Meanwhile, same old with a twist, US Durable Goods were up 0.2% vs. expected <0.5%> early in the week, giving the USD Index another boost.  Unfortunately, the economic outlook seems uncertain as Fed Policymakers support more interest rate hikes as the outlook for growth remains bleak for Q4. American GDP came in at 2.1% in Q2 as expected as pressures on households mount. Jobless Claims are down to 204k from 215k in August but keep in mind with the state of affairs people are taking on second jobs to pay for their lifestyle or medical bills. Live to work rather than work to live. Be respectful when a 90-year-old serves your hotdog at the ballpark.

In Canada, we have a housing issue and government would rather support Ukraine and Nazi sympathizers rather than our people. The bond market continues to rally breaking a key support level therefore signifying that interest rates will continue to rise unabated. As I mentioned last week, they refrained from raising rates to give people a sense of false hope. This is psychological warfare. This situation is far from being resolved and it will take leadership to take responsibility rather than continuing to pass the buck!

Consequently, spending will come to a trickle and most likely investment in housing and other parts of the economy. Governments can’t continue asking for more money, it won’t help unless they manage all situations properly.  When we have three consecutive quarters of zero to negative growth, the economy is classified as being in a recession. In my opinion, we have been in a recession for a prolonged period of time. Reality is quickly approaching for the multitude.

Renewal notices are starting to mature. Mortgages will rise from less than 2% to between 6-7%, if lucky and you qualify, otherwise your amortization will rise from 25, 30 or greater than 50 years, keeping people slaves to the banker. Keep in mind, that the rate might sound fairly cheap but the reality is that so much debt has been accumulated that the effect will be destructive this time around with many abandoning the dream of home ownership. 

Canadian Gross Domestic Product (GDP) came in at 0.0% (equates to no growth) vs. expectations of (0.1%) whereas the US Personal Consumption Expenditure Index increases at a nominal pace (0.1%). Furthermore, Oil Prices fall hard below the  $90/barrel. The outlook for the Cad$ feels bleak as it quickly turns below the 0.74 cent level. After the USD Index dipped below the 106.0 level, we are above again.