Just what you have been saying for years – the QE will continue, no matter what!
CIGA Wolfgang Rech
"While Congressional members and economists push their pick for Fed chair, international investor Jim Rogers tells The Daily Ticker: it doesn’t matter who Obama picks because all Fed Chair candidates “are lapdogs for the establishment.” He expects any new Fed chair will continue current policy, which he says is “insane.”"
Fed Chair Hopefuls Are “Lapdogs for the Establishment”: Jim Rogers
By Bernice Napach | Daily Ticker
At last count, more than 350 economists, 38 female House Democrats and about 17 Senators have signed letters to President Obama urging him to nominate Fed Vice Chair Janet Yellen as the next Chairman of the Fed. She emerged as the frontrunner for the job now that Larry Summers, a former economic advisor to the president and Treasury Secretary under President Clinton, has withdrawn his name from consideration.
While Congressional members and economists push their pick for Fed chair, international investor Jim Rogers tells The Daily Ticker: it doesn’t matter who Obama picks because all Fed Chair candidates “are lapdogs for the establishment.” He expects any new Fed chair will continue current policy, which he says is “insane.”
"They should stop all of this, printing $1 trillion every year,” says Rogers, author of “Street Smarts: Adventures on the Road and in the Markets.” He explains: “The world will suffer very badly, very badly when this comes to an end. It’s an artificial sea of liquidity.”
If I wait until next March I will be able to avoid the 10% penalty on removing my funds
from a retirement plan (59 1/2). How emphatic do you think Jim is in having people
exit their retirement accounts now? March is only 6 months away.
Let me know what you and/or Jim thinks I should do.
Jim is very emphatic about the need to exit retirement accounts now that is one of the reasons he is travelling across the country so often telling people to GOTS now. I understand your position and like all of these things the final decision must be yours and must be something you are comfortable with. if the 10% penalty is too much for you to handle then you must wait the 6 months but you should take heed of what has recently occurred in Poland. I am sure you have read of it as it was mentioned a number of times on Mineset but interestingly not on MSN. The Polish retirement accounts were emptied without any substitution so it is a clear example of what can occur in a Western country right now. Losing 10% now would seem a small price to pay if the nationalisation occurs and you end up with 100% of worthless paper.
Good day Peter,
Allow me to understand this. The Bank of Canada compared to RBC and CIBC banks is public but the latter banks are not. Hence is the Bank of Canada the only public bank in Canada?
What about credit unions or Alberta Treasury Branch. I am asking on behalf of 20+ people, so it is important I get clarification. To me the Bank of Canada appears like a separate federal entity that does not cater to the public.
Will the CIDC in this country guarantee our deposits of 100,000 and less or are we in the same boat as FIDC in the USA?
Look forward to your responses.
Credit unions would not be public banks in the relevant definition of public whereas the Alberta Treasury Brach is because it is owned by the Province of Alberta. The other banks you mentioned are not public banks as they are not banks or financial institutions, in which a state or public actors are the owners. A public bank in terms of what you have asked is a company under state control.
According to the CDIC’s 2012 Annual Report, the CDIC protects $622 billion CAD in total eligible deposits, but only has $2.44 billion CAD in assets to meet insurance claims. That amount represents 0.39% of total eligible deposits. The CDIC is also authorized to borrow up to $19 billion if necessary from the federal government or the financial markets, and may request further funds from Parliament. In the event of systemic collapse the CDIC hasn’t got the funds to cover much at all.
The following from the relevant act of Parliament leaves the government plenty of room to not do much at all in regards to the $100,000 insurance if it suits them.
7. The objects of the Corporation are
(a) to provide insurance against the loss of part or all of deposits;
(b) to promote and otherwise contribute to the stability of the financial system in Canada; and
(c) to pursue the objects set out in paragraphs (a) and (b) for the benefit of persons having deposits with member institutions and in such manner as will minimize the exposure of the Corporation to loss.
R.S., 1985, c. C-3, s. 7;
R.S., 1985, c. 18 (3rd Supp.), s. 49;
1996, c. 6, s. 22;
2005, c. 30, s. 98.
Marginal note:Power of Governor in Council
7.1 (1) The Governor in Council may, by order, exempt the Corporation from the requirement that it pursue its objects in a manner that will minimize its exposure to loss when it takes any action to address a situation that is specified in the order.
Marginal note:Condition precedent
(2) The Governor in Council may make the order only if the Minister is of the opinion, after consultation with the Board, the Governor of the Bank of Canada and the Superintendent, that the requirement that the Corporation pursue its objects in a manner that will minimize its exposure to loss, in respect of a situation that will be specified in the order, might have an adverse effect on the stability of the financial system in Canada or public confidence in that stability.
(3) The Governor in Council may repeal the order only if the Minister is of the opinion that the requirement that the Corporation pursue its objects in a manner that will minimize its exposure to loss, in respect of the situation specified in the order, will no longer have an adverse effect on the stability of the financial system in Canada or public confidence in that stability.