Government Blockchains and the Quantum Hack

Former ‘Plunge Protection Team’ Member Warns “Blockchain Is Freaking Governments Out”

by Tyler Durden
Jul 24, 2017

Dr. Pippa Malmgren, a US policy analyst and former member of the Working Group on Financial Markets, a government entity better known by its nickname, the “Plunge Protection Team,” appeared on Erik Townsend’s MacroVoices podcast to discuss bitcoin and the European refugee crisis …

Malmgren said she’s been closely following the increasing use of cryptocurrencies, adding that they will likely play a role in determining who dominates the global economy, and therefore determines the monetary framework, after precipitating the next big paradigm shift, which will lead the world away from the dollar-based framework that exists today.

Governments like China and Russia, which are seeking to create their own digital currencies, pose a greater threat to the long-term dominance of the dollar than they, or the US, realize. … (Cryptocurrency) is almost going through a complete transformation where now we have the Ethereum guy, I forget his name (Vitalik Buterin), meeting with Putin talking about some kind of partnership to create a digital crypto currency that will become a national currency for Russia. Meanwhile, PBOC is advertising to hire block chain engineers to help to design the digital yuan or digital RMB … saying it was time for central banks to stop ignoring crypto currencies and recognize that we have got to take the lead and we have got to be in charge of these things and design what we want them to be. Where is this going? It seems like to me this is a game changer if national governments are going to get behind crypto currencies. …

If the size of your debt problem is so big that it can’t be paid off (or through inflation) default on your debt slowly over time, … then there is one further option. And that is you literally abandon the entire system of money, and accounting. … Today, we are on the brink of (such a) step change, and the way you will do it is you move to electronic money in conjunction with blockchain. Blockchain is the new ledger, and e-money is the new currency. …

So everybody in government circles have been watching the Indian experience because the prime minister stepped up to the platform in early November and basically said we are going to move all of you, a billion people, off paper money and onto electronic money, and we are going to do it in three months. They did it, and they did it successfully.

Now governments everywhere are saying we want to do that because, guess what happens when you move to e-money. First of all, you really eliminate the black market because you can’t transact anymore without it being seen. And so, for example, the European Union are talking heavily about moving to electronic money because then all this black market activity that happens in Greece and Italy where there’s no tax, we will be able to get all that tax revenue off it. That’s one reason. The second reason is with blockchain you have total transparency over every single step of a transaction … . I think this is where governments are suddenly a little schizo because on the one side they think they are going to have the ability to see every transaction that you and I and all the listeners are engaged in, but Ethereum has created this platform where actually they won’t necessarily be in government’s hands, maybe in private hands. …

So governments are being (sic) to say let’s create our own version, and that’s where you get the PBOC saying we’ve got to control this. Because otherwise, you are going to end up with private sector currencies that possibly are trusted more than government currencies, and that will lead to transactions offline that governments can’t see (or tax). That freaks governments out to say the least, particularly given their debt situation. So I think this is a huge, huge thing … .

I will say one last thing about it. … We now have quantum computers. The Chinese apparently have the fastest. … Basically you can break a block chain password or a Bitcoin password in like less than a minute if you have a quantum computer. The question is who is going to have them, and the answer is mainly governments but … we are going to see major corporations buying that computer power.

The question then is who has most transparency over the block chain and e-money, and I would argue it is going to be whoever has the most and fastest processing  power … .

See Also: Meet the New Money

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The Russian Mob Hack

Craig Unger, writing for the New Republic (7/13/17), points out that there really are connections, at least in the past (and so possibly in the present) between Trump and the Russians. But he is not referring to the Russian government. He means the Russian mob.

He starts out with David Bogatin, who as it turns out, was a top figure in the Russian mob in New York, who’s brother was “feared even by his fellow gangsters as the most powerful mobster in the world … (Trump’s Russian Laundromat).” Bogatin was an early customer of the Trump Tower apartments .

