'We the people' to open next Congress

The Constitution frequently gets lip service in Congress, but House Republicans next year will make sure it gets a lot more than that - the new rules the incoming majority party proposed this week call for a full reading of the country's founding document on the floor of the House on Jan. 6.

http://www.washingtontimes.com/news/2010/dec/23/we-the-people-to-open-next-congress/

Citigroup fears fresh wave of sovereign defaults and bank failures in eurozone

Citigroup has warned of a fresh wave of bank failures and a string of sovereign defaults in Europe unless EU leaders come up with a credible response to the crisis.


http://www.telegraph.co.uk/finance/financetopics/financialcrisis/8217505/Citigroup-fears-fresh-wave-of-sovereign-defaults-and-bank-failures-in-eurozone.html

$2tn debt crisis threatens to bring down 100 US cities

More than 100 American cities could go bust next year as the debt crisis that has taken down banks and countries threatens next to spark a municipal meltdown, a leading analyst has warned.

US states have spent nearly half a trillion dollars more than they have collected in taxes, and face a $1tn hole in their pension funds, said the CBS programme, apocalyptically titled The Day of Reckoning.

"There's not a doubt on my mind that you will see a spate of municipal bond defaults. You can see fifty to a hundred sizeable defaults – more. This will amount to hundreds of billions of dollars' worth of defaults."

http://www.guardian.co.uk/business/2010/dec/20/debt-crisis-threatens-us-cities

Mortgage deduction: A sacred cow whose time is up?

Perhaps the most sacred of all the sacred cows in the tax code, the home mortgage deduction has long been seen as critical to a major element in the American dream — owning your own home. It's also a boon to home builders, construction workers, the financial services industry and local governments that benefited from fatter real estate tax revenue.

But after nearly a century, the mortgage deduction may face a day of reckoning. Though out of the spotlight for the moment while the lame-duck Congress thrashes to an end, the mortgage deduction issue is likely to resurface next year when new representatives — including a lot more deficit-hawk Republicans — take their seats.

http://www.baltimoresun.com/news/sc-dc-adv-home-mortgage-deuction-20101219,0,2988379,full.story

Killing the penny makes little cents in digital world

The recommendation last week from the Senate finance committee that Canada eliminate the pesky penny may seem like a no-brainer when you consider its shrinking value, but getting rid of it is likely to create a bigger problem than the one our un-elected senators are trying to solve.

Earlier this year the committee was charged with investigating the penny's usefulness, because the cost to produce it now exceeds its actual value. During hearings, representatives from the Bank of Canada, industry, consumer groups and charities all told the committee that they wouldn't miss the penny if it were discontinued.

That problem is hoarding. According to the Bank of Canada there are a staggering 20 billion pennies in circulation. Unfortunately the vast majority are sitting in piggy banks, ice cream pails (I've got one of those) and other assorted containers instead of earning their keep.

http://www.calgaryherald.com/business/Killing+penny+makes+little+cents+digital+world/4007089/story.html

Prices soar as investors rush for commodities

COMMODITY prices are breaking records in an investment stampede inspired by extreme weather, demand from China and rising speculation.

The price surge is sweeping almost all commodity markets -- both minerals and farm goods -- and raises the prospect of government and Reserve Bank forecasts proving conservative

http://www.theaustralian.com.au/business/markets/prices-soar-as-investors-rush-for-commodities/story-e6frg91o-1225975188123

Massive Selling of US Currency Lies Ahead

John Williams today was dispatching information regarding gold, silver, M3, nearby massive selling of dollars and inflation. Here is a portion from his commentary, “Despite November 9th’s historic high gold price of $1,421.00 per troy ounce (London afternoon fix) and the multi-decade high silver price of $30.50 per troy ounce (London fix) on December 7th, gold and silver prices have yet to approach their historic high levels, adjusted for inflation.”

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/12/15_John_Williams_-_Massive_Selling_of_US_Currency_Lies_Ahead.html

Debt Pyramid Scheme Now the Norm in U.S.:

The tax compromise that the president, after protracted bargaining with Congress, signed into law Friday represents the worst of each party’s principles. Democrats agreed to forgo their insistence on raising taxes to narrow the widening budget deficit. Republicans forgot (again) that they are supposedly the party of smaller government.

http://www.bloomberg.com/news/2010-12-20/debt-pyramid-scheme-now-the-norm-in-u-s-commentary-by-roger-lowenstein.html

Director of United States Mint Resigns

Washington, DC-Director of the United States Mint Edmund C. Moy announced today that he has submitted his resignation to President Barack Obama. He also informed Secretary of the Treasury Timothy Geithner and Treasurer of the United States Rosie Rios of his resignation, effective January 9, 2011. Moy has accepted a position in the private sector.

http://www.usmint.gov/pressroom/index.cfm?action=press_release&ID=1190