Bitcoins – Coins For the Cryptocracy

People all over the political spectrum are pushing bitcoins again.

I explained earlier why I felt you should avoid them. When I did, I withheld any reasoning except the most logical and self-evident.

Short version:

You can accomplish everything that bitcoins can achieve with good old cash. And you don’t need electricity, internet, computers, devices, and security software when you use cash.

Second, if governments hate cash for its secrecy, why are they ignoring or pushing cryptocurrencies, which are supposedly even more secretive?

Makes no sense, does it?

The problem with bitcoins is they provide a solution for what isn’t a problem.

Secrecy isn’t a problem.

Secrecy can be achieved as is, if you set your mind on it.

The real problem is that every increase in secrecy augments the power of the cryptocracy – the unholy alliance of the spy agencies, criminals, and criminal financial cartels.

These are the forces that actually control our lives.

The criminal ruling class loves bitcoin because they know they have the power to exploit it fully. The ordinary chump just thinks he does.

As for Satoshi Nakamto, there’s no such person. It’s a made-up name, even though it has a meaning. A sinister one that gives the game away.

Don’t let clever people fool you into thinking it’s a real person.

They are probably being compensated for saying so.

Remember, practically every political site of any size on the web is in bed with intelligence. When they are not, they get pruned regularly.

Just see what happened to me here.

Bitcoin comes out of Israeli cryptographic research. The details I don’t know, but that’s generally accurate.

It’s not about saving anyone. It’s about enacting the kabbalist’s vision on earth.

That vision demands that the Anglo-Judaic Western powers rule the world through decentralized systems.

Those who are pushing bitcoin are on board that agenda.

I am too busy recovering from the latest body-blow from the cryptocracy to spell it out better just now.

But I will get to it.

If you want to gamble, go ahead.

But if you adopt bitcoins because you think your life will become opaque to the powers-that-be, you might want to rethink that.

The only way to hide anything done on your computer is to turn it off, smash the hard drive into metal dust, and throw it into a nuclear waste site.

But even then, there are still the servers and the other fellows’ computers.

Not to mention advances in technology or mathematics that will turn bitcoins invulnerability into mush.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Google: Cyberbullying for profit

An anonymous Australian web-site reveals how Google has a financial incentive to cyber-bully people by elevating smear-and-extort sites like The Ripoff Report.

(I will not link to it, but here is Wikipedia’s entry on the Ripoff Report):

[Side-note: One of my attackers on the web seems to have been affiliated with this site,  which essentially runs an extortion racket by smearing people via hired proxies and then asking for money from the victims to remove the smears.]

UPDATE September 20th 2013: Victory

A large number of major companies have removed their advertisements from Ripoff Report.

This webpage contains an overview of the project.

The updated full report can be downloaded from this url:

https://www.adrive.com/public/9u3aau/Cyberbullying for Profit September 2013.zip

A list of examples URLs from Ripoff Report containing offensive material about children, public figures and individuals is contained in an attachment to the report but an also be found here:

This video explains how Google priorities links from Ripoff Report in its search results.

This video shows that Google considers Ripoff Report has unacceptable  business practices. So why does it advertise on its webpages? The answer is…..advertising revenue for  Google (see above).

Overview

The website Ripoff Report and other websites that emulate the business model of ‘cyberbullying for profit’  publish false and offensive information about minors, teenager, adults and businesses and these are often accompanied by photographs and identifying details.   Ripoff Report also publishes extremely racist and homophobic material, offensive material about religious groups, public figures and ‘celebrities’. While the material about public figures appears to be given a low Google page rank, the names of children, teenagers, ordinary people and small business owners ‘reported’ on these websites is contained in snippets displayed at or near the top of the Google search results (SERPs). These snippets contain names and location details couched in terms such as ‘ripoff’, ‘fraud, ‘pedophile’, ‘scam’, ‘whore’, ‘slut, ‘prostitute’, ‘skank’, ‘murderer’, ‘bitch’ ‘faggot’ ‘liar’ ‘drug abuser’, ‘cunt’, ‘stalker’, ‘HIV’ and/or ‘AIDS’ and other accusatory and derogatory terms.  

