Sunday, December 10, 2017

Why the end may be near for bitcoin, but just maybe - CBS News


By ANTHONY MIRHAYDARI MONEYWATCH December 8, 2017, 7:19 PM
Why the end may be near for bitcoin, but just maybe
The rise has been breathless: From a recent low of $3,226 on Sept.14, bitcoin pushed past $17,000 on Thursday, an incredible gain of more than 400 percent in less than three months.
Is this a massive bubble? The consensus seems to be "yes -- but the technology will last" with parallels to the dot-com bubble. Sure, Pets.com isn't around anymore. But Amazon (AMZN) survived and prospered, and CEO Jeff Bezos is now the world's richest man.
The latest cryptocurrency excitement seems to stem from word that institutional investors are on the verge of joining in on the bitcoin craze. The Chicago Mercantile Exchange and the Chicago Board Options Exchange both plan to start trading in bitcoin futures later this month. Yet, I can't help but fear a nasty end.
Regulators seem spooked, with South Korea's prime minister fearing "serious pathological phenomena," while the UK plans a crackdown by forcing users to disclose their identities. Russia and China have already leaned against the trend. And in the US, the IRS won a case against Coinbase -- a popular cryptocurrency exchange -- to disclose user information amid a wide gap between the number of bitcoin traders and the number reporting gains for tax purposes.
As prices rise and unsophisticated investors get caught in the whirlwind and present a growing risk to financial system stability, officials are growing nervous.
The financial system is concerned as well. A number of large Wall Street banks fear that futures trading will be too volatile, potentially undermining exchange stability. And some retailers are balking. For instance, online game platform Steam no longer accepts bitcoin as payment.
The specter of fraud also lingers, with no legal recourse for those robbed because of the anonymous, decentralized nature of the beast. The irony of that is: "It's not a bug, it's a feature." Bitcoin is so easily swiped by hackers, whether it's the Mt. Gox bankruptcy in 2014 or the $31 million hack of the Tether Treasury in November or Wednesday's $62 million hack of Nice Hash.
Also, that anonymity attracts the ire of policymakers given its cyber-libertarian roots.
Could these vulnerabilities -- to cybertheft and a regulatory crackdown -- be what ultimately pops this bubble?
Other issues concern bitcoin's "application layer," which make it unsuitable for small transactions because of processing delays -- a far cry from the speedy response of existing card processors like Visa (V). This is the reason behind the "hard fork" with Bitcoin Cash, the rise of alternatives like Ethereum and ongoing efforts to make bitcoin a more efficient means of wealth transfer -- which, after all, was its original intended purpose.
The competition is heating up as well. Services like Apple Pay's messaging functionality and Venmo are moving "cash" into the digital age with the protections consumers expect from the regulated financial system. Plus, since these are backed by the dollar (which is legal tender), there are no tax implications, unlike with every bitcoin transaction.
Still, the bitcoin bulls have a strong case, obviously. Mainly, that bitcoin has built-in scarcity with the supply never able to exceed the predetermined cap. And it's the antithesis of this era of aggressive central bank-based cheap-money stimulus. Tax avoidance has also played a role. And bitcoin has first-mover advantage among cryptocurrencies, lending liquidity and marketing benefits other "alt" coins don't enjoy.
But when my wife's hairdresser touts her bitcoin winnings -- having gotten in on the action over Thanksgiving despite not fully understanding what bitcoin is -- I can't help but think the end is near.

