Thursday, October 16, 2014

Windows 10 is Cool

Windows 10 Start Button and Windows App Integration

This article is being written on the technical preview of Windows 10. It is impressive and exciting to see a real improvement aimed at desktop productivity.

My motivation for reviewing Windows 10 on one of my Virtual Machine (VM) servers is to understand the future of Microsoft Windows Apps. Out of the gate, Windows 10 addresses my primary concerns. Apps tiles are now wonderfully integrated into the classic Windows Start button.

Windows 10 Apps resize through the desktop environment
The future of Windows apps looks bright. This new apps interface is terrific and a huge improvement over Windows 8 or Windows 8.1. Windows apps now use their inherent responsive design model to resize throughout the desktop environment.

The Windows 8 style "screen corners" command have changed. That took a moment to figure out. In their place comes a more classically intuitive drop down list of commands.  The "screen corner" commands will likely return on touchscreen devices, but it is clear this new version of Windows is designed for productivity and enterprise users.

Windows 10 Apps get a new menu
The new start menu allows users to switch back to the Windows 8.1 style Start Screen interface. However, the integration of dynamic information from app tiles and the classic Start Menu is great.

I am going back to playing with this new toy. So, here is a plug for my fellow San Diego Local Order of Bloggers' Windows App. Go download it. We are constantly adding new functionality.


You may also notice, this article was written in Chrome to see if it was compatible. It is.

Tuesday, October 14, 2014

ObamaVirus: Enterovirus (HEV D68) Timeline of Events

Before beginning this timeline there are two alarming facts to keep in mind.
  • This current enterovirus strain appears more severe than previous strains.
  • If diseases were spread to American children through the Obama Administration's unilateral amnesty and relocation programs, enterovirus is just one of many pathogens in the exposure.
Per USA Today:
A dozen Colorado children have been diagnosed with polio-like paralysis, Wolk said. Although all of the children had a respiratory virus before muscle weakness set in, only four tested positive for enterovirus D68, he said. Most have gone home and are in rehabilitation.

"We're optimistic that a number of them, if not the majority, will gain some functionality back," Wolk said.

This year, there were among all ailments about 10 times as many sick kids kids as usual, Wolk said. "So instead of seeing one or two cases [of paralysis], we're seeing eight or nine cases," he said.

The Timeline

June 15, 2012 - DHS Memorandum: Exercising Prosecutorial Discrection With Respect to Individuals Who Came to the United States as Children
The following criteria should be satisfied before an individual is considered for an exercise of
prosecutorial discretion pursuant to this memorandum:
  • came to the United States under the age of sixteen; 
  • has continuously resided in the United States for a least five years preceding the date of this memorandum and is present in the United States on the date of this memorandum; 
  • is currently in school, has graduated from high school, has obtained a general education 
  • development certificate, or is an honorably discharged veteran of the Coast Guard or Armed Forces of the United States; 
  • has not been convicted of a felony offense, a significant misdemeanor offense, multiple misdemeanor offenses, or otherwise poses a threat to national security or public safety; and 
  • is not above the age of thirty. 
 August 13, 2013: Congress and the public at large learn of the DHS memorandum. House Judiciary Committee Chairman Bob Goodlatte
This new directive from the Obama Administration also poisons the debate surrounding immigration reform and shows that the Administration is not serious about fixing our broken immigration system.  Instead of working with Congress to address problems with our immigration system, the President is working against us. The House is working hard to improve our immigration system through a step-by-step approach but this Administration continues to politicize the issue and undermine our efforts by refusing to enforce our current laws.  President Obama’s disregard for the rule of law only encourages more illegal immigration.
October 11, 2013, Virology Journal: Human rhinoviruses and enteroviruses in influenza-like illness in Latin America:

We collected nasopharyngeal swabs at clinics located in eight Latin American countries from 3,375 subjects aged 25 years or younger who presented with influenza-like illness.
Our subjects had a median age of 3 years and a 1.2:1.0 male:female ratio.
Phylogenetic analysis revealed a high proportion of recombinant strains between HRV-A/HRV-C and between HEV-A/HEV-B. In addition, both EV-D68 and EV-A71 were identified.

