Dear valued client,
More gains were locked in this week as Statistics Canada reported another drop in inflation this week; the CPI came in at 3.1% in October (compared to 3.8% in Sept. and 4% in August). Inflation seems to be subsiding globally as well; for instance, the U.K., which reported a CPI of 10.1% at the beginning of 2023, saw inflation come down to 4.6% in October. The downward pressure interest rates have been exerting on global markets is poised to alleviate sometime in 2024.
At the beginning of the week, Israel took over the Shifa hospital in Gaza. Usually, an attack on a hospital is a war crime, but not if it is being used as a military command center. On Wednesday, Israel’s cabinet approved a 4-day ceasefire, during which Israel will halt its military offensive in Gaza in exchange for Hamas freeing “at least” 50 hostages. Israel said it would extend the pause in fighting for an extra day for every 10 additional hostages released. In addition, 300 trucks will be allowed to enter Gaza from Egypt for humanitarian aid. The deal was brokered by mediators in Qatar where Hamas leader Ismail Haniyeh lives. Reports from several news outlets indicate the first group of Israeli hostages were released this afternoon. Prime Minister Benjamin Netanyahu said the war against Hamas would resume after the truce expires.
In international news, Argentina elected a new radical libertarian President, Javier Milei. In an effort to combat the 140% inflation (yes, you read that correctly) the country is experiencing, Milei plans to completely overhaul the public sector by cutting spending by up to 15% of GDP. The new President also expressed the intention of dollarization – the process of switching out the local currency for the U.S. dollar. In an ideal world, dollarization would reduce the country’s historic inflation and eliminate the power of the central bank. (A country’s central bank controls the money supply. If the money supply increases, the value of the currency decreases – the definition of inflation).
These measures, in theory, would give citizens more purchasing power (stronger currency and lower taxes) and a higher standard of living. Milei’s plans face several governmental obstacles, but they are nonetheless encouraging to the Argentinian populace. “The human society is the extension of the individual. Therefore, we really want a radical change, if we want a better world, we need to change individually.” – Samael Aun Weor
Have a terrific weekend,
PW