Unger says, “When Trump Tower was built … it was only the second high-rise in New York that accepted anonymous buyers (Quoting The Making of Donal Trump, by David Cay Johnson, ).” He says that, “In 1984, a Russian émigré named David Bogatin went shopping for apartments in New York City (and) plunked down $6 million to buy not one or two, but five luxury condos,” in Trump Tower. Later, “after he fled the country, the government seized his five condos at Trump Tower, saying that he had purchased them to “launder money, to shelter and hide assets.” (Unger)

According to Jonathan Winer, deputy assistant secretary of State for international law enforcement during the 1990s, Bogatin was not the only one who did this. Unger quotes Winer as saying, “During the ’80s and ’90s, we in the U.S. government repeatedly saw a pattern by which criminals would use condos and high-rises to launder money … . It was done very systematically, and it explained why there are so many high-rises where the units were sold but no one is living in them (Unger).”

Trump, seeing his success with Trump Tower, expanded his enterprise. In 2001, the Trump World Tower, in Manhattan, was completed. At 72 floors, it was the tallest residential building in the world. This building, too, was successful; and it attracted the same clientelle. Quoting Bloomberg Businessweek, Unger writes, “it wasn’t long before one-third of the units on the tower’s priciest floors had been snatched up—either by individual buyers from the former Soviet Union, or by limited liability companies connected to Russia. … Trump had found his market. … All he needed to do, it seemed, was slap the Trump name on a big building, and high-dollar customers from Russia and the former Soviet republics were guaranteed to come rushing in. Dolly Lenz, a New York real estate broker, told USA Today that she sold some 65 units in Trump World Tower to Russians. ‘I had contacts in Moscow looking to invest in the United States,’ Lenz said. ‘They all wanted to meet Donald.’ (Unger).

Expanding on this business model, “Trump struck a deal with a Florida developer to attach his name to six high-rises in Sunny Isles, just outside Miami. … So many (“Russian-speakers”) bought the Trump-branded apartments, in fact, that the area became known as ‘Little Moscow.’ (Unger)” A third of the Trump branded properties in South Florida, “were bought by shadowy shell companies that concealed the true owners.” Since then, “At least 13 buyers in the Florida complex have been the target of government investigations, … including ‘members of a Russian-American organized crime group.’ Two buyers in Sunny Isles, Anatoly Golubchik and Michael Sall, were convicted,” for crimes involving the Russian mafia (Unger).”

He goes on that,

A review of the public record reveals a clear and disturbing pattern: Trump owes much of his business success, and by extension his presidency, to a flow of highly suspicious money from Russia. Over the past three decades, at least 13 people with known or alleged links to Russian mobsters or oligarchs have owned, lived in, and even run criminal activities out of Trump Tower and other Trump properties. Many used his apartments and casinos to launder untold millions in dirty money. Some ran a worldwide high-stakes gambling ring out of Trump Tower—in a unit directly below one owned by Trump. Others provided Trump with lucrative branding deals that required no investment on his part. Taken together, the flow of money from Russia provided Trump with a crucial infusion of financing that helped rescue his empire from ruin, burnish his image, and launch his career in television and politics. “They saved his bacon,” says Kenneth McCallion, a former assistant U.S. attorney in the Reagan administration who investigated ties between organized crime and Trump’s developments in the 1980s (Unger).

Maybe Trump didn’t know he was dealing with Russian oligarchs and mobsters. Maybe he didn’t want to know. But with his, “well-documented troubles with creditors, Trump made an easy ‘mark’ for anyone looking to launder money. … The public record makes clear that Trump built his business empire in no small part with a lot of dirty money from a lot of dirty Russians—including the dirtiest and most feared of them all,” Semion Mogilevich, “whom the FBI considers the ‘boss of bosses’ of the Russian mafia (Unger).”

Those were Trumps dealings with Russians in the United States. But what, if any, dealings did Trump have in Russia and its satellites directly? A few years before the collapse of the Soviet Union, Trump was, “flown to Moscow and Leningrad—all expenses paid—to talk business with high-ups in the Soviet command about building a large luxury hotel, across the street from the Kremlin, in partnership with the Soviet government (Unger).”

Once the Soviet Union fell in 1991, the “shift to a market economy was so abrupt that cash-rich gangsters and corrupt government officials were able to privatize and loot state-held assets … . (President) Yeltsin himself, in fact, would later describe Russia as ‘the biggest mafia state in the world.'” The fact that, “some $1.3 trillion in illicit capital has poured out of Russia since the 1990s,” gives some idea of the enormity of this crime against the Russian people … (Unger).”

