Their Own Cryptocurrencies | Armstrong Economics

Posted on by johnbarleycorn12

The IMF has recommended that all Central banks should issue their own cryptocurrencies. Indeed, they are looking at using Block Chain to keep track of taxes and to enforce negative interest rates with cryptocurrencies which would allow them to impose negative interest rates whenever necessary. With adopting cryptocurrencies that governments would control, we will come one step closer to losing all our freedom. Central banks could enforce negative interest rates with cryptocurrencies and thus people would find their accounts just garnished. This technology is also causing those in hunt of tax revenues to lick their lips. The issuance of digital currencies would allow central banks to remain in control of the money supply far more so than they are today. Sweden is moving forward and there we see that the use of cash is rapidly disappearing. Cryptocurrency technology would allow also the taxman to just cometh and take whatever he desires in the midst of the economic crisis we face. The Central Banks would be able to maintain greater control over the creation of money through the process of leverage (bank lending). While policymakers in Canada have already researched the idea. The IMF head Christine Lagarde called on central banks to focus on issuing digital currencies. All of this attention is being applied as the fear of rising interest rates in the marketplace is really beyond the control of central banks. It is true that central banks can control the short-term rates, but long-term rates are established by the free market. This is why the Federal Reserves was buying in 30-years bonds hopefully to impact the long-term rates which the Fed cannot directly control.
— Read on www.armstrongeconomics.com/world-news/cryptocurrency/central-banks-looking-at-creating-their-own-cryptocurrencies/

Banks Freezing Cyrpotcurrency Accounts under Presumption of Guilt? | Armstrong Economics

Posted on by johnbarleycorn12

The story running around on Bitcoin.com news tells the tale of an individual who legally sold large amounts of cryptocurrency at a profit found that Clydesdale Bank decided to freeze all assets involving people who had been involved in cryptocurrencies. The man had no criminal convictions and had always complied with British laws on financial regulations and taxation. Nevertheless, he told Bitcoin.com: “My bank account has been blocked by Clydesdale Bank without any warning or explanation and my money frozen.” The bank manager said that the bank no longer wanted to do business with “that kind of people” who were involved in cryptocurrencies. This is the problem that is emerging as part of the Hunt for Taxes. It is “assumed” that the majority of people who made money in cryptocurrencies never reported their gains. Whether that is true or not is really not the subject here. It is a “presumption” of guilt that is taking place. The very same thing took place with American outside the USA because of the law FATCA. It is not illegal for an American to have an account outside the USA. It is “presumed” he is not reporting his overseas income. Under FATCA, a foreign institution MUST report to the USA anything an American is doing overseas or THEIR assets will be confiscated in the USA. The risk that an American is not paying their taxes on an account at a bank in Europe then would subject that bank’s assets in the USA to be confiscated. The easy solution was to refuse to accept accounts of Americans – plain & simple. Hence – no risk. Many banks are looking at the cryptocurrency world with the same tinted glasses. They fear getting caught up in a client who made a lot of money from cryptocurrencies and they get caught in the crosshair of tax agents who then say they should have known! Welcome to the PRESUMPTION OF GUILT when it comes to taxes. It is your burden to even prove your money is really yours AFTER taxes.
— Read on www.armstrongeconomics.com/world-news/cryptocurrency/banks-freezing-cyrpotcurrency-accounts-under-presumption-of-guilt/

Can Cryptocurrencies Survive? | Armstrong Economics

Posted on by johnbarleycorn12

QUESTION: Do you think Bitcoin can survive? Or has it been a passing fad? MT ANSWER: Bitcoin rose because 70% of the miners were in China. It was NOT simply because energy was cheap. Bitcoin became the LEADING means of money laundering and movement of cash out of China, circumventing their rule of law and currency controls. So do not think for one minute that Bitcoin rose because it was really a wonderful idea? BitCoin was a means to get money out of China when you could not wire money out under currency controls. In Australia, they have adopted the slogan that “CASH IS FOR CRIMINALS.” They will do the same to cryptocurrencies. All they need to do is declare a law that it is illegal for a business to accept cryptocurrency under the excuse that it is money laundering. You just killed the entire industry. The government has the army, tanks, and the guns and soon robot soldiers. Until the army is willing to turn against the hand that feeds them, which is why they are developing robot soldiers, you cannot stand with cryptocurrency and claim some magical right to suppress government and central banks. You need the power grid! Video streaming today is because of the online porn industry (I won’t post a picture of that). They needed to sell their product and they invented video streaming under the mother of all evolution – Necessity. Video streaming has since expanded to everything. Blockchain can be used in many other contexts just a video streaming was not restricted to just porn. The technology can be used for documents and other things besides just cryptocurrencies. I have been skeptical about the claims that cryptocurrencies will replace all money and central banks and end banking creating money out of thin air. That would be recreating the Dark Age. For that to take place there can be no lending. The mortgage market would collapse and the value of the property would fall to less than 10% of its worth becomes the maximum someone has cash as was the case during the Great Depression. This hatred of central banks is stupid. The money they create is less than 10% of the money supply. The bulk is created through lending and fractional banking. These people blame the banks for creating money and never talk about the fact that the real danger is government debt and as they try to service that debt, they keep raising taxes. They are approaching a 40% consumption rate of the total GDP. The bigger the government gets, the lower your standard of living. That is the issue – not cryptocurrencies will magically save the day.
— Read on www.armstrongeconomics.com/world-news/cryptocurrency/can-cryptocurrencies-survive/

Interesting summation