Canada in Foreign Exchange News: August 13-August 18

I thought I’d keep our readers up-to-date with the latest currency news for North America. Here is the week in review.

Standup Economist – Comedian?

How many times do you see a stand up economist comedian? That just doesn’t mix. Only funny to economists so beware.

Coinage Materials Modernization Act of 2007

Congressman Luis Gutierrez, Chairman of the Subcommittee on Domestic and International Monetary Policy, Trade and Technology, and Financial Services Committee Chairman Barney Frank have introduced H.R. 3330, the “Coinage Materials Modernization Act of 2007.” The bill will authorize the Secretary of the Treasury to change the composition of coins issued by the U.S. Mint to less expensive materials. The Treasury Department estimates that changing the composition of pennies and nickels will save the government over $100 million a year. By making similar changes to the half dollar, quarter and dime, the government can save as much as $400 million annually.

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Mankiw on China and US Trade

An interesting blog post on why China will become the second biggest trading partner with US displacing Canada and why the US can impose tariffs to slow what appears to be a financial bubble bulge.

Mankiw 1028 economists

PEARSON to Appeal Overzealous Drycleaner Claim

I’m sure we’ve all heard about the nutter lawyer who sued a poor Korean family for lost pants in their drycleaner. The overzealous lawyer lost his 100+ million dollar lawsuit. it now seems some people are fighting back because PEARSON IS GOING TO APPEAL!

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Canadian Fuel Efficient Rebate Yet to Arrive

The feds in Canada have promised cheques for those who invest in fuel-efficient cars and trucks. The problem? 2006 and 07 buyers have yet to cash in.

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Mankiw v Blinder Round 2 – Offshore outsourcing

Mike Moffat (writer at wrote a blog (and posted his thoughts) on a economic ‘feud’ between econ giants Greg Mankiw and Alan Blinder.

Here is the initial article from Blinder and the Washington Post article here. The rebuttal from Mankiw on his personal blog. The blog argument continues there. Moffat writes about it here.

Treasury Depart. Comments on Hedge Funds and Systemic Risk

Here are some excerpts from the comments made by Under Secretary for Domestic Finance Robert K. Steel to the house of Representatives financial services committee.

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A.M. Best Release Top Canadian PC insurers List 2007

A.M. Best Co. has released a list of ratings on a number of Canadian P/C insurers, based on publicly available financial information. The ratings are based upon public information and present the most informed view A.M. Best can offer, short of an insurer participating in the full interactive rating process.

Best affirmed the financial strength ratings (FSR’s) and issuer credit ratings (ICR’s) to the following companies, as indicated:

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Terrorism Risk Insurance Revision and Extension Act of 2007

Rep. Mike Capuano and the Chairman of the House Financial Services Committee Barney Frank, today introduced, H.R. 2761, the Terrorism Risk Insurance Revision and Extension Act of 2007 (TRIREA). The bill extends the Terrorism Risk Insurance Act (TRIA) for ten years and will spur the development of a private market for terrorism risk insurance. After the 9/11 terrorist attacks, many insurance companies excluded terrorism events from their insurance policies. As a result, Congress passed TRIA in 2002 which created a federal backstop to protect against terrorism related losses. In 2005, the measure was extended for two years and currently is set to expire at the end of 2007. Also joining Rep. Capuano and Chairman Frank in co-sponsoring TRIREA are Reps. Gary Ackerman, Joseph Crowley, Paul Hodes, Steve Israel, Peter King, Carolyn McCarthy, Carolyn Maloney, Gregory Meeks, Dan Boren, Emmanuel Cleaver, Lincoln Davis, Al Green, Luis V. Gutierrez, Steven Lynch, Tim Mahoney, David Scott, Christopher Shays, Brad Sherman, Albio Sires, Melvin Watt and Robert Wexler.

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