After the indulgence, I felt a little bloated, just like the markets. The main point of contention, causing some volatility, is the reaction to the dismissal of one of the members of the Board of Directors from the Fed. She has been accused of mortgage fraud. Her term is set to last until 2038, and a lawsuit has been filed challenging her removal. The markets view it as an attack on the independence of the Federal Reserve as an Institution, but are they really part of the government?

Click below and determine for yourselves, as history shows a different reality of what we have been led to believe. 

https://www.facebook.com/share/v/15znShBEXa/?mibextid=wwXIfr

With a mixed bag of information, focus remains on the decision upcoming in September. More importantly, the Federal Reserve Chairman, Powell, in his speech at the Jackson Hole Symposium, effectively endorsed the market sentiment that a rate-cutting phase was in play. 

The markets reacted to the words “adjusting policy” as code for rate cuts. This came after Durable Goods Orders fell by <2.8%> in July vs the expected <4%> and the previous <9.3%> in June. Seemingly improving but with room to grow. 

In Canada, Mr. Net-Zero Carney flies all over Europe on Canadian Military planes to feel relevant, producing more carbon than the average Canadian expels in a year. The good thing is that we have forests that capture the carbon and convert it to oxygen. His dilemma is that he could be sucking wind in the concrete jungles of cities he visits on the taxpayers’ dime. I can only hope he doesn’t come back after giving another $2B to Ukraine, total to date $22 billion, as we still have over 2 million people visiting food banks and hospitals with waiting lists! Please explain the justification for spending without the input of Canadians?

Meanwhile, the USD Index rose toward the 99.0 level due to the uncertainty and the feud involving the Federal Reserve. The motivation of the Administration is to get rates down so that their progress in opening up trade through the imposition of tariffs helps generate the economic stimulus needed. The fact remains, lower interest rates will lower the value of the USD, thus making American products more competitive abroad. The hope is to improve sales and homegrown production, creating the jobs and returns envisioned. 

Evidently, Precious Metals rise due to the prospect of lower rates and the hostilities between the Fed and the Administration. Presently, Gold rises toward the USD$3400/oz, whereas Silver struggles in the USD$38.50/oz vicinity. On the other hand, Oil slips below the USD$64/B range, and the CAD$ is above the 0.72 cents level despite 38,000 manufacturing jobs leaving Canada due to tariffs. The Canadian people have been duped by a chameleon who sold us incompetence masked by educational credentials. The electorate was sold a false bill of goods! Can’t wait for Parliament to open its doors and the truth to force changes. Europe will also be volatile as confidence motions are scheduled for September 8th in France and October in the Netherlands. Bitcoin remains in the USD$112k/coin vicinity.