Canadian dollar ‘big winner’ with more quantitative easing
CIGA Eric
While the Canadian dollar will benefit, it will not be the ‘big’ winner. Gold has consistently outperformed all fiat, including the Loonie, since 2000. Expect this trend to continue as long as devaluation through perpetual stimulus remains the official solution.
If the Fed pursues another round of quantitative easing, the Canadian dollar may be the big winner. The loonie has tended to perform fairly well following previous QE episodes, according to Barclays strategist Paul Robinson.
Source: business.financialpost.com
Analyst: Citigroup Is Cooking the Books
CIGA Eric
Headline should read who’s not cooking their books? Generous accounting flexibility allows financial firms to reports earnings that do not exist. This is hardly a news flash.
An all-out war has broken out between Citigroup CEO Vikram Pandit and a prominent securities analyst who is saying that the big bank may be cooking the books by inflating its earnings through an accounting gimmick, FOX Business Network has learned.
Source: foxbusiness.com
Broke City Breaking Employee Contracts
CIGA Eric
Since local governments cannot devalue their currencies to pay for services they cannot afford, they must either receive "free" money from the federal government (which can print money) or drastically curtail their spending. The federal government’s most recent liquidity infusion to local and state coffers to fill budget holes suggests that they are fully aware of the economic consequences of public sector employment contraction. Unfortunately, the small cash infusions won’t provide much more than a temporary solution to a long-term secular problem.
The city of Miami is so broke it’s forcing employees to take pay cuts, even though they’re under contract.
Mayor Tomas Regalado said he’s never seen a financial mess like this before, and his options are grim.
“It’s either that or we layoff 1,000 employees or we raise taxes to the max, and we’re not raising taxes to the max,” the mayor said.
Source: nbcmiami.com
