Nonetheless, the beat of life continues and there is always something that will impact your lifestyle in a different way, shape or form. In the world of money, we look toward statistics that are a result of the economic data which society seems to always be influenced by. In Canada, this week, the headline number was the Consumer Price Index (CPI) showing a sizeable drop to 2.9% in Jan., vs (3.3%) expected and previous (3.4%) in December. It’s like after the lovin, what goes up, eventually comes down. 

As I mentioned many times previously the price of Oil is very influential in skewing the data. Exclude gas and core inflation remains at 3.2% but down from (3.5%) in December. The Power is in Money and to those that control it. Unfortunately, reality is felt by those who live it. Technically, with this headline number, the Bank of Canada (BOC) could lower rates while maintaining this charade of actually doing anything proactive. To make a real impact in the lives of families, the reduction of rates by one quarter or half of one point, will do absolutely nothing but delay the inevitable. The decrease in rates has to be substantial. 

Either way, the consumer is ultimately responsible for their actions. If faced with a satisfactory retraction in interest rates, will the consumer become wiser? Will they pay down the debt or accumulate more to serve their need for everything and anything they can afford? Conversely, if the BOC or any other Central bank lowers rates significantly, the reaction would be the equivalent of watching pigs eat from the trough. Non-stop financial gluttony! The more credit is extended, the more an individual will spend, to avoid any discomfort in the present moment. Consequently, it will only prolong the inevitable disaster when it comes to personal finance. The more you make the more you spend, and the fear of missing out (FOMO). Consumerism is a disease because many have a difficult time avoiding the latest fad, and not wanting to feel alienated from what’s trending.

Another positive development is the decision made against those advocating Climate Change and sustainable development. Potentially putting a kink into former Canadian Central Banker Mark Carney, who also headed the Bank of England. He now leads asset-management firm Brookfield’s expansion into social and environmental investing and acts as a UN special envoy on climate action and finance, promoting carbon credits and taxes while associated with the World Economic Forum (WEF). His latest book “Value(s): Building a Better World for All could be used as a fire starter. They cannot continue to support a lie and two of the biggest financiers in the world, worth Trillions of $$$, JP Morgan and Black Rock have pulled away from the excessive cost of this deceitful investment. Now it’s time to tackle the government’s and their ludicrous non-scientific claims. When they attack the wood-burning pizza oven they have gone too far! 

Further, one of the biggest concerns is still inflation and the Producer Price Index (PPI) Core was up dramatically  +0.5% vs previous <-0.1%>. To reiterate, if government spending and printing of money don’t come under control we are headed for disaster. The USD Index remains heightened around the 104.0 level affirming that the Fed cannot lower rates as inflation remains stubbornly high. 

The FOMC minutes display a cautious approach to lowering interest rates when seemingly the labour market and their synopsis say that the economy is rolling along. Jobless Claims were lower at 201k from the Previous (213k), but is this a true reflection when people are taking on secondary employment to make ends meet? 

Then there is Germany, showing a huge slowdown in growth of only 0.2% vs expected (1.3%). Their economy shrank <-0.3%> and entering the 1st Quarter of 2024, the outcome should result in a full-blown Recession. On the other hand, The Bank of England (BOE) states the condition for a rate cut is unfolding. Really? They have systematically destroyed the economy with their induced methods of manipulation and injecting inflation by increasing the money supply exponentially. To reiterate, debt loads are too high and lower rates will encourage more borrowing to maintain an unrealistic lifestyle for many, “You will own nothing and be happy”. 

There is a lot of uncertainty unfolding as the USD Index remains steady. Precious Metals remain firm as Gold sits around $2020/USD/oz, and Silver approaches $23/USD/oz. On the other hand, Oil is up above $78/B, keeping the Canadian dollar stable around 0.74 cents level. Concentrate on keeping yourself healthy and strong. Move your body and eat properly, there will be a lot of volatility upcoming manage your health and control your emotions!