It’s time to sit back, relax and enjoy a little joe …
Can you believe it’s August already? Hard to believe summer is just about half over.
Okay, off we go …
Credits and Debits
Debit: Americans who have read the fine print in their annual Social Security statement know that the listed benefits aren’t sacrosanct. Depending on future changes in the laws governing those benefits, they could be cut by 22% — or more.
Debit: On the other hand, that’s probably the least of your worries if you’re counting on Social Security for retirement. According to David Stockman, his math shows that the program’s finances are in such dire straits that the entire system could be bankrupt within 12 years. Clearly, David is an optimist.
Debit: Meanwhile, after more than six years of holding interest rates at the zero-bound, the Fed is strongly hinting that they plan to begin raising them next month. The question is: Can the “Weekend at Bernie’s” economy handle it?
Credit: Then again, if the economy is as strong as some people would have us believe, then interest rates should have risen years ago — but the reality is this has been the worst economic expansion in more than 70 years.
Debit: After all, if the US economy is as strong as the usual cheerleaders say it is, then how do they explain the latest Census Bureau data that shows one in three Americans between 18 and 34 still live with their parents or other relatives? Anyone?
Debit: And it’s not just adult children who have fallen on hard times; there are now more American kids living in poverty today than during the Great Recession. Yes, despite the trillions of dollars our politicians have added to the National Debt since then.
Debit: There are other signs of serious problems with the US economy, such as the collapsing rate of homeownership — it’s currently sitting at a 48-year low. And yet, home prices continue climbing. For now.
Debit: Needless to say, the second quarter US GDP results were announced this week and they were nothing to write home about: just 2.3%. Even so, the mainstream media spins it as good news. The question is, why?
Credit: Of course, not everybody’s drinking the Kool-aid. In fact, as analyst Dave Kranzler points out, the first quarter GDP was recently revised from negative 0.2% to positive 0.6% — despite plunging retail sales and manufacturing orders. Huh? Now you know why Kranzler calls the latest data “grotesquely deceptive propaganda.”
Debit: Speaking of deceptive propaganda, you know we’re living in a Bizarro world when the Wall Street Journal claims that owning gold is “an act of faith.” Heh. Unbelievable. So tell me: How can holding real money that’s free of counterparty risk be considered an act of faith?
Credit: Apparently,the author of that Journal hit piece, Jason Zweig, believes fiat currency that can be conjured out of thin air in infinite quantity is as real and secure as the Rock of Gibraltar. Right.
Credit: Psst, Mr. Zweig: See … unlike paper instruments such as stocks, bonds and fiat currencies, gold can never default, or become worthless. Five thousand years of history proves it.
Debit: You can bet there aren’t many depositors in Greece who still believe in the sanctity of cash — at least when it’s in the banking system. That’s because Greek banks are going to keep their draconian withdrawal limits in place for many more months.
Credit: One thing is certain: the US Mint sold more physical gold last month than they have in any month since April 2013. Who knows? Maybe Moody’s recent announcement that Puerto Rico’s default probability is approaching 100% had a little to do with that.
Debit: Strangely, at the same time that the US Mint was seeing record sales of physical gold, the price of the yellow metal hit a five-year low. No, really.
Credit: Now I know what you’re thinking, folks, but please … don’t be silly. There’s absolutely no manipulation in the precious metal markets! Nope. None at all. It’s just that the law of supply and demand no longer applies here — and, sadly, neither does the rule of law.
By the Numbers
Summertime is movie season. With that in mind, how many of the 10 biggest movies of 1995 (box office gross) have you seen?
1 Toy Story ($191.8 million)
2 Batman Forever ($184.0 million)
3 Apollo 13 ($172.1 million)
4 Pocahontas ($141.6 million)
5 Ace Ventura: When Nature Calls ($108.4 million)
6 Golden Eye ($106.4 million)
7 Jumanji ($100.5 million)
8 Casper ($100.3 million)
9 Seven ($100.1 million)
10 Die Hard: With a Vengeance ($100.0 million)
Source: Box Office Mojo
Last Week’s Poll Results
If you were looking for a new house, would you buy one with a pool?