 January 29,2014: Flow of Unaccompanied Minors Tests U.S. Immigration Agencies
The minors are handled by an array of government agencies, all with different responsibilities for their supervision, often passing through shelters funded by the federal Office of Refugee Resettlement, an arm of the Department of Health and Human Services. Many are placed in removal proceedings and later deported. Others manage to benefit from provisions in immigration law that enable them to remain in the U.S. legally.

Data compiled by that agency show that 95% of what authorities refer to as UACs—for unaccompanied children—come from Honduras, Guatemala and El Salvador, Central American republics where crime and violence have soared in recent years.

HHS reported this week that the 9,881 minors who arrived through the first quarter of the current fiscal year is slightly ahead of 2013's record pace.

Reports surface indicating where the Unaccompanied illegal immigrant children were secretly relocated.

June 19, 2014: Chicago, Ministering to unaccompanied immigrant children
Eight shelters in the Chicago area hold 450 immigrant children who crossed the border illegally and without a parent or guardian.

Once a month, an interfaith group visits one of the shelters to present a program with a theme like home or gratitude. The children draw pictures and sing a simple song. The adult leaders invite the children to light a candle. “You can tell that some of them really make that a time when they are praying,” said Benedictine Sr. Benita Coffey, one of the volunteers.

But the ministry is momentary. Volunteers are not to form personal connections with the children, and by their next visit, most of them will have moved on. Most likely they have been sent to live with family while they await their deportation proceedings.  
...The surge of children has come from Honduras, El Salvador and Guatemala.
...Southwest Keys operates the San Diego shelters, and according to its website, it is the largest provider of services for unaccompanied children, with 20 shelters across California, Arizona and Texas.

Known illegal Unaccompanied Minor Relocation Projects
*We did not have a screen grab from July 2, 2014. The current image reflects the webpage on October 14, 2014.
NumbersUSA is daily updating this interactive map to show which communities are under threat of the federal government moving large numbers of illegal aliens there from the border.

August 2014, Enterovirus confirmed in 2 states
August 29, 2014: Kansas City Outbreak Identified As HEV 68
Local media reports (see Unusual respiratory virus strikes metro kids) from Kansas City, Mo. indicate that a rarely seen – and not yet well understood – respiratory virus called HEV 68 (Human Enterovirus 68) has sickened hundreds of kids in the region this week, and that the local Children’s Hospital is unusually at full census in late August.
Unlike influenza, classic enteroviruses tend to break out in summer-to-fall, although EV 68 has been observed to occur well into the winter season. The largest outbreak characterized by this MMWR report involved 28 children and adolescents from Pennsylvania in the fall of 2009
Enterovirus in U.S. populations appears to manifest as temperatures fall. This coincides with cold and flu season. Colder weather pushes more people indoors, in closer proximity to one another, with less sun exposure and more confined ventilation.

August 31, 2014: Office of Refugee Resettlement "state-by-state" Unaccompanied Children release data from January 1st to August 31st
HHS has strong policies in place to ensure the privacy and safety of unaccompanied children by maintaining the confidentiality of their personal information. These children may have histories of abuse or may be seeking safety from threats of violence. They may have been trafficked or smuggled.  HHS cannot release information about individual children that could compromise the child’s location or identity.
State # of Unaccompanied Children
Alabama 634
Arizona 218
Delaware 168
District of Columbia
Idaho 15
Illinois 437
Maine 9
Maryland 3,248
Mississippi 238
Nebraska 278
Nevada 188
New Hampshire
New Jersey
New Mexico
New York
North Carolina 1,648
North Dakota 4
Puerto Rico
Rhode Island
South Carolina
South Dakota
Vermont 3
Virgin Islands 1
West Virginia 20
September 16, 2014  - 11 States with Confirmed Enterovirus

