Tuesday, February 11, 2014

Bitcoin Rattles The Global Econosphere

In late 2013 and early 2014, law enforcement has begun to crack down on the Bitcoin trade. Bitcoin has been painted as a seedy haven for money launderers, as a foul lair for narcotics traffickers, as an anonymous vehicle for scam artists, as a shady means for the unscrupulous to fleece the unwary, and much more. 

But please stay with me as I make a few preliminary points and then cut to the heart of my analysis of why the Powers That Be are cracking down on Bitcoin, by going after high profile Bitcoin targets.

We've all seen the headlines about the take down of Silk Road by the FBI in early October 2013 and the confiscation of the $28 millions of dollars worth of Bitcoins in the Silk Road digital coffers, along with lurid allegations of a $1.2 billion traffic in narcotics.

In late January 2014, Charlie Shrem, vice-chairman of the Bitcoin Foundation, and one of the world's foremost Bitcoin movers and shakers, was arrested by the FBI in Manhattan, in New York City, for his alleged involvement with Silk Road. At the time of Shrem's arrest Preet Bharara, the U.S. attorney for Manhattan, said to the news media, "When Bitcoins, like any traditional currency, are laundered and used to fuel criminal activity, law enforcement has no choice but to act. We will aggressively pursue those who would co-opt new forms of currency for illicit purposes."

Continuing the criminal, anti-money laundering theme, the U.S. Secret Service led an investigation of three men in Miami, Florida that resulted in their arrest on 6 February 2014 on Florida state money laundering charges. The men were engaged in buying and selling Bitcoins via localbitcoins.com, a very widely used Bitcoin site worldwide, for the purchase and sale of Bitcoins.

No doubt there may be more, high profile arrests of those involved in Bitcoin commerce, not just because certain criminal elements are attracted to commerce in Bitcoin, but much more so having to do with far deeper, meta-financial and meta-political factors that relate to the very control structure of the global society itself.

Because, you see, Bitcoin bids fair to completely upset the massively, criminally corrupt apple cart that is the world of so-called “high finance,” and that cuts to the very heart of the ruthless, planetary control structure.

I say “high finance” very advisedly, because one of the not-so-secret secrets of the banking industry is that some of the biggest banks in the world are major conduits for the laundering of untold billions of dollars worth of black market, narcotics profits. It is a violent, unsavory business that marks the criminal marriage of the worst elements of Wall Street and agencies of the USA government with some of the most ruthless packs of cut throats in the world – the narcotics cartels. And it is one of the biggest businesses on this planet, at the very heart of the global financial system

Let me cite a couple of prominent examples that have been in the mainstream news cycle in recent years.

The massive, international bank, HSBC, was apprehended laundering some $881 million narco-dollars for Mexican and Colombian drug cartels. Among the many suspicious activities at HSBC were $60 trillion worth of unmonitored transactions involving wire transfer(s) and account activity. And yet no top bankers at HSBC were arrested or sent to jail.

The New York Times explained why: “Federal and state authorities have chosen not to indict HSBC, the London-based bank, on charges of vast and prolonged money laundering, for fear that criminal prosecution would topple the bank and, in the process, endanger the financial system.”

Got that? Criminal prosecution would topple the bank and, in the process, endanger the financial system. The system itself is deeply criminal and intimately tied up in money laundering on a vast, almost incomprehensible, global scale.

HSBC is not alone. Another of the massive, “too big to fail” banks, Wachovia, was caught laundering $378 billion dollars for Mexican narcotics cartels, even handling the $13 million financing for aircraft to transport drugs from Colombia to Mexico, aircraft with past ties to American alphabet soup agencies such as the CIA and the Department of Homeland Security. As with HSBC, there was no criminal prosecution of Wachovia.

And that is the other side of this corrupt equation. The close involvement of American government agencies such as the CIA, the DEA, and the BATF in the illegal, international narcotics.trade. The DEA had a close, personal, working relationship with the Mexican Sinaloa Cartel for the twelve years from 2000 to 2012. The BATF actually allowed gun running to the Sinaloa Cartel. As regards the CIA, that agency has been heavily involved in narcotics trafficking for decades, all over the world. This has everything to do with the deep politics of the American state, with its multi-trillion dollar war making from Vietnam, to Central America and Afghanistan, and the laundering of staggering sums of illicit drug profits over the years through American financial institutions.

