Navy Seals Take Over North-Korea-Flagged Oil Tanker In Libya

Tensions around the North-Korea-flagged tanker that “illegally” obtained oil from rebels who hold a Libyan port have been escalating for the last week. However, The BBC reports that overnight US forces, at the request of both the Libyan and Cypriot governments, boarded and took control of the commercial tanker Morning Glory. The raid by Navy Seals took place in international waters south of Cyprus, said spokesman Rear Adm John Kirby. The US Seals operated from the USS Roosevelt, a guided missile destroyer, which “provided helicopter support and served as a command and control and support platform” and are now in “full control” of the vessell carrying 234,000 barrels of illicity-obtained oil. The message is clear – don’t mess with the Petrodollar.

 

Via AFP,

US Navy Seals boarded and took control of an oil tanker that had loaded crude at a rebel-held port in eastern Libya and escaped to sea, the Pentagon said Monday.

 


 

No one was hurt “when US forces, at the request of both the Libyan and Cypriot governments, boarded and took control of the commercial tanker Morning Glory, a stateless vessel seized earlier this month by three armed Libyans,” Pentagon press secretary Rear Admiral John Kirby said in a statement.

 

The operation was approved by President Barack Obama and was conducted in the early hours of Monday (just after 0200 GMT) “in international waters southeast of Cyprus”.

 

The Morning Glory’s evasion of a naval blockade at the eastern port of Sidra prompted Libya’s parliament to sack Prime Minister Ali Zeidan last week.

 

 

Adm Kirby said the operation had been authorised by President Barack Obama and that no-one had been hurt.

 

“The Morning Glory is carrying a cargo of oil owned by the Libyan government National Oil Company. The ship and its cargo were illicitly obtained,” he said, adding that it would now be returned to a Libyan port.

North Korean?

The Morning Glory originally was a North Korean-flagged ship, but Pyongyang on Wednesday denied any responsibility.

 

The ship was operated by an Egypt-based company that was allowed to temporarily use the North Korean flag under a contract with Pyongyang, North Korean state news agency KCNA said.

 

Pyongyang had “cancelled and deleted” the ship’s North Korean registry, as it violated its law “on the registry of ships and the contract that prohibited it from transporting contraband cargo”.

Next Steps…

The loading of the Morning Glory and its escape to sea marked a major escalation in the struggle between Tripoli and the rebels, and triggered the ouster Tuesday of liberal-backed premier Ali Zeidan, who fled the country

 

the US move is likely to act as a deterrent to any further attempts to illicitly buy oil from the rebel-controlled ports.

Don’t mess with the Petrodollar…


    



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Twitter Trolling Continues: Sanctioned “Gray Cardinal Of The Kremlin” Responds To Obama

Earlier we showed what Russia’s deputy Prime Minister thought of Obama’s sanctions (not much). Now, it is the turn of the first and allegedly most important person on the White House’s list of sanctioned Russians in response to the Ukraine referendum, the infamous Vladislav Surkov, also known as the “gray cardinal” of the Kremlin, to opine. His “statement” to Obama needs no clarification.

And this surprisingly accurate statement:

For the general amusement and entertainment of everyone, we hope that the twitter wars continue. We also truly hope that all this trolling gets Obama to Tweet something more than just cheap Obamacare propaganda.


    



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Goldman Explains What Must Happen For The “5 Year Bull Market” To Continue

Earlier we noted one of the observations noted by Goldman’s David Kostin as part of his weekly market summary, namely that “the flat YTD equity market is impressive considering the news flow: Persistently disappointing domestic economic data (partly weather-related), an EM currency crisis, uncertainty in China growth and its shadow banking system, and the Russian invasion and sponsorship of the Crimea succession plebiscite on Sunday, to name just a few events since the start of 2014“… and yet the S&P is just shy of new all time highs. Actually, it is not impressive at all when one considers that centrally-planned markets do not respond to any news (especially if the news is negative – there’s “snow in the winter” for that), but really all newsflow is either bullish or ignored. Which, incidentally, means the concept of a market, which discounts events and the future, no longer exists. Indeed, it hasn’t existed since 2009 when we first noted that the Stalingrad & Propaganda 500 only reflects what the Fed wants it to reflect – an experiment that will end in far more than tears. So what else did Kostin have to say? Here it is, in a nutshell:

