Senior Managing Editor of The Freeport Society
Possibly the craziest thing said this week must be from Kellogg’s CEO: “Let them eat Corn Flakes for dinner.”
The mainstream media has had a field day with this, comparing it to Marie Antoinette’s infamous “let them eat cake.” Admittedly, that was the first thing I thought of when I heard this comment as well.
Unfortunately, it seems that Gary Pilnick has painted a target on his back, and angry citizens, tired of inflationary pressures – that our government keeps telling us aren’t really all that bad – have decided to take their frustrations out on him.
He’s not wrong, though. Cereal is a perfectly acceptable option for dinner. Of course, the reasons behind people being forced to eat breakfast food for supper are disturbing. And the lack of honesty and awareness out of our “leaders” is down right sickening. But, when Charles and I – our entire generation, in fact – were growing up, cereal for dinner was welcomed… even a treat more often than not.
Because Gary’s from our generation, we’re going to cut the guy some slack.
On the other hand, Wendy’s gets no grace from us.
You’ve also likely heard the news that Wendy’s plans to introduce “dynamic pricing.” That’s the PC way of saying “price gouging.”
The plan is to increase the price of their food during busy periods, like the lunch rush.
They’re spending around $20 million to install digital menu boards that will update prices throughout the day.
If you’re unlucky enough to get hungry during a peak time… you’re going to have to fork out more (pun intended).
The only good news in this story is that this dynamic pricing is still a year out. It takes time to install all those digital menu boards.
Regardless, this is utter insanity!
Has the company’s CEO, Kirk Tanner, lost his ever-loving mind?!
And if the “resilient” American consumer accepts this BS by continuing to buy Wendy’s, which other companies will follow suit?
This is not a welcome development. It makes me even more grateful and relieved that The Freeport Society exists to help our members survive and thrive this Age of Chaos. If you’re not yet a paid member, please watch this video now.
Speaking of “resilient” consumers, earlier this week, Charles wrote about the changes he noticed recently on a trip to Baltimore. He flies… a lot. Until this latest trip, he hasn’t received any upgrades to business class, even though he has more frequent-flier miles than God himself. This time around, though, he got three upgrades out of four flights.
Is this anecdotal evidence of a shift in the economy?
Maybe.
He put it to Freeport Society members to share any changes they’ve noticed.
Mr. MacArthur, a “Private Investment Banker,” answered the call. He says,
I work with and for the owners of business who, in my mind, are the backbone of the economy. They may even be the “canaries in the coal mine” in terms of what is both going on and what may be expected.
Many firms have deferred the plans for any kind of expansion or new equipment acquisition. The future prospects for revenue growth are just too unsure or unclear. If I am not on the phone, it does not ring. This has never happened before in 40 years of serving these firms!
Three local banks in Southern Connecticut are so concerned about deposit drain and a lack of new business that they have fired many of their Loan Officers to cut costs. (Of course they have also “cut off their noses”… but that is another story. First, fire your salesmen. Yikes!)
Stress is omni-present throughout the land due to the choices we may be “given” in Washington to guide us through what are seeming like very increasingly complicated problems, especially abroad. This stress does have a direct effect on the willingness of owners to expand, do what they do.
We have worked hard at creating many of our problems with wrong headed and inconsistent policies. We are playing tiddlywinks while others are playing three dimensional chess!
Thank you for your insights, Mr. MacArthur. Very wise words.
If you’d like to share your thoughts, offer feedback, or ask questions, please email us at [email protected]. This is a society. We encourage and embrace open communication. Without it, this endeavor cannot work.
Coincidentally, retailers are now doubling down on their warnings that U.S. consumers may rapidly be reaching their limits. While the data show that the broadest measure of economic output rose at an annual pace of 3.2%, the numbers coming out of the big companies tell a very different story.
This is naturally an area of concern that we’re watching closely, with plans in place to survive and thrive with the right investments.
For today, though, let’s catch up on what we covered this week…
Why the NYPD’s Robot Dog Is Important to Our Financial Future
Inflation is looming large. Finding our way out is the tricky part. Perhaps putting our trust into a dystopian-looking robot dog is one of the many answers to that problem. Read more here.
Did Something Change – and Can We Profit?
Insight usually comes with a good anecdote, and this is what we’re diving into with China. Despite “record” holiday travel buzz during Chinese New Year, a closer look determines it’s not as impressive as it seems. Full essay here.
We Can’t Bring a Chainsaw to D.C. – but We Can Do This
Javier Milei proposed the audacious idea of enforcing a monthly budget surplus in Argentina to tackle their hefty debt. So why haven’t we taken notes? Let’s dig in here.
Looking Ahead
Pop some popcorn because next week will be a show. Fed Chair Jerome Powell is testifying before Congress on Wednesday and Thursday, and later that week we’ll hear comments by three Fed presidents.
Naturally, there will be an abundance of sound and fury signifying nothing as Congress and the White House attempt to negotiate something more than a stopgap spending bill.
Will anything truly noteworthy be revealed? Charles has his doubts. But if nothing else, we might get a little more clarity as to when we should expect rate cuts to start.
Before signing off for today, I want to leave you with one parting quote…from President Henry Harrison, who is unfortunately best known for the shortest presidency ever. He was in the White House for a mere nine days. Before succumbing to pneumonia in 1841, he said to Vice President John Tyler:
Sir, I wish you to understand the true principles of the government. I wish them carried out. I ask nothing more.
How our presidents have lost their way…
That’s a wrap on this week.
To life, liberty, and the pursuit of wealth.