US, world headed for 25 year depression: Jim Rickards

US, world headed for 25 year depression: Jim Rickards

“When I use the phrase 25 year depression, it sounds extreme but it’s not. We had a 30 year depression in the United States from about 1870 to 1900…The Great Depression lasted from about 1929 to 1940. The U.S. is in a depression today.” Well, it's been in the works for

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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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Content By: The Coming Depression Editorial Staff (dates cited below)
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chinese factory worker

“The day they decide to float their currency you are going to get huge reversals of financial flows around the globe, which will affect all exchange rates, that’s why I compared it to a tsunami,” Costello said.

There’s nothing strange about wanting China to bear its share of a burden that the Western world is already bearing more than its share of. If the Chinese yuan were to go up the way it would naturally, then the Canadian dollar wouldn’t go up as much. However, hopes should not be pinned on China doing what we want; instead, we should stop being afraid of the “protectionism” bogeyman, and return Canada to being a country with steel mills and factories that employ ordinary working Canadians at union wages. Foreign trade should be something that is carefully managed to benefit all Canadians, instead of being allowed to get out of control and take jobs away.

It is quite obvious now that the world’s major trading powers, China and the USA, are currently engaged in a trade and financial war. They have been in a tug of war for the past 8 years (2001) since China entered into the world trade organization — something that should never had happened because of their total incompatability with democratic fundamentals built up in the Western world in the past 100 years– but was allowed to happen under the auspices of the Bush administration for purposes of “free trade.” It is also obvious that the tragic events of 9/11 were used as a smoke screen to cover up and distract people when China entered into the World Trade Organization. Yes, China entering the WTO was that big of a deal.

Everyone knows that communist China cheats by “artificially” keeping the yuan low. That’s a fact. And guess what? They follow a “communist” system. If everyone is so “sensitive” about calling them on that fact then why don’t they renounce their love of Mao and communism and change their name from the People’s Republic of China to something else?

Canada hurt by China’s fixed yuan: Carney
Says rising loonie weighs on recovery
Last Updated: Thursday, November 19, 2009 The Canadian Press

Bank of Canada governor Mark Carney says Canada is paying the price for China’s intransigence in moving to a flexible currency exchange.

The central banker says the world’s key economic powers need to co-operate in order to avoid future crises and to grow out of the current one.

If countries delay adjustment, he says, all countries suffer and growing strains could spur a disastrous spiral of protectionism both in trade and finance.

Carney says the immediate impact on China’s hoarding of foreign exchange reserves is that other countries, including Canada, pay the price through an appreciating currency versus the U.S. dollar.

In Canada, he says, the loonie’s rise will weigh down growth, estimating that the recent surge will wipe out all the positive developments from July in the long term.

The devaluation of the U.S. dollar has ignited talk of an alternative to the global reserve currency, but Carney says although that may come to pass, it will not alleviate the global imbalance problem. The solution, he says, is that all countries accept the responsibility that their domestic policies can damage other countries.

The Great US-China Romance
By Bill Bonner @ DailyReckoning

“You think you’ve got trouble,” Premier Hu Jintao might have replied to Mr. Obama. “Did you know that there are something like 200 million Chinese who still get by on as little as a dollar a day? Let’s face facts. You’re sitting there in Washington, comfortably talking about how much free health care and unemployment benefits to give the American people. We don’t have the time…or the money for those kinds of things. Too many Chinese people. They don’t earn enough to afford the kind of cradle-to-grave bribes you give your people. We have to keep them working; there’s no other way.

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