As we approach winter, the Europeans are getting another kick to the teeth. Before the war in Ukraine, almost 50% of their energy was imported from Russia. The unelected bureaucrats located in Brussels continue to make arbitrary decisions supporting a proxy war, even if it means the European Union’s (EU) own demise. Since the Americans under Biden blew up the Nord Stream pipeline, a 50-year dependency on Natural Gas has been severed to Europe. Now the energy has been redirected to China with an agreement lasting the next three decades.

Meanwhile, Germany was Russia’s biggest customer. Once the supply was cut, 196k businesses have closed since. The manufacturing hubs have shrunk, and their biggest employer, Volkswagen, has severely reduced employment, bonuses and wages. The chemical sector, which once dominated, has been decimated, and energy companies are relocating abroad. If the most powerful country, Germany, within the EU is struggling, what does it mean to the rest of Europe? The EU could be classified as a corrupt cartel with a flag. 

Voices of decent are growing louder as countries like Denmark, the Netherlands, Hungary, and Italy are becoming increasingly concerned about their loss of sovereignty and decision-making. The EU headquarters in Brussels promotes policies that are contrary to the benefit of the Union, as we see a similar game plan happening in Canada. 

Mass illegal migration leads the way, creating chaos and lawlessness, while threatening to erase the uniqueness of culture, economic relevance and individual identity. The EU leadership tackles decent by introducing draconian laws to stifle speech. Recently, they imposed a €140million fine on Elon Musk’s X platform, which has quickly become Europe’s most trusted news source. At what point will the descent convert to revolt? Attacking, the farmers could be the catalyst as push comes to shove. 

Click here for another opinion of Europe Imploding: 

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Today, the Bank of Canada (BOC) leads the way in announcing its monetary policy. The BOC left the bank rate unchanged as expected @2.25%. Consequently, Canadians are dammed either way. 

After the 2008 subprime lending debacle, the Americans saw an implosion in the markets, losing trillions of dollars and witnessing the collapse in the markets. In Canada, the government saw the BOC slash rates to historical lows by kicking the proverbial can down the road. The BOC chose to substitute real productivity & real wealth creation with asset inflation combined with consumer debt. 

Canada was praised for averting an economic crisis, homeowners felt rich, and our banking system was praised. But in reality, a crisis can’t be avoided; it can only be delayed by disguising it. Numbers don’t lie. 

A renewal debt wall with 60% of mortgages coming due between the end of 2025 and 2026 has arrived. The Variable Rate Mortgage product was the most popular as it came with discounts and attached household lines of credit. It was like having free money, and when the money ran out, the line was there to buffer the shortfall. Even more advantageous, when the credit cards were also maxed out, it was simple to visit the mortgage broker and consolidate your debt with added fees and longer amortizations to keep the payments affordable, because the value of the property also increased.  

The BOC left rates unchanged, but with little consolation to Canadian households whose debt ratio has risen to the highest of all G7 countries, @ 174.9% versus our American counterparts @ 100%. Consequently, with similar policies as those in Europe, mass immigration has seen more people and less productivity, watching Canada’s GDP falling to 2014 levels. 

Click here to listen to Renewal Hell.

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Lastly, we await the Federal Reserve decision this afternoon. The Fed is expected to cut rates by 0.25%, but the animosity, combined with a power clash between the Fed and the Trump Administration, could we actually witness a surprise and no move actually happen out of spite? The markets would go bonkers if the expected didn’t happen with the USD reversing course. 

Presently, the USD Index sits in the 99.0 vicinity as we wait. Precious Metals are waiting for their cue as Gold stands in the USD$4200/oz vicinity, and Silver hit a new record high over USD$61/oz. On the other hand, oil slips below the USD$58/B range and the CAD$ is in the 0.72 cents range only because of overall USD weakness. Reality has to hit the CAD$ soon, “Buy on the rumour, sell on the fact”. Meanwhile, Bitcoin rises back above the USD$92/coin mark after some crazy volatility.