March 9th marked the 5th anniversary of the current bull market. S&P 500 has gained 1200 points or 178% since 2009. Three drivers of the rally: A profit rebound (59% of rally), a P/E multiple expansion (25%), and a change in expected EPS growth (16%). Looking ahead at these three drivers, we expect an 8% rise in the level of earnings this year, and a similar growth rate in 2015 given our economic forecast and assuming stable margins. S&P 500 trades around fair value at 15.6x forward EPS but the median stock trades at 16.7x, an extremely high valuation in historical terms. Our year-end 2014 target of 1900 represents a modest 3% upside from current levels.

And outside of the nutshell:

S&P 500 celebrated the five year anniversary of the current bull market by slipping almost 2% this week. At 1845, the index is now flat YTD. Below we identify the key drivers of the 178% or 1200 point market rally since the S&P 500 bottomed at 677 on March 9, 2009. We also consider how the three drivers might change in the future. Our year-end 2014 target remains 1900.

A rebound in corporate profits coupled with P/E multiple expansion explains nearly 85% of the rally. Change in expected earnings growth rate contributed a comparatively modest amount (see Exhibit 1). In terms of sectors, Financials and Information Technology contributed about 40% of the rally followed by Consumer Discretionary, Health Care, and Industrials. Together these five sectors accounted for more than 75% of the bull market.

Earnings recovery accounts for the majority of the market rally. S&P 500 trailing EPS jumped by 69% to $110 from a low of $65 at the market bottom. The gain in earnings translates into roughly 700 index points. Financials was essential to the recovery in S&P 500 earnings. Financials’ EPS rebounded from being the only sector losing money to once again being the largest contributor to S&P 500 EPS. Consumer Discretionary and Information Technology also contributed significantly to the rise in EPS. AAPL had the largest individual contribution, representing 8% of S&P 500 profit growth.

Multiple expansion explains 25% of the bull market. The forward P/E climbed by 44% from 11.0x in March 2009 to 15.9x today. During the same period, the Health Care EPS rose 15% but its P/E multiple doubled from 9.3x to 17.8x. Industrials had a similar pattern: its P/E surged from 8.3x to 17.0x. The change in expected EPS growth rate accounts for less than 20% or roughly 200 index points of the market rally since 2009. Five years ago the expected forward EPS growth rate equaled -5%. Today it stands at +8%. Energy sector’s expected EPS growth swung from -51% to the current +11%.

In order for S&P 500 to climb higher, (a) the level of profits, (b) the expected forward earnings growth rate, and/or (c) the P/E multiple must change. Given the high starting point of all three metrics, it is hard to identify any one of these that will climb significantly during the coming year. In terms of the future level of profits, we forecast S&P 500 EPS will rise by 8% to $116 in 2014 followed by an increase of 8% to $125 in 2015. Bottom-up consensus estimates are just slightly higher at $118 and $131, respectively. However, the polar vortex and associated weak economic data has translated into negative sales and earnings revisions for nearly every sector during the past one and three month time frames.

We expect many firms will issue negative earnings guidance ahead of 1Q 2014 reporting season that takes place from mid-April to mid-May. Profit margins for the broad market and most sectors stand at record high levels. Managements have been struggling to maintain current margins, a point that was made abundantly clear on the recent quarterly conference calls (see S&P 500 Beige Book, February 11, 2014).

A potential driver of higher profits would be faster economic growth. The US economy is experiencing its fifth year of expansion but growth has been extremely weak, averaging just 2.2% annually since 2009. Goldman Sachs Economics expects growth will accelerate to 2.7% led in part by a strong recovery in business spending. Our S&P 500 earnings estimate reflects our GDP forecast but the sensitivity of earnings to GDP is mild. We estimate every 100 bp shift in GDP growth translates into $5 in EPS. In contrast, a 50 bp shift in margins has the same $5 per share impact on EPS.

