Fraudster Tries to Sell $20 trillion of Bitcoin


The Japanese cryptocurrency exchange Zaif has come out and admitted that a “system error” allowed customers to “buy” trillions of bitcoin for free. The Japanese newspaper, Asahi Shimbun, reported that Zaif informed users of the error in a post on their website. They explained that users could inadvertently “trade” the yen for virtual currency at an exchange rate of 0 yen per bitcoin.

Asahi Shimbun reported that seven users were able to obtain crypto for “free,” but the exchange managed to cancel all illegally acquired transactions.

Nonetheless, one fraudster who was bought Bitcoin at a zero rate then tried to sell 2,200 trillion yen (about $ 20 trillion) in bitcoin before the problem was solved. Zaif has been under scrutiny for its 530-million-dollar hacking of the Coincheck, the Japanese crypto exchange in January.

Canada Also Adopted the BAIL-IN moving from Socialism to Tyranny


Yes – Canada has also adopted the BAIL-IN abandoning the socialist BAILOUT so banks can take depositors money legally. This is how we move from Capitalism to Socialism to Tyranny,

 

Britain’s New Law UNEXPLAINED WEALTH ORDERS Targeting the Rich


From January 31st, 2018, the UK authorities have a new power. They can now use new and expansive investigative authority to require both individuals and corporate bodies to provide information as to how they acquired property. Known as Unexplained Wealth Orders (“UWOs”), which is another step toward tyranny all because governments are totally incapable of managing their own finances. They line their own pockets with promises of pensions for government workers and when they need to be paid their attitude is simply that the people are like an apple orchard – just go pick some more apples when you get hungry.

The new UWO imposes obligations to disclose information with respect to property anywhere in the world and can even be served on persons living outside the UK. Britain is taking a step closer toward imposing worldwide taxation for it is now requiring even non-resident to divulge information that historically was not taxable. The legal framework behind UWOs, and their interaction with other criminal and civil statutes, as well as the implications for individuals, institutions, and trustees are serious issues.

What has taken place is rather stark and we can expect that other countries will file Britain’s lead. This new law has turned the entire legal system on its head. We have always believed that we were supposed to be innocent until proven guilty. That has been completely eradicated from the law. The UWOs now presume guilty and it becomes your burden to prove you are innocent.

The Legal background

Sections 1 to 9 of the Criminal Finances Act 2017 (“CFA”) have now amended section 362 of the Proceeds of Crime Act 2002 (“POCA”), This has created a whole new regime of UWOs. As of January 31st, 2018, several of the UK authorities have new powers including the National Crime Agency, Serious Fraud Office, Financial Conduct Authority and HM Revenue & Customs. All of these agencies are now able to require both individuals and corporate bodies to explain how they obtained an interest in a specified property.

The Court may now also engage in a UWO requirement where the following four conditions are satisfied:

Condition 1: There are reasonable grounds to believe that the person holds the asset(s).

Condition 2: There are reasonable grounds to believe that the cumulative value of the asset(s) is greater than £50,000.

Condition 3: There are reasonable grounds for suspecting that the known source of the person’s lawfully obtained income would have been insufficient for the purposes of obtaining the property – for these purposes, the Court will consider any mortgage or other security that it is reasonable to assume was or may have been available and assume that the person obtained the property for market value.

Condition 4: The person falls into one of the following categories –

· The person is a “Politically Exposed Person” (“PEP”) i.e. someone entrusted with prominent public functions by an international organisation or any country other than the United Kingdom or another EEA state;
· The person is a family member, a close associate or a connected person of a PEP;
· There are reasonable grounds for suspecting that the person is, or has been, involved in serious crime (either in the UK or elsewhere) (“a suspected criminal”) – serious crime will include fraud, money laundering, tax evasion, sanctions offences, and bribery and corruption; or
· The person is connected with a suspected criminal.

UWOs must be served in accordance with the usual Civil Procedure Rules. So in other words, we are looking at a whole new type of power. You are now GUILTY and you must prove your INNOCENCE.  I have explained that I was held in prison for “Civil Contempt” not CRIMINAL. The difference is one I was being “coerced” and the other is you are being “punished” so only then are you entitled to a real trial by jury.