During this time,

Trump and his sons (developed the) connections he had begun to make with the Kremlin—and with the wealthy Russians who would buy so many of his properties in the years to come. “Russians make up a pretty disproportionate cross section of a lot of our assets,” Donald Trump Jr. boasted at a real estate conference in 2008. “We see a lot of money pouring in from Russia.”

Now this crime syndicate has infiltrated the Russian government itself, and probably others.

After Vladimir Putin succeeded Yeltsin as president, Russian intelligence effectively joined forces with the country’s mobsters and oligarchs … . At the top of the sprawling criminal enterprise was Semion Mogilevich. … “He uses this wealth and power to not only further his criminal enterprises,” the FBI says, “but to influence governments and their economies (Unger).”

In 2004, Trump Launched his T.V. show,  The Apprentice (apparently code for Trump does Russia’s Dirty Laundry), which according to the book, Trump Revealed, painted Trump as, “supremely competent and confident, dispensing his authority and getting immediate results. The analogy to politics was palpable.” (as quoted by Unger). “But the story of Donald Trump, self-made business genius, left out any mention of the shady Russian investors who had done so much to make his comeback narrative possible Unger.” What a surprise.

Then, during his 2006 season finale, Trump announced to his 11 million viewers plans for his Trump International Hotel and Tower in SoHo. “Trump SoHo was the brainchild of two development companies—Bayrock Group LLC and the Sapir Organization—run by a pair of wealthy émigrés from the former Soviet Union … (Unger).” Well, “his” may be too strong a term. “The developers would finance and build Trump SoHo themselves. In return for lending his name to the project, Trump would get 18 percent of the profits … . Trump SoHo ultimately had to be foreclosed and resold.” But the foreclosure is not the real story. The story lies in the people involved.

According to the FBI, Tamir Sapir, of the Sapir Organization (one of the developers), had previously proven his ties to the Russian mob when he co-founded a company with a New York mob member. While setting up the SoHo deal, Sapir introduced Trump to Tevfik Arif, the founder of the other developer in the SoHo project, the Bayrock Group.

In 2002, after meeting Trump, (Arif) moved Bayrock’s offices to Trump Tower … . Trump worked closely with Bayrock on (other) real estate ventures in Russia, Ukraine, and Poland. “Bayrock knew the investors (mobsters),” he later testified. Arif “brought the people up from Moscow to meet with me.”

(Furthermore,) Bayrock (according to Forbes and other publications) was financed by a notoriously corrupt group of oligarchs known as The Trio. … According to a lawsuit … , Arif started the firm “backed by oligarchs and money they stole from the Russian people.” In addition, the suit alleges, Bayrock “was substantially and covertly mob-owned and operated … to launder money and evade taxes. The lawsuit, which is ongoing, does not claim that Trump was complicit ….

After examining title deeds, bank records, and court documents, the Financial Times concluded that Trump SoHo had “multiple ties to an alleged international money-laundering network.”  (Unger)

The controlling partner in Bayrock was Felix Sater, who according to the FBI is the son of a Russian mob boss in New York. In 1998 Sater had to plead guilty to racketeering and turn informant due to “operating a ‘pump and dump’ stock fraud in partnership with alleged Russian mobsters that bilked investors of at least $40 million. … By Sater’s account, in sworn testimony, he was very tight with Trump.”

According to Unger, Sater said,

He flew to Colorado with him, accompanied Donald Jr. and Ivanka on a trip to Moscow at Trump’s invitation, and met with Trump’s inner circle ‘constantly.’ In Trump Tower, he often dropped by Trump’s office to pitch business ideas—’just me and him.’  (Unger)

Sater says he was close to Trump, but what does Trump say?

Trump seems unable to recall any of this. “Felix Sater, boy, I have to even think about it,” he told the Associated Press in 2015. Two years earlier, testifying in a video deposition, Trump took the same line. If Sater “were sitting in the room right now,” he swore under oath, “I really wouldn’t know what he looked like.” He added: “I don’t know him very well, but I don’t think he was connected to the mafia. …  (Unger)

But Trump’s deeds belie his words.

Even after The New York Times revealed Sater’s criminal record in 2007, he continued to use office space provided by the Trump Organization (and) in 2010, he was even given an official Trump Organization business card that read: FELIX H. SATER, SENIOR ADVISOR TO DONALD TRUMP.  (Unger)

Surely a businessman operating at Trump’s level would vet senior advisors. One would have to say that Trump gave Sater these privileges knowingly.