September 16, 2014: CNN:  List of states with Enterovirus D68 grows
Four children in Lake County were sickened by Enterovirus D68 and were treated at University of Chicago Hospital, according to a press release from the Indiana Department of Health; all four have since been discharged from the hospital. Lake County is in the northwest corner of the state.
As of September 11, the CDC had confirmed more than 80 cases of Enterovirus D68 in six states: Colorado, Iowa, Illinois, Kansas, Kentucky and Missouri. New York also announced on Friday that it had more than a dozen confirmed cases of the virus.
September 17, 2014: CDC: 16 STATES CONFIRM ENTEROVIRUS D68

September 22, 2014: CDC Confirms infection now in 27 states

September 22, 2014 Enterovirus in 27 states

October 8, 2014: The far-left desperately attempts to muddy the waters with misinformation.

Enterovirus has begun taking the lives of children in the U.S. In response, Media Matters and other left-wing outlets have begun trying to obfuscate the emerging evidence of the source of the sudden spike in enterovirus.

Media Matters, Conservatives Falsely Blame Undocumented Children For Deadly Enterovirus:
Public health experts have debunked the alleged connection between the influx of undocumented children into the United States and the spread of EV-D68. CDC spokesperson Jeanette St. Pierre told Media Matters: "Currently, there is no evidence from testing at CDC that EV-D68 infections in the U.S. are a result of unaccompanied minors moving into the country."
Notice, the misrepresentation here?

The CDC spokesperson is talking about "evidence" which means scientific proof derived by the CDC. Media Matters takes this very narrow statement and accuses conservatives of lying and blaming. The spokesperson for the CDC did not say that evidence does not exist, or that the unaccompanied minors did not infect American children, just that the CDC testing had not proven the connection.

October 10, 2014: 46 States confirmed infections. Experts: Flu, EV-D68 more worrisome than Ebola
October 10, Enterovirus confimed in 46 States
According to the CDC, the D68 strain has now affected 691 children in 46 states and the District of Columbia with 13 of those cases just confirmed on Friday. So far, five children have died from the disease that is also connected with muscle paralysis in a handful of other cases mainly in the Denver area.


This post has a pinch of opinion in it, but it is basically a resource for others to keep the facts straight and do further investigation. We do face a threat and it is important to understand the health threat and be prepared. So, here is some other important information.

Journal of General Virology: Worldwide emergence of multiple clades of enterovirus 68 (
In previously documented clusters, approximately 80 % of reported EV-D68 cases occurred in children. One explanation for this finding is that most reports highlighted only paediatric cases. Our EV-D68 sequences from the Gambia, South Africa and Arizona were all obtained from children. However, a recent report from the Netherlands, which focused on screening for EV-D68 in archived respiratory samples without age bias, noted a preponderance of adult cases (Meijer et al., 2012). Additionally, NYC cases presented in our report were from individuals aged 14 years or older, which is the largest EV-D68 cluster of non-paediatric origin to date. We anticipate that, with increased screening, EV-D68 may ultimately be recognized as a respiratory pathogen in all age groups.
There is currently no antiviral treatment and no vaccine to prevent EV-D68. The CDC continues to study the virus and its associated complications but does not entirely understand accept the reason for the current outbreak at this time.

Recommendations from the Rhode Island Department of Health to avoid contracting EV-D68:
  • Wash hands often with soap and warm water for at least 20 seconds, five or six times a day (some evidence suggests that soap and water is more effective at killing enteroviruses than alcohol rubs).
  • Avoid touching your eyes, nose, and mouth with unwashed hands, and remind children to keep their hands away from their faces.
  • Management of asthma is especially important at this time. Be sure your child is following instructions and taking medications as prescribed by their physician.
  • Clean often-used surfaces frequently, including doorknobs, telephone receivers, keyboards, and toys.
  • Don't kiss, hug, or share cups or eating utensils with sick people.
  • If you or your child have a fever, stay home while sick and for at least 1 day after the fever subsides without fever-reducing medicines.
  • Get medical help immediately for a child with asthma who is having difficulty breathing or whose respiratory symptoms get worse or do not improve after taking their usual medications.