Acceleration in EPS growth rate at the index or sector level is unlikely, in our view. The level of profits has recovered sharply from the depressed level of five years ago but the rate of change going forward will be modest.

The third possible driver of a higher stock market is expanded valuation. However, equities are expensive on almost every valuation metric we use. S&P 500 currently trades at 15.6x forward expected earnings, a multiple we would characterize as the high side of a range of fair value. However, the median S&P 500 stock trades at 16.7x forward earnings, a multiple that is extremely high by historical standards. The median stock has traded at a higher multiple than today only 9% of the time since 1976 (Exhibits 3 and 4).

The flat YTD equity market is impressive considering the news flow: Persistently disappointing domestic economic data (partly weather-related), an EM currency crisis, uncertainty in China growth and its shadow banking system, and the Russian invasion and sponsorship of the Crimea succession plebiscite on Sunday, to name just a few events since the start of 2014.

Money flow into stocks is one argument why S&P 500 multiple could rise from current levels. Although equity mutual fund flows remain positive, 70% of the YTD inflow has been to non-US stocks. The largest demand for shares stems from corporate buybacks. We recommend our 50-stock sectorneutral Buyback basket comprised of firms with the highest buyback yields. At 14.1x, the basket trades two P/E points less than S&P 500. The buyback basket yield of 10% is 4x the market.

* * *

The Zagat-style summary, the market is “extremely overvalued”, but it will rise on an “increase in the level of profits” and “we expect an 8% rise in the level of earnings this year“, even though “we expect many firms will issue negative earnings guidance ahead of 1Q 2014 reporting season that takes place from mid-April to mid-May.”

Ok then.


    



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These Six Euroarea Countries Are In Outright Deflation As Eurozone Inflation Slides To Four Year Lows

While we realize that the world has long since stopped caring about trivial things like macro events or newsflow, it probably should be noted that while everyone was either sleeping or awaiting to see what the US response to the Crimean referendum would be, it should be highlighted that inflation in Europe just tumbled once again to a fresh retest of 4 year low levels. According to Eurostat, final February inflation was lower than the flash reading, and printed at 0.8% for the Eurozone and 0.7% for the Euroarea, down from 0.9% and 0.8% respectively. This is back to the October level when the ECB decided to cut its interest rate to a record low of 0.25% in its November meeting. As Reuters noted, inflation has not dropped below that level since November 2009, when it stood at 0.5 percent, Eurostat said.

This is how European inflation, or lack thereof, has looked in the past four years:

Yet any one expecting an immediate response by Draghi may be disappointed: Bloomberg adds that the CPI reading is unlikely to immediately alter the monetary policy stance of the ECB. It fails to create a fresh cyclical low with the reading of October also having come in at 0.7 percent. The core reading remained unchanged at 1 percent.

Others agreed. From Reuters:

“The downward revision to the February inflation figures is unlikely to be enough to trigger further near-term monetary easing,” said Martin van Vliet, senior economist at ING. “This will also require a deterioration of the activity and or a further significant strengthening of the euro.”

 

A strong euro has weighed on prices, and the currency fell in reaction to Monday’s data, dipping against the dollar and paring gains against the yen.

 

Month-on-month inflation was 0.3 percent in February, driven by a 0.5 percent rise in prices of services and a 0.4 percent increase in costs of non-energy industrial goods.

 

Prices of food, alcohol and tobacco fell 0.1 percent on the month, while highly volatile energy costs inched up 0.1 percent.

 

In February, there were four euro zone countries with negative annual inflation rates, Portugal and Slovakia both with -0.1 percent, Greece with -0.9 percent and Cyprus at -1.3 percent.

 

“Today’s CPI figures are a clear reminder that low inflation may have become the new normal for the euro zone – which certainly won’t make it easy for some countries to reduce their debt overhangs,” van Vliet said.

