Oh, that’s real smart. Fill up on enough of those, and watch two currencies head for the bottom for the price of one. Or maybe we’ll help hold the US dollar afloat, barely. Perhaps what’s most likely is that, after absorbing enough of the US’s debt-monetized monopoly money, we’ll be told there’s nothing for it but to peg our dollar to theirs. Such a tiny little article, but so many potential consequences. McGuinty is playing with fire.
Flashback: Canadian dollar finds a solid resting place at parity | Facing years of deficits, Ontario freezes wages | Loonie passes 99 cents US | China rejects Barack Obama’s call to change yuan policy | High dollar to slow recovery, central bank says | Canada’s rate hikes will be tied to the Fed | Russia to add loonie to reserves: report | The time has come for North American monetary union | Loonie continues race toward parity with U.S. dollar | US dollar set to be eclipsed, World Bank president predicts | Bilderberg Wants Global Currency Now | Dollar to fall under scrutiny at G20 summit | IMF approves $13bn gold sale to boost lending fund | UN wants new global currency to replace dollar | G20 agrees to continue economic stimulus measures; Geithner shops international reserve accord | China Set to Buy $50 Billion in IMF Notes | Ottawa plans U.S. dollar bond | Central bank of Canada stands ready to inflate currency in response to strong loonie | Timothy Geithner: travelling bond salesman | China calls anew for super-sovereign currency | No one talking about dumping dollar: China minister | Chinese economists deem huge holding of US bonds “risky” as Geithner visits | Soaring loonie adds to anxiety over economy | Bank of Canada poised to print money to buy bonds | US backing for world currency stuns markets | Geithner wants a bigger stick | How realistic is a North American currency? | Loonie leaps, then reverses course | Consider a continental currency: Jarislowsky | Globalization makes national currencies obsolete | Vicente Fox Admits Plan For Single NAFTA Currency | Fraser Institute: The Case for the Amero
Andrew Willis, The Globe and Mail
April 7, 2010
Ontario is ramping up its borrowing in U.S. dollars, with plans to set the price Wednesday on a new benchmark 10-year bond.
Investment dealers Bank of America/Merrill Lynch, Deutsche Bank, J.P. Morgan and RBC Dominion Securities began marketing the new debt from their desks in New York on Tuesday, and are expected to set a price on the securities that is about 50 basis points over the benchmark rate by late Wednesday. New benchmark issues are typically more than $1-billion (U.S.), and offerings of $2-billion to $5-billion are common.
Once Ontario establishes this new benchmark with investors, the province can easily issue more bonds with the same maturity.
Canada’s most populous province is running record $20-billion-plus deficits, and Ontario civil servants are relying heavily on foreign credit markets to fund its budget shortfalls. Quebec and the federal government have also established U.S. dollar-denominated benchmark issues.
RBC Dominion continues to be the only domestic investment bank that consistently wins roles in global bond offerings. The dealer is winning these mandates after spending the past decade building U.S. and European credit and currency operations that rival desks at the largest global banks.
Ontario and the rest of the provinces were briefly frozen out of credit markets as their government tabled budgets, and are now back issuing bonds with a vengeance.
Source | See also under Money: Canadian dollar finds a solid resting place at parity | Manipulation of Gold Market by Financial Giants Exposed at CFTC Hearing | Impact of $47B stimulus minimal: Fraser Institute | Loonie passes 99 cents US | Chinese facing debt time bomb | China rejects Barack Obama’s call to change yuan policy | Failed Banks May Get State Pension-Fund Backing as FDIC Seeks Cash | Britain grapples with debt of Greek proportions | Athen’s coffers to run dry in two weeks, more cracks appear in Eurozone | IMF chief proposes new reserve currency | Man who broke the Bank of England, George Soros, ‘at centre of hedge funds plot to cash in on fall of the euro’ | Citibank Controversy Puts Dubious FDIC Guarantee Back In The Spotlight | How EU Countries Cooked Books Using Derivatives | Goldman Sachs Helped Greece Obscure Debt Through Currency Swaps | Canadian household debt hits record high | Collapse of the euro is ‘inevitable’: Bailing out the Greek economy futile, says French banking chief | Euro currency union shows strains | Stimulating our way into debt crises | EU leaders reach secret Greek bailout deal | Will Greece set off ‘global debt bomb’? | Carbon trade phish scam disrupts exchanges | The Federal Reserve as Giant Counterfeiter | EU cautions Greece about its deficit | Consumer debt loads are the new concern | No solution