Here we have the same pretense. The burden and standard of proof regarding UWOs fall under the civil investigative tools and as such they do not form part of the UK’s criminal law regime. Therefore, as long as it is civil, you can be stripped of all rights and any imprisonment is “coercive” so you are not being punished. Consequently, the UK authorities can engage in full-blown tyranny applying for a UWO they will only need to show “reasonable grounds” for their suspicions. This is a much lighter legal standard than the “realistic prospect of conviction” standard required in order to bring criminal prosecutions what is call in America “probable cause”.

The real danger her is there is no practical limitation on the scope. That means the UK is applying the scope to worldwide turning its citizens and corporations as well as trusts into tax slaves. Laws are normally limited to TERRITORIAL JURISDICTION meaning if you killed someone in Paris, you stand trial in Paris not in Hong Kong or wherever you are a citizen. Hence, here the scope of UWOs can be made in respect of any property, regardless of where in the world it is located converting everyone to a tax slave. This applies to any individual or corporate, whatever their place of residence, business or incorporation (there is no requirement to demonstrate a nexus to the UK). This is really tyranny for the way the code is written, they could bring this to anyone even if not British. UWOs can be made in respect of any property, including property acquired before January 31st, 2018, as well as property held by more than one person meaning partnerships and trusts. Laws have traditionally been regarded as tyranny if they are applied retroactively, known as Ex Post Facto. Here, because this is “civil” in pretense, they are circumventing all the historic safeguards against legal persecutions by writing a law after the fact to make something criminal.

The penalties of a failure to respond to the UWO within the prescribed time without reasonable excuse will give rise to a presumption that the property specified in the UWO is recoverable for the purposes of a civil recovery order (“CRO”) which means the property will be presumed to be ill-gotten gains and seized by the government. You then will have the burden to prove you are innocent and you are presumed to be guilty. If you refuse to answer, they can throw you in prison until you die as they did with me using the contempt of court powers. If you lie in any statement in response to a UWO, now this becomes criminal and punishable by a prison sentence of up to two years and/or a fine.

You will be deemed guilty unless you have “reasonable excuse” to have failed to comply with the terms of the UWO, yet what constitutes a “reasonable excuse” is not actually defined. In the States, a mother was required to pay her son’s student loan even though he had been killed and the court held that was not a “reasonable excuse” so this becomes a pure tyranny.

The UWO also allows in the legislative changes a new Interim Freezing Order (“IFO”). So, the government can freeze your assets until you comply. The High Court may grant a IFO to prohibit a respondent to a UWO (and any other person with an interest in the property) from dealing with the property specified in the UWO. If the court issues an IFO, the agency bringing the action must determine whether or not to instigate proceedings within 60 days. If it fails to do so, the IFO will expire, however, the relevant authority is still free to determine what proceedings it may take against the respondent “at any time” in the future without any statute of limitations – another tyranny under the law.

magna_carta_signing

The DANGER in this legislation is simple. It is pure and unadulterated tyranny for it removes ALL protections of law and shreds the English Bill of Rights no less the Magna Carta.  Then King John also derived income from fines, court fees, and the sale of charters and other privileges. Fines were called “amercements” and at the time, it was said that there was hardly an Englishman of substance who had not been amerced at least once a year. Magna Carta introduced the right to trial by jury, where the people decide if someone is guilty and what the fine should be. This drastically curtailed the king’s abuse of the legal system at that time. King John was very unpopular, for he had intensified his efforts to maximize all possible sources of income to regain Normandy. Contemporary commentators describe him as “Avaricious, miserly, extortionate and money minded.”

The entire right to trial by jury was to stop the king and his corrupt courts from fining people to raise money. This law has shredded the Magna Carta and has restored all the former tyranny of the King once again to raise money. In 2015, that marked the 800th year following the signing of Magna Carta.

The Coming Banking Crisis & The End of Bailouts


Behind the curtain, there is a growing concern about a serious banking crisis beginning once again in Europe. Many governments are talking about the crisis behind-the-curtain and we are now beginning to see steps that are being taken to end the TO-BIG-TO-FAIL policies that dominated the 2007-2009 Crash.

The United States is looking at a new radical bank rescue policy where the government is proposing to revise a central pillar of the idea of bailing out banks creating new financial regulation with a new Chapter 14 bankruptcy procedure. They are looking at eliminating the risk of taxpayers’ costs to bail out banks. They are investigating the means for an orderly resolution so that the taxpayers do not have to bail out the banks. This development is causing some concern among the high-flying Wall Street banks, for if that is the case, then another crisis as 2007-2009 will result in even Goldman Sachs closing. The proposal looks to shift the burden to the shareholders and creditors of that bank. This means depositors who are thus creditors.

