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’ve got a lot of Christmas shopping to do this weekend, so here’s an espresso edition of Black Coffee for your holiday enjoyment.
Off we go …
Credits and Debits
Debit: This week the Fed raised short term interest rates a measly 25 basis points, getting them off the zero-bound for the first time in seven years. In fact, it was the first time the Fed raised rates since 2006.
Debit: Of course, the Fed seems to be raising rates at the worst possible time as the struggling economy seems to be on the verge of keeling over. Unfortunately, it’s too little, too late because the Fed should have raised rates many many years ago.
Debit: Since the Janet Yellen announced the rate hike, the stock market, which has been a big beneficiary of the Fed’s zero-interest policy, has not taken it well: the S&P suffered its worst two-day decline since September and the Dow dropped 350 points on Friday alone. What a surprise. Not.
Debit: One hundred years ago, Argentina was the seventh-wealthiest nation in the world, but in 1946 Juan Peron turned it toward socialism — and for the most part, it’s been downhill ever since.
Debit: How far has Argentina fallen? Well, after the Argentine peso was devalued by 30% on Wednesday — in essence making everything 30% more expensive overnight — the country is now number 60 (give or take). I bet they’re crying in Argentina now.
Debit: If you think Argentina has fallen a long way, just wait until the US dollar faces its day of reckoning. I can assure you that Americans will be significantly worse off financially than they are today. Scoff all you want — but it’s coming, folks. It’s coming.
Credit: The good new is there are ways to protect yourself from currency devaluation; for example, Argentinians whose savings are in precious metals didn’t lose any of their purchasing power this week. And you can take that to the bank. On second thought — don’t. You’ll never see it again.
Credit: Believe it or not, even the alleged founder of Bitcoin — which is touted as a safer alternative to fiat cash — sold $85 million worth of his digital-currency alternative in exchange for — wait for it … gold bullion. Hmmm. Maybe Bitcoin isn’t so safe after all.
Debit: Finally … Speaking of dubious products, I see that cans of bottled Canadian air are flying off the shelves in China. Uh huh — air. Don’t laugh; anybody remember pet rocks? And for you wiseacres out there, no, I’m not referring to gold.
Credit: You know, the canned air that the Chinese are buying supposedly comes from the Canadian Rockies. I wonder if the company selling the stuff will soon be offering ‘diet’ air from Toronto. (No, I’m not sure what that means exactly, but I think there’s a joke in there somewhere.)
Credit: Then again, the Chinese aren’t the only ones who are crazy — Americans have been avid buyers of air for decades. The only difference is, instead of cans, our air comes in bags that also contain a handful of potato chips.
The Question of the Week
[poll id="92"]
Last Week’s Poll Result
What is your budget for Christmas presents this year?
- $101 – $500 (34%)
- $501 – $1000 (27%)
- $100 or less (19%)
- More than $1000 (13%)
- Bah, humbug! (7%)
More than 1000 people answered this week’s survey question and slightly more than half of all respondents had a Christmas present budget of $500 or less this year, while 2 in 5 were going to spend more than $500. For what it’s worth, it looks like my family will end up spending close to $1000 this year.
By the Numbers
In case you were thinking about buying your true love any or all of the gifts in the 12 days of Christmas this year, you might want to reconsider:
$34,131 The total cost of all the gifts mentioned in the final verse of the song.
$7 Price increase in 2015 for a partridge in a pear tree. This modest gift costs $215 this year.
0.6% Increase in the total price of all 12 gifts from last year.
0.2% US inflation rate in 2015, according to the government consumer price index.
$155,407.18 The total cost of of buying every item mentioned in the song for all 12 days.
$13,125 Cost of the most expensive gift on the list: seven swans-a-swimming.
$58 Cost of the least expensive gift on the list: eight maids-a-milking.
$7553 Cost of nine ladies dancing. Apparently, it pays to get off the farm and onto a stage.
$5508 The going rate for ten lords-a-leaping. Who says women are paid less than men?
Source: PNC
Other Useless News
Here are the top — and bottom — five Canadian provinces and territories in terms of the average number of pages viewed per visit here at Len Penzo dot Com over the past 30 days:
1. Yukon Territory (2.67 pages/visit)
2. Manitoba (2.17)
3. Quebec (1.92)
4. Alberta (1.77)
5. Ontario (1.62)
9. New Brunswick (1.39)
10. Nova Scotia (1.33)
11. Newfoundland and Labrador (1.28)
12. Northwest Territories (1.20)
13. Prince Edward Island (1.13)
Whether you happen to enjoy what you’re reading (like those crazy Canucks living on the frozen Yukon tundra, eh) — or not (you hosers living on Prince Edward Island) — please don’t forget to:
1. Click on that Like button in the sidebar to your right and become a fan of Len Penzo dot Com on Facebook!
2. Make sure you follow me on Twitter!
3. Subscribe via email too!
And last, but not least …
4. Consider becoming a Len Penzo dot Com Insider! Thank you.
(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 me at: Len@LenPenzo.com
After reading my article describing 41 reasons why I’ll never loan you money, Not Making It left this comment:
Hi Len, I just had to write you. I read your article and I rolled on the floor laughing! Then I read your article on why I ought to be able to make it on $40,000 per year and I wasn’t so amused.
Good — because I wasn’t trying to be funny.
I’m Len Penzo and I approved this message.
Photo Credit: brewdaily.com
Len,
Yellen did it! I didn’t think she would have the rocks to do it. Probably a big mistake since the last two days of trading the Dow was down over 500 points, so I guess the PPT was issuing in action. After looking the world over I still think the Dollar will hang in there until 2017-18. I think once the Renimbi is made a reserve currency things will happen much quicker, even though they are printing as fast as we are I believe they will eventually back the currency with Gold. I read they have been stocking up Gold since the 90s, so I’m pretty sure they have much more then the minuscule amount they are reporting. Hope we still have a few more years to prepare, I want more metal!
Jared
It’s impossible to predict when the reset comes — but when it does, it will occur very rapidly. It’s better to be two years too early than two minutes too late.
Len,
I have noticed expiration dates on bottled water, I didn’t know water expired. If I was to prep now for a few years down the road wouldn’t my canned food and bottled water be out of date? Maybe I’m confused on this, is there a expiration date on these items?
Thanks for your info.
Jared
Water doesn’t go bad, but its shelf life may be shortened depending on the type of plastic bottles it is stored in. Polyethylene-based plastics (#1, #2, and #4) are all suitable containers for storing water — my water bricks are #2, which is the best plastic for long-term storage. According to Trusted MD, “To be certain that you are choosing a bottle that does not leach, check the recycling symbol on your bottle. If it is a #2 HDPE (high density polyethylene), or a #4 (low density polyethylene), or a #5 PP (polypropylene), your bottle is fine. The type of plastic bottle in which water is usually sold is usually a #1, and it is only recommended for one time use.”
How do you know what number your plastic containers are? It is printed on the containers themselves!
Canned food will last for decades if stored in a cool dry place; although there will be some loss of nutritional value, and there may or may not be minor degradation in color and taste. The exception to the rule is acidic fruits and veggies like pineapple and tomatoes, as the acid will compromise the can over time. By rotating your stock, this doesn’t have to be a problem, however.
If you store your canned food in a place that gets hot during the summer, you can expect the lifetime of your canned foods to be reduced — but it will still be better than nothing in an emergency. Again, rotation makes that moot.