Wednesday, September 24, 2014

San Diego Local Order of Bloggers Launch Windows 8.1 App

San Diego Local Order of Bloggers

San Diego's Finest tea party bloggers just released a Windows 8.1 app. This app is an update to one of the first Windows 8 political apps available in the Microsoft store. The Windows 8.1 app is free (click here) as is their android app (click here). No app is currently available for apple devices, however, the website at is highly responsive and adaptive for various screen sizes.

SLOBs Large Start ScreenThe San Diego Local Order of Bloggers is a group that formed during the beginning of the tea party movement in response to out of control government growth. The group includes conservatives, Libertarians, Democrats, Republicans and Independents. It consists of a close nit group of writers, radio and television personalities, activists, organizers and concerned citizens who occasionally meet over beers.

The term app is short for application. It is shorthand for small, restricted programs that run without full access to the systems they are installed on. Windows 8.1 apps can add an informative "live tile" to the start screen (also referred to as the "lock screen") of the latest Windows operating system.  These "live tiles" allow applications to present live information in a condensed and standardized format. Users can choose tile sizes for each program and organize them on the screen.  The latest SLOBs app adds support for the largest and smallest available "live tiles" and other Windows 8.1 improvements.

Finally, the group's website and apps are designed to sharing stories as easily as possible. All include links to share stories on Twitter, Facebook and other social media. The bloggers also add the standard news reporting of the top topic at the bottom of the page/app. This helps users compare what the bloggers comments to what is being released in the news media. This feature is used by other bloggers and commentors to quickly get up to speed on the current hot topic in order to add to the discussion .

Go download the app and review the website.

San Diego Tea Party Bloggers

Thursday, September 11, 2014

San Diego School Police Get Armored Vehicle, Lockdown Elementary School to Justify

September 10th, 2014 in San Diego was an eye opener.

The U.S. Department of Defense has given the San Diego Unified School District's police a 14 ton military armored vehicle. As the news became widely available, an elementary school went into lockdown. The timely set of events seemed to justify the acquisition, but it turned out to be an off-campus argument between a mother and her 19 year old son.

Fletcher Hills Elementary on LockdownFletcher Hills Elementary school parents were terrified when notified that the school had been placed in lockdown. Parents were not subsequently told that their children were available for pickup or that the situation had not been a threat to the school.

NBC San Diego:
El Cajon Police officers say the commotion started Wednesday when Christopher Wilson, 19, was walking down the street and got into a confrontation with a homeowner, about a block away from Fletcher Hills Elementary.
The district said the rescue vehicle is one of the ways it is responding to the 2012 mass shooting at Sandy Hook Elementary in Newtown, Connecticut, and preparing itself for potential disasters in the future.
We have since been told that the homeowner in question was Mr. Wilson's mother. She had thrown him out of the house and then called the police. Wilson's mother told NBC 7 that her son also has a restraining order against him by his father.  We did not find any reports of Wilson's mother accusing him of brandishing a weapon.

Several reports specified that Wilson had removed a hatchet or other wedged object from a bag and then walked past the school. It is unclear who witnessed him remove the object from the bag.

UT San Diego:
Later, a campus supervisor told police the suspect walked past the school, (El Cajon police Lt. Rob) Ransweiler said. The supervisor recognized the suspect and followed him to the front yard of his Chatham Street home near North Westwind Drive, just east of the campus.

Officers arrived and tried to convince the man to come outside. They also called his mother, who made similar pleas (via bull horn), but he wasn't in the home, Ransweiler said. A hatchet wasn't located either.
Given the current information, Wilson may have grabbed a cell phone from a backpack and simply left.  However, the news media immediately painted him as a mad-man who "forced a school into lockdown." News reporting sensationalism isn't a surprise, but the timing is particularly convenient.

