Western society lives in a world where cost factors dictate the amount of profitability a corporation can make. Once you reduce the cost, it’s just common sense you will make more money. This is achieved in a very simple and direct way. The introduction of Genetically Modified Ingredients (GMOs) has been used to improve yields and shelf life without real in-depth studies on the effects on the human genome, over time.  Further, animals for human consumption are being injected with MNRA technology that seems to have failed miserably in the human trials during a so-called plandemic.

Nonetheless, the Europeans, especially the Italians will not allow GMOs or any MRNA technology to infiltrate their food supply. An absolute ban! It is something that needs to really be considered in North America for the benefit of society rather than corporate interests. It is time, regulators and safety boards aligned themselves to protect consumers. It is not acceptable that they turn a blind eye by lining their pockets. It is about time that this issue becomes a national debate to protect future generations from the unknown consequences on the human anatomy.

Today, I will start the week preserving pickles,  a tasty treat. There is nothing better than Ontario-grown cucumbers and produce that comes fresh from the garden or organic farm. On the weekend, the family will take part in the tradition of making tomato sauce. Over the years, I have seen families alter the production but at the Magnoli household, it has to be done Momma’s way or the highway!

It starts by buying from a reputable distributor, of course, the inspector (Mom)  has to give her approval. Then the tomatoes are washed, and dried by laying them out on tables and turning them on occasion. Once we get together on the day chosen, the production starts by de-seeding, boiling, then crushing. The water is filtered and more pulp is recovered. Nothing goes to waste. Once prepared, the sauce is poured into the sanitized jars with homegrown basil added to the sauce.

I was once responsible for tightening the jars until blisters appeared, I thought it was stigmata, with tomato sauce scattered everywhere, it heightened the effect. Lastly, once the finished product is placed in the drum, covered with water, the gas burner brings it to a boil so that the jars remain with an airtight seal.  After the clean up,  a traditional meal of eggs in tomato sauce and spaghetti is enjoyed by all. The family traditions continue!

Speaking of pickles, the Central Bankers are in a huge pickle themselves. A dilemma, scratching their heads and wondering why inflation is still persisting after the aggressive stance to raise rates exponentially. Applying old assumptions to present problems may not be the solution. I have said it repeatedly over time, inflation will not subside until government spending is curbed and central banks stop printing excess amounts of money. Short-term gain, longterm pain!

This week we saw USA Retail Sales were up 0.7% in July with expectations of (0.4%). Meanwhile, the Canadian Consumer Price Index (CPI), a bellwether of inflation came in at 3.3%, higher than the (3%) expected and still higher than the 2% target. Definitely worrisome as the Bank of Canada(BOC) stipulated that there won’t be any further rate increases for the rest of the year.  Another nail can be placed in the borrower’s coffin if they do raise rates again. The bank rate sits at 5% bringing variable rates above 7%.

Keep in mind, it doesn’t sound like an exceptionally high rate but when the value of a home is on average over $ 1 million versus buying a home at $500k with interest rates at 12%, the cost becomes greater to carry the mortgage. Also, be cognizant of the fact that people’s incomes aren’t necessarily rising at the same pace as inflation.

Therefore, using the attached home lines of credit or credit cards, to ease the short-term pain can ultimately become an albatross, choking people by forcing them to relinquish their homes.  Where have we heard this perverse ideology before, “we will own nothing and be happy”? Sounds like a consorted effort to actually see this happen on a global scale, in my opinion.

Today, the Chinese reported a slowing down of their economy. They are still very dependent on America for most of their exports while still considered a developing Nation under the guise of the World Trade Organization (WTO). As a result, China’s Central Bank took a preemptive strike to slash its key lending rate impacting global Oil demand. As a result, the price of Oil plummeted over 2% toward the $80/barrel level. This could be a sign that things could be turning but not necessarily for the better. The USD Index catapulted above the 103.0 level based firstly on the positive Retail Sales result, assuming that the Fed could raise rates again in September and secondly, by the fear factor for what just transpired in China. Consequently, Precious metals continue to slip as the USD remains strong with Gold about to breech below the $1900/oz level while Silver remains suppressed around the $22.50/oz level. Have a great weekend as we enter the stretch run of summer!

If interested, this is something we should all be concerned about, as we are what we eat.