Michael Krieger

My name is Michael Krieger, and I am the creator and editor of Liberty Blitzkrieg. I'm originally from New York City.

As far as my academic and professional background, I attended college at Duke University where I earned a double major in Economics and Spanish. After completing my studies in 2000, I took a job at Lehman Brothers where I worked with the Oil analyst in the Equity Research Department.  In 2005, I joined Sanford C. Bernstein where I served as the Commodities Analyst on the trading floor. About halfway through my time there, I started to branch out and write opinions on bigger picture "macro" topics that no one else at the firm was covering. These opinion pieces were extremely popular throughout the global investment community, and I traveled around providing advice to some of the largest mutual funds, pension funds and hedge funds in the world.

I loved my job, but as time passed I started to educate myself about how the monetary and financial system functions and what I discovered disgusted me. I no longer felt satisfied working within the industry, and I resigned in January 2010.  At that point, I started a family investment office and continued to write macro pieces on economic, social and geopolitical topics. That summer, I drove cross country for six weeks and ultimately decided to leave the crowded streets of Manhattan for the open spaces of Boulder, Colorado, where I currently reside.

In the years that followed, I gradually recognized that my true passion centers upon writing on issues of significant societal importance given the extremely challenging times we live in. This realization culminated with me losing interest in financial markets and eventually launching this website in early 2012.

If you are interested in a more detailed description, replete with colorful anecdotes, of how I ended up making this bizarre professional transition, take the time to watch the video below.

https//www.youtube-nocookie.com/embed/DcqMN-FXCIE?rel=0

In Liberty,
Michael Krieger

As its Currency Collapses, India Doubles Down on Big Brother Surveillance

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What’s a clueless government trying to micromanage the affairs of over a billion people supposed to do when the wheels start coming off the wagon? If you’re India, you blame the country’s financial and societal woes on the buying of gold and attempt to prevent people from purchasing it. When that doesn’t work, and your currency continues to collapse, then what?

Well, you decide to double down on a surveillance state. That’s precisely what the enlightened government bureaucrats at India’s Ministry of Home Affairs (MHA) have decided to do. From The Hindu:

Amid a raging global debate on privacy versus surveillance, monitoring and use of intrusive technologies by governments, the Directorate of Forensic Sciences in the Ministry of Home Affairs (MHA) is set to purchase a range of equipment and software that will allow it to conduct deep search, surveillance and monitoring of voice calls, SMS, email, video, Internet, chat, browsing and Skype sessions on an unprecedented scale.

The MHA document of July 12, 2013 also lists software-based tool kits for logical level analysis of GSM and CDMA mobile phones — which will comprehensively cover phones and SIMs used by India’s 860 million subscribers across 2G and 3G networks. This will be capable of extracting the phone’s basic information and SIM card data, including in your phonebook and contact list, call logs, caller group information, organizer, notes, live and deleted SMSs, web browser artifacts, multimedia and email messages with attachments, multimedia image audio and video files and details of installed applications, their data, traffic and sessions log. It will allow access to iPhone backup analysis, including those which are password protected. Blackberry, considered safe by unsuspecting users, will also be fair game, since it will support Blackberry IPD backup analysis, even when password protected.

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Bitcoin is Recognized as “Private Money” in Germany

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We should have competition in the production of money. I have long been a proponent of Friedrich August von Hayek scheme to denationalize money. Bitcoins are a first step in this direction.

– Frank Schaeffler, member of German parliament’s Finance Committee

The story of the German Finance Ministry stating Bitcoin is a form of “private money” has been making the rounds all over the virtual currency and technology world this morning and for good reason. This is a very, very big deal. Not just because some bureaucrat seemingly “legitimizes” the crypto-currency, but because it is the first commonsense approach from a major economy to-date.

While the U.S. government runs around like a chicken with its head cut off, issuing subpoenas and launching Senate investigations on Bitcoin, Germany is merely accepting the obvious. This is the wave of the future, you can either act like an incorrigible child and fight it, or you can accept reality and pave the way to the future. I’m pleased to see Germany, home to the most dynamic Bitcoin community on the planet, in Kreuzberg, taking a reasonable approach. Not to mention the fact I could never see a U.S. bureaucrat ever endorse Hayek or Austrian economics. The times they are a-changin’. From CNBC:

Virtual currency bitcoin has been recognized by the German Finance Ministry as a “unit of account”, meaning it is now legal tender and can be used for tax and trading purposes in the country.

Bitcoins is not classified as e-money or a foreign currency, the Finance Ministry said in a statement, but is rather a financial instrument under German banking rules. It is more akin to “private money” that can be used in “multilateral clearing circles”, the Ministry said.