Ripoff Report earns revenue from two sources – advertising and payments from victims to the website to ‘rehabilitate’ their reputation in the Google search results or remove the false material. Despite the fact that the claims are false, if a person cannot pay their life is ruined because, as stated by Google, their search engine is often ‘the first place people look for information that’s published’ about a person.

Even if the allegations can be proven to be false Ripoff Report will not remove the material unless they are paid a substantial corporate advocacy’, or ‘arbitration’ feeIn response to removal requests, Google provides a number of excuses and victims must find an ‘ex-gratia’ payment in order to ensure the material is removed from the Google index and ameliorate the danger towards their children and/0r save their livelihoods and businesses. Furthermore, Ripoff Report publishes registered trade names and copyrighted photographs without permission. It claims a copyright over the webpages. This business model is enabled by both a high Google page rank  and advertising revenue. The companies and business that advertise on Ripoff Report supply this revenue and support the endangerment and cyberbullying of children, teenagers and adults and the destruction of careers and livelihoods. This project arose out of my own experience with the publication of false and defamatory material on these websites.

Despite the fact that it takes only a couple of minutes to remove links from the Google index, after four years of notifications, pleading with the website and Google, and litigation against Google it has not been removed. ……I sued Google for defamation in February 2011 with the hope that it would simply remove the links and I could then move on with my life. My hope was misplaced. …….

…Despite the fact that Google refuse most removal requests, they have quietly removed links for other victims of Ripoff Report.

[Lila: I have seen Google actively suppress information that exposes the financial mafia,which is to the left, politically.]

“For obvious reasons I cannot and will not publish the names of these people because they likely paid a substantial amount to either the websites or Google to save their families and livelihoods.

However, Google can and does remove websites and links without much effort.

For example, since December 2011 Google has removed almost 90,000 links from its index at the request of Ripoff Report. Many of those links contained registered trademarks and copyrighted photographs but it appears that Ripoff Report is  not questioned about these DMCA issues by Google. My blog, was also removed from the Google index soon after it went online.  If this appears difficult to believe consider that the removal occurred  after I drew attention to the blog by applying for AdSense advertising as an experiment.

In fact, I clearly stated on my blog that I was suing Google. Apparently’ freedom of speech’ only applies unless one says something negative about Google.

My blog was magically re-indexed in the Google index within hours of my public complaint in a blog conversation in which Matt Cutts was participating. The documents showing the removal and reinstatement of my blog in the Google SERPs can be downloaded from this link.

[Lila : Here is a previous blog post of mine, from 2009, where I reference Ripoff  Report and its owner, in the context of describing the nexus of organized crime and short-sellers.]

SAC Case: Should Be About Racketeering, Not Insider-Trading

Previous Mind-Body Politic posts related to Steve Cohen, in reverse chronological order (incomplete):

Rajat Gupta Trial: The other Goldman insider ring, MBP, June 10, 2012

More on Einhorn’s rumour-mongering about Lehman, MBP, April 15, 2010

Third-point, Goldman trading chiefs exist together, Madoff programmers indicted, March 18, 2010

Hedge-funds: top ten earners in 2007-2008, MBP,  January 13, 2010

Steven Cohen: third-biggest owner of Sotheby’s in 2009, MBP, Dec. 30, 2009

Secretive Steve Cohen on talk-show, discussing relationship with ex, MBP,  Dec. 27, 2009

SAC spin-offs fail, even when they succeed, MBP,  Dec. 26,2009

SAC subpoenas former SAC trader Grodin, MBP,  Dec. 25, 2009

Den of Thieves: Hedge-hogs go into SAC remote mode, MBP, Dec. 23., 2009

Sad SAC: Reuters spikes hedge story on complaints from Steven Cohen, MBP.com, December 22, 2009

Ex-Sith lady uses RICO on Sith lord? Mindbodypolitic, December 17, 2009

ORIGINAL POST

In his piece at Deep Capture, “SAC Capital (and Steve Cohen too) should be convicted”, researcher Mark Mitchell is far more sanguine than I am that Preet Bharara really means to go after the chief of the mega-hedge fund SAC,  Steven Cohen, after he puts away  various underlings, like Michael Steinberg and Indian-born Matthew Martoma.

