Let’s bring capital back to USA, too

It’s laudable that Trump wants to bring factories back to USA.  But how about virtual, monetary factories?  Moving financial institutions such as banks, insurers, brokerage houses, exchanges, and other institutions brings the most bang for the buck when it comes to revitalizing America’s economy.

As we explain in Splitting Pennies, even though money doesn’t exist, it’s the most important part of a healthy economy.

The business climate in USA is about to change greatly, pro-business.  But let’s not forget that capital is portable, we can bring capital back to USA too- not just factories.  Capital has been fleeing USA faster and faster.  Let’s stop the leaks and then bring it home.  We printed it – it’s our money!  – @FXBanker

It’s laudable that Trump wants to bring factories back to USA.  But how about virtual, monetary factories?  Moving financial institutions such as banks, insurers, brokerage houses, exchanges, and other institutions brings the most bang for the buck when it comes to revitalizing America’s economy.

No doubt, re-building America’s factories, previously the manufacturing base of the world, should be a priority for a number of reasons.  Not only does it provide jobs and stimulate the local economy – it’s a security issue.  Since when is it ‘politically correct’ to ‘outsource’ military technology development to foreign countries?  60% of the actual activities of the CIA are outsourced, many of them by companies that do not operate in America!  For example, the system used by Prisoners to call friends and relatives involves special features such as call tracking, call recording, and other functions for obvious criminal tracking purposes.  The company who provides this software to prisons, is based in Israel.  Nothing against Israel – but it seems to be a conflict of interest?  At least for functions such as finance, the military, security, software encryption, and other critical infrastructure – it shouldn’t be outsourced.  Brining an H1B genius to Charlotte, NC from India is one thing, outsourcing development to a firm in Mumbai, is another.  The difference is like, the enemy manufacturing the weapons; there’s no telling when guns will ‘misfire’ due to an ‘error.’  While this didn’t happen on a large scale in a glaringly obvious smoking gun fashion as we saw during 9/11 – subtle security breaches are so common it’s become a niche black industry, stealing and selling data on the black market.  Well they aren’t stealing it, they have it – it’s just a grey area, how data is ‘lost’ and then ‘found’ by partner companies.

To a large extent, the fact that ‘technology’ has been offshored & outsourced was due to bad planning and cost saving.  The majority of Intellectual Property (IP) remains in USA with companies that are heavy outsourcers like Amazon, Google, Apple, and others.  They went into China and India at a time when it was the ‘hip’ thing to do, and Steve Jobs knew a lot about India, practically being a Yogi himself (or anyway, a wannabe Yogi).  The logistic thought of moving all those machines, which would all need to be retooled, to USA is practically impossible.  But if they were once built in China – why can’t they be built in Oklahoma?  You know, there’s cheap labor in USA too.  I heard recently about someone who writes for a blog that is paid $10 for 200 words, a US Citizen.  Oh yes, factory work, the unions, the unions.. But what about California wineries and other fairly large businesses using illegals anyway?  The lines of states and countries have become so blurred, especially when ‘American’ companies may have non-US investors, an HQ office in Chicago, factory in Costa Rica, and a European sales force.  Of course, all their IP is owned by a Luxembourg based holding company which they pay ‘licensing fees’ to tax free, even though they’ve never been to Luxembourg or even know what it is (a town, right?).  Actually, Luxembourg actually participates in the Olympics.

There’s one consideration too that Trump needs to be aware of – if he’s going to court Silicon Valley and get them to ‘bring it home’ he’s going to have to offer them some serious benefits.  USA’s biggest taxpayers, “Big Oil” (Chevron, Exxon) pay the top maximum tax every year, billions upon billions of dollars.  They don’t use tax loop holes, but they get a huge benefit of working with the government, as their customer.  They get the US military protecting their international assets, they get the CIA opening up new markets for them (and squashing the competition, literally).  They get direct access to politicians on a number of levels and issues without the need of lobbyists (although, they employ them too).  They don’t protest the government like the liberal left coast, they practically own it.  It’s another approach toward crony capitalism.

Capital is so portable now, Trump will have to sell the billionaire class which fought against him during the campaign through their Illuminati puppet HRC.  There’s literally nothing stopping JP Morgan from moving to Canada in 2 weeks.  They don’t even have to get plane tickets, they can purchase 18 wheelers and other transport vehicles and build a small city outside of Toronto.  Not a likely scenario just to outline how easy it is for money to flow in and out of an economy in today’s world, without capital controls.

Best example is Forex – billions flowed quickly outside of USA to trade this new and exciting market.  A change in the Forex rules could quickly see those billions and more flow back, within a short time period of Dodd-Frank FX rules being deleted,  as
explained in this article on Global Intel Hub.

Join the Delete FX Rules in Dodd-Frank Petition today by clicking here.

To get a quick primer on what this is all about, checkout Splitting Pennies Understanding Forex – the world’s first “REAL” FX book.

