US, Canadian banks leaving UN Net Zero alliance

This year six major U.S. banks, and four of the Big Five Canadian banks, have announced plans to leave the UN-sponsored Net-Zero Banking Alliance. 

Banks quit Carney’s net zero alliance. Giving up net zero ideology should be next | Financial Post | Gina Pappano:

January 28, 2025 - "In November, InvestNow, the not-for-profit of which I’m executive director, submitted shareholder proposals to Canada’s Big Five banks asking them to exit both the Net Zero Banking Alliance (NZBA) and the Glasgow Financial Alliance for Net Zero (GFANZ) ... two interrelated, UN-sponsored, and Mark Carney-led organizations whose members pledge to align their lending, investment and other activities with decarbonization goals, including achieving net-zero emissions by 2050. As I wrote in these pages in December, 'Canadian banks should not pursue political or ideological goals at the expense of fiduciary ones. And they shouldn’t shun oil and gas.'

"Well, fast forward to January.... Six of the biggest U.S. banks have all announced they’re leaving the NZBA and four of the Big Five Canadian banks — BMO, CIBC,  Scotiabank and TD — have followed suit. Also, in perhaps the biggest defection of all, BlackRock has left the Net Zero Asset Managers Initiative (NZAMI) — the asset management arm of the GFANZ. It is ironic that in the week Mark Carney announced his run for Liberal party leader, his most cherished project collapsed.

"Why have these banks fled the net zero alliances en masse? In the U.S., at least, it likely has to do with the new administration having indicated an interest in investigating ESG (environmental, social and governance) lending and investing practices as potentially constituting a fraud against shareholders and the economy.

"The U.S. banks have also been accused of collusion by the Republican-led House Judiciary Committee, on the grounds that their net zero policies, including divestment from oil, gas, and coal, have contributed to the big rise in energy prices since 2020. The committee found 'substantial evidence that a climate cartel of financial institutions' had engaged in 'anticompetitive collusion' by demanding that companies 'disclose, reduce and enforce' their net zero climate commitments....

"Both the American and Canadian banks have stressed that leaving NZBA won’t affect their net zero commitments or their determination to help achieve a 'net zero global economy,' which means drastically reducing oil and gas production and consumption over a very short period....

"Canadian banks should take what is happening in the U.S. as a warning. Maintaining their singular focus on decarbonization to achieve net zero leaves them open to charges of collusion, too. The real-world effect of their favoured policy is to eliminate oil and gas, one of Canada’s most productive and prosperity-creating sectors. Its elimination would be bad for bank shareholders and customers, industry in general, the economy and our entire country. Their continuing down this ideological path, which runs contrary to the interest of shareholders and the public alike, should prompt further investigation.

"InvestNow applauds the banks in both countries for exiting the net zero alliances as a first step towards moving past the madness of 'Net Zero by 2050.' But the fact that they remain committed to decarbonization, to net zero, and to the effective end of our natural resource sector demonstrates that our work is not done. Our banks need to ditch ideology and get back to serving the people of Canada and their interests."

Read more: https://financialpost.com/opinion/opinion-banks-quit-carneys-net-zero-alliance-zero-ideology

Canadian Banks ABANDON Carney’s Net Zero UN Plan in SHOCKING Move | The Elev8 Podcast | January 18, 2025:

Mastercard cuts off US cannabis dispensaries

Mastercard demands US cannabis shops stop accepting debit cards | BBC News } Max Matza:

July 25, 2023 - "Mastercard has said financial payment companies must stop allowing US customers to buy legal marijuana in shops with its debit cards. Because marijuana remains illegal at a federal level in the US, customers in the 38 states where it is allowed are usually forced to pay in cash. Mastercard said the move comes after it found some shops accepted debit payments despite the federal ban....

"'As we were made aware of this matter, we quickly investigated it. In accordance with our policies, we instructed the financial institutions that offer payment services to cannabis merchants and connects them to Mastercard to terminate the activity,'" Mastercard said in a statement on Wednesday. '"The federal government considers cannabis sales illegal, so these purchases are not allowed on our systems'.... 

"The crackdown aims to stop marijuana businesses, known as dispensaries, from offering the option to customers of paying with a debit card after entering their account's PIN number.

"Marijuana is currently legal for medical use in 38 states. It is also legal for adults over 21 years old to buy for recreational use in 23 states, including Washington DC and the entire US West Coast.

"In Canada, where cannabis was legalised on the national level in 2018, customers are often permitted to make payments with credit or debit cards.

"Sunburn Cannabis CEO Brady Cobb criticised Mastercard's decision, saying 'this move is another blow to the state-legal cannabis industry and patients/consumers who want to access this budding category'.

"The Democrat-controlled US Senate is hoping to pass a law that would make it easier for cannabis businesses to interact with financial institutions. But earlier this month, top Republican Senator John Cornyn described the bill's passage as "wishful thinking".

Read more: https://www.bbc.com/news/world-us-canada-66320970

Mastercard to no longer allow marijuana transactions on its debit cards | WJZ TV | July 27, 2023:

UK banks close gender-critical customer accounts

After three former Brexit Party MEPS, including ex-leader Nigel Farage, revealed that their banks had closed their  accounts, members of the public also began sharing their stories, prompting a government investigation.  

Most high street banks are signed up to Stonewall diversity schemes | The Telegraph | Dominic Penna & Simon Foy:

July 3, 2023 - "The majority of High Street banks are members of diversity schemes run by the controversial charity Stonewall, The Telegraph can reveal. Lenders are facing questions over their links to the charity amid a backlash over closing the bank accounts of some people with gender-critical views.... A vicar who questioned his building society’s Pride branding had his account closed, while a Scottish blogger believes action was taken by his bank over his stance on gender issues.

"Stonewall’s Diversity Champions scheme includes guidance to employers on gender-neutral spaces and the use of pronouns. The company also runs a top 100 index that measures employers on diversity and inclusion.... A number of high-profile organisations including the BBC, Channel 4, the Cabinet Office, and the Department of Health have stopped working with Stonewall amid concerns over its schemes.... The Information Commissioner has previously found that the index and the Diversity Champions scheme allowed Stonewall to exercise a 'significant degree of influence over the policies that participating members operate'.