Indeed, Antonio Maria Costa, the head of the U.N. Office on Drugs and Crime, has told the United Kingdom newspaper, The Observer, that hundreds of billions of dollars of laundered drug money were what sustained the financial system during the global financial crisis of 2008.

That is the inevitable reason why, as Bitcoin gains increasing financial market share, that it is susceptible to more and more regulatory control and law enforcement pressure. The present commercial banking system is so massively intertwined with the shadowy, deep politics of the American state and its alphabet soup agencies, in particular, and the shadowy, deep politics of other governments, and with the immensely lucrative, illicit, global narcotics industry, that its very survival depends on perpetuating the enormously corrupt status quo.

Bitcoin profoundly threatens all of that, because it is not tied to the central bank controlled system of global finance. Rather, it represents an eminently viable, global, decentralized alternative to that system.

And don't be fooled – many trillions of dollars are on the line. One of the most informative videos I have seen on what is happening in the realm of global finance is the interrogation of the Inspector General of the US Federal Reserve Bank by U.S. Congressman Alan Grayson. In response to his questioning she disavows any knowledge of the disposition of the staggering sum of $9 trillion dollars on the U.S. Federal Reserve Bank's ledgers. That is more than the 2012 $8.23 trillion national gross domestic product of China. Clearly the U.S. Federal Reserve Bank's Inspector General knows where $9 trillion have gone and who or what has the money and what is being done with it.

The amounts of money are so large, and the stakes for global power politics are so great, that the major power brokers will not easily permit the entry of a new, and unorthodox player such as Bitcoin to reform or overturn their extremely corrupt and ruthless game.

Can Bitcoin be used by nefarious, criminal elements? Of course it can, and has been. That said, the crack down by police authorities, especially in the USA, has less to do with protecting the public from drug dealers and money laundering, than it does with protecting the massive, global, criminal racketeering that the American government and other governments, and the “too big to fail” banks, including the U.S. Federal Reserve Bank, are so heavily involved in.

There is a global “official” mafia and it will vigorously protect its turf against all comers. Nevertheless, since its birth a few years ago Bitcoin has made impressive headway, against formidable odds. In spite of everything, Bitcoin persists, demonstrating determined staying power.

I am therefore bullish on Bitcoin and see a promising future for it. The old power structure is weakening and crumbling from its own internal, corrupt dynamics. Bitcoin is the new kid on the block, and stands poised as a logical successor to play a uniquely important role in the development of the next stage in the economic life of global humanity. A flurry of recent Bitcoin acceptance by a variety of major businesses such as Overstock.com, Las Vegas, Nevada casinos, the Sacramento Kings professional basketball team and more indicate that Bitcoin continues to gain market share, with the prospect of even more impressive growth ahead of it. 

How To Get Some Bitcoin of Your Own

To start you need a Bitcoin address and digital “wallet” to keep your addresses. You can get a wallet and one or more addresses at Coinbase  or  Block Chain  

The following are some of the best free programs that I have so far discovered. They all are either free to join, or have a free member option. So you can begin to accumulate Bitcoin without paying anyone anything. They each pay small, incremental amounts of Bitcoin. If you can get referrals many of these programs will pay you a percentage of your referrals' activity. In that way, you can increase your rate of Bitcoin accumulation. In the process of going to these various websites you will encounter advertisements for other Bitcoin programs. There are some programs that are worth your while and there are others that will suck all your Bitcoin away and leave you with nothing. You will have to use your own best judgement as to whether to participate or not. Caveat emptor.

Bit Billions is a new program that already has more than 50,000 members and is growing quickly. It is a more sophisticated website than the vast majority of websites out there, and the program managers have an ambitious development plan. It has a free membership option. If you can get referrals in this one, it might possibly prove very profitable, if the program continues to grow along with the burgeoning Bitcoin market.

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