Where has the time gone? We are approaching the end of September and what a month it has been. Summer seemingly was delayed until kids could go back to school, Boo Hoo! A plethora of events have been occurring, with significant impacts that could initiate change not only to lives but also to economic interactions. Change is probably the hardest thing to accept because many people are too complacent, and develop a routine and when change is initiated, the result more often than not is anxiety, coupled with stress.

One of the most significant changes occurring within our society is the implementation of Artificial Intelligence (AI). Even the Bank of Canada (BOC) Governor, Tiff Macklem, recently said that the adoption of (AI) could add to inflationary pressures in the near term.

AI, combined with a more shock-prone world, means, “inflation could be more volatile than it was 25 years before the pandemic. Central banks need to be closely attuned to how AI is affecting inflation, both indirectly and directly.”

“AI is expected to boost productivity; when labour productivity is rising, the economy can grow more quickly without causing inflation.”

“AI could destroy more jobs than it creates, and people may struggle to find new opportunities; this is a concern for us all.”

“We don’t have much evidence that labor is being displaced by AI at rates that would lead to declines in total employment.”

“AI adoption could also lead to financial stability issues; operational risks could become concentrated in a few third-party service providers.”

“There is huge potential for central banks to use AI to understand how consumers and businesses are behaving.” Red flag to your liberties.

Ultimately, as a society we need to ask, if this advanced technology (AI) can teach itself to be independent, could it perceive humans as a threat to its existence, potentially ushering in the destruction of humanity? It could significantly alter the way commerce and economies function. Keep in mind, the movies foreshadow the future and what was once science fiction could become a stark reality.

Another interesting note was the decision by the BOC to not pursue the Central Bank Digital Currency (CBDC). After 5 years of study and a massive amount of money spent. They decided not to pursue this alternative monetary system. 

In conversation with a very intelligent young woman, let me call her Testa Rossa, she might have hit the nail on the head. Her sound observation was a great example of thinking outside the proverbial box. She explained that the elites have been profiting tremendously from the control of money since its inception. Mostly, from fractional lending and the control of interest rate policies. Profits are made at every turn and when in a position of losing money, it is the taxpayer that takes the hit. Nonetheless, they control the consumer. 

If you think about it, the elites have been able to control the masses while imposing a vision of how they want to see the world work. The introduction of Bitcoin, as a digital alternative might have been a test, to gain a reaction. It was introduced to become a way of imposing total control on revenues and expenditures, designed to take away cash as well as independence. 

Promoted to governments as a way of increasing government tax revenues, the ledger is precise. The creation of multiple digital coins has developed trillions in value, all out of thin air. History has always used Precious Metals as the basis of money, now all of a sudden, after the Gold Standard was abandoned, there is no substance behind the value of money. With digital coins, value is determined by supply, demand and a lot of hope.

The competing BRICKS Nations use Precious Metals and Rare earths to determine value. Consequently, Western nations continue to print money continuously. The bottom line the more of an item there is (Money Supply) the more diluted it becomes. I repeat, the only way to curb inflation is to stop the massive printing by Central Banks and cut excessive, wasteful government spending. Buy gold or lose your shirt! 

But the most significant observation is that by introducing an alternative monetary system, the bankers will be cutting their own throats. A new form of barter will develop where the bankers will be cut from the equation. They are starting to realize that people will find an alternative method to transact rather than use a third party system that could implode the existing economic infrastructure that currently exists. 

Now that the plug has been pulled on lowering interest rates , the question is how aggressively will they fall. In Canada, weak GDP numbers could force the BOC to cut rates aggressively with another 0.50% rate cut upcoming. The banks are trying to lock clients into longterm mortgages, please resist and shop by consulting with a reputable Mortgage Broker. In America, most definitely expect another 0.50% rate cut prior to the election. The results, will determine what occurs heading into the new year. Europe, has its own issues whose future lies amongst the unelected bureaucracy pulling the strings for everyone, even if the shoe doesn’t fit.