Listen carefully to any politician, especially in Canada as the first words uttered from their mouths when speaking are;
1) “I want to be perfectly clear” or
2) “Let me make myself perfectly clear “

Now let me make myself perfectly clear, I am tired of listening to the bullshit spewing out of their mouths! 

The markets wait patiently for Thursday’s Fed speakers and Friday’s Personal Consumption Expenditures Index (PCE). Data will provide the evidence and guidance they seek.

Meanwhile, the waiting period for tariffs being imposed on Canada and Mexico is expiring. 

On the southern border, the USA is looking for the Mexicans to impose tariffs on China, as Trump looks to dismantle the Silk Road to markets established by China globally. The Chinese, provide the financing and ultimately control the economy of the country they deal with. Plus it looks like the supply of fentanyl is of grave concern coming through both borders. 

Mexico is going to have a trade deficit of <-$3.8B> down from a surplus of (+$2.567B) in December. This is a significant turnaround. As a result, unemployment rises to 2.7% from (2.4%) as core inflation jumps to 3.63% from (3.1%) and Core inflation YoY to (3.74%). 

In Canada, the economy is already in a recession and the Bank of Canada is projecting a Depression. Printing money and borrowing to alleviate short-term pain for long-term disasters is the only option for those in power who care not for the people and country but for themselves. They point to positive news items like Automobile sales rising, but as was alluded to in previous writings, the sales are based on financing at 6% or greater for auto loans to a population already strapped with exuberant taxes! 

Click below and you will understand the nature of the beast especially when it comes to capital projects. Cost over runs and delays are the outcome and the taxpayer is always left on the hook. 

https://www.facebook.com/share/r/18Dv9jyB9G/?mibextid=wwXIfr

The 30-day pause is about to end and volatility in the currency markets is about to become heightened.  The CAD$ slips well below the 0.70 cent level with more erosion to come. Just look at the snowbanks as they melt, it is a reflection of our currency. 

As interest rate policies diverge, between Canada and the USA, Precious Metals regressed, Gold from new all-time highs of USD$2956/oz, and Silver dipped below USD$32/oz waiting for more data and direction. The question most concerning is, is there Gold in Fort Knox? Imagine where the price will be if, in fact, the audit shows there isn’t any there anymore.  I think people will start melting their gold teeth as this could be a significant moment of relevance. 

On the other hand, another contributing factor to our weaker CAD$ is that the price of oil has slipped toward the USD$68/B level. Keep in mind that oil is the biggest variable in the inflation fight and as walls of tariffs are imposed, energy will need to come down to offset the inflationary effects. 

Also, Trump will influence OPEC to bring production up and prices down while reducing environmental bureaucracy to continue drilling. Also, he will demand restitution from the $350B spent in Ukraine on a war that he states, should never have happened. On Friday, Zelensky will be signing an agreement to supply America with Rare earths. 

The USD Index slips toward the 106.0 vicinity as the expectations for interest rates to fall might be as early as the June meeting. In Canada, expect another 0.25-0.50% cut to come sooner as the cost of living is going to skyrocket once again when the imposition of a 0.60cent/litre carbon tax will be imposed on gas come April 1st. This is the time when people will need to band together and strike a united front from those who are loyal to elites to make sure we own nothing and remain happy! Enough is Enough!