“We should have competition in the production of money. I have long been a proponent of Friedrich August von Hayek scheme to denationalize money. Bitcoins are a first step in this direction,”said Frank Schaeffler, a member of the German parliament’s Finance Committee, who has pushed for legal classification of bitcoins.

Schaeffler said the new ruling showed German authorities were preparing regulations on how to tax bitcoin transactions. According to German newspaper Die Welt, the government has stated that the legal classification of bitcoin means that commercial profits that stem from using the currency may be taxable.

Kathleen Brooks, a research director at FOREX.com, told CNBC that classification by the German government gave bitcoin legitimacy to be used as a settlement currency in one of the world’s largest economies. She said this was a big step forward for the bitcoin movement.

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Do Not Fly…Through London: Glenn Greenwald’s Partner Detained For 9 Hours, Electronics Confiscated

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A month ago, I wrote a piece titled: If Flying into the UK, Your Phone Can Be Seized and Data Downloaded Without Suspicion. As you might suspect, the focus of the piece was something called schedule 7 of the UK’s Terrorism Act of 2000, which allows authorities to stop and search  people “without prior authorization or reasonable suspicion.” Not only that, they are not automatically permitted access to legal counsel during the interrogation and they must cooperate. Oh, and your electronic devices can be confiscated.

I chose to write that article at the time to highlight the myriad ways it could be grossly abused. Well now we a very high profile example of such abuse as Glenn Greenwald’s partner, David Miranda was stopped for nine hours (the maximum allowed), his electronics were confiscated, and we have no explanation from the Home Office as to why he was considered a terrorist threat.

Here’s an idea for investigative journalists and activists worldwide. Do not fly through the UK unless you absolutely have to. More from The Guardian:

The partner of the Guardian journalist who has written a series of stories revealing mass surveillance programmes by the US National Security Agency was held for almost nine hours on Sunday by UK authorities as he passed through London’s Heathrow airport on his way home to Rio de Janeiro.

David Miranda, who lives with Glenn Greenwald, was returning from a trip to Berlin when he was stopped by officers at 8.05 am and informed that he was to be questioned under schedule 7 of the Terrorism Act 2000. The controversial law, which applies only at airports, ports and border areas, allows officers to stop, search, question and detain individuals.

The 28-year-old was held for nine hours, the maximum the law allows before officers must release or formally arrest the individual. Accordingto official figures, most examinations under schedule 7 – over 97% – last under an hour, and only one in 2,000 people detained are kept for more than six hours.

Miranda was released, but officials confiscated electronics equipment including his mobile phone, laptop, camera, memory sticks, DVDs and games consoles.

“This is a profound attack on press freedoms and the news gathering process,” Greenwald said. “To detain my partner for a full nine hours while denying him a lawyer, and then seize large amounts of his possessions, is clearly intended to send a message of intimidation to those of us who have been reporting on the NSA and GCHQ. The actions of the UK pose a serious threat to journalists everywhere.

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Another Obama Lie: The Secret FISA Court Admits it isn’t Capable of Oversight

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This program, by the way, is fully overseen not just by Congress, but by the FISA Court — a court specially put together to evaluate classified programs to make sure that the executive branch, or government generally, is not abusing them, and that it’s being carried out consistent with the Constitution and rule of law.

– President Barack Obama on June 7, 2013 (transcript here)

The leader of the secret court that is supposed to provide critical oversight of the government’s vast spying programs said that its ability to do so is limited and that it must trust the government to report when it improperly spies on Americans.

– Washington Post article: Court: Ability to police U.S. spying program limited

I originally used the very top quote in my piece a month ago titled: Meet the Secret Supreme Court of the United States. In it, I pointed out how entirely ridiculous it is for Obama to tell us to rest assured there is oversight on the NSA spying as a result of the FISA Court, a secret court with secret “classified” rulings. Well now we find out that it is even more ridiculous than that, as the leader of the secret court itself admits it is incapable of doing its job. So is Barack Obama just completely clueless, or is he a pathological liar? You know what I think. From the Washington Post:

The leader of the secret court that is supposed to provide critical oversight of the government’s vast spying programs said that its ability to do so is limited and that it must trust the government to report when it improperly spies on Americans.

“The FISC is forced to rely upon the accuracy of the information that is provided to the Court,” its chief, U.S. District Judge Reggie B. Walton, said in a written statement to The Washington Post. “The FISC does not have the capacity to investigate issues of noncompliance, and in that respect the FISC is in the same position as any other court when it comes to enforcing [government] compliance with its orders.”