“By fixating on the insider-trading angle in all his cases, Bharara, in my opinion, undermined the whole credibility of his prosecution and opened himself up for charges that he is merely targeting politically-viable low-hanging fruit.

Lila: As I’ve documented thoroughly at this blog, Bharara hasn’t had much credibility in his Wall Street prosecutions for at least a year now, regardless of how successful his other prosecutions might have been in some people’s eyes. I’m glad to see some main-stream voices coming around to my view.

I think I know a little about the Steven Cohen investigation, from my conversations with some of the principals at Deep Capture, where the investigation of Cohen began

Here’s a piece I wrote which they picked up, back in 2009:

Steve Cohen, the anti-Midas (Judd Bagley at Deep Capture):

Here are Lila’s observations on the matter:

1. The high number of SAC traders who seem to have gone off into their own businesses.

You’d think with all that money and the fund’s record as the most consistently successful in the business (only one bad year on record), their traders would stay forever. Quite the opposite.  People seem to have been leaving all the time to form their own businesses.

But SAC was also said to be a very tough environment. You produced, or you left.

So maybe that’s why Lee and Far, Grodin and Goodman, all left to found their own firms?
Could be. But I’m not convinced.

2. None of the spin-off firms seems to have been very successful.

Why not? Why couldn’t these hot-shot traders make money on their own?

The Reuters piece suggests that perhaps the SAC experience didn’t foster business ability. And that perhaps SAC traders flounder without SAC’s huge supporting cast.

But those things are likely to be true of other firms as well, not solely SAC.

Still not convinced.

Furthermore, consider this.

3. A spin-off fund that didn’t get money from Cohen ended up quite successful:

“Healthcor, a healthcare industry focused fund, had raised $3.2 billion by June 2009 since launching four years ago. The fund returned 25 percent in 2006, 18 percent in 2007, and was up 4 percent last year, when the average hedge fund lost 19 percent. In the first 10 months of 2009, Healthcor was up 7 percent.

Healthcor, founded by Arthur Cohen and Joseph Healey, opened without any financial support from SAC. In fact, soon after Cohen and Healey struck out on their own, SAC sued the pair, accusing them of breaching their employment contracts. The matter ultimately was settled. (Healthcor’s Cohen is not related to SAC’s Cohen).”

4. Even spin-offs that were doing well were shut down.

When Stratix started in 2004, it had $60 million given to it by SAC. When it shut down, in 2007, it was up 17% and had $530 million under management. Yet it shut down. Why did it shut down? Those numbers sound pretty good.

Another spin-off, Fontana Capital, started out in 2005 with $50 million of SAC money. It grew to $325 million by 2006.  But sometime in 2007, Cohen pulled out all his money. And in 2009, Fontana was down to $16.1 million, despite being down only 7.69%, compared to the average S&P Financial index loss of 57%. Again, that sounds like it wasn’t doing all that bad.

Reuters quotes someone familiar with the record of ex-SAC traders:

“So many of the ex-SAC people seem to have this model where they attract you with fantastic returns in the first year but in year two or three or four you get annihilated,” said a person who is familiar with several former SAC employees’ records.

Shades of Bernie Madoff….

Someone need to look closely at what happened to the money at these firms…

Lila:

Unlike some, I don’t think the fact that Bharara has an agenda means that Martoma is necessarily innocent, either.

I just think that even guilty as charged, Martoma is small fry.

He’s Cohen’s employee and by every account I’ve read, Cohen kept notoriously tight control of his business and tolerated no dissent.

He was not the kind of hands-off employer who can plead ignorance after the fact, even though that’s just what he did.

So Martoma might be guilty as heck, but it’s beside the point.

Insider-trading, outside the  issue of racketeering, is an irrelevant and minor side-show.

Insider-trading as part of systemic racketeering is another thing.

