My Barber, My Tailor, and Breakfast on the Beach
What does that have to do with precious metals? It really has more to do with an economy that needs more money, and soon!
My Barber
I see my barber every three weeks. He was always fully booked weeks out. When I last saw him, I asked him how his business was. He replied, “slower than he ever remembers”. Men are waiting an extra week or two between haircuts. Someone at home is cutting their hair. He can’t raise prices for fear of driving his remaining customers away. And, of course, his costs are going up.
My Dry Cleaner
Here in South Florida, we get boatloads of Canadian snowbirds yearly. My dry cleaner tells me hardly any came this year. The exchange rate for Canadians is terrible. Add to that inflation, and the snowbirds largely stayed home. South Florida is missing this year’s Canadian (and European) seasonal visitors.
Breakfast on the Beach
The other day, I thought to myself, “I’m going to take a break from work and go down to the beach and have breakfast.” My office is only a few miles away. I get to the beach around 9:30 am. It’s a beautiful sunny day. Usually packed in February by vacationers, this morning I had my choice of parking spots right at the prime part of the beach. I go into the Deerfield Beach Wyndham, which has an ocean view, and there are only two other tables with diners in the entire restaurant. I asked my server how long she had been there – “Three and a half years.” “How is business?” “Terrible – the slowest in three years – I’m not making any money, and management is concerned.” Mind you, this is one of the most beautiful beaches in South Florida.
Conclusion
The Fed will ease. Monetary stimulus will come. The Treasury will continue to deficit spend. It’s an election year, and people are hurting. Gold will do especially well.