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Bitcoin and other cryptocurrencies flash-crashed Saturday night, one day after the US Commodity Future Trading Commission (CFTC) sent subpoenas four cryptocurrency exchanges in an ongoing probe into bitcoin manipulation that began in late July - following the launch of bitcoin futures on the CME, according to the Wall Street Journal
CME’s bitcoin futures derive their final value from prices at four bitcoin exchangesBitstamp, Coinbase, itBit and KrakenManipulative trading in those markets could skew the price of bitcoin futures that the government directly regulates.
In delay reaction, Bitcoin fell as much as $433 or 5.6% in Saturday night trading, with some noting that the flash crash happened shortly after a 90th ranked crypto exchange, Coinrail, had suffered a "cyber intrusion", and was likely the more relevant catalyst for the crypto price drop.
While major Cryptocurrencies were down from 4.5 - 5.5%, Bitcoin Cash dropped over 8.4%. 
The CTFC subpoenas were issued after several of the exchanges refused to voluntarily share trading data with the CME after being asked last December. Of note, the CFTC regulates the CTC. 
According to the WSJ, the CME, which launched bitcoin futures in December, asked the four exchanges to share reams of trading data after its first contract settled in January, people familiar with the matter said. But several of the exchanges declined to comply, arguing the request was intrusive. The exchanges ultimately provided some data, but only after CME limited its request to a few hours of activity, instead of a full day, and restricted to a few market participants, the people added.
What is curious, is that if there was indeed manipulation since the launch of bitcoin futures, it was to the downside, as the price of cryptos peaked around the time the crypto futures were launched, and are down well over 50% in the 6 months since.
Coinbase in particular has been under the watch government regulators. On February 23, Coinbase sent an official notice to around 13,000 customers to notify them they were legally required to turn over their information to the IRS
The IRS had initially asked Coinbase in July 2017 to hand over even more detailed information on every one of its then over 500,000 users in an attempt catch those cheating on their taxes. However, another court order in Nov. 2017 reduced this number to around 14,000 “high-transacting” users, which the platform now reports as 13,000, in what Coinbase calls a “partial, but still significant, victory for Coinbase and its customers.”
Coinbase told the around 13,000 affected customers that the company would be providing their taxpayer ID, name, birth date, address, and historical transaction records from 2013-2015 to the IRS within 21 days. Coinbase’s letter to these customers encourages them “to seek legal advice from an attorney promptly” if they have any questions. Their website also states that concerns may also be addressed on Coinbase’s Taxes FAQ. The ongoing legal battle between Coinbase and the US government dates back to November, 2016, when the IRS filed a “John Doe summons” in the United States District Court for the Northern District of California.
On Feb. 13, personal finance service Credit Karma released data showing that only 0.04 percent of their customers had reported cryptocurrencies on their federal tax returns. 
And in April, former New York Attorney General, Eric "we could rarely have sex without him beating me" Schneiderman, launched a probe of 13 major cryptocurrency exchanges according to the Wall Street Journal - claiming that investors dealing in the fast-growing markets often don’t have the basic facts needed to protect themselves.
Former AG Schneiderman’s office said the program, called Virtual Markets Integrity Initiative,  is part of its responsibility to protect consumers and ensure the integrity of financial markets, and its goal is to ensure that investors can have a better understanding of the risks and protections afforded them on these sites.
CFTC Commissioner: Crypto is a "modern miracle"
While the CFTC, IRS and New York Attorney General's office are all cracking down on cryptocurrency exchanges, it seems to all be part of the government's embrace of virtual currencies.  Last week CFTC Commissioner Rostin Benham called cryptocurrencies a "modern miracleat the Blockchain For Impact Summit held at the UN in New York last week. 
But virtual currencies may – will – become part of the economic practices of any country, anywhere.  Let me repeat that:  these currencies are not going away and they will proliferate to every economy and every part of the planet.  Some places, small economies, may become dependent on virtual assets for survival.  And, these currencies will be outside traditional monetary intermediaries, like government, banks, investors, ministries, or international organizations.
We are witnessing a technological revolution.  Perhaps we are witnessing a modern miracle. -Rostin Benham
Rostin hinted at the upcoming legal action against the exchanges during his speech:
Under the CEA and Commission regulations and related guidance, exchanges have the responsibility to ensure that their Bitcoin futures products and their cash-settlement process are not readily susceptible to manipulation and the entity has sufficient capital to protect itself.  The CFTC has the authority to ensure compliance. In addition, the CFTC has legal authority over virtual currency derivatives in support of anti-fraud and manipulation including enforcement authority in the underlying markets.

Meanwhile, the official Bitcoin website removed references to Coinbase, Blockchain.com and Bitpay, according to Crypto News - only one of which, Coinbase, was subpoenaed. 
http://Bitcoin.org  just removed/censored the 2 largest US Bitcoin companies (@BitPay Payment processing and @coinbase Bitcoin Exchange). It’s a good move: Bitcoin Core is obviously no longer Bitcoin, and should ideally be removed from both @BitPay and @coinbase too.

The CFTC officially recognized bitcoin as a commodity in September of 2015 when it went after Coinflip for operating a platform for trading bitcoin options without the proper authorization. Since the agency effectively asserted its dominance over the bitcoin market with that decision, this is the first time it has given its blessing to an bitcoin options trading platform. Expect a burst of institutional trading activity to follow - especially since they approved institutional options trading in July
This post sponsored by Total Cryptos @ www.totalcryptos.com  

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