"Last week Nigel Farage, the former Brexit Party leader, revealed that his bank had closed his account, and two former Brexit Party MEPs revealed that their accounts were also closed. Since then, members of the public have accused banks of shutting down their accounts. Among them was Rev Richard Fothergill, a customer of Yorkshire Building Society for 17 years, whose account was closed days after he wrote to the bank to complain about its public messaging during Pride month [see video].

"Stuart Campbell, who runs the pro-independence Wings Over Scotland blog, had his accounts shut by First Direct, owned by HSBC, which he believes was over his stance on gender issues. Barclays recently had to pay out £21,500 in compensation to the Core Issues Trust, a Christian ministry, after shutting its account over its stance on gender identity.

"Banks are facing pressure from the Government to explain account closures, and Jeremy Hunt, the Chancellor, has ordered an investigation. However, UK Finance, the industry trade body, defended the rights of banks to shut accounts as they see fit, arguing that lenderonly do so after conducting an 'extensive review'. 

"Tide, an online business bank, became the latest to face questions on Monday as the hosts of Triggernometary, a free speech YouTube show and podcast, said they would take it to the Financial Ombudsman after their account was closed.... Tide said any decisions on account closures had 'no connection whatsoever to a member’s beliefs' and that it was 'categorically false' to suggest otherwise.

"Craig Mackinlay, the Tory MP for South Thanet, said he was concerned that ... 'too much discretionary power now sits with some activist banking staff'.... On Monday, Mr Farage said there was 'no coincidence' about banks signing up for Stonewall membership and shutting down the accounts of those who were gender critical.

"A spokesman for Stonewall said that it did not pressure banks on operational decisions, adding: 'There are no requirements in the Diversity Champions programme over how members engage with any customers, and we do not seek to influence operational decisions for any Diversity Champion on matters such as these.'"

Read moe: https://www.telegraph.co.uk/news/2023/07/03/most-high-street-banks-signed-up-stonewall-diversity/

Yorkshire Building Society CLOSES Vicar's bank account after airing views on bank's Pride agenda | GBNews | June 1, 2023: 

Why the Bank of Canada is losing money

Counter-intuitive as it seems, the Bank of Canada is losing money due to rising interest rates, and may need a government bailout to cover its 2022 losses. 

The feds are about to bail out the Bank of Canada | The Hub - Jules Boudreau:

October 19, 2022 - "Between April 2020 and December 2021, the Bank of Canada added $360 billion of bonds to its balance sheet as part of its quantitative easing (QE) program. It mostly bought Canadian government bonds, but also provincial bonds and mortgage-backed securities. Outside of the first few months of the crisis, when it helped prevent Canadian financial markets from seizing up, QE probably had a negligible effect on the Canadian economy. Swapping one type of government debt (government bonds) for another (bank reserves) did not cause the current surge in inflation. But it did have a major impact on the state of government finances going forward. 

"We will have a preview of this 'QE bomb' on public finances when the Bank reveals it generated a negative net income in 2022 and Ottawa is forced to bail it out. The Bank should be transparent about the upcoming shortfall and add safeguards around the use of quantitative easing policies going forward.

"Prior to 2020, every year the Bank of Canada sent around $1 billion to the government of Canada in remittances. Those steady remittances were 'seigniorage' profits: because the Bank has a monopoly on currency issuance, it can produce bank notes at close-to-zero cost, sell the notes to banks, and use the proceeds to buy bonds. The business of trading bank notes, on which the Bank pays no interest, for interest-bearing bonds allowed the Bank to self-finance its operations..... It would then send the surplus to the government. Seigniorage is the federal government’s golden goose: the feds receive a steady billion annually in exchange for granting the Bank the privilege of issuing currency.

"But in 2020, the Bank ditched its ingenious zero-reserves 'corridor' monetary system, in which commercial banks send funds to each other to manage their liquidity needs, for a 'floor' system, in which commercial banks hold reserves at the central bank. Think of reserves as central bank money, on which the Bank pays interest. The implementation of this new system, combined with pandemic QE, means that bank notes — the golden goose — today only make up 28 percent of the Bank’s liabilities, down from 78 percent in 2019 (chart 1). Bank notes are now eclipsed on the Bank of Canada’s balance sheet by interest-bearing reserves and reverse repos. When the Bank hikes its policy rate, it increases the interest payments it makes to banks and other financial institutions. 

Chart 1. Graphic credit: Janice Nelson

"With one hand, the Bank receives interest from its bond holdings. With the other, it sends interest payments to banks. The problem is that government bonds offer a fixed interest rate, while the interest paid by the Bank on reserves scales with the Bank’s policy rate. And with Canadian rates surging, the Bank’s interest expense is about to exceed its interest revenue (chart 2)....

Chart 2. Graphic credit: Janice Nelson

"Because the Bank does not have sufficient capital to cover the losses, the government will have to bail it out with a loan or transfer. Based on market expectations for Bank of Canada rates, I estimate the shortfall to be $1 billion in 2022, $4 billion in 2023, and $2 billion in 2024. Instead of receiving $3 billion over three years from its golden goose, the federal government will have to cover a shortfall of $7 billion, the equivalent of two percent of annual government revenues.... The Bank of Canada is clearly aware of the issue. It just stopped paying interest on government deposits at the Bank, an accounting trick to reduce the end-of-year shortfall....

"When the government sells a bond to finance its spending, it chooses the optimal maturity of the bond to issue. If it wants to 'lock in' an interest rate to protect itself from future changes in borrowing costs, it will issue a long-term bond, for example, a 30-year bond. But what happens to the government’s balance sheet if the Bank of Canada purchases the 30-year bond? That long-term bond is replaced by an ultra short-term bond: bank reserves, on which the Bank — and by extension the government — pays the overnight rate....The data shows that the impact on consolidated government debt profile is immense. When we factor in the Bank of Canada’s holdings of Government of Canada bonds, the average weighted maturity of the government’s debt drops from 6.7 years to 4.7 years, rendering government borrowing costs about 30 percent more vulnerable to a rise in interest rates.... 