...back to our new school tank...

The Mine Resistant Armored Vehicle (MRAP) was acquired via the 1033 program. The program allows the federal government to provide surplus military equipment to law enforcement. San Diego Unified paid just under $5,000 shipping cost for the vehicle. The cost to remove weapons from the vehicle was not reported. The vehicle's capability of rearmament was not revealed, but we suspect all the weapon mounts are intact and available.

If memory serves, our troops in Iraq and Afghanistan could not get these MRAP for several years. Now, SDUSD says the vehicle is needed to truck around donated medical supplies?  This acquisition is so unjustified that even instilling fear for "the children" doesn't resonate.

Additional Sources:
Fox 5 San Diego
CBS News 8 San Diego
KPBS San Diego

Thursday, August 14, 2014

Bitcoin Complaint to Consumer Financial Protection Bureau

The Consumer Financial Protection Bureau issued a misinformed statement about the dangers of bitcoin other cryptocurrencies. The advisory was intended to instill fear and uncertainty about the new form of currency. Some of the inane statements include (italics ours):

  • Exchange rates are volatile and costs unclear (stock market and broker fees? Exchanges typically charge a flat rate 0.2% fee or less, which is as clear as it gets.)
  • Hackers and scammers pose serious security threats: Virtual currencies are targets for highly sophisticated hackers and scammers. Individuals, digital wallet providers, and exchanges are all at risk. (Bitcoin has already been tested and found secure. That is why individual companies like GOX that had not properly implemented bitcoin are touted instead of bitcoin as a technology being presented as flawed or insecure. Bitcoin can't be hacked by the US government, thus the attacks via advisories. Small hackers don't pose any risk. )
  • Companies may not offer help or refunds for lost or stolen funds (How is this specific to cryptocurrency? Isn't this why some people shop at Nordstrom )
The press release did help destabilize the bitcoin market and millions of people lost money. It was enough to inspire a mocking complaint with the CFPB about the CFPB.  The complaint is tongue-in-cheek, but also attempts to make some basic points.

Describe what happened so we can understand the issue:

The Consumer Financial Protection Bureau released a press release that adversely affected millions of individuals and businesses by erroneously implying that cryptocurrencies are more risky than traditional currencies and credit cards. Thousands of volunteers have worked in the open source development community to bring this innovative and promising new technology to the public. At the macro level, cryptocurrencies will reduce or eliminate credit card fraud, reduce bank fees, lower small business costs and untie money from government corruption and bad monetary policy. At an individual level, exposing personal identity information and credit details to strangers over the internet, to be viewed, copied, stolen and abused is an unnecessary risk associated with all credit card transactions and is directly addressed by cryptocurrencies like bitcoin. 
Stifling this technology through government power will hinder the economy and needlessly contribute to the harm done to millions through identity theft and credit card fraud annually.
It is apparent that the government is putting power above the public interest and is preying upon the uninformed. This sort of misinformation campaign is used to instill FUD (fear, uncertainty and doubt) in competitors, innovative ideas, improved products and superior technologies. Using the power of government in this way is deeply disturbing.
Further, there is no form on their website to submit a complaint relating to bitcoin or other cryptocurrencies. The form only allows complaints about money transfers.

 What do you think would be a fair resolution to your issue?:

The CFPB can resolve this issue by releasing a press release explaining cryptocurrencies are more safe than credit cards and promise to end billions in credit card fraud annually. With
cryptocurrency, as with cash, consumers do not expose their the personal identity information, credit card number or PIN. This information is not transferred, processed, and stored and thus can't be stolen and abused by third parties. Credit card fraud, where not only personal identity of the owner is stolen, but also the credit card information is stolen with it, is rampant when purchasing goods and services. This incurs a financial barrier of compliance costs and liabilities on small business related to processing and storing credit card information. 
Large retailers are increasingly victims of data security breaches. Target had more than 1 million customer records stolen, including credit card information. Smaller retailers are less able to
prevent data security breaches.  A 2013 ITRC survey shows that 15.6% of all data breaches expose credit card information.  
Futher, the credit card system was designed in the 1960's and was never intended for use on the internet. The Internet is a public network where the transmitted data is easily visible to unknown third parties. Recent revelations that SSL (the security layer used on websites) was compromised by spy agencies adds another level of concern with regard to the use of credit cards over the internet.
Lastly, if someone somehow gains access to a cryptocurrency wallet, it is strongly password encrypted, unlike a credit cards or cash.