And, if the media can still be believed now that Trump is president and they have evidently melted down, Sater remains a back-channel for the Trump-Russia connection  to this day.

Earlier this year, one week before National Security Advisor Michael Flynn was fired for failing to report meetings with Russian officials, Trump’s personal attorney reportedly hand-delivered to Flynn’s office a “back-channel plan” for lifting sanctions on Russia. The co-author of the plan, according to the Times: Felix Sater. …  (Unger)

Returning to reports that we may actually be able to trust because they are from before Trump’s candidacy:

In April 2013, a little more than two years before Trump (kicked) off his presidential campaign, police burst into Unit 63A of the (Trump Tower) and rounded up 29 suspects in two gambling rings. The operation … served as the headquarters for a “sophisticated money-laundering scheme” that moved an estimated $100 million out of the former Soviet Union, through shell companies in Cyprus, and into investments in the United States. The entire operation, prosecutors say, was working under the protection of (the Russian mob). …

In May, when he was interviewed by NBC’s Lester Holt, (now President) Trump seemed hard-pressed to think of a single connection he had with Russia. “I have had dealings over the years where I sold a house to a very wealthy Russian many years ago,” he said. “I had the Miss Universe pageant—which I owned for quite a while—I had it in Moscow a long time ago. But other than that, I have nothing to do with Russia.”  (Unger)

What a hoot! So Trump may really be in bed with Russia after all.  But it has nothing to do with the Russian government, except to the extent that the Russian government itself is beholden to the Russian mob. Trump’s Russian connections are mob connections. And they are still active. To read about what this cabal is up to now besides struggling with the above lawsuit, click Turning the Silk Road.

Craig Unger is a contributing editor at Vanity Fair and the author of several books, including House of Bush, House of Saud.


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The Hillary Hack

Is Russiagate Really Hillarygate?

Paul Roderick Gregory

According to an insider account, the Clinton team, put together the Russia Gate narrative within 24 hours of her defeat (to explain) her unexpected loss. … The scurrilous Trump dossier, prepared by a London opposition research firm, Orbis, and paid for by unidentified Democrat donors, formed a key part of the Clinton narrative: Trump’s sexual and business escapades in Russia had made him a hostage of the Kremlin … . If ordered and paid for by Hillary Clinton associates, … Russia Gate becomes Hillary Gate. …

Hillary and the Orbis Dossier

The Fusion story has been known since Senator Chuck Grassley (R-Iowa) sent … to the Justice Department on March 31, 2017 demanding for his Judiciary Committee all relevant documents on Fusion GPS, the company that managed the Steele dossier against then-candidate Donald Trump. Grassley writes to justify his demand for documents that: “The issue is of particular concern to the Committee given that when Fusion GPS reportedly was acting as an unregistered agent of Russian interests, it appears to have been simultaneously overseeing the creation of the unsubstantiated dossier of allegations of a conspiracy between the Trump campaign and the Russians.” (Emphasis added.)

The role of Fusion GPS and one of its key associates, a former Soviet intelligence officer, must raise the question as to whether the Steele dossier, which was orchestrated by a suspected unregistered agent of Russia, was a plant by Russian intelligence to harm Donald Trump? …

Much of the credibility of the Orbis dossier hinges on Steele’s reputation as a former M15 intelligence agent. (But) Michael Morell, the former acting CIA director, told NBC that Mr. Steele had paid the Russian intelligence sources who provided the information (and) Mr. Steele had no way to judge the veracity of their claims.” …

As someone who has read every word of the Steele Trump dossier and has studied the Soviet Union/Russia for almost a half century, I can say that … the dossier was not, as the press reports, written by Steele. … In Stalin’s day, some of the most valued KGB (NKVD) agents were called “novelists,” for their ability to conjure up fictional plots and improbable tales to use against their enemies. Some of Steele’s sources claim detailed knowledge of the deepest Kremlin secrets, such as Putin’s personal control of Clinton emails or negotiations with Putin’s head of the national oil company. If they truly had such knowledge, why would they “sell” it to Steele? The most likely explanation is that the Steele dossier is the work of Russian intelligence “novelists” charged by the Kremlin with defaming Trump and adding chaos to the American political system.