"Should the unelected Bank of Canada have such an impact on the government’s debt profile? Especially since, outside of periods of acute liquidity shocks like April 2020, QE’s effects on the economy are debatable. Hindsight is 20/20, and we can’t blame the Bank for emptying the cupboard in unprecedented times. But going forward, the Bank should install safeguards around the use of its balance sheet to gobble up government debt. The Bank of Canada should also commit to eventually returning to its previous corridor system to reduce its footprint in the government bond market."

Jules Boudreau is an economist in the Multi-Asset Strategies Team at Mackenzie Investments, a Canadian asset manager.

Read more: https://thehub.ca/2022-10-19/jules-boudreau-the-federal-government-is-about-to-bail-out-the-bank-of-canada/

Freedom Convoy donors' accounts being frozen

Banks Have Begun Freezing Accounts Linked to Trucker Protest | Newsweek - Katherine Fung:

Illustration: Toronto Star, Feb. 16, 2022

February 18, 2022 - "Canadian banks have begun freezing the accounts of people linked to the trucker protests in Canada and the federal government is promising to take more accounts offline in coming days in an attempt to clear demonstrators from Ottawa, which has been occupied for nearly a month. On February 17, Deputy Prime Minister Chrystia Freeland said in a press conference that financial institutions have started freezing accounts and canceling credit cards in accordance with the Emergencies Act, which Prime Minister Justin Trudeau invoked earlier this week.

"The powers granted by the act would allow banks to target the accounts of people who have donated to crowdfunding platforms, like the fundraising campaigns on GoFundMe and GiveSendGo, that have fueled the ongoing protests, but Freeland said she would not give 'specifics of whose accounts are being frozen.'

"Donor information that was leaked from the GiveSendGo campaign — which has raised more than $9.5 million — revealed that more than half the donations going to protest organizers have come from the U.S. An analysis of the data by Newsweek found that California, Texas, Florida, New York and Michigan topped the list of the highest number of U.S. donations by state.

"Under the broadened federal powers, Canada's financial institutions have been prohibited from providing 'any financial or related services' to people who are 'directly or indirectly' involved in the anti-COVID mandate protests across the nation. The Emergencies Act has also allowed the Canadian government to expand the country's money-laundering and terrorist financing laws to sites like GiveSendGo, which are now required to register with the nation's financial intelligence agency and to report large and suspicious transactions to the Financial Transactions and Reports Analysis Centre [FINTRAC] of Canada.

"'It gives me no pleasure to impose any of these measures. In fact we do so with great sorrow but do not doubt our determination to act, to defend our democracy, to defend our economy, and to restore peace,' Freeland said.... Freeland, who is also the country's finance minister, said federal law enforcement agencies are collecting their own intelligence on the protesters and their supporters, which is being shared with banks to block access to cash or cryptocurrency. She warned those still in Ottawa's downtown core that more ramifications would come if protesters don't leave, threatening to cancel insurance and suspend corporate accounts."

Read more: https://www.newsweek.com/banks-have-begun-freezing-accounts-linked-trucker-protest-1680649

Hackers strike Canada's Freedom Convoy fundraising website | Fox News | February 14, 2022:

Jorgensen on lockdowns, crypto, and the Fed

2020 Libertarian Presidential Candidate Jo Jorgensen Talks Bitcoin, Endless Wars, Covid-19 Response | News.Bitcoin.com - Jamie Redman:

June 9, 2020 - "On June 8, news.Bitcoin.com ... discussed a number of issues with the Libertarian 2020 presidential candidate Joanne Jorgensen, otherwise known as 'Jo.' The Libertarian nominee is a well known political activist and academic researcher during the last few decades.... 

"BC: What are your thoughts on how the US government handled the coronavirus outbreak —  specifically the business shutdowns and lockdown orders?...
JJ: It was tragic, they put us all under house arrest and tens of millions of people lost their jobs. Many of those jobs are not coming back. One of my grandfathers immigrated from Sweden and his family came to America for freedom. You know the land of the free and home of the brave. And while we are all under lockdown, the old country that he left they were all out walking about, going to school, going to restaurants, and having a general freedom that you would expect Americans to have.

"BC: Since the coronavirus and even months prior, the US Federal Reserve has created trillions of dollars and it has been distributed to private dealers and interests. What are your thoughts on the Fed and how would you address this private bank as President?
JJ: First all the Federal Reserve should have never been created to begin with. Unfortunately, they are teaching history a little wrong in the textbooks these days. Because a lot of people say that if it wasn’t for the Fed stepping in, the Great Depression would have been so much worse. But actually the Federal Reserve caused the problems....

"[T]he first thing I would do if I was President of the United States would be to audit the Federal Reserve.... Eventually, I’d like to see the Fed abolished. Because through the Federal Reserve we get money created out of thin air, which is basically the equivalent of counterfeit money....

"BC: A great number of Libertarians like money such as gold and silver. However, in recent years many free-market advocates support bitcoin. What is your stance on Bitcoin and the cryptocurrency economy?
JJ: A message from the Libertarian Party platform says: 'We favor free-market banking with unrestricted competition among banks and depository institutions of all types — Individuals engaged in voluntary exchange should be free to use as money any mutually agreeable commodity or item. We support a halt to inflationary monetary policies and unconstitutional legal tender laws.'

"So a number of people say that they want to back USD with gold. That would be a step in the right direction, but that is not enough. We have competition in cars, competition with computers, and competitive grocery stores. Why not have competition with money? So the people have access to something that is more planned and a monetary system they can better predict. Right now what we have is money that’s created under the whims of Congress and the Federal Reserve Chair.

"I would act in support of a free market in currencies. Some people say that the constitution authorizes the federal government to create currency, just like it authorizes the creation of the post office. But in neither case, does the constitution give the federal government a monopoly on currency or the delivery of mail. Businesses should be able to trade and accept whatever they want and that would mean bitcoin and all the other cryptocurrencies....

"I would enact Ron Paul’s Free Competition in Currency Act. This would repeal legal tender laws and taxes on coins and monetary metals. And it would repeal the prohibition on coining money. Also, I would repeal the Bank Secrecy Act, Know-Your-Customer (KYC), and other laws that violate our right to financial privacy. Many people go to bitcoin because they do want privacy so I would work to repeal those unjust laws.