In Australia, we see similar legislation being proposed. This is the Financial Sector Legislation Amendment (Crisis Resolution Powers and Other Measures) Bill 2017. This also authorizes bail-ins bringing an end to the bailout.

 

Rising Interest Rates


While the stock market crashed as the pundit looked in their bag to try to come up with an excuse, they blamed rising inflation and interest rates. Yet, nobody is really paying attention to the underlying trend. The cost of carrying debt has been rising gradually and there are noticeable measurable impacts that the pundits are of course oblivious to since they have to explain every day’s movements and not the real trend.

Already, the 10-year rate is piercing above the 2.6% area. There is an impact on the currency once people begin to comprehend the trend. The 10-year German bond rate is 0.70%, and this has been maintained by the ECB buying 40% of European government debt to no avail for nearly 10 years.

The real crisis comes when they realize that the ECB will not be there to buy government debt. The bidders will demand a higher yield so rates will rise very rapidly.

Meanwhile, the Fed will pursue higher interest rates as they need to be normalized to help pensions funds that are rapidly collapsing. This idea of a lower dollar will raise the price of imports and with tariffs, inflation in consumer products will rise.

Mueller is still not ending his investigation. Why should he? He would have to go get a real job in the private sector. Keep the investigation alive to pay the light bills. He shows no sign of embracing unemployment. His pretend indictment is dancing between raindrops, indicting people in Russia knowingly there will never be a trial. We cannot count him out yet as a factor that will undermine the economic confidence.

So we stand at the threshold of rising rates that will then feed into the market and create a bid for the dollar it appears after March.

 

India Enters the Sovereign Debt Crisis


I have warned continually that the Sovereign Debt Crisis will unfold not so much by people selling government debt, but by the lack of people buying new debt. The greatest peril is when there is NO BID for the new issues because all governments are operating a PONZI scheme. The sell new debt to pay off maturing debt. Currently, holders of Indian government debt have been dumping 4.7 billion rupees ($73 million) of government bonds on average every day this year, according to data from the Clearing Corp. of India. Last year, their net daily sales totaled 368 million rupees.

The Sovereign Debt Crisis emerges when the government is unable to raise enough cash to pay off the maturing debt. India has crossed that threshold so as we have warned, the Sovereign Debt Crisis will begin from outside the USA and spread to the core. This is how all Empires, nations, and city-states collapse.

The Evolution of Growing Food


QUESTION: Mr. Armstrong; You previously mentioned that we can grow crops inside warehouses without the sun or soil. How did mankind survive the last mini Ice Age wit dropping temperatures as we have seen in recent winters here in Europe?

LW

ANSWER: With each cycle, we tend to improve upon technology. Being able to grow food inside will be an important advance for us during this cycle. You can set one up in your basement.

Previously, there was the invention of the fruit wall which appeared around the beginning of the Little Ice Age that ran the course of about 200 years from about 1550 to 1850.

The invention of the fruit wall saved society. They built walls which reflected sunlight during the day essentially using solar energy to improve growing conditions. These walls also absorbed solar heat, which in turn was slowly released during the night, preventing frost damage. They created a warmer microclimate 24 hours per day.

Fruit walls also protected crops from cold blasts of winds from the north as we are experiencing today. They eventually began to construct wooden canopies to shield the fruit trees from rain and hail. They would also use mats suspending then from the walls in case of bad weather. I remember my grandfather loved figs and he had fig trees he would wrap during the winter to protect them in New Jersey. In Europe, these fruit walls were used as far north as England and the Netherlands.

Conrad Gessner (1516 – 1565) was a true Renaissance man. He was a Swiss physician, naturalist, bibliographer, philologist, zoologist, and a botanist. He wrote of the effect of the Fruit Walls which then popularized them in Europe.

The French began to improve the technology by pruning the branches of the fruit trees in such ways that they could be attached to a wooden frame on the wall.

