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The Currency Korner        
By -The FX Specialist-
Philip J. Magnoli

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FX Specialist Insight
-brought to you by Philip J. Magnoli
 An expression of thought;  November 17, 2021
——–The Currency Korner——–

The Way I See Things

Volume 11 Issue 3

“It’s not about having lots of MONEY, It’s knowing how to manage it!
    – Anonymous

 

 
Good morning,

Having been born in Canada, there is no escaping the seasonal transition in weather. The four seasons bring unique offerings in terms of foods and activities. I look forward to the Spring because it is a new beginning, a time of renewal and the start of warmer weather and longer days. The summers are beautiful, gardens in full swing, poolside activities,  beaches, sporting events and many outdoor activities like running naked with the wind blowing through your hair, awe the freedom!

When the Fall arrives we witness an array of colours,  plants and trees start the process of going dormant. It is only when the frost arrives and a temperature dip below zero, that the leaves accumulate onto the ground.  It’s fun piling them up then jumping into them only to land on the concrete as the image of fluffiness escapes you with the agony of pain, screaming oh my knees, my back is broken! Once the trees are bare the snow ushers in the winter. Again, there are many interesting things to do but the days are shorter and the cold is often bone-chilling. Just avoid licking the icicle off a metal fence not a smart thing to do unless you want to rip your tongue from your mouth. Maybe a good suggestion for people that annoy you and speak too much? Personally, I am not very fawn of the winter any more, wishing for warmer weather year-round, it would be a treat.

Speaking of not being fawn of something in particular it is the activities of Central Bankers and their arrogance, callus attitudes, greed and sense of entitlement. Recently, members of the Federal Reserve were banned from owning investments as they held equities that benefited by the policies they incorporated. This isn’t anything new as politicians or any person able to gain an advantage would do the same. There was Allen Greenspan who ushered in a policy for the Bankers to govern by policing themselves. He was a very influential Chairman of the Federal Reserve as growth was unprecedented. Therefore when you let the pigs eat freely at the trough nothing exceptionally good happens. We experienced the SubPrime mortgage debacle and an implosion that almost destroyed our whole financial system. Eventually, Mr. Greenspan went off to be a consultant and his words and influence continued to be louder than Ben Bernanke at the time, the Chairman that introduced Quantitative Easing. When Mr. Greenspan spoke and contradicted the Federal Reserve, the Hedge fund he consulted would make billions. 

The only ethical measurement is the individual’s personal integrity.  When an individual is  in a position of power they have a choice:
1) to be a loyal servant to the people that elected or appointed them or
2) continue to milk their position to enrich themselves at the expense of the taxpayer. 

The printing of money is by far the simplest solution to continue spending unabated. It is immoral and irresponsible by those governing. In many instances, the leading authorities do not collect enough tax revenue to implement their massive ideas and often need to borrow to bring initiatives to fruition. If you or I were to overspend technically we would lose everything or go bankrupt. Consequently,  those in power become reckless, abandoning all principles of common sense for the sole purpose of retaining power. The future becomes compromised for short-term glory. When the populace finally realizes the disaster created the ruling party is discarded without consequences and the vicious cycle starts all over again in another format. It is absolutely criminal yet many a fool will continue to abuse the office until accountability and transparency become the law of governance.

Please watch this clip, it is an eye-opening reality of where many a nation is headed, bankruptcy! Reality is going to set in leaving generations ahead of us in peril of financial instability if things aren’t corrected immediately.

https://mcusercontent.com/c3e3564b1e0c74fd2d36002b4/files/c2833ae2-9273-f8dd-34d5-f6f856f27491/TRUTH_in_its_simplest_form_1_.mov

Earnings have been explosive for the big box stores. Also with the budget finally passed in the USA, the Trillion Dollar spending spree will try to initiate a transition in economic direction. Climate Change and Electrification by reducing emissions funded by carbon taxes in an inflationary period during a pandemic. You couldn’t ask for the stars to line up any better. USA Consumer Confidence plunges in November attributed to the rise in inflation. It isn’t a temporary blip and as a result, the Central Banks might be forced to raise rates prematurely. This is still a precarious situation as the economy still hasn’t recovered fully from pre-pandemic levels so any tinkering could have catastrophic consequences to momentum. The week also started positively as USA Retail Sales climb 1.7% expected (1.2%) and USA Industrial Production up 1.6% vs (0.7%) in October. I ask myself how many chocolates did Americans eat for Halloween?

It will boil down to timing and which Central Bank will act first to raise rates. Presently, The USD Index is on a higher trajectory moving above the 96.0 level. As a result, the USD strength has caused the EURO to plunge. On the other hand,  the Canadian Dollars weakness seems tempered as the Bank of Canada spoke about the continued lag in the economy and that they are close but still not in a position to raise rates despite higher inflation running above the acceptable 2% ceiling.
Meanwhile, Oil sliding toward the $78/barrel level contributed to Canada Dollar falling below the 0.7950 level. Despite the strong USD Precious Metals remain firm and have gained over $100/oz since the previous week hovering around the $1870/oz level while Silver my ticket to retirement maintains the $25/oz level and disappoints me and all the bad investment choices I personally make. Lastly, Bitcoin falters toward the $60k/coin level vs the USD as China continues to try and purge the miners collecting these cyber digital coins as they want to introduce their own and who knows we might be using it soon it the Central Bankers and Governments don’t smarten up!

Pass it on as I am always available to provide the most advanced foreign exchange services and knowledge, efficiency, expertise and above all integrity. Referrals are welcomed and very much appreciated.
… Don’t Forgetta bout Me!!!!
.The Don of a New Day!

Foreign Exchange Service is my Specialty.
Direct# 416-992-7765

Contact Me Direct via email at phil@aloris.ca

Don’t Forgettaa bout Me!!!!

Sincerely,
Philip Magnoli – The FX Specialist-

Direct:     416-992-7765 
Email:    phil@aloris.ca          

Opinions expressed within are that of the author alone and do not reflect in any, way, shape or form, any Company I choose to associate myself with. This is the intellectual property of Magnoli Financial Services Corp. www.donfilippo.ca 

 

 
 
 

 
 
 

 
 
 

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