"I would also appoint commissioners to the CFTC and the SEC who would then seek to deregulate Bitcoin and other crypto-assets. I would appoint leaders at the Treasury Department, who would be told to leave bitcoin and crypto operations alone. Lastly, I would pardon Ross Ulbricht, the individual who operated the Silk Road (SR) marketplace. Ulbricht is serving more than one life sentence in prison for nonviolent offenses, partly because some of the SR members were selling drugs for bitcoin."

Read more: https://news.bitcoin.com/2020-libertarian-presidential-candidate-jo-jorgensen-talks-bitcoin-endless-wars-covid-19-response/

BC judge returns forfeited $2 million to accused

Court ruling releases $2 million back to accused in B.C.’s biggest money-laundering case | Vancouver Sun - Gordon Hoekstra:

September 13, 2019 - "A B.C. Supreme Court judge has ruled that an interim freeze of assets in B.C.’s biggest money-laundering case was done improperly, and has ordered the release of $2 million in cash to the accused.

"In a ruling released Friday, B.C. Supreme Court associate chief justice Heather Holmes concluded the Civil Forfeiture Office did not provide a fair and complete legal basis to consider the need for an urgent freeze on the cash, a $2-million house, casino chips, gift cards and jewelry. Providing a fair and complete legal basis was particularly important, according to Holmes’ ruling, given that the decision took place in an ex parte hearing, where the defence lawyer was not present.... Holmes agreed to another freeze order on the other assets, but excluded the cash.

"In the civil forfeiture suit, Caixan Qin and her spouse Jian Jun Zhu are accused of running an underground bank in Richmond, called Silver International, that allegedly laundered as much as $220 million a year. The pair have denied any wrongdoing and said that search and seizures violated their Charter rights....

"The ... civil forfeiture case ... was launched immediately after criminal money-laundering charges were stayed against Qin and Zhu in late 2018. The threshold for proving a civil claim is lower than for a criminal conviction, a balance of probabilities rather than beyond a reasonable doubt. Provincial prosecutors were hoping to hit the accused in the pocketbook....

"Holmes noted that the lawyer for the civil forfeiture office allowed no room for opposing views of law, made no apparent effort to put forward the position the defendants’ lawyer would have taken, and also misstated the law on one foundation point that favoured the civil forfeiture office’s position.

“'The court must take the misconduct very seriously, because misleading statements in an ex parte hearing undermine the integrity of the process, and may even obliterate it,' wrote the judge.

"Following the stay in the criminal case, Holmes, who also presided in that case, had ordered the cash be returned to Qin and Zhu.

"The civil forfeiture office has 30 days to appeal the decision."

Read more: https://vancouversun.com/business/local-business/court-ruling-releases-2-million-back-to-accused-in-b-c-s-biggest-money-laundering-case
'via Blog this'

U.S. House passes SAFE Banking Act

Nearing finish line, fight for cannabis banking bill shifts to the Senate | TheHill - Sylvan Lane & Alex Gangitano:

October 1, 2019 - "The House in a strong bipartisan vote last week passed the Secure and Fair Enforcement (SAFE) Banking Act, which would allow banks and financial institutions to work with cannabis businesses. The bill now faces an uncertain future in the Republican-held Senate....

"The unusual coalition of financial sector lobbyists, progressive lawmakers, law enforcement officials and cannabis businesses backing the bill cheered the House vote ... which saw 229 Democrats, 91 Republicans and one Independent back the bill....

"Advocates for legalization and a financial services sector eager to tap a fast-growing industry have united behind the SAFE Banking Act. The bill would prohibit federal regulators from penalizing banks or credit unions for serving cannabis businesses that comply with state laws. It’s a top priority for a cadre of powerful financial services lobbying groups, including the American Bankers Association (ABA), the Independent Community Bankers of America and the Credit Union National Association.

"The focus is now on the Senate Banking Committee and its chairman, Sen. Mike Crapo (R-Idaho), who has pledged to take action on the issue. While Crapo is personally opposed to marijuana legalization, he told CQ last week that his panel will consider the SAFE Banking Act or a similar bill 'as soon as we can'....

"But ... GOP senators have shown little interest in grappling with the controversy over cannabis. Only two GOP senators attended a July Banking panel hearing on the bill: Crapo and Sen. Cory Gardner (Colo.), one of only five Republican co-sponsors of the Senate version of the bill....

"Bill supporters have taken steps to win over Republican backing, in particular from Senate Majority Leader Mitch McConnell (R-Ky.). The House version included a measure to ease regulations on hemp businesses, a crucial industry in McConnell’s home state of Kentucky. McConnell, who could make or break the measure, helped secure a provision to lift federal penalties on hemp production in the 2018 farm bill. But McConnell ... has also spoken out against legalizing marijuana and called cannabis hemp’s 'illicit cousin.' A spokesman for McConnell declined to comment."

Read more: https://thehill.com/business-a-lobbying/463932-nearing-finish-line-fight-for-cannabis-banking-bill-shifts-to-the-senate
'via Blog this'

How the Bitcoin Protocol 'changes everything'

How To Understand Bitcoin If You're Over 40 - Matt Hougan, Forbes:

August 15, 2019 - "Those of us who are over 40 can remember a time when the internet stunk: When you had to look up websites in a (printed) book; when email didn’t exist; when you couldn’t do much with the internet except send files ... using something called 'FTP' [or] 'file transfer protocol.'  'Protocol' is a fancy word that means a set of insructions for how to transfer information across the internet....

"In 1982, researchers developed ... the Simple Mail Transmission Protocol, or SMTP. SMTP allowed us to send email over the internet.... In 1989, we took another big step forward with the creation of Hypertext Transfer Protocol, or HTTP. HTTP lets us send webpages with linked text (or 'hyperlinks'). It gave rise to the World Wide Web.