Feel free to use this text, or improve it and submit further mocking complaints with the CFPB: click here

The fact that the US Government is the largest holder of bitcoin in the world, did not make it into this complaint.  Oops. Click here to see their wallet.

Friday, June 27, 2014

Government Strikes at Bitcoin Investors

Bitcoin - Encryption We Trust


Bitcoin is a technology that allows for trade over the internet without the possibility of credit card fraud and without bank fees. Where credit cards were created for the pre-internet world and require account information to be traded, bitcoin is like cash. You pay someone Bitcoin, not your bitcoin account information. This is why bitcoin is a cryptocurrency.

This provides a lot of public good. People can buy from anywhere in the world without bank imposed fees or the worry that an unknown foreign company will steal their credit card information. Bitcoin users are also immune to things like bank account freezes or non-sufficient fund charges. Each bitcoin user has their own independent encrypted wallet. When combined with a long, strong pass-phrase (passwords are too short for effective security), bitcoin in a users wallet are more secure than money held in a bank account.

The government frowns upon bitcoin. Many governments oppose it, but not because bitcoin is evil. Governments use various rationalizations that boil down to the governments greed for power to control money. Bitcoin is money backed by mathematics, not governments.

Bitcoin is created in limited quantities, so it cannot be printed and artificially inflated. There is a fixed total amount of Bitcoin. Bitcoin must be "mined" which means computer algorithms reward people for cracking codes. The codes become harder the more computing power is thrown at bitcoin, so no one can make all the Bitcoin. There is also an element of randomness to ensure that little guys have a chance.

When laws are used against the public good, or to empower the powerful, we nerds call this "lawful evil". Slavery, fascism, communism are all examples of the law being used to enrich some at the expense of others. All governments are prone to the temptations of "lawful evil" because government is the concentration of power. Government can be looked at as the monopoly of the use of force. Which is why George Washington explained, "Government is not reason; it is not eloquent; it is force. Like fire, it is a dangerous servant and a fearful master."

The War on Bitcoin

The government really has no bigger role in the technology of bitcoin than it would in some foreign currency. As a matter of fact, we sometimes forget that the power to "regulate" was intended to promote trade by making it "more regular."  Bitcoin is self-regulating, it can't be stolen, hacked, monopolized or counterfeited. It is just a new currency of trade designed for the internet. Not only is there no need for government regulation of bitcoin, intervention doesn't serve the public good.

Regardless, the most powerful government in the world, The U.S. Government, has crafted a Machiavellian strategy to stop bitcoin.

Some of the earliest adopters of bitcoin were people trading drugs and other illegal items on a website called Silk Road, so the U.S. Government shut down the website. They seized 29,656 Bitcoin from the accounts users stored on the Silk Road servers (not held in their personal encrypted wallets). In the beginning, Bitcoin were only worth a few dollars, so this really wasn't much money. The operator of the site accumulated 144,000 Bitcoin through fees. These coins were also seized but were held in a secure wallet that the government could not access. The U.S. Marshals took the 29,656 bitcoin from the website's servers and the FBI took the 144,000 Bitcoin wallet from the proprietor, Ross Ulbricht aka “Dread Pirate Roberts".

We are not condoning illegal activity, but Bitcoin wasn't the problem with silk road. The U.S. Dollar is the actual currency of the drug trade and illegal activity. But, the U.S. government learned that Bitcoin was a threat to their income stream because they couldn't just seize cash and bank accounts. Instead they held an encrypted wallet they couldn't crack.