But Bharara hasn’t shown that, nor does he even look like he’s trying to show that.

He looks like he’s polishing his resume for a move into politics.

Anyway, here’s Mark Mitchell at Deep Capture:

Deep Capture: SAC Capital (and Steve Cohen too) should be convicted….

“During the trial of Martoma, DOJ prosecutors confirmed that SAC Capital traded on inside information provided by a doctor at the University of Michigan, which was all well and good, but as I documented in my book, SAC Capital not only traded on inside information from another University of Michigan doctor, but also profited from short selling Dendreon’s stock after multiple doctors (some of whom had demonstrably corrupt relationships with Milken) conspired to undermine Dendreon’s treatment by convincing the FDA (also corrupted by Milken and his associates) to delay approval of the treatment (which had been proven effective).

Some journalists and their Wall Street sources have argued that insider trading is an essentially harmless offense and that SAC Capital deserves leniency, but their arguments obscure the fact that SAC Capital’s insider trading has involved the wholesale corruption of the FDA and some of the nation’s most prominent doctors, all of whom have (as my book documents in detail) shown themselves more than willing not only to provide Steve Cohen and his associates, including Milken, with inside information, but also to undermine pharmaceutical companies with effective treatments while promoting companies (i.e. companies that are financed by Milken and his associates) whose treatments are actually killing people.”

Lila: Exactly. But then, in that context, Matthew Martoma is actually the lesser offender.

He was after all a portfolio manager, a trader. His employment depended on his getting an edge.

When he stopped getting that edge (illegal, as it turned out), he was fired.  Since Martoma has been attested to be very knowledgeable in his field by the doctors with whom he interacted, it follows that his competitors in the field must also have been getting their “edge” in the same way.

Industry-wide corruption of that kind isn’t best addressed by throwing the book at some representative pawn/small fish in the game.  That only makes the prosecutors’ office look biased or politically motivated.

Which it usually is.

If the nation’s top doctors were engaged in corrupt activities, why aren’t some of them being prosecuted before Martoma?

And, if Steven (don’t call me Stevie) Cohen is a racketeer, prove that.

Then give yourself a gold medal. Not before.

Note: See John Cassidy’s piece at the New Yorker, “Has Steven A. Cohen bought off the US Government?” November, 4, 2013

Pettis Versus Grantham on the commodity cycle

Greenworld Investor has a piece on the debate between Michael Pettis and Jeremy Grantham on where we are in the commodity cycle:

“Two of the most respected market analysts have radically opposite positions on where the commodity cycle is right now. While Michael Pettis thinks that the commodity cycle has peaked and hard commodities will crash by 2015, Grantham thinks there has been a paradigm change in commodities which will keep on increasing in price.

Pettis’s Arguments are based on:

a) First, during the last decade commodity producers were caught by surprise by the surge in demand. Their belated response was to ramp up production dramatically, but since there is a long lead-time between intention and supply, for the next several years we will continue to experience rapid growth in supply.

b) Second, almost all the increase in demand in the past twenty years, which in practice occurred mostly in the past decade, can be explained as the consequence of the incredibly unbalanced growth process in China.

c) Third, and more importantly, as China’s economy re-balances towards a much more sustainable form of growth, this will automatically make Chinese growth much less commodity intensive

d) Surging Chinese hard commodity purchases in the past few years supplied, not just growing domestic needs but also rapidly growing inventory.

Grantham Thesis on Commodities

Global Commodity Parabolic Price Rise Bubble or Real- Is it Really Different This Time

The rise in global commodity prices is fueling inflation everywhere particularly in developing countries where food and energy forms a major percentage of the inflation basket. This has forced countries like India and China to accelerate interest rate hikes to cool down inflation. Rising Food Prices has caused distress in a number of places leading to food riots in Africa and have been said to be a leading cause of the revolutions in the Middle East. Oil Prices continues to increase unabated as dollar decreases with US Money Printing. Commodities are touching new all time peaks as rising global demand, finite resources, money printing by developed countries fuel price hikes. Silver has been increasing in a parabolic manner with other commodities too showing heart-stopping jumps in prices. The rise in global wheat,rice prices has been at a record as well. Almost all commodities have seen sharp prices increase.