- No (68%)
- I could go either way. (20%)
- Yes (12%)
More than 700 Len Penzo dot Com readers responded to last week’s question and more than two-thirds of all respondents said that they would avoid buying a home that came with a pool. I would too. Yes, they are a lot of fun, but they’re also a lot of work … and extra money to keep them running and well-maintained. No thank you.
The Question of the Week
[poll id="73"]
Insider Notes: My First Monthly Electric Bill with Solar Panels
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Other Useless News
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(The Best of) 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
Tara had something she wanted to get off her chest this week:
… Yeah, you’re full of hot air. Another blogger who thinks he’s a big shot and is going to tell the world how it is.
The only big shot around here is the Honeybee, and she reminds me of how full of it I am every day.
I’m Len Penzo and I approved this message.
Photo Credit: brendan-c
Well said Len,
I’m kind of depressed because I watched Paul Craig Roberts on USA Watchdog this week and he said he never realized how much control the Federal Reserve had over the world and he has a hard time seeing how this can ever end. He says it comes down to the fact majority of people (sheeple) believe everything the government and mainstream media
tell them. He said he thought the markets would have corrected this, but it seems the Fed can keep creating fiat as long as they want. He said the only thing he could see bringing the house of cards down was a conflict with Russia or China. It was a great interview however, I guess we will just have to keep up the good fight and hope that someday true economic principles will prevail!
Keep up the good work!
Jared
I saw that too, Jared. I too have been saying this can go longer than we think because the bankers’ bag of tricks is deep.
I look at PCR’s comments as a sign of capitulation, despondency and depression that one would normally see near the bottom of a bear market — in other words, it may be a sign that the bankers are actually near the end of their rope.
Who knows? All we can do is continue to prepare for the coming financial reset and the lower standard of living that’s in store for the US once it happens — and enjoy the last of America’s salad days while we still have them.
Sobering stuff, Len. We have a little cash hidden in our “oh crud” emergency spot. Maybe a gold coin or two should work its way in there, too.
If you ask me, there is no “maybe” about it, DBF. Buy a couple of coins now; when it comes to gold and (especially) silver … it’s literally the sale of the century right now.
Thanks, Len. You’ve convinced the missus and I — any recommendation on the type of coin to buy and/or from whom?
When it comes to gold, I prefer 1 troy ounce American Eagles, although I also have American Buffalos too. I avoid the smaller sized gold coins because of the higher premiums.
Although they both contain 1 full ounce of gold, the difference is the AGEs have a small amount of copper and silver in them for added durability; the Buffs are pure gold, and therefore a tad softer and so you have to handle them with kid-gloves to prevent scratches.
It’s all a matter of preference. Due to the copper content, the AGEs have a reddish hue to them that I think is beautiful. The Buffs are, of course, more yellow and gorgeous in their own right.
If you don’t have the spare cash to buy 1-ounce gold coins, then I would recommend you get started with 1 troy ounce American Silver Eagles. When it comes to silver (and gold), remember that buying in larger sizes (for silver: 10 oz bars or 100 oz bars, especially) gives you the advantage of lower premiums.
You can also get lower premiums by buying 1 oz generic silver (or gold) “rounds” — although I don’t prefer them.
I prefer going through APMEX. I’ve been with them for several years now, and they are the largest dealer around — and their customer service is second to none. The smaller dealers are risky because they have been known to close up shop unexpectedly, leaving some people holding the bag before their orders could be filled.
I’ve seen 4 of the top 10 summer movies…and sadly Ace Ventura: When Nature Calls was one of them. I can’t believe I just admitted that.
I’m guilty of watching Ace Ventura too, Jon. I’ve seem all of them except Pocahontas and Casper.
Len,
Thanks for turning me onto APMEX , I have gotten all my gold, silver and copper from them. Yes I said Copper, I believe even it will have some intrinsic value someday next to the rotting corpse of the Dollar. They have some beautiful Copper coins now. Hell, can’t go wrong with APMEX because that is where the Donald gets his gold! Why I can’t see this disastrous collapse being avoided I can’t think of a better president to lead us through it then the Donald, he is a believer in the Gold Standard.
You’re funny….