It’s time to sit back, relax and enjoy a little joe …
Welcome to another rousing edition of Black Coffee, your off-beat weekly round-up of what’s been going on in the world of money and personal finance.
I hope everybody had a terrific turkey day on Thursday. I know I did! Due to the holiday, I have an espresso edition of Black Coffee for you this week. We’ll go back to the more traditional mug next week.
Here we go …
Credits and Debits
Debit: The US economy is doing so well, one in five American households celebrated Thanksgiving on food stamps this year. That’s absolutely tragic — and yet the mainstream media rarely, if ever, questions how this can be if the US economy is doing as well as the government advertises.
Debit: I’ve got to hand it to Janet Yellen and the US government’s plunge protection team; they’re doing one heck of a job. How else can you reasonably explain US stock market indices continuing to sit at or near all-time highs — despite falling commodity prices, diving interest rates, and a contracting world economy?
Credit: For example, this week the price of oil dipped to its lowest level in more than five years — and 40% cheaper than it was in June. It’s also the reason why the average price of gasoline in the US is now just $2.79.
Credit: In fact, the US pump price for regular unleaded has fallen for more than 60 consecutive days. Even my local corner gas station in Southern California dropped the price under $3.00 earlier this week. Hooray!
Credit: Despite the declining prices, OPEC announced that it would not curtail oil production. And that has some forecasters now predicting that gasoline prices will drop an additional 25 cents by Christmas.
Credit: Then again, before you get too giddy, keep in mind that those falling oil prices are also shining a light on the true economic picture, as Raul Ilargi Meijer puts it:“Without the multilayered veil of propaganda, spin, fixed data, bailouts and handouts for the banking system.” Unfortunately, it’s a shambles.
Debit: Without significantly higher oil prices, some analysts insist that the shale oil industry can’t compete with traditional producers. If true, that threatens to undermine the recent US oil production boom. It also portends trouble for oil shale investors. Uh oh.
Debit: By the way, it’s not just oil prices that are collapsing. Copper, which is usually a very reliable leading indicator of economic health, is at a four-year low too.
Credit: Is “Dr. Copper” — along with crude oil — signalling financial headwinds on the horizon that are even worse than the ones we’re currently experiencing? I believe they are — and they’re as loud and clear as an air raid siren. At least for those who are willing to pay attention.
Debit: That’s not to say that the fiscal shenanigans that have been going on since 2009 to keep the markets artificially propped up won’t continue; they will — until they can’t. The hard part is knowing whether that fateful day is still weeks, months or years away. But I’m betting sooner rather than later.
The Question of the Week
[poll id="36"]
Last Week’s Poll Results
What did you have for Thanksgiving dinner this year?
- Turkey (84%)
- Something else. (13%)
- I’m not sure. (3%)
More than 200 people responded to last week’s question and the scariest result is that 3% weren’t sure what they had eaten for their Thanksgiving dinner. Okay, okay … in fairness, I think most of those who said they were unsure answered the question prior to dinner being served. At least I hope that’s true.
By the Numbers
Here is a brief final look back at this year’s Thanksgiving holiday:
1621 Year of the first Thanksgiving; it was observed in Plymouth, Massachusetts.
90 Number of Native Americans who attended the first Thanksgiving. The ceremony, led Plymouth Colony Gov. William Bradford, gave thanks for a bountiful harvest.
65 Percentage of Americans who think eating Thanksgiving leftovers is more important than eating their regular Thanksgiving meal.
4500 The average total number of calories consumed on Thanksgiving, according to the Calorie Control Council.
1500 The average number of calories consumed on Thanksgiving due to pre-meal snacking.
Source: CNN
Other Useless News
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Letters, I Get Letters
Every week I feature the most interesting question or comment — assuming I get one, that is. And folks who are lucky enough to have the only question in the mailbag get their letter highlighted here whether it’s interesting or not! You can reach out to me at: Len@LenPenzo.com
This week I got a little Thanksgiving spam in my inbox from Brandy:
What’s it take to become a sulbmie [sic] expounder of prose like yourself?
Practice, Brandy. Lots and lots of it.
I’m Len Penzo and I approved this message.
Photo Credit: brendan-c
I live in a shale area and things have gone crazy. Housing prices are ridiculous–a house near me sold for about $33,000 four years ago. Now, it’s supposedly worth about 90. One bedroom apartments are renting between $700-1000 a month, which is unheard of in this area. Locals are being priced out of places.
A handful of new hotels have been built. New ones are being built and old ones renovated.
At first, we heard, “This is great. New jobs, more money here,…”. Nothing has changed. The city created its own sales tax last year due to budget issues and wants to raise it next year. They also want to start a “use tax” where people who work in the city pay 1-3% every pay just to use things like the roads. The oil folks don’t work in the city.
All of this where the average person makes $36,000 a year. Some of us are sitting back thinking about how ugly the fall is going to be. But everyone wants their shares…give me, give me, give me.