Perspective is everything, in a world that is full of disinformation, it is difficult to grasp what is true or false, especially when listening to mainstream media.  Journalistic integrity has been flushed away. Yet when things seem so negative there is always a light at the end of the tunnel. Hope is around the corner when you can focus on the positive with respect to your life and finances. 

I met a very successful individual the other day.  Regardless, of what is happening in our society by those with perceived power. It was refreshing to listen to his perspective.  Opportunity is knocking everywhere, there are no limits. Creating ideas is where the money is. Working for oneself is empowering as well as liberating. Always sleep with one eye open and be prepared to take the chance to reap the rewards of a calculated risk. So many wealthy families remain on the sidelines with millions in the bank. Many have been enriched by the steep valuations in real estate and are holding empty buildings in the downtown cores of cities with no worry in the world. A spending spree will happen and keep in mind when the time is right, one mans junk will become another mans gold.

Of course, when you are in a strong financial position it will be easier to weather the storm. Consequently, I need to play the devil’s advocate because not all of us are of equal stature. The Bank of Canada just increased the Bank lending rate by 0.75% in Canada,  bringing the bank rate to 3.25%. They have been very aggressive in increasing interest rates to try and curb the hyperinflation they created. Printing money for excess government expenditures especially during a so-called pandemic might have been unnecessary. There was absolutely no accountability nor transparency yet the taxpayers are always on the hook.

Traditional methods are being applied to fight the fight but in reality, it will always be the less fortunate that won’t be able to weather the pending financial storm.  Now the focus will turn to the Federal Reserve and the ECB to see by how much rates will rise without impacting the economy as a whole.

In the United States, the Federal Reserve seems hell-bent on continuing to raise rates unabated. The talk is tough and surely another 0.50-0.75% increase will come in September. But keep in mind, that the Mid-Term Elections are pending in November and the Administration will do whatever they can to provide the illusion that all is hunky-dory.  I just wonder if it’s only the price of gasoline that matters to the American people or don’t they eat or buy manufactured goods anymore? The target of 2% inflation is only an illusion because of cheap labour from China and Eastern bloc countries that allowed prices to remain low. Expect higher wages and inflation to ravage on whereby the Central Banks will not be able to control the outcome. Just a thought, never say never but is it possible they are planning the collapse of the financial system to introduce a new world order as well as the possibility of a digital currency coupled with a universal income? Keep in mind, that the Trillions of dollars accumulated in Government deficits will never be able to be paid back.

On the other hand, The European Central Bank (ECB) also are looking to tighten monetary policy by talking about a 0.75% basis point increase as well. Unfortunately, the Europeans are in a deep recession initiated by American sanctions against Russia, over the Ukrainian war. They also don’t have the financial wiggle room as an energy crisis has ensued from the implementation of sanctions. They have done nothing but enrich Russia and choke off Europe for the energy they so desperately need. The cost of living is out of control and as winter approaches many will be freezing unless they find an alternative source of heat. Europe is being pushed back into the Dark Ages solely on the failed policy of the West to maintain an image, knowing full well they cannot win this war.  Egotistical leaders have put their own needs before the people they were elected to serve.  Absolutely shameful! There will be riots in many European cities forthcoming and hopefully accountability to those that are complicit in mismanaging public office.