Mueller’s Difficult Task

… Special Counsel Mueller … is supposed to “investigate Russia’s intervention in the 2016 election.” Given the many accounts of Russian contacts of Trump campaign officials … apparently have lead nowhere over a nine month investigation … , (Murller) should not require much time to rule out coordination between the Trump campaign and Russia state actors. …

On the Clinton/Democratic side, there are a number of unanswered questions related to Russian electoral intervention. Among them is the question of whether the “wiped clean” Clinton e-mails are in Russian hands (as asserted by the Steele dossier), whether  the tarmac meeting of Bill Clinton and the Attorney General quashed the investigation of Hillary’s e-mails, and whether the Clintons and Russian uranium interests engaged in quid pro quo and “pay to play” operations. 

The most important unanswered question is whether the Clinton campaign funded the Orbis Trump smear campaign and did they understand the campaign could be conducted by Russian intelligence? …

The Fusion-Steele matter is explosive because it suggests that Russia’s most damaging intervention in the 2016 campaign may have been its creation of the Steele Dossier, remarkably paid for by the Clinton campaign! If so, the Clinton campaign (not Trump) was the prime sponsor of Russia’s intervention in the 2016 election.

See Also:

Trump Jr. and the Honey Trap

Down the Rabbit Hole in the Middle East with Trump

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Trump Jr. and the Honey Trap

Rush Limbaugh offered some excellent points last week, I thought, on the latest media outrage over Trump team collusion with the Russians to hack the election.

The news media was all over itself with joy over the discovery that in June of 2016 Trump Jr. met with a Russian lawyer, Natalia Veselnitskaya, in the hope of getting “official documents and information that would incriminate Hillary and her dealings with Russia” and using that against the Clinton campaign.

Here is what happened: A British publicist named Rob Goldstone emailed Junior claiming she had this Russian-sourced information to offer (which he now denies even though the entire email thread has been made available by Junior). The DOJ gave her a specially expedited visa to enter the country (to participate in a lawsuit, “and nothing more”), and while here she met with Junior, Kushner and some others. But, they say, she had nothing.

This is where Limbaugh’s comments come in. First, the fact that Junior and Kushner took the bait indicates that prior to June of 2016 there had been no Trump-Russia collusion. If there had been, then they would have already had access to what she claimed to offer and they would have declined the meeting. So no collusion before June of 2016. Second, since her well of information came up dry, there was no collusion with the Russians, based on her as the source, after June of 2016. And since none of the other smoking guns that the media has dredged up to prove this collusion proved any shots actually fired, this leaves the media with nothing but air for all of the 2016 campaign. If it proves anything, it proves the opposite of what they hoped. It proves there was no Russian collusion: None before June, none resulting from the June meeting, and they had already proven there was none from other sources after the meeting.

But that has not stopped them from pounding their allegations into our ears ad nauseam. If the media has suddenly gone silent on this, the following is possibly why, according to ZeroPointNow at ZeroHedge. If you are looking for collusion here, it is on the other side of the aisle: Goldstone (the publicist that approached Trump Jr.) is the co-founder of Fusion GPS. This is the same firm that was, “behind the largely discredited 35 page Trump-Russia dossier.” It is the firm that,

During the 2016 US election, … hired former British spy Christopher Steele to produce the 35 page dossier, accusing then-candidate Donald Trump of all sorts of salacious dealings with Russians. When Steele couldn’t verify it’s claims, the FBI refused to pay him $50,000 for the report – which didn’t stop John McCain from hand-delivering it to former FBI director James Comey, or the Obama Administration from using it to start spying on Trump associate Carter Page.”

ZeroPointNow quotes the Independent reporting that Fusion GPS,

“according to public reports, was retained by Democratic operatives to develop opposition research on the President and which commissioned the phony Steele dossier.” -Mark Corallo

Fusion GPS was attempting to paint the Trump campaign with the false allegations of the Trump-Russia dossier at essentially the same time they were setting up a meeting with Trump Junior to bait them into actual Trump-Russia collusion? Does this not look like a honey trap?

It does, and they fell at least partially in, when they took the meeting. It was perhaps only lucky for them that there was nothing there that could work with. So Fusion GPS has, finally, along with the Deep State and their leaks and co-conspiring journalists, proven for us (without meaning to) that there was no Trump-Russia collusion to hack the election. I wonder, will they give it up now? Does that seem likely to anybody?