The court’s description of its practical limitations contrasts with repeated assurances from the Obama administration and intelligence agency leaders that the court provides central checks and balances on the government’s broad spying efforts. They have said that Americans should feel comfortable that the secret intelligence court provides robust oversight of government surveillance and protects their privacy from rogue intrusions.

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Texas SWAT Team Raids Organic Farm for No Reason

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The increasing use of SWAT teams across these United States is completely and totally incompatible with a free and civilized society. As I mentioned in my recent article about how there are now 50,000 SWAT raids in America annually, many of these military-styled operations target nonviolent offenders, and are often merely money making rackets for … Read more

Meet the NSA’s “Fat Finger”

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James R. Clapper Jr., the director of national intelligence, has acknowledged that the court found the NSA in breach of the Fourth Amendment, which prohibits unreasonable searches and seizures, but the Obama administration has fought a Freedom of Information lawsuit that seeks the opinion.

Generally, the NSA reveals nothing in public about its errors and infractions. The unclassified versions of the administration’s semiannual reports to Congress feature blacked-out pages under the headline “Statistical Data Relating to Compliance Incidents.”

From the Washington Post’s groundbreaking article from last evening

For those of you not familiar with Wall Street lingo, people in the financial industry refer to an outsized move in the markets resulting from a human error as a “fat finger,” ie someone pressed the wrong key when placing an order. Unfortunately for us all, it appears the NSA has a surveillance fat finger. Who would’ve guessed it!

In this case, I am referring to last night’s Washington Post article in which the paper reveals that the NSA intercepted a “large number” of calls within the Washington D.C. area supposedly because they mistook D.C.’s area code with the country code of Egypt. Um, ok.

However, that’s just the tip of the iceberg. There are countless disturbing revelations outlined in this article, one that was based on documents provided by Edward Snowden, the gift that keeps on giving. Another disturbing fact is that the NSA appears to have purposely withheld information from the parties that are supposed to be overseeing it in order to hide its crimes. Oh, and Mr. President of Transparency Obama is fighting to prevent the public from seeing the opinion of the FISA court that states NSA activities are unconstitutional.  More from the Washington Post:

The documents, provided earlier this summer to The Washington Post by former NSA contractor Edward Snowden, include a level of detail and analysis that is not routinely shared with Congress or the special court that oversees surveillance. In one of the documents, agency personnel are instructed to remove details and substitute more generic language in reports to the Justice Department and the Office of the Director of National Intelligence.

In one instance, the NSA decided that it need not report the unintended surveillance of Americans. A notable example in 2008 was the interception of a “large number” of calls placed from Washington when a programming error confused the U.S. area code 202 for 20, the international dialing code for Egypt, according to a “quality assurance” review that was not distributed to the NSA’s oversight staff.

In another case, the Foreign Intelligence Surveillance Court, which has authority over some NSA operations, did not learn about a new collection method until it had been in operation for many months. The court ruled it unconstitutional.

The Obama administration has provided almost no public information about the NSA’s compliance record. In June, after promising to explain the NSA’s record in “as transparent a way as we possibly can,” Deputy Attorney General James Cole described extensive safeguards and oversight that keep the agency in check. “Every now and then, there may be a mistake,” Cole said in congressional testimony.

I suppose in NSA lingo “every now and then” means thousands of times a year.

“We’re a human-run agency operating in a complex environment with a number of different regulatory regimes, so at times we find ourselves on the wrong side of the line,” a senior NSA official said in an interview, speaking with White House permission on the condition of anonymity.

Anonymity for them, transparency for us!

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Retired Marine Colonel to New Hampshire City Council: “We’re Building a Domestic Army”

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We’re building a domestic army and we’re shrinking the military, because the government is afraid of its own citizens. The last time more than 10 terrorists were in the same place at one time was September 11th, and all these vehicles in the world wouldn’t have prevented it, nor would it have helped anybody. So I don’t know where we are going to use this many vehicles and this many troops…We’re building an army over here and I can’t believe people aren’t seeing it. Is everybody blind?

– Retired Marine Colonel Peter Martino

The above quote is taken from a powerful 4 minute video taken at a Concord, NH council meeting to discuss whether or not the city should proceed with a request to obtain a BearCat G3 armored vehicle. I reported on the controversy behind this vehicle request earlier in the week, after the city’s application was made public and showed officials explained it was needed to deal with “domestic terrorists,” which included libertarians and Occupy New Hampshire.

