Speaking of Fall, how about the fall of the Democratic Governor in Virginia, U.S.A. This could be a dramatic turning point in American politics as we enter the final economic quarter until the American Midterms. The result reflects frustration by the electorate and they provided a statement mainly on the issue of education as parents demand input in their children’s education and welfare.

There just seems to be a huge disconnect between the markets and reality. The list of failures of the Biden Administration is long. The latest policy idea is to provide compensation to illegal immigrants and their families that originally entered the country illegally were unvaccinated and families separated. Someone decided that the previous administration’s actions caused untold trauma therefore compensation is required. I assume the amounts were vetted and calculated using advanced formulas. Presto! $450k/individual or close to $1mil/family to be provided as applicants grow by the minute. The caravans of people are streaming toward the border via Mexico as visions of winning the lottery dance in their heads. Meanwhile, hardworking Citizens are being ostracized, fired from their jobs and purged into poverty as inflation takes hold and the cost of living skyrockets. Many live from paycheck to paycheck and now need to manage their new reality and drastic change to individual lifestyles.

You would think common sense would prevail but the rhetoric continues to grow and hostilities are starting to boil over.  Concerns are real as mandates are being forcefully imposed with no alternatives. These draconian decisions imposed on individuals are starting to show real impact. Flights are being cancelled, emergency services are stretched to the limits,  while transportation and logistics are being compromised with costs escalating, forcing businesses into bankruptcy. Importers are being held hostage with shipping costs tripled or quadrupled in many cases. Many are deciding if they should continue or mitigate the risk of their investment.  A complete nightmare that will hit the consumers directly in the pocketbook, sooner rather than later. Regardless of minimum wage rising it simply does not improve the purchasing power of lower-income recipients. Inflation is real and as my Father says a donut is still a donut it’s just the price that has gone up.

Central Bankers are painting rosy projections with huge growth expectations. Trying to instil confidence yet these growth projections are simply trying to regain the Pre-Pandemic levels.  The Bank of Canada (BOC) is considering raising rates sooner than later. The Europeans see no need to raise rates by next year for which I commend them, it seems they are asleep at the wheel while businesses continue to be destroyed by inflation. Of course, they won’t need to raise rates because there won’t be any businesses left. The ECB  does not seem to acknowledge inflation as a concern.  The Americans will let Inflation run wild until sustainable growth is achieved and persistent. Today we see ADP employment measurement of Private Sector Employment surge to 571k in October versus (400k) expected. A question arises, is this the result of mandates as people lose their regular jobs and seek part-time employment to make ends meet? To reiterate, the markets and reality of the moment seem to be diverging and not in sync.

Recently,  the World had to endure the climate conference in Glasgow Scotland.  You might ask who stepped into the Limelight? Of course, the Greatest Spendthrift PM of all time, our very own money bags PM J. D. Trudeau (JDT). With the printing press in full swing, he continues to dole out more Canadian Taxpayer money while implying he will shut down Canadian Oil production altogether. The energy sector generates over 20% of our Gross Domestic Product (GDP) providing services like universal healthcare. Confidently,  JDT proclaims to the World, join Canada in a Carbon Tax bonanza! We don’t really know how much it will cost the average family especially with inflation out of control but who really cares? We will have untold Trillions at our beckon call to transform the world!

Consequently, Oil Sands workers will transition from $60/hour employment to Tim Horton Coffee Sales Agents, earning minimum wage to support their families. Yet in all the theatrics China will still continue to burn Coal into the 2060s while Industrialized nations sacrifice prosperity and subsidize the wealth of other countries licking their chops for this bonanza of opportunity. The USD Index surged toward the 94.20 level and currencies retreated with USD strength. Precious Metals also dipped as Gold fell to the $1770/oz level and Silver slips toward the $23/oz level. Despite the BOC looking to raise rates prematurely, Oil continues to be the catalyst for the Canadian Dollar as it works its way back toward the 0.80 cents level.

Lastly, I leave you with some food for thought, this is a clip from Jordan Peterson which I highly recommend you watch and listen to. They say money is the root of all evil but in fact, our minds carry our thoughts and within them, we interpret evil, create division and express our thoughts into actions. His words are inspiring, courageous and provide Mankind with the only thing we have left n this life, HOPE!

Please click below and listen.