And while the world awaits the ECB to do something, anything, be it negative rates or outright monetization of German bonds (good luck), the Euro area continues to sing in disinflation and outright deflation. 12 of the 18 countries of the monetary union saw a decline in the year-over-year rate of inflation. Ten of the 18 countries registered rates under 1 percent and four of the 18 countries registered negative numbers. The largest “core country” — Germany — saw its inflation rate decline to 1 percent from 1.2 percent.

Worse, 4 Eurozone countries, Cyprus, Greece, Portugal and Slovakia, were in outright year over year deflation. And then add Bulgaria and Croatia to get the 6 Euro Area countries where prices are now in outright decline compared to a year earlier.


    



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Finally, A Plausible Scenario Of What Happened To Flight 370

Submitted by Charles Hugh-Smith of OfTwoMinds blog,

The scenario that best fits the facts is a spontaneously initiated "drastic political protest" by the captain that went awry.

At long last, a plausible scenario of what happened to Flight 370 has emerged. By plausible I mean that the scenario fits all the known facts.

The key piece of evidence has finally been released by Malaysian authorities: Pilot Spoke to Air Controllers After Shutoff of Data System (NYT.com).

This proves that one of the pilots turned off the ACARS communications link and then reported to air traffic control (ATC) as if all was normal. Twelve minutes later, one of the pilots switched off the aircraft's transponder, which transmits the aircraft's altitude and location.

This sequence of events more or less proves that one of the pilots was in charge of the aircraft. Given the lack of evidence of duress, this sequence strongly suggests one of the pilots was executing a plan of his own rather than following orders of hijackers.

Given the strong political views of the captain and his mastery of the Boeing 777, all evidence points to the captain as the pilot who turned off the communication links and was in command of the aircraft thereafter.

Post-disappearance moves suggest sophisticated handling, experts say (CBSnews.com)

Malaysia Airlines Flight 370 search grows as pilots face increased scrutiny (CNN.com)

Though early reports on the captain were limited to neutral comments by peers that he was a nice guy and a devout family man, the strength of his opposition to the current regime in Malaysia is now coming to light:
'Democracy is dead': 'Fanatical' missing airliner pilot pictured wearing political slogan T-shirt (Daily Mail)
 

Captain Zaharie Ahmad Shah, a father-of-three, was said to be a 'fanatical' supporter of the country's opposition leader Anwar Ibrahim – jailed for homosexuality just hours before the jet disappeared.

It has also been revealed that the pilot's wife and three children moved out of the family home the day before the plane went missing.
Anwar Ibrahim is a broadly popular democracy icon and former deputy prime minister whose prosecution on a charge of sodomy is seen by many Malaysians as political persecution.

‘Colleagues made it clear to us that he was someone who held strong political beliefs and was strident in his support for Anwar Ibrahim,’ another investigation source said. ‘We were told by one colleague he was obsessed with politics.’

What makes this significant is the Malaysian authorities' attempts to suppress this possible motive.

Malaysian officials initially appeared keen not to direct any suspicion towards Zaharie or his co-pilot, 27-year-old Fariq Abdul Hamid, who was last week revealed to have invited two women passengers into the cockpit and smoked on an earlier flight to Phuket.

But evidence of the way the plane’s transponder and communication systems were disabled and the way the plane was expertly flown over the Indian Ocean apparently using navigational waypoints meant only a skilled aviator could have been at the controls. Investigators were also baffled by why, if hijackers took over the plane, there was no Mayday call or signal from the two pilots to say the cockpit had been breached.

Thus we have motive and clear evidence that it was the captain, not the co-pilot, who was in command of Flight 370. Enraged by the Soviet-style show-trial and imprisonment of his political hero, the captain may have "sabotaged the flight as a form of drastic political protest." Flight 370: Was Hijacking The Pilot’s Political Revenge?

Now add in that neither the co-pilot nor the captain requested each other, and it seems increasing likely that the captain was making it up as he went along, applying his deep knowledge of the aircraft and navigation to sketch out a makeshift initial plan that was dynamically modified along the way.