"In 1994, the Secure Sockets Layer protocol was created, better known as SSL. SSL allows us to securely enter sensitive information into the internet, like personal or credit card information. Not coincidentally, Amazon was founded later that year.... Voice Over Internet Protocol, or VOIP, created 1995, changed telecom forever; Real-Time Streaming Protocol, or RTSP, created in 1996, helped enable streaming video. And so on. From a distance, each of these advances seemed unprecedented. But in reality, they were just the next logical thing: a new protocol that expanded the way the internet can be used.

"The right way to think of bitcoin, crypto, and public blockchains is as the next step in this evolution. Just instead of sending files or email or voice or credit card data, bitcoin and crypto let us send money. Of course, there have been online banks and payment services for decades. But they’ve always been hybrids or bridges: A bank like Wells Fargo or a service provider like PayPal might put up a digital veneer, but it would actually extract each transaction and process it in the traditional, physical world....

"The Bitcoin Protocol’s breakthrough – the reason 'it changes everything' – is that it lets you send money over the internet natively, without a bank or a service provider in the middle.... If you want to wire $10 million to someone in another country today, for instance, it takes three-to-five days, they can deny your wire for any reason or create limits, and the fees are significant. With bitcoin, it takes about 10 minutes, it’s open 24/7, and is essentially free.... Instead of using lawyers and investment bankers, you can create any contract or trust or entity or set of financial instructions … for free.... That means disrupting services like escrow, debt issuance, derivatives, trust creation, fundraising, and more....

"[T]o move money around the world instantly on the Bitcoin blockchain, or to replace your investment bankers with the Ethereum blockchain – you have to own and use bitcoin or ether.... A lot of smart investors are buying up bitcoin and ether today, before everyone else figures out how valuable these new technologies can be....

"[E]very major new internet protocol has disrupted a major industry:

• SMTP created email and disrupted the Post Office;
• HTTP created the web and disrupted media and advertising;
• SSL created internet commerce and disrupted retail;
• RTSP created streaming and disrupted the entertainment industry.

"By allowing money to travel over the internet, Bitcoin and crypto will disrupt the financial industry just as surely as Amazon disrupted Sears."

Read more: https://www.forbes.com/sites/matthougan/2019/08/15/how-to-understand-bitcoin-if-youre-over-40/#3eafc04b47a5

'via Blog this'

Senate committee hearing on SAFE Banking Act

SAFE Act Passage Would Mean Safe Cannabis Banking For All:

August 1, 2019 - "Last week, cannabis banking was once again discussed on Capitol Hill. The U.S. Senate Committee on Banking, Housing and Urban Affairs held a hearing to review a leading bill that would allow federally overseen financial institutions to serve cannabis-related businesses. If passed, the Secure and Fair Enforcement (SAFE) Banking Act would protect banks from federal prosecution as long as the cannabis businesses they work with comply with the laws in the states where they operate....

"Despite bipartisan support in the House and except for committee chairman Sen. Michael Crapo (R-Idaho), no Republican members attended. Interestingly, Sen. Crapo’s state has yet to even legalize medical cannabis. He will, however, be influential in determining whether this bill ever reaches the President’s desk.

"Sen. Crapo’s attendance and comments Tuesday surprised many SAFE Banking Act watchers, indicating he may be more willing to see cannabis banking progress than previously thought. Just a few months ago, he expressed reservations about cannabis banking legislation.... On Tuesday, however, he seemed receptive to arguments in favor of the bill.

"For example, the bill’s lead sponsor, Sen. Jeff Merkley (D-Ore.), explained that conducting business solely on cash transactions widens the chances of money laundering and other crimes. Other speakers noted the extreme obstacles small businesses face, including that many are unable to even break into the industry because of the lack of access to financial services and insurance. Sen. Cory Gardner (R-Colo.), another co-sponsor, pointed to the bill’s unprecedented bipartisan support, which is rare in today’s political climate.

"Many of the arguments made during the hearing harken back to a letter banking associations from all fifty states and Puerto Rico sent to Sen. Crapo and the committee in May. The letter argued that an urgent need exists for banks to serve the cannabis industry, which can only be solved with federal action like the SAFE Banking Act. It was yet another sign of unity on this issue and growing support for the bill....

"At the close of Tuesday’s hearing, Sen. Crapo agreed that the problem of cannabis banking should be resolved. While it is unclear whether this means he will advance the SAFE Banking Act, the comment alone provided another small glimmer of hope that we’re taking a step in the right direction."

Read more: https://www.forbes.com/sites/bencurren/2019/08/01/safe-act-passage-would-mean-safe-cannabis-banking-for-all/#3fdd706d4010

'via Blog this'

Congress limits IRS power to seize accounts

Congress Passes Bill to Protect Small-Business Owners from IRS Seizures - Institute for Justice - Nick Sibilla:

June 14, 2019 - "Yesterday, the U.S. Senate unanimously approved legislation that stops the Internal Revenue Service from raiding the bank accounts of small-business owners. The Clyde-Hirsch-Sowers RESPECT Act, passed as part of the Taxpayer First Act (H.R. 3151), is named after Institute for Justice clients Jeff Hirsch and Randy Sowers, two victims of the IRS’s aggressive seizures for so-called 'structuring.' Through structuring laws, the IRS has routinely confiscated cash from ordinary Americans simply because they frequently deposited or withdrew cash in amounts under $10,000. And by using civil forfeiture, the IRS can keep that money without ever filing criminal charges.

"The RESPECT Act was originally introduced by Reps. John Lewis (D-GA) and Doug Collins (R-GA) after Jeff and Randy testified before the House Ways and Means Oversight Subcommittee about their experiences: Jeff had over $400,000 seized from his convenience store distribution business on Long Island while Randy, a Maryland dairy farmer, lost $29,500 to the IRS. Neither man was ever charged with a crime. Both Jeff and Randy ultimately recovered their wrongfully taken money, but only after years of legal proceedings and high-profile media coverage....

"The Taxpayer First Act previously passed the House by voice vote on June 10. It now heads to President Donald Trump for signature.

"To rein in the IRS’ civil-forfeiture power, the Clyde-Hirsch-Sowers RESPECT Act would:

• Limit forfeiture for currency 'structuring' only when the funds in question are derived from an illegal source or used to conceal illegal activity. This would codify an IRS policy change from October 2014 prompted by lawsuits from the Institute for Justice and would prevent the agency from backtracking;
• Allow property owners to challenge a seizure at a prompt, post-seizure hearing. Previously, property owners targeted for structuring had to wait months or even years to present their case to a judge.....

