Thursday, September 19, 2013

The Taper That Wasn’t

By:
Peter Schiff

Wednesday, September 18, 2013
The Fed’s failure today to announce some sort of tapering of its QE program, despite the consensus of an overwhelming percentage of economists who expected action, once again reveals the degree to which mainstream analysts have overestimated the strength of our current economy. The Fed understands, as the market seems not to, that the current “recovery” could not survive without continuation of massive monetary stimulus. Mainstream economists have mistaken the symptoms of the Fed’s monetary expansion, most notably rising stock and real estate prices, as signs of real and sustainable growth. But the current asset price bubbles have nothing to do with the real economy. To the contrary, they are setting up for a painful correction that will likely be worse than the one we experienced five years ago.

Given the strong anticipation for a taper announcement, today’s relief rally should come as no surprise. However, the Fed’s inaction should be perceived by many as an admission that the economy is fundamentally weak. Once that possibility takes hold, today’s euphoria is likely to dissipate. Perhaps the Fed’s inaction may cause many to wonder if the economy is not as strong as they believed. This could ultimately lead to an even bigger sell off than what we would have seen today if the Fed had come through with a taper announcement.

A major factor in the current “recovery” is the confidence that has been created by rising stock and real estate prices. On Wall Street confidence can become a self-fulfilling prophecy. If the Fed were to make its fears more explicit that confidence could drift away. As a result, I believe that they chose a path of continuous obfuscation. But in so doing they lost control of the message.
The Fed knows that the appearance of economic health would evaporate if stimulus were withdrawn. But like Jack Nicholson in A Few Good Men, it also knows that the markets can’t handle the truth.
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AFP

Tuesday, August 13, 2013

FBI suspected of cyber-attack on anonymous web-hosting and email services

FBI suspected of cyber-attack on anonymous web-hosting and email services

By Mark Blackwood
12 August 2013
On August 5 malicious software (malware) in the form of a Java Script (JS) attack code was discovered embedded in multiple websites hosted by the anonymous hosting company Freedom Hosting (FH), the largest hosting company on the anonymous Tor network. Initial research into the malware by experts suggests that it originated from and returned private data back to the Federal Bureau of Investigation (FBI) or other US government agencies.
The malicious script was specifically designed to attack and exploit vulnerabilities within the Firefox 17 web browser, included within older versions of the Tor Browser Bundle (TBB), which allows for anonymous Internet access.

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An announcement of the attack was made by the Tor Anonymity project, which stated, “An attack that exploits Firefox vulnerability in JavaScript has been observed in the wild. Specifically, Windows users using the Tor Browser Bundle (which includes Firefox plus privacy patches) appear to have been targeted.” It advised anyone using an older version of the Tor Browser Bundle (TBB) to update to the latest August 9 release immediately.
The detection of the malicious code coincided with the arrest of Eric Eoin Marques, the alleged administrator of FH, on suspicion that the company, which hosts a vast array of servers, had been hosting sites linked to child pornography. Shortly after Marques’ arrest every website hosted by FH was taken offline simultaneously, including the anonymous email service Tor Mail.
Owing to the fact that the TBB can inhibit the collection of data on a person’s online activities and connect it to his or her name, address, age, phone number, etc., the software has become increasingly popular, as has the free anonymous means of online communication offered by Tor Mail.
This is especially the case in the wake of the US government’s persecution of whistleblower Edward Snowden. The former intelligence contractor exposed mass internet surveillance by the US government’s National Security Agency (NSA) and its allies internationally. For disclosing these activities, Snowden has been subjected to an unprecedented international manhunt, stripped off his passport, and forced to seek temporary asylum in Russia.
TBB is used to access services on the “deep net” (servers not indexed by standard search engines) such as Tor Mail, which until August 5 had the capacity to enable anyone to safely leak information relating to government corruption, oppression and human rights abuses, without fear of being detected or having their anonymity compromised.
The goal of Tor Mail was to provide for free a completely anonymous means of email communication to anyone who needed it. As such, it had earned a reputation as being the most anonymous email operation online.
The servers accessed by Tor, now portrayed as an arena inhabited solely by criminal elements, have been used widely by human rights groups, journalists, whistle-blowers, protesters and political dissidents worldwide, as well as members of the wider public who value their right to privacy.
That is why the circulation of a malicious code that has the capacity to unmask and compromise a person’s anonymity is of great concern to those who have relied on the TBB and Tor Mail as a means of anonymous communication.
Claims that the attack only affects, or should be of concern to, those engaged in criminal activities online is false. http://www.wsws.org/en/articles/2013/08/12/torm-a12.html

Every Important Person In Bitcoin Just Got Subpoenaed By New York's Financial Regulator

Things are getting serious for Bitcoin this month: a federal judge declared it real money, Bloomberg Bloomberg gave it an experimental ticker (XBT), and New York’s financial regulator announced an interest in regulating it. Declaring Bitcoin “a virtual Wild West for narcotraffickers and other criminals,” the New York State Department of Financial Services is stepping into the sheriff’s boots.
“We believe that – for a number of reasons – putting in place appropriate regulatory safeguards for virtual currencies will be beneficial to the long-term strength of the virtual currency industry,” said NYSDFS superintendent Benjamin Lawsky in a statement.


The department is starting out by subpoenaing 22 digital-currency companies and investors to get a lay of the Bitcoin land. They sent letters to the major Bitcoin players asking them to hand over information regarding their money laundering controls, consumer protection practices, source of funding, pitch books (for Bitcoin start-ups) and investment strategies (for Bitcoin investors).  The recipients of the subpoenas are nationwide and include everyone on the “people making real money on Bitcoin” list, such as Bitcoin exchanges and processors, “ mining equipment” maker Butterfly Labs, and major investors, such as the Winklevosses, Marc Andreessen & Ben Horowitz, and Google’s venture fund. (Full list below.)
http://www.forbes.com/sites/kashmirhill/2013/08/12/every-important-person-in-bitcoin-just-got-subpoenaed-by-new-yorks-financial-regulator/

Monday, August 12, 2013

Ben Swann - War In Yemen!: U.S. Navy Is Soliciting 12 More Drones For Possible Yemen Strikes

August 12, 2013

According to FedBizOpps.gov, the U.S. Navy is soliciting “12 Light Observation Aircraft to Yemen for use by the Yemeni Air Force (YAF) equipped with EO/IR sensor.”
You can find, here, the request.

Ron Paul states in his weekly column that over the past two weeks the U.S. has launched at least eight drone attacks in Yemen, in which dozens have been killed.
“It is the largest U.S. escalation of attacks on Yemen in more than a decade,” said Paul.
Paul cites that there have been previous reports of civilian deaths due to drone attacks, but the U.S. denies that there were any civilian deaths.

Read more: http://benswann

Spying scandal sets back U.S. chances for fighter jet sale to Brazil

By Anthony Boadle and Alonso Soto

BRASILIA (Reuters) - U.S. hopes of clinching a coveted deal worth more than $4 billion to sell 36 fighter jets to Brazil have suffered a setback with recent revelations that the United States collected data on Brazilian Internet communications.

When U.S. Secretary of State John Kerry sits down with Brazilian officials in Brasilia on Tuesday to prepare a state visit to the White House by President Dilma Rousseff, the sale of the warplanes will not be on the agenda, a Brazilian source said.

"We cannot talk about the fighters now ... You cannot give such a contract to a country that you do not trust," a high-level Brazilian government official told Reuters on condition of anonymity because of the sensitivity of the matter.

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