The greatest threat to our entire economy is not the vaccine mandates but interest rate increases by Central Bankers.  If interest rates are increased at an accelerated rate with the intention to curb inflation,  it could potentially destroy the momentum of any recent positive outcomes. The global economy today is very interconnected, witnessed by the dependency on supply chains established in different countries and the effect they have on production when deliveries are delayed. As a result, mass shortages create large demand and fuelling cost increases.

Recent news from Canada shows that the Trade Balance exceeded a 10 year high of over $2 Billion, mostly attributed to Automobile exports and Energy in the form of Oil.  The continued positive economic news coupled with the Central Banks interest rate hike outlook, gave momentum to the Loonie to pierce the 0.79 cent level. These two sectors are targeted to be minimized in the name of Climate Change. Consequently, it is these sectors that generate the funding needed to employ individuals. The tax revenue provides the income for services like medical care for all.

These accelerated actions could result in catastrophic carnage especially toward leveraged businesses.  Defaulting loans for many small entrepreneurs that have used the equity in their homes as collateral could be devastated. This could be why the Bank of Canada (BOC) is walking a fine line and kept interest rates unchanged for now. The Bank rate is maintained at 0.25% and they justified their move by suggesting there is still slack in the economy and it won’t be absorbed until mid-2022.  Also, the BOC suggests that inflation will remain elevated then drop back toward the 2% level in the second half of 2022.

A wise man once said to me, “it is better to have foresight than foreskin”.  The outlook from the BOC reminds me of an episode from the TV show WKRP in Cincinnati when they had a promotion during a Thanksgiving holiday. The idea was to unleash Turkeys from a helicopter. As they fell to the ground like bombs from a plane it was only then that reality sunk in. Oh, the Humanity! As God is my witness, I thought turkeys could fly. I assume when we get to this point within the economy the people will be asking for some divine intervention or demanding a change in leadership. Predictions are like throwing darts no one really knows what the future will bring because there are simply too many variables determining a multitude of outcomes. I assume the BOC foresight would be considered an educated guess?

Meanwhile, Turkey and Poland have commenced hiking interest rates. The first to stop the slide of the Turkish Lira and the Poles to send a preemptive strike against inflation. Regardless, each country will have its’ own set of issues to deal with but first and foremost should be consideration of the effects such decisions will cause on the masses.

The last thing markets need are stock prices imploding causing mass hysteria. It is fear that drives courage and those that are complacent will suffer most as the shock could render people immobile relying on Government to continue to provide the means of subsistence living.  The truth hurts, as it is imperative to be prepared!  It seems the world is colluding not for the benefit of Mankind but for the destruction of our way of life.