A year after Trump's election, coal's future remains bleak - Reuters

NOVEMBER 13, 2017
A year after Trump's election, coal's future remains bleak
Timothy Gardner
WASHINGTON (Reuters) - A year after Donald Trump was elected president on a promise to revive the ailing U.S. coal industry, the sector’s long-term prospects for growth and hiring remain as bleak as ever.
A Reuters review of mining data shows an industry that has seen only modest gains in jobs and production this year - much of it from a temporary uptick in foreign demand for U.S. coal rather than presidential policy changes.
U.S. utilities are shutting coal-fired power plants at a rapid pace and shifting to cheap natural gas, along with wind and solar power. And domestic demand makes up about 90 percent of the market for U.S. coal.
”We’re not planning to build any additional coal facilities,“ said Melissa McHenry, a spokeswoman for American Electric Power, one of the largest U.S. utilities. “The future for coal is dictated by economics … and you can’t make those kinds of investments based on one administration’s politics.”
Coal plants now make up 47 percent of AEP’s capacity for power generation, a figure it plans to shrink to 33 percent by 2030.
The situation highlights the limitations of presidential policy on major industries and global economic trends. As some energy experts have said all along, the forces that will make or break mining are well beyond the powers of the Oval Office.
A White House official did not respond to a request for comment.
Trump has likely done all he can do to help the industry, said Luke Popovich, a spokesman for the National Mining Association, which represents major U.S. coal companies.
“The government is no longer against us,“ he said. ”We now only have market forces to contend with.”
Trump has taken action on many promises he made to coal interests in states that helped him win the election.
The president started the process of killing former President Barack Obama’s Clean Power Plan, meant to reduce carbon emissions from power plants; ended an Obama-era moratorium on coal leasing on federal lands; ditched limits on dumping coal waste into streams; and started withdrawing the United States from the Paris Climate Agreement.
Now Trump’s Energy Secretary, Rick Perry, is attempting to push a rule through the independent Federal Energy Regulatory Commission that would subsidize power plants that store at least a 90-day supply of coal on site. The goal is to extend the life of some coal burning power plants, a move Perry says will make the electric grid more reliable.
While the full impact of Trump’s coal policy could take years to understand, the changes so far are unlikely to boost domestic demand, energy analysts and utility officials said.
“BACK 100 PERCENT”
Trump has cast the coal industry as a victim of burdensome regulation.
The industry has lost more than 40 percent of its work force in less than a decade and seen production drop to its lowest levels since 1978. Its share of the power market has fallen to less than a third from about half in 2003.
“We’re going to bring the coal industry back 100 percent,” Trump said at a rally in Virginia in August of 2016.
So far, progress has been limited.
U.S. coal production is on track to rise more than 8 percent in 2017 over the previous year, to 790 million tons, according to the Energy Information Administration. But 2018 output is expected to decline.
Earth moving equipment sits by a coal pile at the Century Mine in Beallsville, Ohio, U.S., November 7, 2017. REUTERS/Joshua Roberts
The number of coal miners has also risen slightly to 51,900 in October, up about 2,200 since November 2016 - but down about 70 percent from a 1985 peak, according to the Labor Department.
On November 1, Trump cited the modest production increases in a Tweet, saying, “It is finally happening for our great clean coal miners!”
But these increases are largely attributable to demand for U.S. coal from Asian steel mills after temporary outages from their usual suppliers in Australia, according to James Stevenson, a coal analyst at IHS Markit.
During the first six months of 2017, Asian countries took in 7.5 million short tons of U.S. coal, up 97 percent over the same period in 2016, according to the EIA.
That demand will soon fade, Stevenson said.
“We are not going to get a repeat of 2017,” he said of the spike in exports.
“OBSOLETE”
Forecasts from utilities and the U.S. government reveal little reason for hope of a sustained coal rebound.
Utilities are expected to shut down more than 13,600 megawatts of coal plant capacity in 2018. That follows a loss of nearly 8,000 MW this year and 13,000 MW in 2016, according to EIA and Thomson Reuters data.
By 2025, coal-fired power plant capacity will dip to 226,380 MW, down about 30 percent from 2011, according to EIA.
Three Texas coal plants owned by Vistra Energy Corp subsidiary Luminant are among the latest to close, bringing the number of plants that shut, or plan to, to 265 since 2010 - a figure higher than the 258 plants that remain, according to the Sierra Club, which has campaigned against coal.
Vistra said the closures were forced by lower prices for natural gas and renewable power - and not by environmental regulations.
Duke Energy, one of the country’s largest utilities, has shut down more than 5,400 MW of coal capacity since 2011 and plans to shed another 2,000 MW by 2024.
Over the next decade, Duke plans to invest $11 billion in new natural gas and renewable power - and nothing in new coal-fired generation, said spokesman Rick Rhodes.
A Nov. 2 report by the Federal Reserve Bank of St. Louis - which has two of the largest coal producers in its district, Peabody Energy Corp and Arch Coal Inc - said coal-fired power plants “may eventually become obsolete.”
Coal companies believe they can survive despite the troubling market outlook.
Peabody expects a “modest number” of coal power plant retirements in the coming years, with some of that lost capacity shifting to remaining plants that will increase output, spokesman Vic Svec said. Arch spokeswoman Logan Bonacorsi offered a similar forecast.
Robert Murray, the chief executive of privately-held Murray Energy Corp - one of America’s biggest underground miners - said Trump could do more for the industry. The administration, Murray said, should end tax breaks for wind and solar power and reverse an EPA finding that carbon emissions endanger human health.
But Trump’s tax bill last week preserved most solar incentives, which have bi-partisan backing. And the EPA has so far steered clear of the so-called “endangerment finding” on emissions that is the basis of many fossil-fuel regulations, given the breadth of scientific evidence that would be needed to reverse it.
Murray Energy, meanwhile, announced on Oct. 31 it will buy a 30.5 percent stake in a coal-mining partnership in Utah called Canyon Consolidated Resources, LLC.
The deal might help the companies cut costs, but it’s unlikely to help workers: Murray said about 200 of 1,000 jobs in Utah could be lost.
Reporting by Timothy Gardner; additional reporting by Scott Disavino in New York; Writing by Richard Valdmanis; Editing by Brian Thevenot


