Good morning,
As a young man, I was once told you can measure the importance of a person when you look at their keychain. The more keys one would have the greater the sense of responsibility. Foolishly, many of the keys on my key chain have become useless, as a result, looks alone can be deceiving.
After we saw last Friday’s much better than expected Non-Farm Payroll (NFP), The US economy added 339k jobs vs expected (190k) the discussion of another rate hike sounds imminent, pending for June. Consequently, the unemployment rate went up to 3.7% from (3.4%, a 53-year low). While today Jobless Claims rise to 261k the highest level since October 2021. Something doesn’t make sense yet here we are.
Patiently, we await more data, especially with respect to the fight against inflation. Meanwhile, the pompous ECB President, Lagarde, suggests there is no clear evidence that underlying inflation has peaked. Of course, it hasn’t peaked when Central Bankers keep printing money and governments continue to spend money like water gushing from a mountain spring.
Suppose you haven’t figured it out by now. In that case, they are systematically trying to destroy the economy as per capita debt mounts and ultimately people will succumb to the powers that govern. Those with the economic means will be able to withstand the initial pressures but eventually, when legislation is passed by people in power, those that were silent will now come to a rude awakening. This is no conspiracy, it’s just history trying to repeat itself. Money is power and with power comes control.
The USD Index dips toward the 103.40 level early this morning looking like the drama of the Debt-Ceiling-Crisis would relieve the upward trajectory. Now focus will shift to the upcoming Fed Meeting on June 14, keeping the markets guessing while trying to keep the USD viable with perceived strength. Volatility will continue as the drama unfolds.
The Eurozone retail sales are down <2.6%> vs expected <1.8%> YoY in April yet they want to continue raising interest rates? The world is led by incompetence and outright corruption!
Yesterday the BOC announced its decision on interest rates. They increased interest rates another 0.25%, in my opinion, just another nail in the coffin for many carrying debt. Their reasoning is that the economy is overperforming, really, with inflation taking its toll. Canadians have the highest debt-to-income ratio in the G7 as many rob Peter to pay Paul.
Nonetheless, Oil slips to the $72/barrel mark even though Saudi Arabia announces a cut of 1million barrel/day in production. On the other hand, Precious Metals surged today on overall USD weakness, a trend that will continue to provide a hedge to the devaluation of money that is eroding from inflation, while making the cost of living difficult for the average family.
The Canadian Dollar approaches the 0.75 cent mark and the upward trend can continue in the short term. Gold hits $1970/oz and Silver pops up above $24/oz vs the USD. Be safe, live within your means, and be accountable to yourself and your family while being aware of your surroundings. Distractions are created so that people continue chasing their tails, living to work, rather than work to live.
I think I love you!