I think we can easily trace a plausible series of steps the captain initially took, and then speculate knowledgeably about the challenges and decision trees that arose later in the flight.

The first challenge would be to render the co-pilot unable to contest his control of the aircraft. The easiest way would have been to dissolve a sedative in a beverage and coax the co-pilot into drinking the Mickey Finn.

The "mumbling co-pilot" heard by the airline pilot flying to Japan who radioed Flight 370 offers tantalizing (if scant) evidence of this. (Interestingly, that pilot was confident he spoke with the co-pilot, not the captain.)

Alternatively, the co-pilot fought for control of the aircraft, one explanation of the abrupt climb to 45,000, well above the aircraft's designed ceiling.

If there was a struggle, clearly the co-pilot lost that battle or had already been incapacitated by other means.

Another explanation for the climb to 45,000 feet and the subsequent drop to 23,000 feet is that the captain sought to deprive the passengers of oxygen for long enough to render them unconscious but not long enough to kill them.

Given the profile of the captain that is emerging, I see little evidence of a personality who would set out to kill everyone on board, including himself. I believe the evidence strongly suggests a political motive, to embarrass the Malaysian government and perhaps to do so by seeking asylum in another country.

Once again, the key here is to understand the incomplete nature of the captain's plan: after the initial phase was successful–turning off the ACARS and transponder, incapacitating the co-pilot, and moving beyond the range of Malaysia's military radar– a number of destinations might have occurred to the captain. It's important to note that flying was not just the captain's vocation, it was also his hobby. I think it is safe to say his life revolved around aviation and flying.

Data showing the number of plausible runways where the plane could have touched down – which need to be at least 5,000ft – offer a baffling number of potential locations.

According to a map drawn up by U.S. radio station WNYC, there are 634 locations which could fit, from Australia to the Maldives to Pakistan.
However, the true number is likely to be even higher, as estimates of how far the plane could have travelled have been increased since the calculations were carried out.

Here is the best current map of the possible routes of Flight 370. I have added the decision tree the captain faced: either fly north and seek political asylum or a remote landing site or fly south and search for a remote landing site.

If the co-pilot had regained control of the aircraft, either alone or with the aid of crew and passengers, he would have first turned on the ACARS and transponder and sent a Mayday signal. Since this didn't happen, we can be confident that the captain was in command of Flight 370 for the duration of the flight–roughly 7.5 hours.

While we don't know if the aircraft landed at some point, we do know the last ping to the satellite was at 8:11 a.m., roughly 6 hours after the last military radar contact.

Here are some other points to consider:

The fact that the Malaysian authorities withheld the sequence of events in the cockpit strongly suggest that they quickly identified the potential for a political motivation for the flight deviation and sought to suppress speculation along this line of inquiry.

This also explains why they withheld the military radar data for three days, and their continuing reluctance to share information or come clean about what they know. They fear the truth, and with good reason.

The captain's home flight simulator suggests that he may well have practiced all sorts of landing scenarios, just out of curiosity or to sharpen his skills in outlier situations. Think about it: if you already have over 18,000 hours in the cockpits of advanced aircraft, you're not going to practice conventional landings you could do in your sleep. That would be beyond boring to someone of his experience.

Given the few hours the captain had to assemble his plan, it is likely that once the initial phase was successful, he might have changed his mind, perhaps more than once.

Given his long experience in aviation, I think it very likely that he knew that the primary and military radars in the region were usually turned off at night. Off-the-record confirmations of this have come from Thailand and Indian officials with knowledge of radar covering the Andaman and Nicobar islands.

Thus it is not surprising there were no primary radar sightings in the region: most or perhaps all of the radars were turned off.

It's also worth noting that most of the primary radars in the region have limited ranges–100 miles or less appears to be average. It is more than possible to thread a flight through the gaps in coverage, even if the radars were active.