Our Standards:The Thomson Reuters Trust Principles.

Brexit: May's EU deal not binding, says David Davis - BBC News

10/12/2017
Brexit: May's EU deal not binding, says David Davis
David Davis
Brexit Secretary David Davis has described the deal struck by Theresa May to move to the next phase of Brexit talks as a "statement of intent".
He said it was not "legally enforceable" and if the UK failed to get a trade deal with the EU then it would not pay its divorce bill.
But he stressed that the UK was committed to keeping a "frictionless and invisible" Irish border.
And it would "find a way" to do this if there was a "no deal" Brexit.
He also stressed that the odds of the UK exiting without a deal had "dropped dramatically" following Friday's joint EU-UK statement in Brussels.
And he spelled out the kind of trade deal he wanted with the EU, describing it as "Canada plus plus plus".
Canada's deal with the EU, signed last year, removes the vast majority of customs duties on EU exports to Canada and Canadian exports to the EU.
But Mr Davis said it did not include trade in services, something he wanted to see in the UK's "bespoke" deal with the EU.
Chancellor Philip Hammond has previously suggested the Brexit divorce bill - believed to be between £35bn and £39bn - will be paid even if no EU trade deal is struck.

Star Wars: The Last Jedi premieres with tribute to late Carrie Fisher - Guardian

Star Wars: The Last Jedi premieres with tribute to late Carrie Fisher
Writer-director Rian Johnson introduces screening remembering actor who died last year after finishing work on the film
Star Wars: The Last Jedi premiere at the Shrine auditorium in Los Angeles
Star Wars: The Last Jedi premiere at the Shrine auditorium in Los Angeles. Photograph: Jesse Grant/Getty Images for Disney
Reuters in Los Angeles
Sunday 10 December 2017 21.02 AEDT
The galaxy far, far away was brought to life in downtown Los Angeles on Saturday for the world premiere of Star Wars: The Last Jedi where the anticipated first screening was dedicated to the franchise’s late star, Carrie Fisher.
“I want to dedicate tonight to Carrie, who is up there right now flipping me the bird, saying ‘Damn it Rian, don’t you dare make this night a solemn tribute,” the film’s writer-director, Rian Johnson, said as he introduced the screening.
“So let’s all have a blast tonight for Carrie,” he added.
Rian Johnson arrives at the premiere of Star Wars: The Last Jedi n Los Angeles. Photograph: Jordan Strauss/Invision/AP
The film ends with a dedication to Fisher, who plays Princess Leia and died last December aged 60 after completing her work on The Last Jedi. Her character, now known as General Leia Organa, leader of the Resistance, plays a key role in the film.
Walt Disney’s The Last Jedi, follows 2015’s The Force Awakens and picks up with the Resistance fighting off Supreme Leader Snoke’s First Order, which is trying to take control of the galaxy.
The film explores themes of the battle to find a balance in the Force, the supernatural energy that runs through the Star Wars galaxy. Reviews of the film are embargoed until 12 December.
The cast, including Ridley, John Boyega, Lupita Nyong’o, Adam Driver, Andy Serkis and Hamill, walked the red carpet at the premiere, surrounded by droids and stormtroopers.
Guests walked into the entrance of the premiere flanked by larger-than-life AT-AT Walker transport vehicles.
Johnson paid tribute to Fisher on the red carpet. “Once the audience sees her performance in this movie, she’s going to be there in all our hearts,” he said. “It’s bizarre not having her here tonight. She would be the life of the party,” he said.

Trump’s visit to Mississippi Civil Rights Museum underscores national tension - NBC News

