My criticism of Bernanke is not politically motivated, because both parties love what Bernanke is doing. Bernanke was a Republican nominee, after all.
My criticism of Bernanke is due to the simple fact that he is a drug pusher. He is enabling the US deficit and engaging in the mother of all money printing ponzi schemes, which is acting as a giant tax on the American people. The US currency has lost 99% of its value since the inception of the Federal Reserve, which has become an unelected fourth branch of our government. The American people should have an alternative to holding their wealth in US currency. If the bankers and folks like Bernanke are hell bent on destroying the wealth of Americans through currency debasement, then in a free country, competition in currency should be allowed, so that Americans can defend themselves against attacks on their hard earned wealth. Germany gets this. Germany experienced hyper inflation and a destruction of their economy as a result. They are very cautious when it comes to playing games with their currency, unlike here in the US, where we think money can be created out of thin air with no consequences.
Bitcoin recognized by Germany as legal tender
Published: Monday, 19 Aug 2013 | 10:25 AM ET
By: Matt Clinch | Assistant Producer
Virtual currency bitcoin has been recognized by the German Finance Ministry as a "unit of account", meaning it is now legal tender and can be used for tax and trading purposes in the country.
Bitcoins is not classified as e-money or a foreign currency, the Finance Ministry said in a statement, but is rather a financial instrument under German banking rules. It is more akin to "private money" that can be used in "multilateral clearing circles", the Ministry said.
"We should have competition in the production of money. I have long been a proponent of Friedrich August von Hayek scheme to denationalize money. Bitcoins are a first step in this direction,"said Frank Schaeffler, a member of the German parliament's Finance Committee, who has pushed for legal classification of bitcoins.
(Read more: Bitcoin gets the FBI, Homeland treatment)
Bitcoin is a virtual currency that allows users to exchange online credits for goods and services. While there is no central bank that issues them, bitcoins can be created online by using a computer to complete difficult tasks, a process known as mining. Currently one bitcoin is worth just over $119.
Schaeffler said the new ruling showed German authorities were preparing regulations on how to tax bitcoin transactions. According to German newspaper Die Welt, the government has stated that the legal classification of bitcoin means that commercial profits that stem from using the currency may be taxable.
Kathleen Brooks, a research director at FOREX.com, told CNBC that classification by the German government gave bitcoin legitimacy to be used as a settlement currency in one of the world's largest economies. She said this was a big step forward for the bitcoin movement.
(Read more: Bitcoin banned: Country outlaws virtual currency)
The Bitcoin crackdown
Bitcoin is a virtual currency getting a lot of attention by the real world. Coinsetter is a company dedicated to making Bitcoin safe to use. Jaron Lukasiewicz, Coinsetter CEO, shares what the industry has to say. And Benjamin Lawsky, superintendent of NY Department of Financial Services, shares the regulators' side of the story.
"I think it is interesting that Germany has gone ahead and given legal status to the bitcoin, as it could become an alternative to the euro if the single currency ever ceased to exist," Brooks said. "If the euro does go belly up the German authorities could potentially still collect tax if everyone started using the bitcoin - that's a good example of German forward-thinking!"
Success for bitcoin rests on regulatory fair-treatment and the existence of a level playing field with other currencies, said, Schaeffler. He added that it would be bad if national authorities smeared bitcoin as a criminal tool for money laundering, just because it makes anonymous transaction possible.
(Read more: Bitcoin ATM Gets Ready for Roll Out)
"Sooner or later, depending on the success of private currencies, authorities will feel the urge to ban or regulate private currency. A free country should resist and not intervene in citizen's private choice of money. In my opinion the production of money is none of the government's business," Schaeffler said.
Bitcoin regulation has been a hot topic in the last couple months. The New York Department of Financial Services issued subpoenas last week to several companies associated with bitcoin, as part of an inquiry into the business practices of the industry, and both the Federal Bureau of Investigation (FBI) and the Department of Homeland Security (DHS) are investigating the currency.
In addition, Thailand moved to ban the digital currency in July,according to Bitcoin Co., a Bangkok-based website that trades the digital currency. Bitcoin Co. said it was prevented from registering with Thai governmental agencies, which would have allowed people to legitimately use bitcoin. |