Let's assume my speculation is accurate and the captain had no intention of crashing the 777 and killing all on board. As I noted in my first entry on Flight 370, if that was his intention (or simply suicide), why fly for hours? Despite his best intentions, he may have encountered some problem that he responded to incorrectly; it's even possible that he missed his intended destination or became confused about his location.

What Happened to Flight 370? An Analysis of What Is Known (March 13, 2014)

The scenario that best fits the facts is a spontaneously initiated "drastic political protest" by the captain that went awry, despite his intentions and experience.

One last thought: since the U.S. must monitor potential airborne threats and nuclear explosions virtually everywhere on the planet (with the exception of Antarctica), why wouldn't the U.S. have wide-aperture thermal imaging assets in space? And if the U.S. has space-based thermal imaging assets, would they be so low quality that the heat signature from two large jet engines would not show up? That seems unlikely.

Since it has long been known that the U.S. has "wired the oceans for sound," (SUBMARINES, SECRETS, AND SPIES – NOVA/PBS) it's also likely that the sound of a large aircraft hitting the water would also have been detected, regardless of the remoteness of the location.

All of which is to say that it seems probable that the global and space-based intelligence gathering assets of the U.S. recorded some sort of signals that could provide clues to the final resting spot of Flight 370.


    



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Alleged Bitcoin Creator Responds To Newsweek, Denies Everything

Remember Newsweek’s “shocking” inaugural print issue which claimed to have uncovered the creator of Bitcoin (by scouring the phone book), and of course poor Satoshi Dorian Nakamoto’s 15 minutes of fame? Guess we can put that to rest. From the LA Times.

The statement came in an email from Ethan D. Kirschner, a Los Angeles lawyer.

 

“This firm has been retained by Dorian S. Nakamoto, the subject of the recent Newsweek cover story on Bitcoin,” Kirschner said in an email. “He has issued the attached prepared statement. No further comment will be made by Mr. Nakamoto or the firm.” 

 

In the statement, Nakamoto says:

 

I did not create, invent or otherwise work on Bitcoin. I unconditionally deny the Newsweek report.

 

According to Nakamoto, he heard the term bitcoin from his son only in February after he had been contacted by the reporter working on the Newsweek story.

 

When that story was published in early March, Nakamoto, 64, found himself at the center of a media circus as well as a raging online debate about whether he could in fact be the programmer who had created the virtual currency that has become a billion-dollar global phenomenon.

 

Part of the story pointed to the fact that Nakamoto of Temple City had programming skills. In the statement, Nakamoto says:

 

“My background is in engineering. I also have the ability to program. My most recent job was as an electrical engineer troubleshooting air traffic control equipment for the FAA. I have no knowledge of nor have I ever worked on cryptography, peer to peer systems, or alternative currencies.”

 

The Newsweek story also notes what appears to be a strange gap in his resume over the last decade, the time during which the bitcoin code was written and released. Nakamoto explains:

 

“I have not been able to find steady work as an engineer or programmer for ten years. I have worked as a laborer, polltaker, and substitute teacher. I discontinued my internet service in 2013 due to severe financial distress. I am trying to recover from prostate surgery in October 2012 and a stroke I suffered in October of 2013. My prospects for gainful employment has been harmed because of Newsweek’s article.”

 

Nakamoto ends by asking to be left in peace:

 

“Newsweek’s false report has been the source of a great deal of confusion and stress for myself, my 93-year old mother, my siblings, and their families. I offer my sincerest thanks to those people in the United States and around the world who have offered me their support. I have retained legal counsel. This will be our last public statement on this matter. I ask that you now respect our privacy.”

So does Newsweek now retract its entire re-inaugural print issue or does it still stand behind its story, or perhaps it will simply replace it with an exclusive profile of Newsweek’s mysterious, legendary fact-checker?


    



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Only 3 Weeks Left Until the Inside Bitcoins Conference in NYC

The Inside Bitcoins conference in NYC last summer was one of the highlights of 2013 for me. I was able to meet some of the smartest, determined and friendly people in the Bitcoin space, as well as significantly advance my understanding of the still young crypto-currency. Fortunately, this conference will be back in less than three weeks and I can’t wait to attend. It is once again being sponsored by Media Bistro and Liberty Blitzkrieg is happy to offer readers a 10% discount.

