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The Currency Korner        
By -The FX Specialist-
Philip J. Magnoli

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FX Specialist Insight
-brought to you by Philip J. Magnoli
 An expression of thought; October 11, 2022
——–The Currency Korner——–

The Way I See Things

Volume 10 Issue 2

“Unless someone like you cares a whole awful lot, nothing is going to get better. It’s not.”            – The Lorax
 

 
Good morning,

Autumn is a spectacular time of the year and those who live in the northern hemisphere are somewhat blessed. The changing of the seasons allows us to witness the spectacular colours as trees and plant life transition into the stage of dormancy. They shed their leaves while preparing for the curse of winter.

In Canada, we experience the shift in weather much sooner, therefore the cultivation of most foods happens earlier. This could be a reason why we celebrate Thanksgiving before our American neighbours. Canadians indulge twice in a year just because they can. 

It has been my mission over the last few years to learn the processes of preservation. Being of Italian descent, dinner consisted of 7 courses almost every day. It’s like attending a wedding everyday yet no one was getting married. It was second nature to enjoy the different tastes. We simply took them for granted. Most of the preserved items, like green tomatoes, pickled eggplant, tomato sauce, sundries tomatoes, cured meats of different varieties and a whole lot more became everyday staples. Preparation was second nature to our parents. There was no need to write down the recipe because once the items were cultivated the job just got done.

One day I woke up, probably after licking my fingers while dreaming of one of my Mothers meals, I realized that we would miss these flavours when our parents aren’t around any longer.  I have become highly motivated to acquire knowledge and maintain these traditions. The beautiful part is that my daughters are also motivated to learn.

Speaking of Preservation, how about our monetary system and the way society functions? Everything is based on the value of money and commerce is dictated by a person’s ability to pay for any particular good or service.

This morning data released showed that the Producer Price Index (PPI), a measurement of inflation, subsided to 8.5% from (8.7%)  in September, expected (8.4%). Looks like a dent in a catastrophe. Consequently, you can bet real inflation is double that number. Keep in mind an increase of .50 cents on a $5 item equates to 10% and a $1 increase on an item (cucumber) valued at $2.99 from the previous $1.99 is a 50% increase.

The rising price increments might seem insignificant but the result is less purchasing power overall. Nonetheless, the Federal Reserve is contemplating raising rates by 50-75pips at their next meeting while The Treasury Secretary, Janet Yellen maintains the strong USD policy. The USD Index exploded back above the 113.0 level, from recently below the 112.0 level. As a result, currencies have weakened on USD strength alone. The Canadian Dollar is a reflection of the USD move, heading toward the 0.72 cent level or lower. The price of Oil is highly correlated to the Cad$ value and the recent rise above the $90/Barrel level was a result of unexpected production cutbacks by OPEC. A direct slap in the face to the Biden Administration trying to lower gas prices before the Midterms in November. Presently, Oil is slipping toward $85/Barrel as I write.

Meanwhile, Germany’s GDP projection is < -0.4%> for 2023, heading to a full-blown recession if not already in one. The European Bankers will set off another round of Quantitative Easing(QE) bringing more liquidity and inflation to drive people to bankruptcy. In my opinion, the result of what is transpiring is deliberate. Some would say this is a conspiracy theory but since 9/11, interest rates were basically at 0%.  People were enticed by cheap money to buy, buy, buy! Not based on need but rather greed, just because they could without ever thinking about what happens when the cost of money rises.

Now we are entering, a pivotal stage of transition whereby many could be over-extended. Household and Credit Card Debt has reached record levels.  Each and every quarter percent increase will cause individuals to take from Peter to pay Paul. This will happen until it can no longer be accomplished. Ultimately, the only way out of this endless spiral of debt will be to succumb to bankruptcy or the intentions of what the Central Bankers and Elites actually want, a new monetary system based on digital currency. They have developed this already and now are setting the table to implement it once the masses are desperate to concede and avoid financial pain.  Click below and listen, I can’t make this stuff up but it’s coming, like it or not.

https://www.kapwing.com/videos/6346e9d9c0447a1a9fa19789

Lastly, Canada will hold a Public Inquiry into the handling of the Emergency Act during the Truckers’ Protest. This could cause a damming situation for the acting Government with the potential to dissolve Parliament and head to new elections. The outcome could have a significant impact on the Canadian Dollar, so buyers beware. Enjoy, the Fall (no pun intended but I would say it’s genius). Hopefully, we can all learn the art of preservation and apply it not only to foods but to our lifestyles and what makes our societies great!

Pass it on as I am always available to provide the most advanced foreign exchange services and knowledge, efficiency, expertise and above all integrity. Referrals are welcomed and very much appreciated.

… Don’t Forgetta bout Me!!!!

Foreign Exchange Service is my Specialty.
Direct# 416-992-7765

Contact Me Direct via email at phil@aloris.ca

Don’t Forgettaa bout Me!!!!

Sincerely,
Philip Magnoli – The FX Specialist-

Direct:     416-992-7765 
Email:    phil@aloris.ca          

Opinions expressed within are that of the author alone and do not reflect in any, way, shape or form, any Company I choose to associate myself with. This is the intellectual property of Magnoli Financial Services Corp. www.donfilippo.ca 

 

 
 
 

 
 
 

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