How about the freezing temperatures in November during the Santa Claus parades as our parents would line us up on the curbside, some on ladders to get a better view.  Blankets and hot chocolate were essential. My Dad who would never buy himself a coffee but on occasion during special occasions he would splurge to make all the kids happy.  Eating popcorn, chestnuts, candy apples or sugar swirls from the Popcorn Man on his specially built bike was like a ‘WOW’ moment.  A distant wonderful memory that information overload has destroyed.  The kids of this younger generation already know seven days in advance the weather forecast and what’s for breakfast, lunch and dinner. It’s like Scrooge has taken away the anticipation of the unknown and the element of surprise.

Speaking of Scrooge, the highly anticipated Federal Reserve announcement is expected this afternoon. Rather than dreaming of Sugar Plums dancing in your head and money following from your bank account, it looks like the brakes are going to be applied. The Fed will set the agenda for the upcoming year and put a damper on what have been overly exuberant markets. With Inflation at a 40 year high,  the end of Quantitative easing by doubling the purchase of toxic assets from $15B will be coiled to $30B, until April. Then starting to raise rates gradually from May onward.

In Canada, it seems like our economy all of a sudden went from rags to riches or milk and honey with syringes. The Trade Surplus ballooned to a 10 year high above $2B and the unemployment rate dipped to 6.0%. This came from factory assembly lines producing vehicles for export as computer chips arrived, plus the export of energy, namely Oil. These sectors alone provide Canada with the most revenue for sustaining healthcare as well as other social programs.  Yet the Government in charge is hell-bent on destroying the goose that lays the golden eggs. Recently, the Federal Government has granted the flexibility to the Bank of Canada (BOC)  to reign-in inflation keeping it between 1-3%. Yet it is Government spending that has got us in this mess, to begin with. Nothing in this world is free!  The BOC is an independent body and does not need guidance from the Federal Government as its responsibility is to the economy. It allows functionality so all can prosper within.

In Canada, the assumption is that interest rate hikes could be between 4-5 times in 2022. When announced initially, the loonie surpassed the 0.79 cent level. All will depend on the variables of Oil, employment and the overly zealous abuses of power while the continuance of fear-mongering as a tool suppresses the spirit of all, especially the sheep who don’t question anything.  

In this continued Pandemic environment, it will be difficult to find a balance whereby people remain employed and businesses solvent. The Big is getting bigger while the small is being gobbled up, chewed and spit out. An omen for the hard-working independent business person devoting a lifetime to control their own destiny. Now the American Dream is being threatened in almost every aspect of life. Billionaires pocket nearly $70 Billion in stock option proceeds, while those less fortunate, not able to invest will scrape up enough to pay their expenses and live another day.

Presently, the USD Index climbs over the 96.50 level as USD strength is based on the assumption that interest rates will rise sooner than later. This has muted Precious Metals as Gold dips below the $1770/oz and Silver Below the $22/oz level. On the other hand, Oil remains around $70/barrel and the Loonie slips to the 0.7750 cent level. Every dog has its’ day! It boils down to which Central Bank makes the first move to see their currency gain or lose ground as we move forward.