"'The Clyde-Hirsch-Sowers RESPECT Act is an important first step to address one type of forfeiture abuse by one federal agency,' [Institute for Justice Senior Attorney Darpana] Sheth noted. 'But civil forfeitures by other agencies continue unabated. With today’s vote revealing a broad consensus, Congress should seize the opportunity to pass comprehensive reform of federal forfeiture laws and protect the constitutional rights of all Americans'....

"Forfeiture reform is the rare political issue that transcends party lines. The national platforms for both the Democratic and Republican Parties have endorsed forfeiture reform, as have the editorial boards for over 135 different newspapers. In February, the U.S. Supreme Court unanimously ruled that state civil forfeiture cases are bound by the Eighth Amendment’s ban on 'excessive fines.' And in the past five years, 33 states and the District of Columbia have enacted forfeiture reforms."

Read more: https://ij.org/press-release/congress-passes-bill-to-protect-small-business-owners-from-irs-seizures/

'via Blog this'

38 US A-G's endorse SAFE Banking Act

Majority Of State Attorneys General Tell Congress To Pass Marijuana Banking Bill - Tom Angell, Forbes:

May 8, 2019 - "The top law enforcement officials from 38 U.S. states and territories are calling on Congress to pass legislation to increase marijuana businesses' access to banks. The move comes just days after the treasurers of 17 states issued a separate call in support of the pending cannabis financial services bill.

"Even as a growing number of states adopt laws to legalize marijuana for medical or recreational use, federal prohibition remains intact — for now — and ... banks ... could, they fear, be prosecuted under federal money laundering laws. Legislation to shield financial services providers from being punished by regulators for working with the cannabis industry has been gaining momentum in Congress, and now the effort is getting a boost from the National Association of Attorneys General, which is officially endorsing the bill.

"'Businesses are forced to operate on a cash basis. The resulting grey market makes it more difficult to track revenues for taxation and regulatory compliance purposes, contributes to a public safety threat as cash-intensive businesses are often targets for criminal activity, and prevents proper tracking of billions in finances across the nation,' the attorneys general wrote in a letter to congressional leaders.... '[R]regardless of how individual policymakers feel about states permitting the use of medical or recreational marijuana, the reality of the situation requires federal rules that permit a sensible banking regime for legal businesses'....

"In March, the House Financial Services Committee approved the marijuana banking bill in a bipartisan vote of 45 to 15. The legislation, sponsored by Rep. Ed Perlmutter (D-CO), now has 173 cosponsors — substantially more than a third of the entire chamber's membership. It is expected to be considered on the House floor within the next several weeks.

"An identical companion bill on financial services for cannabis businesses in the Senate has 25 lawmakers signed on — fully a quarter of the body. Despite the advancement of the cannabis banking bill in the House, Senate Banking Committee Chairman Mike Crapo (R-ID) refused to commit to hold a hearing or vote on the bill in his panel when asked last month.

"The proposals have already been endorsed by the American Bankers Association and a number of other organizations representing financial services industry interests, as well as by drug policy reform groups....

"The treasurers, in their letter, offered further encouragement.... 'Without banking services, cannabis businesses are less able to obey the law, pay taxes, and follow state regulations of the industry,' they wrote. 'The public safety risks posed by these businesses are easily mitigated through access to banking service providers and keeping the cash off the streets. Nearly every U.S. state has a stake in this issue.'"

Read more: https://www.forbes.com/sites/tomangell/2019/05/08/majority-of-state-attorneys-general-tell-congress-to-pass-marijuana-banking-bill/#6aad9bde711a
'via Blog this'

US House committee passes Audit the Fed bill

House panel passes bill to audit the Fed - MarketWatch - Greg Robb:

March 28, 2017 - "A House panel on Tuesday approved legislation that would let a government watchdog audit the Federal Reserve’s monetary policy decisions, a move bitterly opposed by the central bank.

"The House Committee on oversight and government reform passed the measure by voice vote after roughly 30 minutes of debate.

"The bill was the brainchild of Ron Paul, the former House Republican and libertarian presidential candidate and sharp critic of the U.S. monetary policy. Versions of the bill have twice passed the House by wide margins but then stalled due to lack of support from Democrats in the Senate and the Obama administration.

"Analysts said the measure has a better chance to become law now that Republicans control both houses of Congress and the White House. Paul’s son, Rand, the Republican senator from Kentucky, has introduced a similar measure in the Senate.

"Democrats in the committee were firmly against the bill.... Republicans said the measure was needed to rein in the Fed.

"'It is ironic that the arsonists that caused the financial collapse are now being given credit...for putting out the fire. Almost every macroeconomist concedes in retrospect that [the Fed’s] extended period of easy money led to the financial crisis,' said Rep. Thomas Massie, a Republican from Kentucky."

Read more: http://www.marketwatch.com/story/house-panel-passes-bill-to-audit-the-fed-2017-03-28
'via Blog this'

Ron Paul campaigning for Fed oversight board

Ron Paul Wants a Spot on Federal Reserve Board of Governors:

December 19, 2016 - "Ron Paul's group, Campaign for Liberty, is trying to get him a spot on the U.S. Federal Reserve's Board of Governors, a senior politics editor with the Huffington Post reports.

Sam Stein ‏@samsteinhp

Ron Paul’s group, Campaign for Liberty, is pushing to get Ron Paul nominated to the U.S. Federal Reserve's Board of Governors.

10:45 AM - 18 Dec 201

"Paul, a former GOP member of Congress from Texas, earlier this week criticized the Federal Reserve, saying it was manipulating the economy.

"'We do not work on a free-market principle, we do not have sound money, it's all manipulated,' he told Maria Bartiromo on Fox Business Network.

"'Prices are going to go up and the money's going to be so bent according to political reasons and not because of business decisions, so we want the government out of it. We want people to save money, create capital, but capital cannot come from the Federal Reserve working with a computer; that's the fallacy and that's why zero rates of interest didn't work because they weren't realistic.'