Civil Asset Forfeiture Law allows government agencies that seizes assets to then charge the assets with a crime and sell or use those assets themselves. Most Civil Asset Forfeitures are not associated with a criminal case. As a matter of fact, if you carry $10,000 in cash, it must be declared or it can just be seized. Unlike normal due process, you must then prove that the money is yours and how you earned it. There is no presumption of innocence.
"Cato Institute, a libertarian think-tank, found that 80% of people whose property was seized by the federal government were never charged with a crime. Forfeiture proceedings are brought not against people, but against property that law enforcement need only allege is connected to criminal activity."
When the government seized Bitcoin from Silk Road, some of the coins were being traded for legitimate goods, but it would be impossible for someone to fight on behalf of their Bitcoin as the Bitcoin would themselves be charged with money laundering due to the Silk Road system through Civil Asset Forfeiture.

However, because Bitcoin is now seen as a threat to the revenue stream of the government a strategy appears to have been developed to suppress the revolutionary technology.  The U.S. Government doesn't see Bitcoin as a threat to the dollar because the price of bitcoin would have to be above $4,600 to allow $1 trillion in transactions value to take place globally. At $500-600, bitcoin is just a nuisance for law enforcement asset seizures. So, the anti-bitcoin strategy appears to be aimed at minimizing this strategy by suppressing the price of bitcoin.

With this price suppression in mind, the first step is to declare the new currency a "capital or non-capital asset" or property through IRS Notice 2014-21.  Without this declaration, bitcoin would be reported as cash, and companies using bitcoin could trade dollars and Bitcoin and report them on the same part of the balance sheets to investors. By the IRS declaring it a capital asset, bitcoin focused companies will show weaker cash and current ratios than non-bitcoin companies.

Bitcoin companies would have to be big for cash ratios to matter, but Bitcoin seized by law enforcement also allows for a broader attack on the new cryptocurrency. Every company holding Bitcoin will show less assets if the price falls. This could affect their ability to get loans or new investors. So, today June 27th, 2014 is the first run at dumping thousands of bitcoin on the market at the end of a reporting period. The U.S. Marshals timed their 29,656 bitcoin auction to coincide with the end of the 2nd quarter for reporting purposes.

The auction will sell Bitcoin in blocks of 3,000 and requires a $200,000 deposit. This will keep small investors out of the auction and ensure that companies with reporting requirements, public or private, buy the coins. These companies will then have to sell a portion of the coins within the next three days, June 30th, or show a hit to their cash balances.

The Bitcoin sold at discount at auction will then in-turn drive down the market price due to the immediate sales. This reduces the capital assets of every other company with Bitcoin that reports on June 30th as the end of the second fiscal quarter. (Most corporations use year end as their fiscal year end.)

This hit to bitcoin related companies will discourage additional investment, make financing more difficult and allow for the lapdog media to push a narrative headline that bitcoin is failing.

If this strategy works, the remaining 144,000 FBI seized Bitcoin will follow the same strategy. They would be auctioned in blocks just before the end of the next several fiscal quarters.

(The government eventually was given access to the seized Bitcoin after convincing the Silk Road proprietor that they were going to crash the price and that he needed to cash out.)

A New Hope

There is one hitch in this strategy. Bitcoin is not the only cryptocurrency. The second leading currency is called Litecoin. It is newer than bitcoin, transactions are faster, there are more coins, the coins are still only around $10 and the coins are more easily mined by small players due to a newer algorithm called "scrypt." Many exchanges allow for Bitcoin to be directly traded for Litecoin, so companies with Bitcoin can move to Litecoin instead of suffering losses to their balance sheets during the Auctions/dumps.


Due to this flaw in the anti-bitcoin strategy, government agents have had to contend with the #MoveToLiteCoin movement. They primarily must resort to insults and personal attacks otherwise known as FUD (Fear, Uncertainty and Doubt) on proponents of #MoveToLiteCoin to discourage others from joining the movement. In the end, they don't have enough seized LiteCoin to suppress the market.