DEC 9 2017, 3:59 PM ET
Trump’s visit to Mississippi Civil Rights Museum underscores national tension
President Donald Trump's 40-minute visit to the Museum of Mississippi History and Mississippi Civil Rights Museum concluded a days-long controversy over his presence at an event that commemorated a milestone in the state's difficult racial history.
Civil rights icon John Lewis, Jackson Mayor Chokwe Lumumba, and Rep. Bennie Thompson, as well as other noteworthy Mississippians, said they would boycott the event after the president accepted the invitation earlier this week. They claimed the president did not support the spirit of the new institution and would only distract from the ceremony.
The growing criticism of his visit led the Mississippi Department of Archives and History and the White House to create a separate private program for Trump as a compromise, and the public event occurred without the president.
Trump's visit to Mississippi Civil Rights Museum underscores national tension
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Trump's visit to Mississippi Civil Rights Museum underscores national tension 1:44
In the end, Trump, who was delayed due to the snow dusting the region, addressed approximately 200 people after a brief tour of the museums and appeared to largely stick to a prepared speech that lasted no more than 10 minutes.
The president spoke largely about the life of civil rights leader Medgar Evers, who was assassinated in his driveway by white supremacist Byron De La Beckwith in 1963 and provided praise to the state and its civil rights legacy.
Trump then went on to congratulate those involved in the creation of the museums. “This is an incredible tribute to not just the state of Mississippi — a state that I love, a state where I’ve had great success — this is a tribute to the nation at the highest level," he said, before wrapping up his short visit and departing for Mar-a-Lago.
Shortly thereafter, local leaders gathered outside and together cut a long red ribbon separating the two museums.
Myrlie Evers-William, Evers' widow and a civil rights activist in her own right, spoke to the crowd, saying the two museums moved her and were inseparable in her mind — "one is not complete without the other."
“I wept, because I felt the blows," she said about her visit. "I felt the bullets. I felt the tears. I felt the cries, but I also sensed the hope that dwelled in the hearts of all those people and children, and it transferred into hope and love we find in the other building. Where does separate come from? A word, both buildings share the same heart, share the same beat.”
A boon or cause to boycott?
While the president's visit infused the event with political controversy, some Republicans offered positive takes on his presence.
“This is a huge day for the state of Mississippi and the fact that the president came here is a significant economic benefit to us," Mississippi Secretary of State Delbert Hosemann said.
"The president put it on the map better than any marketing firm could have,” he added.
Some black Mississippi leaders also chose to attend Trump's address, despite the controversy.
“I felt the need to be here to honor the sacrifices made by a number of people featured in the museum, and it was my responsibility to be here for them because they’re no longer with us,” Mississippi Rep. Alyce Clarke of Jackson told Mississippi Today.
Referring to those who decided to boycott the event, she added, "We all have a right to do what we need to do. And that’s how they felt about it. Nothing’s wrong with that at all."
U.S. President Donald Trump visits the Civil Rights Museum in Jackson, Mississippi, Dec. 9, 2017. Nicholas Kamm / AFP - Getty Images
Earlier in the day, the president's visit sparked a counter-rally at the Smith Robertson Museum and Cultural Center, less than a mile away from the new museums.
“It is my appreciation for the Mississippi martyrs who are not here, the names both known and unknown, that will not allow me, that will not allow many of us standing today, to share a stage with the president,” Lumumba said.