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Chart of the Day: DuckDuckGo

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A month ago, I highlighted the explosive growth in privacy focused search engine DuckDuckGo. At the time, I also stated that I would start using it for my searches to see how it goes. Well I am very pleased to report that I have now successfully conditioned myself to use this search engine for about … Read more

A Broken, Corrupt and Immoral Criminal Justice System

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You know that the rule of law has essentially vanished when the Attorney General himself feels compelled to state: “America’s legal system, we must face the reality that, as it stands, our system is in too many respects broken.” That is precisely what Eric Holder stated earlier this week, while seemingly taking no responsibility for that fact despite being the top lawyer in the nation. Guess he was too busy protecting his banker masters from prosecution to notice.

In any event, the broken criminal justice system really took center stage earlier this year when the federal prosector Carmen Ortiz drove child prodigy Aaron Swartz to his death by piling on overzealous charges in an attempt to advance her career. Instead she drove a gentle genius to an untimely death. Kudos Ortiz.

In light of Holder’s comment, Bloomberg columnist Clive Crook wrote an excellent article outlining some of the main attributes of out increasingly Kafkaesque legal system. Here are some key excerpts:

“As a prosecutor, a judge, an attorney in private practice, and now, as our nation’s attorney general, I’ve seen the criminal justice system firsthand, from nearly every angle. While I have the utmost faith in — and dedication to — America’s legal system, we must face the reality that, as it stands, our system is in too many respects broken.”

In a widely reported speech this week, Eric Holder delivered that assessment of U.S. criminal justice. Many commended his frankness, but if you ask me he’s confused. A broken system of justice shouldn’t command the utmost faith; it should arouse the utmost skepticism. And his appraisal was actually too generous. America’s criminal-justice system is not “in too many respects broken”: It’s a national disgrace, from top to bottom.

According to a forthcoming report from the American Civil Liberties Union, 2,074 federal inmates are serving sentences of life imprisonment without possibility of parole for nonviolent crimes. Think about that.

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Welcome to the Silk Road: A Mind-Blowing Interview with Dread Pirate Roberts

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An entrepreneur as professionally careful as the Dread Pirate Roberts doesn’t trust instant messaging services. Forget phones or Skype. At one point during our eight-month preinterview courtship, I offer to meet him at an undisclosed location outside the United States. “Meeting in person is out of the question,” he says. “I don’t meet in person even with my closest advisors.” When I ask for his name and nationality, he’s so spooked that he refuses to answer any other questions and we lose contact for a month.

All my communications with Roberts are routed exclusively through the messaging system and forums of the website he owns and manages, the Silk Road… “The highest levels of government are hunting me,” says Roberts. “I can’t take any chances.”

– From Forbes’ recent article on the Silk Road

Most of my readers have probably heard of the Silk Road. No, not the historical trade routes that linked Europe to Asia, but rather the online illegal drug marketplace accessible only via anonymity browsing software Tor, and where the only currency accepted is Bitcoin.

Those of you who have heard about it, probably know far less about the man that runs it. A character who only goes by the name Dread Pirate Roberts. He’s a character who usually stays firmly in the shadows for obvious reasons, but who has come out and done an excellent interview with Andy Greenberg of Forbes. What follows are some of the more interesting exchanges. From Forbes:

An entrepreneur as professionally careful as the Dread Pirate Roberts doesn’t trust instant messaging services. Forget phones or Skype. At one point during our eight-month preinterview courtship, I offer to meet him at an undisclosed location outside the United States. “Meeting in person is out of the question,” he says. “I don’t meet in person even with my closest advisors.” When I ask for his name and nationality, he’s so spooked that he refuses to answer any other questions and we lose contact for a month.

All my communications with Roberts are routed exclusively through the messaging system and forums of the website he owns and manages, the Silk Road. Accessing the site requires running the anonymity software Tor, which encrypts Web traffic and triple-bounces it among thousands of computers around the world. Like a long, blindfolded ride in the back of some guerrilla leader’s van, Tor is designed to prevent me–and anyone else–from tracking the location of Silk Road’s servers or the Dread Pirate Roberts himself. “The highest levels of government are hunting me,” says Roberts. “I can’t take any chances.”

By the measure of Carnegie Mellon researcher Nicolas Christin, Roberts’ eBay-like service was grossing $1.2 million a month in the first half of 2012. Since then the site has doubled its product listings, and revenue now hits an annual run-rate of $30 million to $45 million by FORBES’ estimate.

Roberts also has a political agenda: He sees himself not just as an enabler of street-corner pushers but also as a radical libertarian revolutionary carving out an anarchic digital space beyond the reach of the taxation and regulatory powers of the state–Julian Assange with a hypodermic needle.

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