Shortly after our first report on #MoveToLiteCoin, someone traded 1600 Bitcoin for Litecoin. Last night nearly 100,000 of these were dumped on the market with almost no effect. If this was the government's attempt at stopping Litecoin in order to further their anti-bitcoin strategy, the U.S. Government can't stop Bitcoin.

We expect to see Bitcoin prices to fall through June 30th and Litecoin prices to rise. After the U.S. Marshals Bitcoin dump is over the media will run press release driven stories on "Bitcoin's crash." Review both Bitcoin and Litecoin prices to prove that Bitcoin is just too flexible to stop due to its alternative cryptocurrency partners. Even if Bitcoin prices fall, watch as Bitcoin quickly rebounds as investors return from their #MoveToLiteCoin.

Friday, June 13, 2014

#MoveToLiteCoin #DefundTheFeds Bitcoin Response to Silk Road Auction


The Bitcoin community is responding to the auction of seized Silk Road coins by moving money into LiteCoin and other alternative coins. The government agencies selling seized coins are seen to be "dumping" them on the market in an effort to suppress the internet currency and it is has sparked outrage.  Instead of allowing the government agencies to profit, the community is taking action by moving money via exchanges around the world. The money is being put into so-called "alt coins", led by the second largest cryptocurrency, LiteCoin.

Thus far the Bitcoin fell from $648.89 to $560, with a rebound to $589 as of posting of this article. If this campaign takes hold you might expect further reductions in price, accompanied by increases in LiteCoin and other cryptocurrencies.

Social media hubs like twitter and reddit, alongside bitcoin community forums and exchange chat areas are being used to organize the movement. Hashtags include:

Move To LiteCoin
Move To LiteCoin


U.S. Civil Asset forfeiture law allows departments that seize cash and other assets to use it for various expenses. This is incentive for the law enforcement agencies to sell assets or spend seized cash, but without the rigor of traditional due process.  For instance, if you are a U.S. citizen carrying $10,000 in cash, it must be declared or it is subject to seizure. If seized, you must prove that it is yours and how you earned it. The legal system may not be impartial in the process because it can use the cash.
"80% of people whose property was seized by the federal government were never charged with a crime. Forfeiture proceedings are brought not against people, but against property that law enforcement need only allege is connected to criminal activity. "
Silk Road bitcoins were seized by the U.S. Marshals Service from servers and 29,656 ($17,793,600) are to be auctioned. These coins are to be sold on June 27th over a 12-hour period to anyone willing to put up $200,000 as a deposit. Additionally, 144,341 ($86,604,600) bitcoins were seized from "Dread Pirate Roberts" or Ross William Ulbricht, the operator of Silk Road. Until recently, these coins were not available for law enforcement to sell on the market because they were unable to crack the encrypted password protection. Bitcoin proponents have pointed to this as proof that bitcoin is more secure than assets held in banks. Mr. Ulbricht apparently gave up this password as the coins have recently been moved into a new wallet.

All bitcoin transactions are tracked automatically via the blockchain, so we can view the two accounts which held the Silk Road seized coins. DPR Seized Coins were moved to DPR Seized Coins 2 on July 12, 2014 in an apparent "shot over the bow" of the bitcoin community by the U.S. Government.  Unfortunately the bureaucrats failed to realized that this warning shot might have consequences.

Money for fleets of shiny new government vehicles, huge salary bonuses and bloated expense accounts may now evaporate when the government attempts to cash in.  Undoubtedly, some government social media workers will then begin pushing a narrative that bitcoin is "unstable" as they did after someone sold down the price of bitcoin to $102, likely due to a trading glitch.  However, the price rebounded in minutes after that incident, which is not widely reported. The #MoveToLiteCoin campaign intends for the price of bitcoin to resume it's epic rise when the alt coin money returns.

Some of the coins being used as repositories of crypto-wealth include: Litecoin, NameCoinDogeCoin





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