So that is point number one. Point number two is that it is possible the Trump team declined to work with Ms. Veselnitskaya’s information not because it was not damaging to the Clinton campaign, but because it may have pointed not only to the Clintons, the Clinton Foundation, and/or the DNC, but also to questionable dealings prior to the campaign between shady Russian business moguls and the Trump team. She was there to get the Magnitsky Act (enacted by Congress in late 2012)  softened or repealed. Once elected, Trump actually came out strongly in favor of this law. Certainly if his election were the fruit of a Russian hack this would not be the case. “Overturning the Magnitsky Act is probably at or near the top of the list of Russian foreign policy objectives vis a vis the United States,” says Rolling Stone.

When the Trump team describes the information she offered as “inane nonsense”, though, it seems a bit pejorative for the case. Her information does not appear inane. It is if anything a bit weak on damning the Clintons, and besides points fingers in too many directions. But it is not inane. So why the slur? And why after this “unmeeting” did the Trump Justice Department, according to Rolling Stone, settle a case for Veselnitskaya’s client, Preveson Holdings, very much in their favor. “That settlement earlier this spring,” they say, “is now highly suspicious, given this week’s revelations.” The Washington Examiner reports that in 2013,

The Obama administration’s Justice Department accused the company of laundering “some proceeds of a $230 million Russian tax refund fraud scheme involving corrupt Russian officials.” … The case brought against the Russian firm Prevezon Holdings was scheduled to go to trial in late May of 2017, but was settled just days prior. …

Democrats on the House Judiciary Committee have asked Attorney General Jeff Sessions to answer questions about his “abrupt” 2017 settlement of a fraud case involving the Russian lawyer who met with Donald Trump Jr. in 2016, and whether those two events are somehow connected. …

The Democratic letter (said) that the department may have settled the case at a loss for the United States in order to obscure the underlying facts.” …

Veselnitskaya, the lawyer who met with Trump Jr. last June in Trump Tower, worked on the case defending Prevezon in the Southern District of New York in 2016. (Dems Demand Answers)

So Veselnitskaya meets with members of the Trump campaign team, and then once elected the Trump administration acts unfavorably toward Russian government interests but favorably toward the interests of some high level Russian businessmen. Perhaps if there was collusion it was not with the government of Russia but with Russian business interests?

Hmm, that fits with some other things I’ve seen. See Trump, Turkey and the DHS

Also see The Hillary Hack


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Don’t Mess with the Clinton’s

Haiti Official who Exposed the Clinton Foundation, Found Dead in Miami

“Pilot who Heard Every World of the Clinton/Lynch Secret Meeting Breaks his Silence”; Now Dead

Oh, Hillary!

The following may not be responsibility of the Clintons … directly. Well anyway, the real problem is the “syndicate” they represent.

The Definitive Seth Rich Murder

Scalise Assassinated

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Europe is Finished

This is unbelievable. But once you watch it, you have to ask, is America far behind?

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We Hate Russia! Russia must Go!

(It is not just the democrats and the deep state. The “evil Russian State as aggressor” talking points are being pushed out in Europe and the Middle East, too. Are we planning for a war with them or something?)

Smoking Gun Proof that Russia Hacked the Entire World

by George Washington
Jun 23, 2017

As shown below, the allegations that Russia has been hacking the entire world have been thoroughly vetted and verified.


Germany’s intelligence agency accused Russia of deploying cyberattacks to destabilize the government! (But German intelligence agencies later found no evidence of Russian interference.)

And last December, German security officials said that Russia hacked secret German communications and provided them to Wikileaks (English translation). (But German officials later concluded that the communications were likely leaked from an insider within the German parliament, the Bundestag (English translation)).


The Washington Post, New York Times (and here), Reuters, Politico, Register and many other mainstream publications  claimed that the Russians hacked the French election, just like they hacked the U.S. election.

The head of the NSA claimed that the NSA watched the Russians hack the French elections:

(But the French government later said there was no trace of Russian hacking.)


CNN reported that U.S. officials suspected that Russia had hacked Qatar’s state news agency, causing a rift with Saudi Arabia. (But the Qatari government later said it wasn’t Russia.)

America …

So you see? It’s been proven that Russia has hacked the world …


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