Grantham has made a famous call

The rise in commodities is not a cyclical phenomenon but a secular long term one. He says that the rise in commodity prices is different from the past. Note Grantham has done an extensive study of bubbles and is one of the leading minds in the investment community. While every time in the past, the statement “this time is different” has led to a crash, Grantham’s call cannot be taken lightly. He says that the rise in population, shortage of resources, the growing consumption power of massive chunks of prosperous citizens in India and China will lead to a continued surge. Note commodity prices have declined secularly in the last century and since 2000 have managed to erase all their losses to form new peaks. Grantham also says there is a possibility of a massive short term decline which will give a historic opportunity to load on commodities. Jim Rogers is the most famous commodity bull and now Grantham has joined him.”

On the civilizational superiority of the West in regard to women…

The article posted below should be read for the light it throws on the morals, manners, and breeding of some of New York’s most eminent and public financiers.

Wikipedia tells us:

“His father was a partner at the Los Angeles law firm of Irell & Manella LLP and general counsel for Williams-Sonoma. His mother is a historian. Loeb’s great-aunt, Ruth Handler, created the Barbie doll and co-founded Mattel Inc.[4]”

I do not know of a single financier born and bred in Asia who has ever engaged in this sort of thing.

Astute readers will note the close parallels between the type of invective used by this well-known, indeed, adulated financier, and the type used by the denizen of the underworld who has favored me with his obsession.

Note the nature of the victims – female, Gentile, working for/advocating positions antithetical to the interests of the colluding short-sellers.

Note the nature of the invective – scatological (queefs, farts, shit) and sexual (prostitutes,whores, bimbos, pimps); calculated to cause intense emotional and reputational injury by sheer association,  without offering  either reason or evidence, yet evading legal liability, under the West’s servile definition of freedom.

Notice how American “libertarians” (aka licensitarians), who find burqas objectionable, not only never voice any objection to this kind of barbarous public attack, they post the  self-serving rants of their perpetrators, with obvious pride in the association.

Such “liberty” shows itself to be nothing more than servility to the powerful and the malicious.

The very scurrility of the attacks assures this, since most ordinary people, especially women,  cannot/will not  counter with invective in kind, both from moral and prudential reasons.

Judd Bagley at Antisocialmedia.net:

“In late 2005, I spent over four hours interviewing Overstock.com CEO Patrick Byrne as part of a podcast series on entrepreneurship I created.

After I published the audio of the interview, somebody posted a link to it on the Yahoo Finance message board dedicated to Overstock.com.

Seeking the origin of the resulting surge in downloads led to my first stock message board visit.

It was really strange.

What first struck me was the flurry of responses to the original posts in which users with foul mouths and bad attitudes warned that the linked mp3s contained computer viruses.

Of course, no mp3 has ever carried a virus, as I’m fairly certain the posters knew.

These were followed up by all manner of lies meant to discourage others from listening to any of the three Byrne interviews I would eventually publish.

[Lila: And that is evidently the reason for Mr. Ryals’ verbal assaults against me and others. They are intended to thoroughly confuse and intimidate.]

Worse, they posted all manner of lies about Patrick Byrne personally – something I was in a unique position to recognize having just interviewed him at length.

Intrigued, I started examining the posting histories of the most prolific sources of this disinformation, trying to identify patterns that might in turn reveal their underlying motives and, often enough, their real identities……..

Consider the following notable example.

I’ve previously written about evidence received demonstrating that hedge fund Third Point, LLC contracted with convicted stock fraudster Michelle McDonough, whose duties included coordinating the efforts of message board bashers and inducing certain captured journalists to report negatively on targeted companies.

I’ve also written about Third Point founder Daniel Loeb’s well-known history of posting on the Yahoo and Silicon Investor stock message boards under the alias Mr. Pink.

Before getting to the rest of the story, here’s some background.