in dispute over Iceland deposits | Davos 2010: George Soros warns gold is now the ‘ultimate bubble’, calls for IMF to handle climate fund | High dollar to slow recovery, central bank says | Record surge in UK inflation | Sarkozy says world currency disorder unacceptable | UK: Interest rates and quantitative easing on hold | Iceland blocks central bank debt repayment deal | Canadian Gold giant faces Honduras inquiry into alleged heavy metal pollution | Canada’s rate hikes will be tied to the Fed | Mint’s missing gold now accounted for | Canadians struggling to dig out of debt | Gold surges above $1,200 | A world awash in debt | U.S. markets fall on Dubai crisis | We’re running out of gold: miners | Russia to add loonie to reserves: report | RCMP: Big error behind missing gold at Royal Canadian Mint | Fed Sicks Attack Dogs On Ron Paul After Audit Amendment Passes | Americans Deserve a Transparent Federal Reserve | Current And Former IMF Heads Call For New Global Currency | U.S. urges China to strengthen currency | Federal Privacy Commissioner raises alarm over terror security measures | George Soros Calls for World Currency and “New World Architecture” | U.S. dollar sags on global financial leaders’ omission | Gold rallies to record above $1,100 | Bank of England extends quantitative easing to Ãƒâ€šÃ‚Â£200bn | G20 Meet To Finalize Dumping Of Dollar This Weekend? | Gold prices surge as India buys IMF reserves | Plentiful paper currency buffing gold’s shine | Soros: China Will Lead New World Order | The time has come for North American monetary union | Loonie continues race toward parity with U.S. dollar | Dollar Reaches Breaking Point as Central Banks Shift Reserves | Flaherty drafting voluntary code for new credit company debit cards | Gold continues record-breaking run | Gold price rises to all-time high | Fisk: Nations to hasten demise of dollar in new world order | Banks balk at new credit card rules | Tight credit new threat to rebound, IMF warns ahead of Istanbul meeting | US dollar set to be eclipsed, World Bank president predicts | Dollar to fall under scrutiny at G20 summit | Credit card debt balloons | IMF approves $13bn gold sale to boost lending fund | US credit shrinks at Great Depression rate prompting fears of double-dip recession | Canada’s $1-trillion debt baby | Gold regains $1,000 | UN wants new global currency to replace dollar | Gold toys with $1000/oz | China Set to Buy $50 Billion in IMF Notes | Investors dump money market funds | More US Bank Failures and The Coming Deposit Insurance Bailout | Industrial demand for silver sharpens bullish view | Underwhelming GDP growth fails to move stocks, loonie | Ottawa plans U.S. dollar bond | A Stock Market Rally Engineered by Government | Central bank of Canada stands ready to inflate currency in response to strong loonie | Credit delinquencies up 24% in June | Derivatives rear their ugly head again: Leveraged ETFs outed | Former NY governor Spitzer: Federal Reserve is ‘a Ponzi scheme, an inside job’ | Global demand for gold investment soars 38% in past year | Cost Of US Bailout Hits A Whopping $24 Trillion Dollars | Timothy Geithner: travelling bond salesman | Record quarterly profits and bonuses: Goldman Sachs makes out like a bandit on taxpayer’s dime | Fed ‘Independence’ or Fed Secrecy? | Medvedev Unveils “World Currency” Coin At G8 | More Canadians in arrears on credit payments | The search for the mint’s missing gold | China calls anew for super-sovereign currency | Central banks to take off ‘training wheels’ | Congressman Ron Paul Slams Federal Reserve’s New Dictatorial Powers | Central Bank of Canada ‘considering’ regulatory changes, ‘continuous private liquidity creation’ | The next cellphone trick: transferring money | Royal Canadian Mint’s ‘lost’ gold worth a mint | Bullion and Bandits: The Improbable Rise and Fall of E-Gold | No one talking about dumping dollar: China minister | China explores buying $50bn in IMF bonds | Has the Mint’s gold vanished? | Chinese economists deem huge holding of US bonds “risky” as Geithner visits | Soaring loonie adds to anxiety over economy | Economist Warns Fed Will Bring About Zimbabwe Style Hyperinflation | Federal deficit to top $50B | Canadian households $1.3-trillion in debt | Digital Money Forum Pushes For Electronic Currency | Obama signs U.S. credit card reforms into law | Credit card changes benefit families, Flaherty says | Quebec pension fund managers boosted derivatives holdings despite warnings | Leaked 1955 Bilderberg Docs Outline Plan For Single European Currency | Banker at heart of credit crisis leads plan to buoy auto sales | Bank of Canada poised to print money to buy bonds | Credit companies seek to avoid regulation, create global debit system | Congressman: Reckless Spending And Taxation Prolonged Great Depression | Barclays, Lloyd’s, RBS join Goldman-Sachs in