"The Board of Governors oversees the work of the Federal Reserve Banks and plays a major role in crafting U.S. monetary policy. There are seven members, all appointed by the president of the United States.

"Paul established Campaign for Liberty, his nonprofit political organization, during his presidential run in 2008 with the purpose of spreading his idea that the government should be limited in its role."

Read more: http://www.newsmax.com/Politics/ron-paul-federal-reserve-board-of-governors-campaign-for-liberty/2016/12/18/id/764560/
'via Blog this'

How the Fed Is increasing economic inequality

Rand Paul Is Right: The Fed Is Increasing Inequality With Its Low Rates - Forbes - Jeffrey Dorfman: 

October 29, 2015 - "Last night’s Republican debate was supposed to be about economic policy, but instead it was, once again, more about moderators asking gotcha questions.... There was, however, a great moment of economic clarity, thanks to Rand Paul, on the surprisingly overlooked role the Fed has played in increasing economic inequality.

"Virtually all economists agree that the Fed’s low interest rates have been responsible for inflating stock market values. By reducing the returns to savings accounts, certificates of deposit and bonds, the Fed has intentionally driven ordinary investors to increase their investment allocation to the stock market, thereby boosting stock returns. Because people with more wealth tend to own more stock, those higher stock prices have led the rich to gain much more than the poor and middle class.

"Low interest rates have meant low borrowing costs for large corporations with direct access to capital markets. This low-cost borrowing has boosted corporate profits which also flow mostly to the wealthy.

"Poorer individuals, with smaller savings and few other assets, tend to be heavier users of credit cards for borrowing.... Unfortunately, while the Fed has pushed down interest rates for big corporations, average credit card interest rates have only dropped about 1.5 percentage points (from about 14.5 to 13%).... Wealthier individuals, with more savings and other assets, rarely need to carry a credit card balance, but they do borrow (tax-deductible) funds in the form of mortgage debt, often in large amounts. Thanks partly to the Fed’s many moves to lower interest rates, mortgage rates have fallen about 2.5 percentage points (roughly from 6.5 to 4% for 30 year fixed rate mortgages).... For example, somebody with a $400,000 mortgage could save ... $600 to $800 per month, way more than the $20 per month the poor are saving on credit card debt.

"Finally, the low interest rates set by the Fed combined with the additional labor costs thanks to the Obama Administration (Obamacare and its associated taxes) are changing the relative prices of labor and capital.... This also increases economic inequality because the poor and middle class earn most (or all) of their money from labor income, while the rich collect a significant share of their income in various forms of returns to capital.... Purposely tilting the economy in favor of capital and against labor is pretty close to taking from the poor and giving to the rich, the exact reverse of normal government attempts to redistribute income.

"[While] the left is consumed with economic inequality, nary a voice on the left is complaining about the Fed’s role in making it worse. Rand Paul is correct that the Fed is causing a widening of economic inequality....If you want less economic inequality, we should begin by stopping policies that make it worse."

Read more: http://www.forbes.com/sites/jeffreydorfman/2015/10/29/rand-paul-is-right-the-fed-is-increasing-inequality/
'via Blog this'

Rand Paul & Ted Cruz slam Federal Reserve

In GOP Debate, Ted Cruz and Rand Paul Tear at Fundamentals of the Fed - Michael S. Derby, Wall Street Journal:

October 29, 2015 - "Two Republican presidential candidates blasted the Federal Reserve on a fundamental level in a debate Wednesday night, airing their criticisms of the central bank before a prime-time television audience.

"Sen. Ted Cruz of Texas and Sen. Rand Paul of Kentucky criticized the Fed’s impact on the economy and called for new operating regimes that would limit the central bank’s influence....

"Mr. Cruz lambasted what he saw as a 'star chamber' of central bankers implementing radical policies with little democratic accountability. He was particularly concerned with the now-ended campaigns of long-term bond purchases the Fed employed to provide stimulus.

"Mr. Cruz also said the Fed has an inflation problem on its hands. 'If you look at a single mom buying groceries, she sees hamburger prices have gone up nearly 40%. She sees her cost of electricity going up. She sees her health insurance going up. And loose money is one of the major problems,' he said. 'I think the Fed should get out of the business of trying to juice our economy and simply be focused on sound money and monetary stability, ideally tied to gold,' Mr. Cruz said.

"Mr. Cruz is correct that, since 2008, the Fed has had an aggressive monetary-policy stance, with short-term rates at near-zero levels, amid several rounds of large-scale bond purchases, as well as other tools to provide stimulus....

"Mr. Paul said in the debate that 'the Fed has been a great problem in our society' and that its policies have helped fuel economic inequality. He also made a plug for legislation that would audit the monetary-policy-making functions of the Fed, something central bankers and many economists believe would politicize rate policy and make it less effective.

"Mr. Paul also wants to fundamentally end how the central bank influences the economy. 'What you need to do is free up interest rates. Interest rates are the price of money, and we shouldn’t have price controls on the price of money,' the legislator said in the debate."

Read more: http://www.wsj.com/articles/in-gop-debate-ted-cruz-and-rand-paul-tear-at-fundamentals-of-the-fed-1446144549
'via Blog this'

IRS violates policy, seizes $100K from store owner (video)

North Carolina Civil Forfeiture | Institute for Justice - IRS Seizes $107,000 From Innocent Small Business, Despite Recent Policy Changes Meant To Prevent Exactly This Kind Of Case:

"Lyndon McLellan has spent more than a decade running L&M Convenience Mart, a gas station, restaurant, and convenience store in rural Fairmont, North Carolina. Then, one year ago, without any warning, agents from the IRS seized his entire bank account, totalling more than $107,000. With that, Lyndon entered the upside down world of civil forfeiture, where the government can seize and keep ordinary Americans’ property without ever charging them with a crime.

"The IRS and Department of Justice are pursuing forfeiture of Lyndon’s money despite a recent policy change designed to prevent precisely these kinds of cases. In October 2014, the IRS announced that (absent 'exceptional' circumstances) it would pursue forfeiture in cases like Lyndon’s only where there was evidence that the money being seized was derived from illegal activity. The U.S. Department of Justice announced a similar policy change in March 2015....