“Mr. President, we don’t need you to tell us in Mississippi what the civil rights movement was about,” he added.
NAACP President Derrick Johnson reflected on the pivotal role Mississippi played during the civil rights movement. He said it is because of the sacrifices of leaders like Evers, that the NAACP refused to stand for a “photo opportunity” with Trump.
Amos Brown, a Jackson native who is now the head of the San Francisco chapter of the NAACP, echoed Johnson’s call for a boycott. “Since one Donald Trump made it to that White House, we have not experienced concord, we have not experienced harmony — but we have experienced the jangling discords of hate, division, misogamy and all the –isms that have divided this nation,” he said.
Johnson vowed that civil rights leaders across the country would return to the museum at a later date to hold their own ceremony.
Meanwhile, others chose to openly protest Trump’s presence. Approximately 100 protesters chanted "Dump Trump" and "No hate in our state" and held up signs a few blocks from where Trump spoke.
But, overall, local leaders said the entire controversy has been somewhat surreal and indicated an abnormal time in history.
'Freedom is not free'
The idea to build a civil rights museum in Mississippi first took root in the early 2000s, before gaining significant traction in 2011 when the state made a financial commitment of $90 million to the museum.
"This is a reminder that freedom is not free and that people fought and bled and died for the civil liberties that we enjoy today. That’s why this museum's existence is so necessary and Mississippi should be commended for appropriating $90 million for this museum," said Mike Espy, a former Mississippi congressman and secretary of agriculture, as well as a longtime member of the state's committee to establish the museum.
This classroom reproduction illustrates the differences between schools for white students and those for African-American students during segregation. Tom Beck / Mississippi Civil Rights Museum
An additional $18 million was raised privately in support of the museum, Espy said. The money all contributes to the opening of the two museums, both of which are run by the Mississippi Department of Archives and History.
“There was really a desire to create a space where Mississippians can come together, examine their history and move forward as one,” said Julia Marks Young, who led the Archives and Records Services Division at the Mississippi Department of Archives and History from 2005 until 2016 and helped pull together the museum’s deep archival work.
Related: Moore's Ford Massacre: Activists Reenact Racist Lynching as a Call for Justice
And that idea of reflection is an important one in Mississippi, as the state still faces numerous challenges.
The original doors to the Bryant Grocery and Meat Market where 14-year-old Emmett Till's whistle at the shopkeeper's white wife led to his lynching. Tom Beck / Mississippi Civil Rights Museum
“If you don’t understand where have you been, you don’t know where you need to go. Mississippi still has many problems. It faces a lot of uphill battles,” said Young. “It’s a very poor state, its population is pretty uneducated, and it suffers from obesity and many economic issues.”
The museum earned high marks from some those who have seen it.
“I’m elated over the opening of the museum,” said civil rights activist Charles McLaurin, who lives in nearby Indianola, Mississippi. “I’ve had a sneak preview and I think it’s wonderful. It tells the story of our civil rights history after 1945 up until the current day.”
Peyton Prospere, the former Mississippi treasurer, openly wiped tears from his eyes outside the museum after Trump's visit.
“I hope that he may learn something from this, from his time here," Prospere told Mississippi Today. "And I hope that he would take what lessons he may draw from his experience here and begin to incorporate them in his policies and actions and statements.”