The French botanist Charles Lucien Bonaparte (1803 – 1857) is credited with building the first practical modern greenhouse in Leiden, Holland, during the 1800s to grow medicinal tropical plants. The French called their first greenhouses orangeries since they were used to protect orange trees from freezing. Today, Holland grows more food in greenhouses than any other country.

metropolis-farms-24

Today, the next step forward is growing food in warehouses without the sun or earth.

Cryptocurrency Maybe Become a Tax Nightmare


Credit Karma is reporting that of the first 250,000 tax filings, less than 100 people reported owning any cryptocurrency. Credit Karma is reporting that only 0.04% of cryptocurrency-traders are paying taxes to Uncle Sam.

The dangerous aspect here is the IRS got over 20,000 names from the exchanges and they will match their accounts to tax returns. Anyone who thinks this is an alternative currency that circumvents taxes and the central banks will have a new reality after April 15th. They will know everyone who has bought or sold any cryptocurrency.

Mueller’s Tyrannical Indictment = the Very Reason We had a Revolution


The Grand Jury was supposed to protect citizens from political prosecutions determining only “probable cause” if the government presents their skewed side to claim a crime might have been made, but it has been completely undermined and serves nothing close to its constitutional purpose. The Grand Jury is just a political tool for they get to hear ONLY the evidence that the government selects. There is absolutely NO REQUIREMENT that a prosecutor must make a fair presentment of the facts and indeed they are NEVER true and correct for there is no obligation to present the alternative or the defense of the person being indicted.

The Supreme Court wrote quite eloquently what the Grand Jury was supposed to do. “The … grand jury … has the dual function of determining if there is probable cause to believe that a crime has been committed and of protecting citizens against unfounded criminal prosecutions.” Branzburg v Hayes, 408 US 665, 686-687 (1972).

What has long been held as common practice, the U.S. Supreme Court in 1976 ruled in Imbler v. Pachtman 424 U.S. 409 (1976), that prosecutors cannot face civil lawsuits for prosecutorial abuses, no matter how severe. Prosecutors have qualified immunity in other activities such as advising police and speaking to the press. This was the decision that means Mueller can say anything in an indictment for he is completely immune even if he is knowingly lying to the public. He gets to do what nobody else can do and this has undermined everything that the Constitution stood for.

There are no checks and balance in the American Justice System which flies in the face of the Declaration of Independence, which criticised the very same immunity the King provided to his prosecutors.

“He has made Judges dependent on his Will alone … He has erected a multitude of New Offices, and sent hither swarms of Officers to harrass our people, and eat out their substance … For protecting (government agents) them, by a mock Trial, from punishment for any Murders which they should commit on the Inhabitants of these States”

Declaration of Independence

Prosecutors routinely mislead grand juries and provide only allegations to show guilt. An indictment is completely bogus and should NEVER be taken as fact for that violates the entire Constitution. The defendant has no right to present his side and the Supreme Court said that the trial jury will correct any injustice. This is what makes Mueller’s indictment fake news for he knows that there is zero chance of getting a trial so the indictment can say whatever he wants and CNN, New York Times, POLITICO etc., will all treat it as absolute proven fact.

In a decision by Judges Evans, Posner, and Easterbrook of the 7th Circuit (Chicago), they wrote in 2005 the truth about the Grand Jury process:

“Realistically, federal grand juries today provide little protection for criminal suspects whom a US Attorney wishes to indict. Nevertheless, that is not a realism to which judges are permitted to yield.”

US v Ross, 412 F3d 771, 774 (7th Circuit 2005)

The former Chief Judge of New York, Sol Wachtler, became famous for the modern legal comment on how bad the Grand Jury process had become. His comment became immortalized in the Tom Wolfe novel, Bonfire of the Vanities (1987). Judge Wachtler’s review of the Grand Jury became the famous phrase that a grand jury could “indict a ham sandwich,” if that’s what you wanted because the prosecutors are totally unsupervised in bringing indictments. He later said that he coined the phrase during a lunch interview with Marcia Kramer of the New York Daily News.

The Grand Jury has simply become the tyranny that has destroyed every Empire historically. There is no judge present so the proceeding is led by a prosecutor, in this case, Mueller. The defendant has absolutely no right to present his case or even to be informed that a prosecutor is conducting a Grand Jury proceeding at all. Court reporters usually transcribe the proceedings, but the records are sealed. The case for such secrecy was unanimously upheld by theSupreme Court in Douglas Oil Co. of Cal. v. Petrol Stops Northwest, 441 US 211 (1979). The rationale to support secrecy was explained that “if preindictment proceedings were made public, many prospective witnesses would be hesitant to come forward voluntarily”; “witnesses who appeared before the grand jury would be less likely to testify fully and frankly”; and “there also would be the risk that those about to be indicted would flee, or would try to influence individual grand jurors”.