"Under these new policies, the government should not be pursuing forfeiture of Lyndon’s bank account. But the government has refused to back down, and is actively pursuing the forfeiture of Lyndon’s money.

"Lyndon is unwilling to give the government a single penny of his hard-earned money. As he puts it, 'It took me 13 years to save that much money, and it took fewer than 13 seconds for the government to take it away.'"
Read more: http://ij.org/r/north-carolina-civil-forfeiture/
'via Blog this'

No crimes, but IRS seizes bank accounts anyway

Law Lets I.R.S. Seize Accounts on Suspicion, No Crime Required - Sheila Dewan, New York Times:

October 25, 2014 - "For almost 40 years, Carole Hinders has dished out Mexican specialties at her modest cash-only restaurant. For just as long, she deposited the earnings at a small bank branch a block away — until last year, when two tax agents knocked on her door and informed her that they had seized her checking account, almost $33,000.

"The Internal Revenue Service agents did not accuse Ms. Hinders of money laundering or cheating on her taxes — in fact, she has not been charged with any crime. Instead, the money was seized solely because she had deposited less than $10,000 at a time, which they viewed as an attempt to avoid triggering a required government report....

"Using a law designed to catch drug traffickers, racketeers and terrorists by tracking their cash, the government has gone after run-of-the-mill business owners and wage earners without so much as an allegation that they have committed serious crimes. The government can take the money without ever filing a criminal complaint, and the owners are left to prove they are innocent. Many give up....

"On Thursday, in response to questions from The New York Times, the I.R.S. announced that it would curtail the practice, focusing instead on cases where the money is believed to have been acquired illegally or seizure is deemed justified by 'exceptional circumstances'....

"But the Institute for Justice, a Washington-based public interest law firm that is seeking to reform civil forfeiture practices, analyzed structuring data from the I.R.S., which made 639 seizures in 2012, up from 114 in 2005. Only one in five was prosecuted as a criminal structuring case.

"The practice has swept up dairy farmers in Maryland, an Army sergeant in Virginia saving for his children’s college education and Ms. Hinders, 67, who has borrowed money, strained her credit cards and taken out a second mortgage to keep her restaurant going.

"Their money was seized under an increasingly controversial area of law known as civil asset forfeiture, which allows law enforcement agents to take property they suspect of being tied to crime even if no criminal charges are filed. Law enforcement agencies get to keep a share of whatever is forfeited."

Read more: http://www.nytimes.com/2014/10/26/us/law-lets-irs-seize-accounts-on-suspicion-no-crime-required.html?_r=3

Cato Institute challenging Federal Reserve

Libertarian Think Tank is Spoiling for a Fight with the Fed - Real Time Economics - Wall Street Journal - Ben Leubsdorf:

October 20, 2014 - "The Cato Institute has some bones to pick with the Federal Reserve.

"The Washington libertarian think tank this week will launch a new Center for Monetary and Financial Alternatives. Its goal: challenge the central bank’s policies and explore alternative ways to manage the U.S. money supply, including but not limited to a return to the gold standard.

"'I think we can do better than the Federal Reserve,' said George Selgin, the center’s director and a former economics professor at the University of Georgia. 'We should be exploring how to do better. We should be exploring alternatives that could do better, instead of dismissing that entire inquiry as something that should be only of interest to people on the fringe.'

"The new center is the latest manifestation of growing public and academic attention on the Fed and central banking after the 2008 financial crisis.... The Fed’s extraordinary actions in recent years – helping rescue large financial firms, pinning interest rates at zero for nearly six years and counting, three rounds of bond-buying aimed at stimulating economic recovery – remain controversial.

"Critics have variously accused the Fed of bailing out fat-cat Wall Street bankers, harming Americans who rely on interest from their savings, distorting the flows of the free market, failing to generate sustainable economic growth and flirting with out-of-control inflation and a debased currency. Defenders say the Fed’s policies prevented the crisis from escalating into a financial catastrophe, helped stabilize the financial system and helped nurture a fitful recovery, and they note inflation remains low and the dollar strong.

Read more: http://blogs.wsj.com/economics/2014/10/20/libertarian-think-tank-is-spoiling-for-a-fight-with-the-fed/
'via Blog this'

AZ police seize $455,000 from medical marijuana grower

Over $455,000 Seized from Medical Marijuana Patient Slapped with Civil Asset Forfeiture - Reason.com- Tracy Oppenheimer::

"In March 2013, Steve Oates' home in Goodyear, Ariz. was stormed by police, SWAT, and DEA agents because of a marijuana grow room in the guest house.... Oates' doctor had recommended medicinal marijuana for Oates' chronic back pain, so he attained a medical marijuana card with cultivation rights....

"Oates met a few other patients who shared concerns about underground marijuana channels, and they decided to start growing together. Oates had their entire supply during the raid, which ended up being more than the permitted amount that he could grow with cultivation rights. He pled guilty to possessing under two pounds of marijuana.

"But the conviction ended up being the smallest price that Oates had to pay. Goodyear Police Department brought Oates' case to the Attorney General, who consequently slapped Oates with over $455,000 in civil asset forfeiture. Civil asset forfeiture is when the government can seize property and finances that they suspect have a connection to illicit activity. However, they sue the property instead of the person, so there doesn't have to be a related conviction.

"'That's what they're claiming, is that the market value of the sales that he allegedly made was $455,000,' says Oates' attorney John Moore. 'They don't have any proof or any evidence that the property that they are trying to forfeit is related to the crime of his possession of marijuana for sale....

"'In a typical civil case, it's the plaintiff that has the burden of proof. But in a civil forfeiture case, it turns­­ out it's actually the defendant that has to show where this money came from,' says Moore. 'We have to show by preponderance of the evidence, that this money that they are trying to forfeit came from legal means.'

"Moore adds that Arizona has a direct incentive to utilize asset forfeiture because unlike other states, Arizona law enforcement gets to keep seized funds for their own departments."

Read more: http://reason.com/reasontv/2014/08/25/over-455000-seized-from-medical-marijuan 
'via Blog this'