More information below:

Meet with Top Experts and Providers of Virtual Currencies – 10% OFF Inside Bitcoins Conference

After thousands gathered at Inside Bitcoins in Berlin, Germany on February 12-13, this innovative Bitcoin event is returning to New York City on April 7-8 at the Javits Convention Center. Thought leaders and industry experts will examine the growth of virtual currencies, investment strategies, and much more at this exciting event.

Whether you’re a venture capitalist, lawyer, technologist, entrepreneur, regulator, cryptographer, or public policy expert, their agenda offers the latest intelligence for everyone and anyone interested in learning more about Bitcoin. The conference will take a glimpse into Bitcoin’s future with sessions such as Best Practices for Using and Securing Bitcoins, Moving Bitcoin Forward: Bringing Trust, Legitimacy and Transparency to the Market, Creating and Funding the Next 100 Great Bitcoin Companies, and Wall Street’s View of Fair Value for Bitcoin.

Inside Bitcoins is one of the first events of its kind to give attendees the option to pay for their ticket with either dollars or Bitcoins and to include a special space in the middle of the tradeshow floor called the Bitcoins Trading Café that allows attendees to meet, buy, and sell Bitcoins.

We’re pleased to announce that Liberty Blitzkrieg is partnering with Inside Bitcoins to offer all readers 10% OFF a full conference pass with code LIBERTY. Plus, if you register before March 19, you’ll save an additional $400 with early bird prices – Register now!

Mediabistro will soon announce firm dates for additional events taking place in 2014 in Hong Kong, China; London, England; and Las Vegas, Nevada.

I look forward to seeing many of you there!

In Liberty,
Michael Krieger

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Only 3 Weeks Left Until the Inside Bitcoins Conference in NYC originally appeared on A Lightning War for Liberty on March 17, 2014.

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President Obama Explains To Russian Stocks Why They Should Be Down – Live Feed

With global equity markets exuberant (from US to Europe to Russia) at the prospect of US sanctions against Russia, we look forward to hearing from Comrade President Obama on why this is a punishment and why it’s a bad thing for Russia (and where the next red line is)…

 


    



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Russian Stocks, Ruble Respond To Obama’s Sanctions By Extending Gains

Despite no move in gold, silver, or US Treasuries, US equities (and JPY crosses) remain bid. But perhaps the most intriguing reaction to Obama’s escalation is the surge higher in Russian stocks and rally in the Ruble… Putin and his oligarch friends must be pleased…

 

Charts: Bloomberg


    



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Russian Sanctioned By White House Responds On Twitter To “Comrade Obama”

Moments ago we listed the Russian Putin “advisors” impacted by the latest Obama executive order freezing those assets over which the US has access. Among them was deputy Prime Minister Dmitry Rogozin and Russia’s ambassador to NATO. As a reminder, in 2011 Russian President Dmitry Medvedev appointed Dmitry Rogozin as a Special Representative on anti-missile defence and negotiations with NATO countries on this issue. On 23 December 2011 Dmitry Rogozin was appointed deputy premier of Russian Government in charge of defense and space industry. As responsible for the defense industry he leads the creation of the Russian Foundation for Advanced Research Projects in the Defense Industry (Russian DARPA). Moments ago Rogozin replied to Putin’s freezing of his, among other, assets.

Translated: “Comrade Obama, and what about those who don’t have accounts or assets abroad? Or perhaps you didn’t consider that.”

Which, as reported on Friday, probably is the case for many Russians oligarchs, who were expecting this move by Obama long ago. Worst case, a whole lot of New York City duplex penthouses are about to hit the market.

And then this follow up tweet:

Translated: “I think some joker wrote Obama’s executive order.

We expect Obama to respond on twitter momentarily. We also look forward if Obama will provide the Russian with a loophole allowing them to allocate frozen assets toward Obamacare…


    



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