TSX lower as Bank of Canada signals no interest rate hike in sight – May 29, 2018

Unless the Bank of Canada raises rates to show some strength, there’s nothing preventing the Canadian dollar from going into free fall. Interesting enough Bitcoin is still doing pretty well which to me serves as an indicator that Gold and Silver at least in Countries outside the United States might be going up in the very near future.

Personally, I have no idea why The Canadian dollar is where it is, some say it’s because in comparison to other countries Canada is still a great investment, in my opinion, what’s keeping the Canadian dollar so high is the expectation that Canadians will continue to pay off their debts, while getting into more debts.

Canadians, for the most part, have been paying off their debts, therefore, the Bank of Canada can continue to kick the can down the road. The problem with this approach by the BoC, however, is there’s no getting out of it, meaning I personally see the Canadian dollar in full retreat mode until there’s either a massive crash or a massive collapse. Now, if I were behind the BoC I’d wait for a disaster to happen elsewhere so when the collapse happens in Canada I’d be able to blame an outside entity.

The problem, however, is that Canadian manufacturing has been replaced by the public sector and when a crash happens and there are a lot of people working for the government and many more wanting to work for the government it’s very hard to jump-start the engine of prosperity as Government employees will be doing everything in their power to protect their own paychecks at the expense of the private sector taxpayers. Hopefully, this crash will happen with an actual conservative running the country. God forbid this collapse happens under Trudeau’s Liberals.

Interesting times ahead.