Unfortunately, the first day of Spring ushered in a new leak that sprung in the banking world. The American Administration along with World Central Banks as well as governments stated in unison that all bank deposits would be protected. But Investors beware, no protection is guaranteed, as the bigger banks will swallow the victims for pennies on the dollar robbing those with interest in these companies from any recourse.

This seemed to have had a calming effect as Credit Suisse and another French Institution, collectively set the stage for another HUGE tsunami of financial catastrophe. There was $17B worth of bonds getting wiped out in the UBS takeover of Credit Suisse. One would think panic would set in and the markets become roiled.  Instead, the DOW was up over 300 points for two consecutive days. They tried expeditiously to bring calm and isolate the issue by explaining it was not a systematic failure but one based on mismanagement.

In Canada, inflationary data showed a drop to 5.2% from the expected (5.9%). My concern is that it doesn’t matter what they say, it’s just optics trying to justify their policies. Be honest and use common sense, what has really changed other than the price of gas coming down slightly saving you $10 on a full tank? Smoke and Mirrors! I got confirmation of the opinion I shared from one of the top Mortgage Brokers in the country. Mr. Vince Gaetano, from Owl Mortgages, explains the data with conviction.

Click below to listen:

https://www.instagram.com/reel/CqEac9HAPOq/?igshid=MDJmNzVkMjY=

I couldn’t have said it better or agreed more., he is very knowledgeable and always calls a Spade a Spade.

Meanwhile, The Europeans raised rates by 0.50% with the reasoning that they had to in order not to lose credibility. Nonetheless, they are contributing to the acceleration of more banking failures for their own existence, not the betterment of those they influence, especially the people of Europe.

The Fed is on tap today and will likely raise rates (0.25%) this afternoon but their ability to maintain USD strength is diminishing as the economy and inflation is not what they say, the failure of banks could continue. Inflation will not go away unless government spending is curtailed.

Presently, the  USD Index remains around the 103.0 level. Anticipation remains heightened as to what will transpire next in their statement. The Canadian Dollar slips below the 0.73 cent level even though Oil regains the $70/B level. This past week Oil slipped below $64/B a few weeks ago perched above $80/B. Keep in mind, the Cad$ is a reflection of USD strength or weakness and remember that Oil is one of the largest influencers in the inflation calculation. It can be manipulated to achieve desired results.

Lastly, Precious Metals speak volumes about the current state of affairs. Gold acts as a hedge against inflation and USD devaluation. But this week, another Black Swan scenario occurred as fear set in as banks started to fail. We have been warned time and time again, but we ignore the reality of what is to come.