Mainstream News

In Argentina, More Official Lying About Basic Economic Facts

"How much inflation is there? Who can buy dollars legally? Who really runs the economy? Last Friday these questions tripped up Angel Toninelli, one of the directors general of the Administración Federal de Ingresos Públicos, the national tax agency. Toninelli admitted that he did not really understand the inner workings of the approval process for obtaining foreign currency to travel abroad. 'It is a formula that changes periodically,' he said in answer to a question. 'It contains ingredients that come from the central bank, the A.F.I.P., and others that come from God,” he explained, adding, 'It isn’t the Coca-Cola formula, but it’s very similar.'" Continue reading →

Continue ReadingIn Argentina, More Official Lying About Basic Economic Facts

China Opens New Front in Currency War as Yuan Speculation Distorts Export Data

"The move came as April exports blew past expectations, which appeared on the surface to indicate that both China's economy and global demand were on the mend. But economists were quick to suspect the figures were artificially inflated by investors who were disguising speculative bets on the yuan currency as trade payments. Faced with the risk that such inflows could cause the yuan to appreciate so quickly that it destabilizes exports and the broader economy, the People's Bank of China (PBOC) has begun intervening heavily in the domestic currency market this year, buying up dollars and selling yuan." Continue reading →

Continue ReadingChina Opens New Front in Currency War as Yuan Speculation Distorts Export Data

Eric Holder defends prosecution against Megaupload founder Kim Dotcom

"US Attorney General Eric Holder on Thursday denied allegations from Kim Dotcom that the prosecution against the Internet tycoon was launched to appease Hollywood moguls concerned about online piracy. Holder rejected the accusation, saying intellectual property theft was 'something that we take very seriously'. 'That’s not true,' he told Radio New Zealand when asked if the administration was pressing the prosecution to keep Hollywood on side." Continue reading →

Continue ReadingEric Holder defends prosecution against Megaupload founder Kim Dotcom

U.S. citizens ditch passports in record numbers

"The latest bold-faced names to relinquish their U.S. citizenship include Mahmood Karzai, a brother of Hamid Karzai, the president of Afghanistan, according to federal data released Wednesday. Also on the list, published quarterly by the Internal Revenue Service, is Isabel Getty, the daughter of jet-setting socialite Pia Getty and Getty oil heir Christopher Getty. In total, more than 670 U.S. passport holders gave up their citizenship -- and with it, their U.S. tax bills -- in the first three months of this year. That is the most in any quarter since the I.R.S. began publishing figures in 1998." Continue reading →

Continue ReadingU.S. citizens ditch passports in record numbers

Companies Cook the Books to Meet Tough Targets: Survey

"Hard-pressed company bosses across much of the world are under so much pressure to deliver on growth that many have resorted to cooking the books, Ernst & Young said in a survey Tuesday. One in five of almost 3,500 staff quizzed in 36 countries in Europe, the Middle East, Africa and India said they had seen financial manipulation in their companies in the last 12 months, the accounting and consultancy firm said. In addition 42 percent of board directors and top managers questioned in the fraud survey said they were aware of 'some type of irregular financial reporting.'" Continue reading →

Continue ReadingCompanies Cook the Books to Meet Tough Targets: Survey

Moody’s: ‘Strategic Default’ Viewed as Less Taboo by Cities

"The number of defaults from U.S. municipal issuers rated by Moody’s Investors Service has more than tripled to 4.6 per year since 2007, showing willingness to pay can’t be taken for granted, the company said in a report. Five municipalities rated by Moody’s defaulted last year, including Stockton, California, which became the biggest U.S. city to seek Chapter 9 bankruptcy protection in June. Wenatchee, Washington, failed to honor a guarantee on an interest payment for a sports arena. The figure doesn’t include issuers such as Vadnais Heights, Minnesota, which 'selectively defaulted' on contingent liabilities, the report said." Continue reading →

Continue ReadingMoody’s: ‘Strategic Default’ Viewed as Less Taboo by Cities

Bank deposits of over €100,000 may be at permanent risk in Europe

"Deposits of over €100,000 are likely to be hit in the event of future European bank collapses, according to a proposal put forward by the Irish presidency of the European Council ahead of a key meeting of finance ministers next week. Discussions on the controversial bank resolution regime, which is likely to see savers with deposits over €100,000 'bailed in' as part of future bank wind-downs, are due to intensify this week in Brussels, ahead of Tuesday’s meeting, which will be chaired by Minister for Finance, Michael Noonan." Continue reading →

Continue ReadingBank deposits of over €100,000 may be at permanent risk in Europe

Australian Central Bank Cuts Key Rate to Record-Low 2.75%

"The Reserve Bank of Australia cut its benchmark interest rate to a record low, driving down a currency that has damaged manufacturing and boosted unemployment. Governor Glenn Stevens reduced the overnight cash-rate target by a quarter percentage point to 2.75 percent, saying in a statement that the Aussie’s record strength 'is unusual given the decline in export prices and interest rates.' He joins global counterparts in embracing record-low rates in an economy where inflation is contained, mining spending is predicted to crest, and credit growth remains subdued." Continue reading →

Continue ReadingAustralian Central Bank Cuts Key Rate to Record-Low 2.75%

Colleges In U.S. Offer Highest-Ever Discount to Entice Students

"Private nonprofit colleges are offering students tuition discounts of 45 percent, on average, in response to a changing financial environment that stems from the weak economic recovery. Price reductions, designed to boost attendance, were at an all-time high in 2012 and outpaced the rate during the recession, according to a study of 383 private-nonprofit four- year schools. The reduction in tuition revenue comes at a bad time for colleges, as the number of U.S. high-school graduates is expected to decline through the rest of the decade, according to a report released in January by the Western Interstate Commission on Higher Education." Continue reading →

Continue ReadingColleges In U.S. Offer Highest-Ever Discount to Entice Students

Young people are three times as likely to be unemployed in global economy

"Global youth unemployment has risen to close to its crisis peak and will climb higher as the economic recovery falters, a report by a UN agency has warned. The International Labour Office said the youth unemployment rate had been falling since hitting 12.7% in 2009, but this year had climbed again to stand at 12.6%. The rate is forecast to reach 12.8% by 2018. The ILO paints a grim picture for school leavers and graduates across large parts of the world, saying young people continue to be almost three times more likely than adults to be unemployed." Continue reading →

Continue ReadingYoung people are three times as likely to be unemployed in global economy