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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bernanke cookie monster strangles taxpayer

“Investors should be preparing for a financial “cliff-edge” as the Eurozone and the US prepare for “monster” money printing exercises, according to RBS.” –MM

In a note to investors last week, RBS head of European rates strategy Andrew Roberts tells investors to move to government bonds and gold in preparation for a second global dip.

He says: “Be maximum long duration of nominal government bonds in safe haven markets. This means US, UK, Germany, in that order, and perhaps others. Be long gold. Think the unthinkable.”

Roberts says another banking collapse in Europe coupled with deflation in the US will lead to “dramatic turn downs in valuations”.

He says: “This may finally destroy the world’s worst cult: the cult of the equity, which has no basis in fact, or history, but yet seems universally accepted. This all sounds somewhat doomsdayish, so we should update how the real economy/banking is panning out for us. It is saying: the end-game approaches.”

Roberts also warns that the US Federal Reserve may be considering a “monster” quantitative easing programme in an attempt to keep bond yields at around 2 per cent.

He says: “We have been wrong before, but we think the risks associated with us being wrong are low but the risks associated with us being right are more than 10 per cent returns in 10-year US government bonds at the same time that equities/commodities will collapse far beyond what even some equity bears anticipate.”

US Dollar: the next Great Bubble?

The next great bubble is the US dollar hands down. There in no disputing this. When you see an economic stimulus plan that is over 50% of GDP it should make you cring at what inflation will bring in five years. The US has a 14 trillion GDP that is shrinking and in 07-08 a 1 trillion loss then Obama is expecting a 2.2 trillion loss for 08-09 and 09 -10 a 3.79 trillion loss. That is very creepy to a bond trader.

Now the rest of the world can see the big big problem of the US dollar being the world currency because all commodity are traded on the US dollar. When oil was at $147 per barrel it was because the US dollar had failed. In Euros oil was still only $75 per barrel. Grain like wheat was the highest Canada has ever seen with fall of the US dollar in August 08.

The entire world recession is because of the US Dollar. What happens when the US dollar is worthless and oil is $2000 per barrel? The world needs another world currency.

If you own a business that had a income of just the taxes generated on 14 trillion and had a debt of 16 trillion. Way way more debt than income how long would a bank keep your company’s debt on the books when you could just cover the interest with all your income?

It was projected by top economists of the world that the US debt to GDP would be equal by the year 2011 and now with the economic problems it is going to be this summer.

All in all if there is not a new world currency expect to pay much much more for every thing traded in US currency. $147 per barrel for oil will be nothing to what will cost. At $147 the volume traded was the same as it is now. Do the math.

Related posts:

  1. Central banks start to abandon the U.S. dollar“.. just last week, the United Nations released a report concluding that the dollar should no longer be the world’s reserve currency because it is not stable enough. The dollar...
  2. US economy on life support, money printing is wrong: Author“The Monetary Theory of the Great Depression is incorrect, however. Consequently, the Fed’s Quantitative Easing policy is more likely to exacerbate than resolve the global crisis,” Duncan argued in an...
  3. Central banks begin dumping dollars; Bank runs beginTo sum the entire stories at the bottom: TAKE ALL YOUR MONEY OUT NOW and invest it in silver bullion, or keep it under the mattress. The press and financial...
  4. Sen. Bernard answers if the US Federal Reserve is the world’s central bank“Senator Bernie Sanders asked the question, “Has the Federal Reserve of the United States become the central bank of the world?” on discovering that the Fed, after receiving billions of...
  5. Federal reserve touted as “central bank of world”“We’re talking about huge sums of money going to bail out large foreign banks,” said Senator Bernard Sanders, the Vermont independent who wrote the provision in the Dodd-Frank Act that...
  6. US Federal Reserve Destroying Dollar; Buy Gold For Protection: FaberInvesting guru Marc Faber advises investors to switch off Ben Bernanke, ignore his government-sponsored “We will keep inflation in check” line — and be sure to buy gold to protect...

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