Good morning,
The hockey season has begun, so my Fantasy team is ready to engage for the upcoming season. I had the pleasure of hosting the draft and preparing breakfast for the owners of each franchise. After the draft, one of my friends, a carpenter by trade was so appreciative, he helped me install a door to my outdoor shed. Keep in mind, I was up until 2 am the previous night and woke up at 6 am to prep. But the adrenaline kept me motivated as the job had to get done. Together we accomplished the task at hand, he left around 5 pm and I worked until 9 pm to clean up by putting the tools away. Once I got inside, I couldn’t move and slept like a baby.
Fantasy Hockey is one thing, but reality is another. Today the World has become torn apart by Warmongers. Billions of dollars are being pumped into Ukraine after Billions were spent on a Pandemic that has led to economic catastrophe for millions. Treasuries around the world have expanded their debt load while inflation is running wild and interest rates continue to climb.
Consequently, as people scramble to deal with hyperinflation, hope to have a job tomorrow to pay their accumulating debts. They try to protect their families but if there is no support they will lose their homes. It seems that leadership has lost its moral compass and the additional taxes being imposed are ludicrous to families that are struggling mightily.
More importantly, as all these side shows are playing out and distracting the masses, a real economic war is brewing. That is a currency war for dominance as the benchmark currency of the world. Presently, the USD is the barometer that measures economic conditions. The World reacts to issues that directly impact the value of the USD vs all currencies.
In times of war, conflict or catastrophes, investors flock to the USD, referred to as a flight to safety. Regardless, of the state of affairs within the country or the fact that 40% of the money supply increased within the last year alone, the market players and individuals invest in USD because America is viewed as a sanctuary. A place to find freedom and peace or being wilfully blinded as a safe haven.
Unfortunately, the USD currency abandoned the Gold Standard in the early 1970s. Since then the printing of money has been commonplace. When the Twin Towers were brought down in 2001, The Federal Reserve acted immediately to lower rates to zero percent. When the Sub-Prime Lending fiasco happened in the early 2007-2008 period, Quantitative Easing (QE) expanded to buy up what was referred to as toxic assets, to prop up the economy so that the system would not feel the repercussions of mismanagement. Over the course of years, loans became easier to acquire as the cost of financing was cheap. People could carry more debt and pay without consideration of the cost.
Presently, with hyperinflation setting in and debt loads expanded, people today are robbing Peter to pay Paul. Money is not backed by any tangible asset other than the Government that prints; “In God We Trust”. The more they print, like any commodity, the less it will become of value. The American Government is now $31 Trillion in debt.
On the other side of the World, the Chinese and Russians have joined to collectively create a new currency backed by rare earth, precious minerals and metals. The Russians recently annexed four regions within Ukraine which are very rich in minerals and natural resources. On the other hand, China with complete control of Hong Kong, are now setting their sites on Taiwan. Recently, executives from Chip manufacturers have all resigned and left China without semiconductor chips for the manufacturing of a wide variety of products. The table is being set for the invasion of Taiwan as it is the biggest Semiconductor chip manufacturer in the world. Note, in the last 2 years, the largest manufacturer (TSMC) from Taiwan has spent $100 million to establish a presence in America, specifically in Arizona. They are going to invest $12 Billion plus create 1600 full-time jobs. It’s like they are preparing for what I also alluded to previously as if those in the position of leadership already know what will transpire regardless of what you or I think.
This is a game changer in how the world will settle payments in the possible near future:
https://youtu.be/msWdTkygw9Y
Lastly, the Jobless Claims report shows 214k claims vs expected (230k) the USD Index heads toward the 113.0 level again. On the other hand, Oil inches back toward $86/B giving Cad$ a little boost toward 0.73 cents. Also with Inflation in Canada only down marginally, the Bank of Canada is poised to raise rates aggressively next week by 0.75%, hang on to your hats! The New British PM has tendered her resignation so look for some fireworks coming out of Europe besides the pending escalation of hostilities in Ukraine. Hopefully, common sense prevails and our way of life is restored in the vision we want and not dictated by those in positions of power. United We Stand, Divided We Fall!
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