The lesson of working hard was part of my upbringing. Never take things for granted, be cautious of those who offer unrealistic expectations when investing and always read the fine print. I was told my Grandfather looked at the land as the ideal investment by preaching,  “people multiple, land doesn’t”. The land will produce a return to sustain your life and your family. Nothing more important than eating, drinking and working to stay strong and productive.

Speaking of trust, today the World leans on the aftermath of the decision made by the Federal Reserve. Traditionally when inflation was a factor affecting the economy, the solution was simply to raise interest rates aggressively until it came under control. This is exactly what they did by raising rates (0.75%). Unfortunately, the past should only be used as a guide which may not necessarily translate into the solution we seek today. The economic dynamics have changed and most of these inflationary pressures have been created by governments’ excessive spending promoted by the Central Bankers’ ability to print money endlessly without worrying about the consequences. Short-sightedness for political theatre?  Short-term gain for long-term pain!

Today, USA Philly Fed Mfg Index drops to <-3.3> in June, expected (+5.5). On the other hand, USA Housing Starts dropped <14.4%> in May while Building Permits are down <7%>. A little better news, Jobless Claims are down to 229k from (232k)? Personally, it seems that the government policies that have been initiated are deliberately orchestrated to create the hyper-inflation we are witnessing with the intention to try and mitigate the damage by imposing the looming recession through these aggressive initiatives. Maybe its’ time to take up smoking? As Vince@owlmortgagte.ca would always say, “There are always more people in the world that need money than have money”.

After last Friday’s higher-than-expected inflation rate The Bank of Canada discussed concern for indebted households in a rising interest rate environment. This caused a  reversal in the currency from near the 0.80 cent level to presently around the 0.77 cents vicinity. Momentum shifted dramatically because the market translated the discussion as if there could be a delay in the expected interest rate increases forthcoming. Now there is a concern about how actual Canadian households will be affected? Many (Average Canadians) could be a paycheck away from being forced out of their homes? 

Is this creating the housing affordability people are seeking? Despite Canada adding 39.8k jobs vs expected (30k) previous (15.3k), the focus was on USA CPI data measuring inflation. It came in at 8.6% vs expected (8.3%) in May. The USD Index exploded higher testing the 105.0 level. This gave the Fed justification to continue raising rates aggressively which they did. But at what cost to families already burdened with the high cost of living? It is ironic, that we have people with Ph.D.’s and superior intelligence guiding the elected or appointed yet no one can solve the economics of the world? 

In Canada, leadership seems to breed incompetence needing to look no further than air travel.  Canada is in crisis as Airports and confusion over mandates are causing horrible delays or cancellations. There isn’t enough staff to handle the traffic volume, and these delays are costing individuals a lot of money. 

Click below to understand the dilemma many today are experiencing. Is anyone taking responsibility? Incompetence seems to be the result when friends are appointed to Ministerial positions rather than qualified individuals who understand the dynamics of the position they are responsible for.

https://twitter.com/ryanwhitney6/status/1533797008200310785?t=lUXYfSi_SLzgetsEwdmUzg&s=08

https://nationalpost.com/opinion/rex-murphy-for-the-sake-of-his-integrity-marco-mendicino-should-resign

The European Central Bank (ECB) looks toward July to raise rates and introduce a new tool in their fight against inflation even after the German ZEW Economic Sentiment Index came in at <-34.3> in June. Meanwhile, the Bank of England (BOE) increased rates by 0.25% and left the door open for further rate hikes. Even the Swiss National Bank (SNB) increased rates from <-0.75%> to <-0.25%>, still making the bankers rich with negative interest rates. It costs you the holder of cash to keep money in the bank?