The Venetian Mouth of Truth was precisely what the Supreme Court used to justify secrecy. Anyone could write an allegation against anyone else and they did not have to disclose who they were. They dropped the slip into the Mouth of Truth and that was enough to arrest the person and torture them until they confessed.

Once the person was arrested and crossed the Bridge of Sighs to the prison, they never again returned. The mere accusation was proof of guilt precisely as Mueller has just carried out.

On top of that, the hypocrisy, in this case, knows no bounds. The United States has interfered in just about everyone’s election. The Obama Administration interfered in the Canadian, British, and French elections to try to push for socialists to win and defeat BRXIT. Obama pissed-off the British by going of British TV and told them if they voted to leave the EU, then they should get to the “back of the queue” on trade agreement negotiations if they leave the EU.

The political propaganda team that got Bill Clinton elected was there in London helping Tony Blair get elected in Britain. The NSA was spying on Merkel and Merkel with the NSA was spying on France and the EU Commission.

Consequently, the strongest count in Mueller’s indictment is that the Russians failed to register and formally tell the US people they were acting politically within the US system. I find this very unethical when in fact the USA does this very same thing routinely to everyone else.

COUNT ONE:

“Grand Jury, knowingly and intentionally conspired to defraud the United States by impairing, obstructing, and defeating the lawful functions of the Federal Election Commission, the U.S. Department of Justice, and the U.S. Department of State in administering federal requirements for disclosure of foreign involvement in certain domestic activities.”

Muellers Indictment

The Obama Administration came out and stated that despite Russian attempts to hack the election, the result was not altered. This has been a political witch hunt for there is nothing that took place that (1) altered the results, and (2) nothing that the US government does not do in other countries.

The ONLY way to secure our liberty is to overrule Prosecutorial Immunity and upon someone being indicted, the transcript MUST be made public. Otherwise, protecting the very people who appear before the Grand Jury to get an indictment remain in secret and can never be called by the defendant denying him the right to confrontation.

Mueller has proven we still live under Tyranny. The Grand Jury minutes MUST be made public since this is a political indictment and he knows there will NEVER be a trial. The American people and the world are entitled to the WHOLE TRUTH and NOTHING BUT THE TRUTH

Volatility – What is It?


 

QUESTION: Dear Martin,

In the private blog you mentioned a few times that the volatility will rise again in the week of the 12th. When you mention volatility, do you mean volatility as measured by the VIX index?

 

So far the VIX has lost around 1/3 this week so I suppose you mean something else?

Thanks!

JWD

 

ANSWER: The VIX is not a true indicator of volatility. We have three main volatility measurements and each is different.

(1) you have the traditional measurement of close to close. That is interesting, but it does not truly capture the concept of volatility.

(2) Then there is intraday volatility which we measure and simply the percentage movement between the high and low of that session. You can have a 1,000 point swing in the Dow intraday yet close nearly unchanged. The first volatility measurement would never even show a blip.

(3) The third measurement is overnight volatility. This is measured from the previous close to the open of the current day session. For example, Monday, February 5th the Dow opened at 25337.87 compared to Friday’s closing of 25520.96 gapping down.

Our indicators are intended for trading, unlike the VIX. In our Arrays, you will see Overnight Volatility, Intraday Volatility, and Panic Cycles, which are extreme moves in one direction or an outside reversal which exceeds the previous session high and penetrates the previous secession low.

 

The VIX is a convoluted formula that does not reflect trading but more of a trend lending itself to manipulations. Hence, the VIX is not very reliable. The VIX is a measure of expected volatility calculated as 100 times the square root of the expected 30-day variance (var) of the S&P 500 rate of return. The variance is annualized and VIX expresses volatility in percentage points.

Volatility Index VIX Futures

where var = (365/30) x Expected 30-day variance.

The 30-day variance is the sum of squared standard deviations st (“volatilities”) of the S&P 500 rate of return at every point in time t during the 30 days:

Volatility Index VIX Futures