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| February 19, 2019

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Partisan Rift Threatens Federal Data-Privacy Law

February 18, 2019 |

Congress set the stage last year to pass a sweeping consumer data-privacy law in 2019, but prospects for legislation are dimming amid sharpening divides among lawmakers over how far the federal government should go in reining in Big Tech.
WSJ.com: US Business

L.A. venture capitalist Imaad Zuberi a focus in federal probe of Trump’s inaugural committee

February 7, 2019 |

On election day 2016, Los Angeles venture capitalist and Democratic donor Imaad Zuberi took to Facebook to tout his proximity to the person he thought would be ascending to the White House.

“The next president of the United States of America Hillary Clinton,” Zuberi wrote next to a photo of himself…


L.A. Times – Business

Trump dines with Federal Reserve chair Powell, a frequent target

February 5, 2019 |

President Trump had a special guest for dinner Monday night: Federal Reserve Chairman Jerome Powell, a frequent target of the president’s criticism. Trump has repeatedly called the Fed “crazy” in recent months and accused the central bank of hurting the economy.

Trump and Powell dined on steak…


L.A. Times – Business

Protesters Storm Federal Jail, Get Pepper-Sprayed

February 4, 2019 |

Some demonstrators protesting the lack of heat and electricity at a federal detention center in New York City attempted to enter the facility Sunday, and witnesses said guards drove them back with pushes, shoves, and pepper spray, the AP reports. A reporter and photographer for the AP were at the…
Newser

Democrats demand details of Trump plan to release mortgage giants from federal control

January 26, 2019 |

Congressional Democrats, concerned the Trump administration is going it alone to pursue sweeping changes to housing finance policy, demanded more details on reports that the Treasury Department is formulating a plan to release Fannie Mae and Freddie Mac from federal control.

The scrutiny from House…


L.A. Times – Business

Furloughed federal workers are on the hook for work expenses they can’t get reimbursed

January 23, 2019 |

As if going without pay during the month-long partial government shutdown isn’t enough, thousands of federal workers are dealing with another financial indignity: servicing debt on government-issued credit cards.

They are receiving credit card bills — for which they are personally responsible —…


L.A. Times – Business

St. Louis Federal Reserve Predicts ‘Flood’ of Altcoins Will Drive Down BTC Prices

January 15, 2019 |

The St. Louis branch of the Federal Reserve bank has published a report seeking to examine the long-term prospects of BTC as an investment. The paper is highly critical of bullish outlooks for bitcoin, asserting that a “flood” of altcoins will deflate the price of all cryptocurrencies relative to fiat currencies over time.

Also Read: Marshall Islands Updates 2019 Roadmap for Sovereign Cryptocurrency

Economic Research Arm of St. Louis Federal Reserve Assesses Bitcoin’s Prospects

St. Louis Federal Reserve Predicts 'Flood' of Altcoins Will Drive Down BTC PricesThe St. Louis Federal Reserve has published a paper that seeks to assess the prospects of bitcoin as a long-term investment.

According to the paper, the bullish argument for bitcoin core is that it will appreciate “indefinitely” due to its “capped supply and an ever-growing demand.” The bearish case for bitcoin, the St. Louis fed asserts, is that “Bitcoin’s price will fall to zero, as it’s an intrinsically worthless asset.”

Ultimately, the paper predicts that the future price action for bitcoin is likely to remain bounded between the aforementioned “extremes.”

St. Louis Fed Argues ‘Ever-Expanding’ Altcoin Supply Will Diminish Bitcoin Prices

The St. Louis Federal Reserve describes the bitcoin bull scenario as “too optimistic,” emphasizing the expectation that the “ever-expanding supply of alternative cryptocurrencies” will drive down the price of BTC relative to fiat currencies.

The paper asserts that the bullish outlook for bitcoin “assumes that the nominal exchange rate between bitcoin vis-a-vis other cryptocurrencies will adjust in proportion to their relative supplies,” adding that “Bitcoin is expected to appreciate relative to its competitors or, equivalently, its market capitalization share will stay constant over time.”

St. Louis Federal Reserve Claims Bitcoin ‘Has No Fundamental Value’

St. Louis Federal Reserve Predicts 'Flood' of Altcoins Will Drive Down BTC PricesThe bearish outlook is predicated on the assertion that “Bitcoin has no fundamental value” and that the market will “recognize this fact” sooner or later.

While appearing to make concessions for the possibility that bitcoin will not crash down to zero, the paper notes that “one can accept that bitcoin trades above its fundamental value without claiming that its fundamental value is zero,” adding that “many securities trade above what might be considered their fundamental value.”

In concluding, the paper asserts that the price dynamic of an unbacked asset will likely produce significant volatility and is “inherently unforecastable.” While the St. Louis Federal Reserves adds that the price of bitcoin is “not likely” to fall to zero, the paper repeatedly emphasizes the authors’ expectation that the proliferation of altcoins “is likely to place significant downward pressure on the purchasing power of all cryptocurrencies, including bitcoin.”

What is your response to the St. Louis Federal Reserve’s predictions regarding the long-term outlook for bitcoin? Share your thoughts in the comments section below!


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Bitcoin News

Trump Ends 2018 by Freezing Federal Workers’ 2019 Pay

December 30, 2018 |

In August President Trump said he planned to freeze federal employee pay in 2019 due to “serious economic conditions,” reports USA Today . That has come to pass. The president on Friday signed an executive order establishing what will be the first pay freeze for civilian federal workers (the military is…
Newser

Federal Reserve Chairman Jerome Powell has much to lose and little to gain in sit-down with Trump

December 29, 2018 |

Of all the holiday gatherings Jerome Powell gets invited to, a sit-down in the Oval Office might be one of the last he’d want to attend.

Just days after President Trump blamed the Federal Reserve chairman for the stock market’s December swoon and discussed with aides his desire to fire him, White…


L.A. Times – Business

Mnuchin’s attempt to calm markets backfires as Trump takes another shot at the Federal Reserve

December 25, 2018 |

An attempt by Treasury Secretary Steven T. Mnuchin to calm plunging financial markets backfired Monday, further rattling investors with new fears about whether major U.S. banks have enough cash on top of worries about interest rates, political instability in Washington and a slowing global economy.


L.A. Times – Business