I will not spend much time discussing what has transpired in Canada or focusing on the election results. What has happened is just mind-boggling, and I will need to save my brain cells to cope with the minefield of upcoming legislation and taxation that will affect us all. 

Nonetheless, what will continue is the open border policies of bringing immigrants into our country with the goal of increasing the population to 100 million people. Don’t get me wrong, immigration is necessary for a country with a low birth rate, but it’s the vetting process that will become the downfall of Canada. 

Besides the potential of economic benefits, the cultural aspects that aren’t congruent with our own could become a barrier to assimilation. As is already evident in communities, differences in ideologies can erupt into violent extremism without respecting the laws in place. Then leniency seems to be the method of the courts to deal with such issues. There are no deterrents in place to make the criminal element fearful of consequences.

Consequently, when we speak of Trump and Tariffs, all of a sudden, the fear of god encapsulates a population. People became fearful of what exactly? Losing their employment is noteworthy, but losing our way of life and identity is not? 

The Canadian economy is 90% dependent and intertwined with the United States of America. The policies established by the Americans can only be resolved through negotiations. When there are systemic issues with influence from other Nations like China, their reverse dumping of products through Canada is set to destroy the competitiveness of the generational industries. This becomes a huge problem with control and national security, the most important aspect. 

Canada has let its guard down as politicians have been compromised. This has been stated by CSIS, our Intelligence wing of government, yet it lands on deaf or corrupt ears while our military is too busy trying to operate the tampon dispenser in their male washrooms. On the other hand, the Americas seem to be rising to defend against the threat. 

The election results of Canada have kept the country in the left turn lane. Indicative of what the policies in place and direction we are headed in, is reflected in the Gross Domestic Product (GDP), which contracted by 0.2% in February after a 0.4% growth in January. Look for the Bank of Canada (BOC) to cut rates at their next meeting. The U.S. economy’s GDP also contracted by 0.3% as imports rose significantly to avoid tariffs imposed on April 2nd; this was the main reason for the result. 

Further, ADP employment rose 62k vs expected (108k) in April. The climate and impact of tariffs could also be responsible for the hesitation due to uncertainty. Yet Personal Spending was up 0.6% even though Personal Consumption Expenditures (PCE) shows inflation has eased, coming in at 2.6% from expected (3.0%) in March. 

On Friday, Non-Farm Payrolls are expected; the result could be the ammunition needed for the Federal Reserve to start lowering interest rates. Once the pendulum starts swinging, the USD could be sacrificed, yet the government will state it supports a strong dollar policy. Presently, the USD Index remains in the 99.50 vicinity. But a weaker dollar will enhance American exports once these newly negotiated agreements are in place. 

Complimenting the expected growth and rise in inflation from the imposition of tariffs is the lower cost of Oil. At this moment, the price of Oil has dipped below the USD$58/B level. The lower cost of energy, which is the largest variable in the inflation fight, should allow inflation to remain stagnant. On the other hand, the Canadian Dollar will always be a factor of USD strength or weakness. Despite the fall in Oil, the CAD improves above the 0.72 cents level because of an announcement of a pending meeting with Trump and the end of the election.  A Dog always has its day! 

It seemed like yesterday, inflation was rampant. The German Annual Consumer Price Index fell to 2.1% in April from the previous 2.2%. The Central Bankers want us to believe their methods are working, when in fact, the ravages of inflation remain with the high cost of living. It is becoming increasingly difficult to be free of the bondage of debt.