Donald Trump reportedly spends up to eight hours a day in front of the television - Independent

Donald Trump reportedly spends up to eight hours a day in front of the television
'The ammunition for his Twitter war is television'
Mythili Sampathkumar New York @MythiliSk
US President Donald Trump reportedly spends up to eight hours of his day in front of television.
According to the New York Times, he begins his daily White House routine at 5:30am with the television in his master bedroom.
The newspaper interviewed 60 advisers, friends, and members of Congress to get a picture of the day-to-day life of the President.
Donald Trump attacks CNN in series of tweets
Usual morning shows include "Fox & Freinds," the programme and network are known to be more friendly to the President's agenda.
But, he also tunes into CNN, an outlet he has routinely referred to as "fake news," and MSNBC's "Morning Joe" programme "because, friends suspect, it fires him up for the day."
Mr Trump has had several public rows with co-hosts Joe Scarborough and Mika Brzezinski, who were once friends of the former real estate magnate.
"Energized, infuriated — often a gumbo of both," Mr Trump then takes to Twitter because "the ammunition for his Twitter war is television," the newspaper reported.
Through the course of his day, he spends at least four - but often up to eight - hours a day watching news channels. Sometimes he will leave them on mute, but he uses it as a way to keep track of what the media is saying about him, his presidency, and the investigation into alleged collusion between his campaign team and Russian officials during the 2016 US election.
Barack Obama advises Trump to 'think before you tweet'
Aboard Air Force One during his recent Asia tour, Mr Trump responded to fact-checking questions regarding his television watching habits by saying: "“I do not watch much television...I know they like to say — people that don’t know me — they like to say I watch television. People with fake sources — you know, fake reporters, fake sources. But I don’t get to watch much television, primarily because of documents. I’m reading documents a lot.”
Sources say the President, nearing the end of his first year in office, still views himself more as a "maligned outsider engaged in a struggle to be taken seriously" rather than the leader of the free world.
He told aides after his historic election victory that ever day of his time in office should be seen as a television show during which he "vanquishes rivals."
Senator Lindsey Graham felt that mentality is a problem. He said: "there’s a difference between running for the office and being president. You’ve got to find that sweet spot between being a fighter and being president.”
"His approach got him to the White House, Mr. Trump reasons, so it must be the right one," the New York Times reported.
Yet, Mr Trump's job approval rating is at a historically low 32 per cent even while he dominates media coverage.
John Kelly, White House chief of staff and a retired Marine General, has attempted to "quietly and respectfully, to reduce the amount of free time the president has for fiery tweets by accelerating the start of his workday."
Mr Kelly has also tried to reign in the chaos of a White House full of staff that have never worked in the federal government before. He limits the President's meetings and exposure to a myriad of opinions from advisers.
Mr Trump, "who enjoyed complete control over his business empire, has made significant concessions after trying to micromanage his first months in office," according to the newspaper.
Psychiatrist: Trump's mental state is an 'enormous present danger'
However, sources say the rule in the White House is that no one touches the remote control except for Mr Trump and technical staff.
If he misses a news report, he has a "Super TiVo" system that records hours of news footage for him to view at a later time.
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Still, the President - despite daily briefings and access to government resources - tends to only believe information if it comes from his small "bubble" of trusted advisers, sources said.
Aides told the newspaper they "bemoan his tenuous grasp of facts, jack-rabbit attention span and propensity for conspiracy theories."
After a day of meetings and phone calls, often to associates Mr Kelly has gotten rid of for riling the President up like Sebastian Gorka or Steve Bannon, Mr Trump watches the evening news programmes of Sean Hannity, Jennine Pirro, and Laura Ingraham on Fox News and sometimes "hate watches" CNN only to restart the process again the next day.