It has been my contention that the economy is slowing down more than the media says and that people, even people with means to spend, are cutting back. I think the slow-down is real and it is here now. If you are rooting for a rout of the Liberal Democrats, then this is what you want. A slumping (double-dip recession) economy, going into the fall elections, will prove to be too much for the incumbents.
Last night, Susan and I went out to dinner with friends. Our reservations were at one of our favorite restaurants, an upscale establishment that is always packed, always. If the place was 25% full, I would be surprised! There was no apparent reason for this – beautiful weather, nothing out of the ordinary going on. We talked about this over dinner. Then today, Sunday morning, we went out for breakfast at our favorite Bloody Mary joint, which is always packed to the gills and it was half empty. Now admittedly, this is a very small “sample” but I think the slow-down is real and it is here now.
Just like Groundhog Day (the movie), things keep repeating, over and over again. Another Option Expiry bashing and another immediate recovery. If you have been reading me for a while, you know the drill by now. Our business was smoking on Thursday and Friday. Our readers know that the secret is to buy the dips and they keep gobbling up more Gold Eagles, Gold Buffalos, Canadian Maple Leafs, Silver Eagles and silver mint boxes with gusto. I assume we will slice through $1,185 on Monday on the way back to a quick re-claim of $1,200. It’s impossible to predict with accuracy, but a lift-off could be at hand and if not now, then in the next 60 days. Remember, our target for January, 2011 is GOLD $1,650.
I urge you to make the time to read Jim Willie’s brilliant essay on the state of our economy, later in today’s blog. I go through a tremendous volume of excellent articles to find a few gems for you that really stand out, like this one. Willie lays it all out in his article, Kindergarten double dip economics.