the black | Goldman-Sachs to repay TARP loan, resume private operations, bonuses, at “earliest time” possible | Bilderberg chairman: ‘Bilderberg helped create the Euro’ | Financial Rescue Nears US GDP as Pledges Top $12.8 Trillion | US backing for world currency stuns markets | UN & IMF Back Agenda For Global Financial Dictatorship | Geithner Plan Will Rob US Taxpayers: Stiglitz | US unveils P3 plan to monetize debt, nationalize banks | Bank crisis spawns new kind of gold rush | Wall Street’s Big Takeover |Financial Post editor: America’s future at risk of ‘inflationary outburst’ | U.N. panel says world should ditch dollar | IMF poised to print billions of dollars in ‘global quantitative easing’ | G20 officials pledge ‘whatever action necessary’ to revive economy | Mainstream Financial Publication Finally Admits that Austrian Economists Were Right | UK Central Bank begins using ‘new’ money | Central bank tactics pushed to brink | IMF emergency fund is doubled to $500bn, Northern Rock bank granted $14bn bailout | EU backs sweeping new financial rules, more power for IMF | Gold Tops $1,000, First Time Since March as Recession Deepens | Zimbabwe drops state currency monopoly, pegs prices to US dollars | How realistic is a North American currency? | All maxed out? Budget measures would improve credit access | Gold surges past $900 mark | Prominent Economist: Crisis Caused By Government Interventions | Zimbabwe unveils 100 trillion dollar banknote | Bank of England cloaks books, fears of monetary manipulation arise | Canadians starting to save cash, shun debt | Analyst: One Third Of Banks Could Collapse or Merge In 2009 | Banks won’t say where U.S. bailout money going | UK: Bailiffs get power to use force on debtors | IMF Chief Warns Of Riots In Response To Economic Crisis | Bank of Canada ready to monetize distressed equities | The ugly spectre of ‘new Keynesianism’ and the self-appointed Guardians | ‘Outrage’ greets banks’ failure to match rate cut | Mexico to downsize metal in coins to save a few cents | Icelanders storm central bank in protest | UK closer to joining euro, EU commission president says | Iceland turns 90 amid economic ruin, currency freeze | Maybe we should look at Zimbabwe before trying to print our way out of a money crisis | Obama appoints architects of economic collapse, financial globalism to economic team | Paulson, Bernanke defend change of plan: $700-billion now to be given directly to banks | Manipulation Of Gold And Silver Prices Further Exposed | Now the consumer crunch: falling credit limits, rising interest rates | Coming soon to your cellphone: Your credit card via RFID chip | A New World Financial Order: It Better Work This Time | Analysts Predict Hyper-Inflation To Push Gold To $2000, Oil to $300 | Ottawa to pour another $50B into mortgage markets | Bank of Canada adds $8B to credit markets | Fed Hides Destination Of $2 Trillion In Bailout Money | Flaherty lauds Keynesian global ‘economic stimulus’ strategies | Who are the Architects of Economic Collapse? | ‘Smart’ Credit Cards, Pilot Project set the Groundwork for Wireless Credit Wallets | Russian government calls for new World Order | New credit cards may shift unauthorized-transaction liabilities to the holder | IMF may need to “print money”, act as “world’s central bank” as crisis spreads | Greenspan tells Congress he’s shocked by credit crunch | Ottawa to guarantee interbank lending | Globalists Exploit Financial Meltdown In Move Towards One World Currency | Wanted: a new financial order | EU leaders to meet Bush and plan “refoundation of capitalism” | Loonie leaps, then reverses course | Bush outlines radical plan to part-nationalise banks | World needs new Bretton Woods, says Brown | IMF prescribes state regulation of ‘global financial order’ | Behind the panic: Financial warfare over the future of global bank power | Tim Rogers: Global Bankers Have Unleashed Inflationary Holocaust | New World Order: Global co-operation, nationalisation and state intervention — all in one day | Federal Reserve Moves to Monetize Commercial Paper Debts | Bank of Canada greases financial system with $12B in new cash | Congressman Ron Paul: Bailout Will Destroy Dollar, World Economy | Canadian Supreme Court refuses to hear appeal in ABCP case | Bank of Canada piles on in global inflationary swindle | Central banks continue inflating global economy | Court Grants Big Banks Immunity from Lawsuits over Derivatives Losses | Financial ’super cop’ role for Fed | Ottawa warns on gold-backed Web trades | Inflation takes over as public enemy No. 1 | Fed eyes Nordic-style nationalisation of US banks | Treasury’s Plan Would Give Fed Wide New Power | Consider a continental currency: Jarislowsky | Globalization makes national currencies obsolete | Vicente Fox Admits Plan For Single NAFTA Currency | Fraser Institute: The Case for the Amero