Canadian banking haven myth exposed

Canadian banking haven myth exposed

"One of the reasons that Canadians (and international commentators, other finance ministers and global financial institutions) buy this Canadian banking fairy tale is the way the government accounts for the money borrowed to support the banks." The sorry spectacle of Conservat

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Get rid of your mortgage, loans, because interest rates set to rise

Get rid of your mortgage, loans, because interest rates set to rise

Get rid of your loans, guys and gals, because we are going into a high interest rate period. Very high. It will be the equivalent of going into the double digit interest rates we had in the 80s where many people threw their house keys at the bank and we had record numbers of ba

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E-cigarettes save lives, money

E-cigarettes save lives, money

"We know that cigarettes have thousands of chemicals in them and we know that they are killing us. They have been for over a hundred years. So now, the e-cig industry comes along with only one or two chemicals in their mixture and people are freaking out over these as well. Whe

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US inches closer to big bank charges

US inches closer to big bank charges

Federal prosecutors are nearing criminal charges against some of the world’s biggest banks, according to lawyers briefed on the matter, a development that could produce the first guilty plea from a major bank in more than two decades. In doing so, prosecutors are confronting

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Canada’s home sales top predictions; why a real estate crash is inevitable

Canada’s home sales top predictions; why a real estate crash is inevitable

“The assurance of relatively low borrowing costs has likely given home buyers confidence while rising home values have kept new listings at a healthy level. Stable employment has provided some assurance to owners and buyers alike.” Our website is back after many months of

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Comparing today’s recession/depression to the 1980 recession

Comparing today's recession/depression to the 1980 recession

"Much like today, Americans were concerned not only with high unemployment but increasing budget deficits in the early 1980s. A September 1983 Gallup poll found that three-fourths of the public agreed that the federal government's budget deficit was a great threat (42%) or some

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Why savers are getting screwed

Why savers are getting screwed

"Without the intervention of economic policymakers, interest rates would be naturally higher. That would increase the cost of borrowing for businesses and consumers, but there would be some offsetting economic benefits. Savers are getting screwed by the current monetary policy

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Geithner admits USA bankrupt to US Senate

Geithner admits USA bankrupt to US Senate

"Never in our history has Congress failed to increase the debt limit when necessary. Failure to raise the limit would precipitate a default by the United States. Default would effectively impose a significant and long-lasting tax on all Americans and all American businesses

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World economies on verge of currency revaluations to deal with debt

World economies on verge of currency revaluations to deal with debt

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." -- Henry Ford Basically what the world central banks are doing is increasing their money by devaluin

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Is Obama the next Mugabe of Zimbabwe?

Is Obama the next Mugabe of Zimbabwe?

"America, Britain, Japan, Germany, France, Sweden, Holland, Norway, Canada and Australia make up the Fishmongers Group and their meeting on Tuesday will deliberate on the state of the inclusive government, debt relief, public finance administration and the controversial economi

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US raiding foreign countries with dollars, not soldiers

US raiding foreign countries with dollars, not soldiers

""The United States is going to China and saying: we want you to commit economic suicide, just like Japan did. We want you to follow the same thing: we want you to revalue your currency, we want you to squeeze your companies, we want you to go bankrupt,” says Michael Hudson,

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FDIC wants your retirement cash to save banks: Bloomberg

FDIC wants your retirement cash to save banks: Bloomberg

“The FDIC is constantly looking at structures where we can get the greatest opportunity to tap into capital that we have not had the success reaching through previous disposition methods,” FDIC spokeswoman Michele Heller said in an e-mailed statement. “We welcome and work

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Content By: The Coming Depression Editorial Staff (dates cited below)
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chinese currency has dollar cornered

chinese currency has dollar cornered

“The Chinese side expresses strong dissatisfaction and resolute opposition to this ruling,” the Commerce Ministry said Thursday in a release. It called on Washington to “correct its mistake” and avoid trade protectionism.

For years analysts have predicted that the U.S. would begin imposing trade barriers on imports from China now that China stopped buying Treasuries from the United States. There is no surprise about these recent indications because in recent auctions of U.S. Treasury, the Chinese were either absent or have bought very little of U.S. debt. It will still get much worse quickly and then inflation will follow. If you’re one of those critical of imports from China, then you will also whine when inflation begins.

The United States quickly will find they will not be able to intimidate the Chinese how they have Canada in terms of violating international trade agreements. The Chinese will not wait years for international tribunals to resolve this issue, they will simply retaliate. Given the state of the economy of the 2 countries, it is not a battle the United States can win.

Reading through much of the Internet chatter, there are a lot of protectionist rhetoric. Protectionism is great until that other country “protect” their economies from exports. Remember – Canada is a net exporter, and if they are to maintain their standard of living they will need to continue to export more than they import. For this reason, our government can not afford to engage in protectionist policies. However, if manufacturing were to return to Canada and became more of its less than 15% of the total economic pie, it would balance Canada’s economy out and become much more sustainable. After all, manufacturing and resource extraction provide wealth for a nation, while services are largely a system of redistribution of wealth.

Having said that though there is nothing wrong with people acting individually and in supporting local businesses and avoid buying cheap products imported from places like Walmart or dollar stores.

If China has sold all its U.S. bonds, it would greatly devalue the U.S. dollar, and thus harm the commercial interests of China. In addition, they would then take a big loss on these holdings. Indeed, they are likely to sell their holdings at a measured pace.

China should revalue its currency, which would reduce these trade wars. It would also give Chinese people a bigger slice of the pie. But for some reason, the Chinese government does not do that. It is time for the people of China begin to ask!

China bristles at U.S. pipe tariff
Last Updated: Thursday, December 31, 2009 | 2:24 PM ET
The Associated Press

China is criticizing a U.S. decision to slap antidumping duties on Chinese-made steel pipes, demanding that Washington reverse the move and saying its goods are no threat to American producers.

The U.S. International Trade Commission’s decision will affect Chinese exports worth about $2.8 billion US, resulting in the biggest steel trade dispute in U.S. history.

“The Chinese side expresses strong dissatisfaction and resolute opposition to this ruling,” the Commerce Ministry said Thursday in a release. It called on Washington to “correct its mistake” and avoid trade protectionism.

The ITC voted Wednesday to impose duties of 10.36 to 15.78 per cent on the pipes, used mostly in the oil and gas industries. That is intended to offset government subsidies it said China provides its steelmakers.

Beijing and Washington are embroiled in a string of disputes over access to each other’s market for tires, pipes, movies and other goods. They have accused each other of improperly trying to support their producers despite a pledge by global leaders to avoid protectionism in response to the economic crisis.

The Chinese statement said that if the U.S. panel failed to take the crisis into account as the source of American companies’ problems, “then it is a mistake to say Chinese oil pipes are harming American producers.”

“Chinese exports of oil pipe to the United States cannot be causing injury or threats for American producers” because the energy industry is growing and demand for pipe is rising, the statement said.

You can read the full story at Associated Press

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