About the same time I first visited Yahoo Finance, a company called SFBC International (now PharmaNet Development Group) came under a blistering attack by Daniel Loeb, who very publicly announced Third Point’s sizeable short interest in the company.

SFBC got hit from all sides, and its share price withered.

In particular, there was a deluge of libelous (though tame compared to others I’ve seen) posts to Yahoo’s SBFC message board. Most notable were the attacks leveled against then-SFBC Chairwoman and President Lisa Krinsky.

Krinsky responded by filing a lawsuit against ten anonymous posters: Does 1 through 10.

In order to discover the identities of the ten Does, Yahoo was served with a subpoena.

In accordance with policy, Yahoo alerted the posters, giving them two weeks in which to contest the subpoena – an expensive proposition few bashers have the financial ability to pursue.

And indeed, none of the ten Does opted to put up a fight.

With one exception: Doe number 6, known on Yahoo Finance as Senor_Pinche_Wey (which is a slang Spanish term that is as obscene as you can imagine).

A typical post by Senor_Pinche_Wey reads:

…I will reciprocate [fellatio] with Lisa [Krinsky] even though she has fat thighs, a fake medical degree, “queefs” and has poor feminine hygiene…

Doe-6 fought the subpoena, was rejected, and appealed to California’s Sixth Appellate court.

Clearly, Doe-6 had some resources backing him up…to say nothing of a deep motivation not to be exposed.

And, fortunately for Doe-6, his appeal was successful and the subpoena was quashed.

This decision – handed down in February of this year – essentially affirms the First Amendment rights of message board bashers to say whatever they want about the officers of public companies. (An excellent analysis of the decision can be viewed here.)

In their decision, the Court noted:

We likewise conclude that the language of Doe 6’s posts, together with the surrounding circumstances — including the recent public attention to SFBC’s practices and the entire “SFCC” message-board discussion over a two-month period — compels the conclusion that the statements of which plaintiff complains are not actionable. Rather, they fall into the category of crude, satirical hyperbole which, while reflecting the immaturity of the speaker, constitute protected opinion under the First Amendment.

Interesting.

Daniel LoebReady for the other shoe to drop?

I’ve learned, through multiple sources, that the immature speaker in this case, Doe-6 (aka Senor_Pinche_Wey) was none other than Daniel Loeb himself.

As a matter of fact, Senor_Pinche_Wey is one of many abusive message board identities used by Loeb to harass officers of companies Third Point was shorting, often illegally.

On August 12, 2005, Patrick Byrne first publicly accused several hedge funds of working in coordination to illegally manipulate the share price of Overstock.com and many other small, public companies. Within 48 hours, armies of bashers arrived for the first time on the Overstock.com stock message boards across the web, all working off of a the same obvious set of talking points. Among the points these bashers took the greatest care to make, time and again: that Byrne was crazy for thinking that any two hedge funds would ever work together when shorting.

In case there are any doubts left regarding Byrne’s claims, I invite you to look at this message board exchange, between Senor_Pinche_Wey, LaseriumQueen, bobbingbargains, disgustedinvestor, kidstockjoec, jidoo, and Polytechnic_Trader.

What makes it so interesting is that at least 72% of the participants are hedge fund managers shorting the company they’re smearing.

Specifically, Senor_Pinche_Wey belongs to Daniel Loeb, while LaseriumQueen, bobbingbargains, disgustedinvestor, and kidstockjoec all belong to Robert Chapman, founder of hedge fund Chapman Capital.

Polytechnic_Trader and jidoo may or may not belong to Loeb or Chapman…I don’t know either way.

I do know that Chapman also posts under the aliases tautologicaltrader, ghaulty_lodgick, notably_absent, and herniatedgorilla – all of which can be seen, time after time, posting things I’m quite certain Chapman would not dare say in person.

Do hedge funds coordinate their attacks?

Yes.

And as you’ll read in a soon-to-be-published-post, message board bashing is only the beginning.”

[Lila: Based on my experience, I’d say that after the bashing, comes investigation, surveillance/monitoring, threats, and even physical stalking. In short, criminal behavior by criminals. What a shock.]